Country Synthesis Report Moving Out of Poverty: Understanding

The findings, views, and interpretations published in this report are those of the authors and should not be attributed to the SMERU Research Institute or any of the agencies providing financial support to SMERU. For further information, please contact SMERU, Phone: 62-21-31936336;

Fax: 62-21-31930850; E-mail: [email protected]; Web: www.smeru.or.id

Research Report

Sri Kusumastuti Rahayu

Vita Febriany

A report from the SMERU Research Institute in collaboration with the World Bank

FINAL DRAFT- To be submitted to the Global Team of Moving Out of Poverty Study

June 2007

Country Synthesis Report Moving Out of Poverty: Understanding Freedom, Democracy, Governance, and Growth from the Bottom-up

Indonesia Case Study: North Maluku and East Java

FINAL DRAFT: TO BE SUBMITTED TO THE GLOBAL TEAM

SMERU Research Institute, June 2007 i

Research Team

Coordinator:

Sri Kusumastuti Rahayu

Advisor:

Sudarno Sumarto Asep Suryahadi

Low Conflict Areas (East Java):

Palengaan Daja (Pamekasan District)

Ruly Marianti (Leader)

Wawan Munawar (Co-leader) Didit Wicaksana (Local researcher)

Mutmainah (Local researcher) Khoirul Rosyadi (Local researcher)

Suroso (Local researcher)

High Conflict Areas (North Maluku):

Gura (North Halmahera District)

Akhmadi (Leader)

Sulton Mawardi (Co-leader) Syahidussyahar (Local researcher)

Ervan Abdul Kadir (Local researcher) Nurdewa Safar (Local researcher) Muhlis A. Adam/M. Noor (Local researcher)

Branta Pesisir (Pamekasan District)

Ruly Marianti (Leader)

Wawan Munawar (Co-leader) Didit Wicaksana (Local researcher)

Mutmainah (Local researcher)

Khoirul Rosyadi (Local researcher) Suroso (Local researcher)

Gorua (North Halmahera District) Sri Kusumastuti Rahayu (Leader)

Musriyadi Nabiu (Co-leader) Salha Marasaoly (Local researcher)

Abdulgani Fabanjo (Local researcher)

Edy Nasriyanto Hatari (Local researcher) Muhammad Noor (Local researcher)

Banyupelle (Pamekasan District) Wawan Munawar (Leader)

Akhmadi (Co-leader)

Mutmainah (Local researcher) Khoirul Rosyadi (Local researcher)

Suroso (Local researcher)

Ari Ratna (Local researcher)

Soakonora (West Halmahera District) Sri Kusumastuti Rahayu (Leader) Musriyadi Nabiu (Co-leader)

Salha Marasaoly (Local researcher) Abdulgani Fabanjo (Local researcher) Nurdewa Safar (Local researcher)

Muhammad Noor (Local researcher)

Semampir (Probolinggo District)

Vita Febriany (Leader) Ivanovich Agusta (Co-leader)

Ari Ratna (Local researcher)

Heri Rubianto (Local researcher) Widy Taurus Sandi (Local researcher)

Erfan Agus Munif (Local researcher)

Idamdehe Gamsungi (West Halmahera District)

Akhmadi (Leader) Sulton Mawardi (Co-leader) Syahidussyahar (Local researcher)

Ervan Abdul Kadir (Local researcher) Edy Nasriyanto Hatari (Local researcher) Abdul Kadir Kamaluddin (Local researcher)

Bulu (Probolinggo District) Vita Febriany (Leader)

Ivanovich Agusta (Co-leader) Ari Ratna (Local researcher)

Heri Rubianto (Local researcher)

Widy Taurus Sandi (Local researcher) Erfan Agus Munif (Local researcher)

Kampung Pisang (Ternate City) Sulton Mawardi (Leader)

Musriyadi Nabiu (Co-leader) Ervan Abdul Kadir (Local researcher) Salha Marasaoly (Local researcher)

Edy Nasriyanto Hatari (Local researcher) Abdul Kadir Kamaluddin (Local researcher)

Translator:

Joan Hardjono Christopher Stewart

Kate Weatherley


SMERU Research Institute, June 2007 ii

ACKNOWLEDGEMENTS

We would like to convey our gratitude and appreciation to Deepa Narayan, Senior Adviser, Poverty Reduction and Economic Management (PREM), the World Bank, an initiator and facilitator of this research project— without her the Moving Out of Poverty study would not have been conducted. We are thankful to Patti Petesch, from the World Bank and Soumya Kapoor, research analyst, PREM, the World Bank, and Patrick Barron, Coordinator Post-conflict Program, the World Bank, for their technical guidance during the course of the study and valuable comments and suggestions.

We are grateful to all the community members, respondents, and informants who took part in the study and provided information that made this study possible. We appreciate the assistance given by the officials at district level and village administration, and to the community leaders who gave us their valuable time. We are grateful for the technical guidance and thoughtful input on data analysis from Louise Cord, Stefan Dercon, Lant Pritchett, Charles Tilly, Ashutosh Varsney, Michael Woolcock, and researchers from countries involved in the Moving Out of Poverty study who attended the Pre-GDN Workshop on Moving Out of Poverty in St. Petersburg, Russia, in January 2006. We are also grateful to the wonderful regional researchers who assisted SMERU during the fieldwork: Abdulgani Fabanjo, Edy Nasriyanto Hatari, Evan Abdul Kadir, Abdul Kadir Kamaluddin, Musriyadi Nabiu, Muhammad Noor, Salha Marasaoly, Erfan Agus Munif, Mutmainah, Ari Ratna, Khoirul Rosyadi, Heri Rubianto, Nurdewa Safar, Widy Taurus Sandi, Syahidussyahar, Suroso, and Didit Wicaksana. Finally, we thankful to all participants in a national seminar on “The Way to Move Out of Poverty” conducted on 10 April 2007 at SMERU office, Jakarta, for their constructive comments. Last but not least we would like to convey our appreciation to Joan Hardjono and Christopher Stewart for the many hours they spent translating the material for this study.


SMERU Research Institute, June 2007 iii

ABSTRACT

The study, Moving Out of Poverty: Understanding Freedom, Power, and Democracy, aims to determine which people have successfully moved out of poverty during a ten year period (1995-2005) and to examine the process of moving out of poverty in the context of the specific conditions most relevant to the dynamics of socioeconomic mobility in Indonesia—growth and conflict. The study used an integrated package of qualitative and quantitative methods, and was conducted in July-September 2005 in two provinces: North Maluku, a high conflict area, and East Java, a low conflict area. The study found that open stratification, good social capital, functioning local democracy, and improving information infrastructure have helped improve the prosperity of communities. However, non-functioning local governance and a lack of employment opportunities have hampered upward community mobility. Individuals who have successfully moved out of poverty tended to own assets and land in 1995, have access to information regarding government programs, live in a more peaceful community, and be supported by good local governance. Despite striking difference in conditions among areas, it can be concluded that agency factors

(individual and collective assets and capabilities) are more dominant than opportunity structure factors in helping people to move out of poverty and maintain their wealth. These include having capital like savings, inheritance, and credit; formal education; informal education and skills; various sources of household livelihood or income from permanent workers’ salaries; being highly motivated and industrious; possessing a strong work ethic; good financial management skills; honesty; and possessing a wide social network and connections. These factors are supported by

entering the workforce at an early age, migration, and utilizing freedom and power.


SMERU Research Institute, June 2007 iv

TABLE OF CONTENT

Page

RESEARCH TEAM i ACKNOWLEDMENTS ii ABSTRACT iii TABLE OF CONTENT iv LIST OF TABLES vi LIST OF FIGURES ix LIST OF ANNEXES ix ABBREVIATION x EXECUTIVE SUMMARY xii

I. INTRODUCTION 1

A. Background 1

B. Purpose and Scope of the study 1 C. Methodology and Sampling 3 D. General Picture of the Sample Communities 9 E. Poverty and Mobility Measurement 18 F. Structure of the Report 24

II. NATIONAL CONDITIONS AND TRENDS 27 A. Macro Conditions and Trends in Growth, Conflict, Poverty,

and Inequality 27

B. Key Policies Related to Growth, Conflict, and Poverty Reduction

30

III. KEY NATIONAL EVENTS /POLICIES AND LOCAL

PERSPECTIVE ON KEY EVENTS AFFECTING MOBILITY 35

A. Key National Events and Policies Affecting Mobility 35 B. Local Perspectives on Key Events Affecting Mobility 39 C. Comparison of Key National Events and Local Perspectives on

Key Events Affecting Mobility 40

IV. COMMUNITY PROSPERITY AND MOBILITY 42

A. Current Condition of the Sample Communities 42 B. Community Prosperity and Mobility 48 1. Summary Statistics of Community Mobility Based on

Mobility Matrixes 48

2. Community Prosperity According to the Women’s and

Men’s Group

56

3. Community Prosperity Based on Asset Ownership 65

V. GROWTH AND ECONOMIC DEVELOPMENT, CONFLICT, AND COMMUNITY MOBILITY

67

A. Growth and Economic Development 67 1. Infrastructure 68 2. Market Access 75 3. Employment Opportunities 81 4. Other Economic Opportunities 90 B. Conflict, Public Security, and Community Mobility 105 1. Typology and History of Conflict 108


SMERU Research Institute, June 2007 v

2. The Impact of Conflict 115 3. Conflict Resolution 120 4. Public Security 122 C. Summary of the Economic Changes, Conflict, and Community

Mobility

126

VI. LOCAL FACTORS THAT CAUSE VARIATIONS IN

COMMUNITY MOBILITY 132

A. Social Stratification and Social Capital 133 1. Social Stratification 133

2. Social Capital 141 B. Extent to Which Local Democracy Functions 148 C. Extent to Which Local Governance Functions 158 D. Summary of Local Factors and Community Mobility 168

VII. UNDERSTANDING INDIVIDUAL MOBILITY 172

A. The Transition Group and the Characteristics 172 B. Individual Assets and Capabilities 175 1. Material Assets 176 2. Human Capabilities 185 3. Social and Psychological Capabilities 192 4. Political Capabilities 208

C. Collective Assets and Capabilities 212 1. Participation and Membership in Organization 213 2. Voice, Power, and Representation 217 3. Solidarity and Collective Action to Organize/Mobilize 220

VIII. LOCAL CONTEXT, PEOPLE PROSPERITY, AND FACTORS

AFFECTING MOBILITY 221

A. Quantitative Analysis of the Correlates of Movement Out of Poverty

222

B. Moving Out of Poverty and Maintaining Wealth in Areas with Relatively Poor Opportunity Structure

225

1. High Conflict and Low Growth Areas (HcLg) 225 2. Low Conflict and Low Growth Areas (LcLg) 238 3. High Conflict and High Growth Areas (HcHg) 251 C. Trapped in and Falling into Poverty in Areas with Relatively

Better Opportunity Structure

264

1. Low Conflict and High Growth Areas (LcHg) 264 2. High Conflict and High Growth Areas (HcHg) 271

IX. CONCLUSIONS AND POLICY IMPLICATIONS 277

REFERENCES 291 ANNEXES 295


SMERU Research Institute, June 2007 vi

LIST OF TABLES

Page

1.3.1 Composition of Required Respondents 4 1.3.2 Sample Villages/Communities 8 1.3.3 Number of FGDs, Household Survey Respondents and Individual Life Stories 9 1.4.1 The Province of North Maluku and Sample Districts (2003) 11 1.4.2. The Province of East Java and Sample Districts (2004)

12

1.5.1 Official Poverty Line (OPL) and Community Poverty Line (CPL) 19 1.5.2 Classification of the Mobility Status of Households 20 1.5.3 Number of Household in the Mobility Matrix (Semampir: Female) 22 1.5.4 Formula for Counting of Indices 23 1.6.1 Number of Households Identified by FGD Participants and Comparison with

Number of Households in the Sample Village and the Community Sample 24

1.6.2 Composition of Respondents 25 1.6.3 Composition of Household Survey Respondents in Transition Groups

by Gender of Household Head 25

1.6.4 Composition of Individual Life Story Respondents in Transition Groups by Gender of Household Head

26

3.2.1 Local Perspectives on Key Events Affecting Mobility 39 4.1.1 Population of the Sample Communities 43 4.1.2 Major Ethnic, Religious, and Language Groups 47

4.2.1 Community Mobility Indexes Based on Mobility Matrixes 48 4.2.2 Indexes per Community 50 4.2.3 Community Prosperity 56 4.2.4 Community Prosperity and Reason for Changes 58 4.2.5 Major Positive Events that have Helped Community Prosperity 62 4.2.6 Major Negative Factors that have Hindered Community Prosperity 64

4.2.7 Changes in Land Ownership 65 4.2.8 Changes in Ownership of Cattle 65 4.2.9 Changes in House and Asset Ownership 66 5.1.1 Availability of Economic Infrastructure 69 5.1.2 Infrastructure Development in the 1995-2005 Period 70 5.1.3 Road and Transportation Infrastructure 71

5.1.4 Social Infrastructure: Education 73 5.1.5 Social Infrastructure: Health 73 5.1.6 Quality of the Social Care in the Past Ten Years 74 5.1.7 Access to Information Infrastructure 75 5.1.8 Changes in the Availability of Market Outlets 78 5.1.9 Receipt of Fair Prices (%) 81

5.1.10 Difficulty in Obtaining Work 82 5.1.11 Changes in Private Employers Who Employ Local Residents 84 5.1.12 Community Figure and Informants’ Views on Changes in Difficulty of

Obtaining Work with a Private Employer 85

5.1.13 Respondent’s Views on Difficulty in Obtaining Work with a Private Employer (%)

86

5.1.14 Changes in Public Works Projects that Employ Residents 87 5.1.15 Work Desired by Young Men and Young Women When Aged 30 88 5.1.16 Changes in Economic Opportunities 91 5.1.17 Access to Credit, Agricultural Inputs, Technical Support, and Government

Support Program in the Past 10 years, According to the Community Figures and Informants

92


SMERU Research Institute, June 2007 vii

5.1.18 Source of Credit for the Community 95 5.1.19 Ease and Difficulty in Establishing a Business 104 5.2.1 The Conflict Timeline in East Java during the Past Ten Years 106 5.2.2 The Conflict Timeline in North Maluku during the Past Ten Years 107

5.2.3 Frequency of and Trends in Theft and Fraud during the Past Ten Years 124 5.2.4 Frequency of and Trends in Gambilng and Alcohol Consumption during

the Past Ten Years 124

5.2.5 Frequency of and Trends in Robbery and Assault during the Past Ten Years 125 5.2.6 Frequency of and Trends in Prostitution and Sexual Harassment/Rape

during the Past Ten Years 125

5.2.7 Frequency of and Trends in Black Magic, Murders, and Carok during the Past Ten Years

126

5.3.1 The Measurement of Economic Factors and Conflict 127 5.3.2 Summary of Community Prosperity, Economic Factors and Conflict in

Low Conflict Areas 128

5.3.3 Summary of Community Prosperity, Economic Factors and Conflict in High Conflict Areas

130

6.1.1 Typology of Social Stratification 138 6.1.2 Distinction between People due to Religion or Social Status 138 6.1.3 Number of Existing Group or Associations 142 6.1.4 Most Important Groups and Organization in the Community 143 6.1.5 Proportion of the Community Belonging to Organizations 144 6.1.6 Willingness to Help Those in Need of Assistance 145 6.1.7 Community Cooperation to Solve Problems and Help Others 146 6.1.8 Communal Meetings and Activities 146 6.2.1 The Most Important Features of Democracy 149 6.2.2 Freedom to Speech 154 6.2.3 Community Voice and Participation in Decision-making 155 6.2.4 Trends in Community Influence on Decision-making

by the District Governments 156

6.2.5 Control Over Personal Decisions 157 6.3.1 Development Projects and Community Involvement 162 6.3.2 Local Government Attention to Community Interests in Low Conflict Areas 163 6.3.3 Local Government Attention to Community Interests in High Conflict Areas 164 6.3.4 Local Government Concern about Community Interests 165 6.3.5 Informants’ views on the Involvement of Local Government Officials

in Bribe-taking and Corruption 165

6.3.6 Household Survey results on the Involvement of Government Officials in Bribery and Corruption

166

6.3.7 Level of Trust in District Government Officials 167 6.3.8 Level of Trust in Central Government Officials 167 6.4.1 The Measurement of Local Factors 169 6.4.2 Summary of Community Prosperity and Local Factors in Low Conflict Areas 170 6.4.3 Summary of Community Prosperity and Local Factors in High Conflict Areas 171 7.1.1 Female Headed Household by Mobility Status 173

7.1.2 The Most Important Groups/Associations for Female Heads of Household 174 7.2.1 Proportion of Respondents who have Accessed/Obtained Credit

in the Last Year (%) 182

7.2.2 Main Source of Business Development Loans (% of respondents) 183 7.2.3 Source of Credit for Consumption Needs (% of respondents) 184 7.2.4 Use of Essential Loans by Household Mobility Status (% of respondents) 185

7.2.5 Credit Source for Essential Household Needs by Household Mobility Status

185


SMERU Research Institute, June 2007 viii

7.2.6 Educational Level of Household Heads (% of respondents) 186 7.2.7 Educational Levels of Employed Household Members 187 7.2.8 The Main Livelihoods of Household Heads (% of respondents) 189 7.2.9 Sources of Household Income 190

7.2.10 Distribution of Households by Number of Income Sources 191 7.2.11 Level of Trust in People in the Present Time 198 7.2.12 Level of Trust in People Over The Last 10 Years (%) 198 7.2.13 Level of Trust in Local Government Officials in the Present Time (% of

respondents) 199

7.2.14 Extent Do Factors Like Religion, Social Status or Wealth Divide People

in the Village/Neighborhood from One Another Today (%)

200

7.2.15 Differences in Villages/Neighborhoods that have Lead to Violence over the Last 10 years (%)

200

7.2.16 Have/Have Not Experienced Discrimination when Trying to Purchase Something, Enter a Place, Use a Service, or in Any other Circumstance (%)

201

7.2.17 The Extent to Which School Teachers Treat all Children Equally Over 10 Years (%)

201

7.2.18 Household Financial Situation 10 Years Ahead (%) 206 7.2.19 Aspirations for the Next Generation’s Future(%) 207 7.2.20 Access to Information on Local Government Programs (%) 208 7.2.21 The Ability to Control Personal Decisions at the Present Time and Ten Years Ago 209

7.2.22 Ease of Obtaining Information That Influences Livelihoods 210 7.2.23 Respondent who Claimed Political Group As The Most Important Group

(%) 210

7.2.24 Participation in Campaigns 212 7.3.1 Participation and Membership in Organization 213 7.3.2 The Most Important Groups/Associations (% respondents) 214

7.3.3 The Most Important Groups/Associations for Households in the Agricultural Sector(%)

214

7.3.4 To what Extent do Local Government and Local Leaders take into Account Concerns Voiced by People Like You when They Make Decisions that Affect You? (% respondent)

217

7.3.5 The Ability to Control Personal Decisions at the Present Time (%)

217

7.3.6 The Ability to Control Personal Decisions over the past 10 Years (%) 218 7.3.7 Level of Participation in Discussing Problem in the Community

(% of respondents) 218

7.3.8 Attendance at Village Council (BPD) Meetings (%) 219 7.3.9 Access to Local Government Over the Last 10 Years (%) 219 7.3.10 Easy/Difficult Do the Rules and Regulations of the Government

Make it to set up a Business (%) 220

7.3.11 Number of Community Activities in the Past Year (%) 220 8.1.1 Sample Community Based on Growth and Conflict Experience 221 8.1.2 The Variables and Their Mean and Standard Deviation 223 8.1.3 Correlates of Moving Out of Poverty 224


SMERU Research Institute, June 2007 ix

LIST OF FIGURES

Page

1.3.1 Conceptual Framework 5 1.3.2 Map of Indonesia “Moving Out Poverty” Areas Sample 10 2.1.1 GDP Growth (%) 27 2.1.2 Poverty Rate and Number of Poor People in Indonesia, 1996-2004 28

2.1.3 Gini Ratio in Indonesia 1984-2002 29 4.1.1 Demographic Changes in the Sample Communities 43 4.2.1 Rank of Communities Based on NPI 55 4.2.2 Community Comparison Based on MOPI, NPP, and NPR 55 6.1.1 Economic Stratification 136

LIST OF ANNEXES

Page

7.1. Main and Supplementary Livelihoods of Household Members At the Present Time Based on Mobility Status

296

7.2. Characteristics of Sample Household Heads at the Present Time

Based on Mobility Status

297

7.3. Main and Supplementary Livelihoods of Household Heads At the Present Time Based on Mobility Status

298

7.4. The Proportions of Land Ownership Areas By Mobility Group 299 7.5a. Land Ownership of the ‘Never Poor’ and ‘Movers’ Ten Years Ago 300 7.5b. Land Ownership of the ‘Chronic Poor’ and ‘Fallers’ Ten Years Ago 300

7.6. House Ownership By Mobility Group 301 7.7 Type of House Wall By Mobility Group 301 7.8 Type of House Roof By Mobility Group 302 7.9 Home Ownership Title 302 7.10 Cattle Ownership By Mobility Group 303 7.11 Motorcycle Ownership By Mobility Group 303

7.12 Colour Television Ownership By Mobility Group 303 7.13 Colour Television Ownership by Community 304


SMERU Research Institute, June 2007 x

ABBREVIATION Bappenas : Badan Perencanaan Pembangunan Nasional (the National Planning Board) BBM : Bahan Bakar Minyak (Fuel) BBR : Bantuan Bangunan Rumah (Assistance with Housing Materials) BKKBN : National Family Planning Agency BKPK : Badan Koordinasi Penanggulangan Kemiskinan (the Coordinating Body for

Overcoming Poverty) BOS : Bantuan Operasional Sekolah (operational assistance for schools)

BPD : Badan Perwakilan Desa (Village representative body)

BPS : Biro Pusat Statistik (Statistics Indonesia) BRI : Bank Rakyat Indonesia BUMN : Badan Usaha Milik Negara (State Enterprise) CD : Compact Disk

CPL : Community Poverty Line DPRD : Dewan Perwakilan Rakyat Daerah (Province/District Parliament) F : Female FGD : Focus Group Discussion FI : Falling Index FPI : Falling of the Poor Index FRI : Falling od the Rich Index GDP : Gross Domestic Product GDRP : Gross Domestic Regional Product GNP : Gross National Product HgLc : High growth – low conflict HgHc : High growth – high conflict IDT : Inpres Desa Tertinggal (Presidential Instruction for Neglected Villages) IFLS : Indonesia Family Life Surveys JPS : Jaring Pengaman Sosial (Social Safety Net) JPS-BK : Jaring Pengaman Sosial Bidang Kesehatan (Social Safety Net in the Health Field)

KIP : Program Perbaikan Kampung (Kampong Improvement Program) KK : Kepala Keluarga (Household head) KPK : Komite Penanggulangan Kemiskinan (the Committee for Poverty Reduction), Krismon : Krisis Moneter (Monetary crisis)

KTP : Kartu Tanda Penduduk (identity card) KUT : Kredit Usaha Kecil (Credit for Small Businesses) Lansia : Lanjut Usia (Advanced in age, elderly) LgLc : Low growth – low conflict

LgHc : Low growth – high conflict LIPI : Lembaga Ilmu Pengetahuan Indonesia (Indonesian Institute of Sciences) LoL : Ladder of Life LSM : Lembaga Swadaya Masyarakat (Non-government organisation) NGO : Non Government Organization NPI : Net Prosperity Index NPP : Net Prosperity of the Poor Index NPR : Net Prosperity of the Rich Index NU : Nahdlatul Ulama M : Male

MCKs : Mandi Cuci Kakus (bathing, washing and sanitation facilities) MOPI : Moving Out of Poverty Index MI : Mobility Index MPI : Mobility of the Poor Index


SMERU Research Institute, June 2007 xi

MPR : Majelis Permusyawaratan Rakyat (People’s Representative Assembly)

MRI : Mobility of the Rich Index

OPK : Operasi Pasar Khusus (Rice for the Poor Program) OPL : Official Poverty Line PAN : Partai Amanah Nasional Patanas : Survey Pertanian Nasional (National Agriculture Survey)

PBB : Partai Bulan Bintang PDAM : Perusahaan Daerah Air Minum (Regional Drinking Water Enterprise) PDIP : Partai Demokrasi Indonesia Perjuangan P2D : Program Prasarana Pedesaan (Rural Infrastructure Program).

P3DT :Program Pembangunan Prasarana Desa Tertinggal (the program for construction of infrastructure in neglected villages),

Pekka : Perempuan Kepala Keluarga (Female Headed Household) Pelita :Pembangunan Lima Tahun (Five-year Development Plans) PI : Prosperity Index P4K : Proyek Peningkatan Pendapatan Petani dan Nelayan Kecil (the project for

improving the incomes of farmers and fishermen). PKB : Partai Kebangkitan Bangsa PKK : Program Kesejahteraan Keluarga (Family Prosperity Program) PKPS-BBM : A compensation for the impact of the fuel subsidy reduction program PNS : Pegawai Negeri Sipil (public servant) PPA : Participatory Poverty Assessment (Kajian Kemiskinan Partisipatif) Podes : Potensi Desa (Village Potential (Podes) PPHI : Penyelesaian Perselisihan Hubungan Industrial (the Resolution of Disputes in

Industrial Relations) PPK/KDP : Program Pengembangan Kecamatan (Kecamatan/Subdistrict Development Program) PPP : Partai Persatuan Pembangunan P2KP :Program Penanggulangan Kemiskinan Perkotaan (urban poverty program Propenas

: Program Pembangunan Nasional (the national development program. Puskesmas : Pusat Kesehatan Masyarakat (Community Health Centre) Raskin : Beras untuk Masyarakat Miskin (Rice for the poor) RT : Rukun Tetangga (neighborhood unit)

RW : Rukun Wilayah (hamlet) SD : Sekolah Dasar (Primary school) SLT : Subsidi Langsung Tunai (a direct cash transfer program) SNPK : Strategi National Penanggulangan Kemiskinan (National Strategy for Poverty

Reduction) SMP : Sekolah Menengah Pertama (Lower secondary school) SMU/SMA : Sekolah Menegah Umum/Atas (Senior secondary school) SPI : Shared Prosperity Index

SPKD : Strategi Penanggulangan Kemiskinan Daerah (Regional Strategy for Poverty Reduction)

Susenas : Survey Sosial Ekonomi Nasional (A National Soci0-Economic Survey) TDL : Tarif Dasar Listrik (Basic electricity tariff) TK : Taman Kanak-kanak (Kindergarten) TKI : Tenaga Kerja Indonesia (Indonesian Worker/migrant workers) TKW : Tenaga Kerja Wanita (Indonesian Female Worker/migrant workers) TPA : Taman Pendidikan Al Qur’an (Koran School)

TV : Television UGD : Unit Gawat Darurat (Emergency Unit) UNDP : United Nation for Development Programs UNSFIR : United Nation Supports for Indonesian Recovery


SMERU Research Institute, June 2007 xii

EXECUTIVE SUMMARY Introduction

The purpose of the study, “Moving Out of Poverty: Understanding Freedom, Power, and Democracy”, is to determine which people have successfully moved out of poverty during a ten year period (1995-2005). It also aims to examine the process of moving out of poverty in the context of the specific conditions most relevant to the dynamics of socioeconomic mobility in Indonesia— growth and conflict. The study used an integrated package of qualitative and quantitative methods developed by the Moving Out of Poverty Global Team.

1 The qualitative methods discovered how and why people

have experienced movement, and explored whether these factors are multidimensional and combined or are sequenced in certain ways. The quantitative methods produced data that demonstrates the magnitude of various experiences of escaping poverty. The quantitative methods also identified the factors with the strongest correlation with movements out of poverty. The qualitative techniques used during the fieldwork were focus group discussions (FGDs) with separate groups of men, women, and community leaders, in-depth interview with community leaders and other informants, and gathering individual respondent’s life-stories. A household survey was utilized as the quantitative technique. One of the main objectives for the study is to ascertain the movement of community members during ten years. The Ladder of Life (LoL) and the criteria of each step determined in the men’s and women’s FGDs were used as a tool. The groups were asked to place individual communities on the LoL in accordance with their circumstances in 1995 (then) and 2005 (now). The research team also sought the assistance of community leaders to confirm the four categories composed by the communities, namely, ‘never poor, ‘mover’, ‘chronic poor’ and ‘faller’.

2 In addition, information from the Ladder of Life FGDs

was used to select respondents for the household questionnaire and respondents for individual life stories. To capture conflict variations, the study was conducted across two provinces in Indonesia: North Maluku and East Java. The conflicts in North Maluku and East Java had different characteristics, causes, intensity, and numbers of people involved. The conflict in North Maluku was caused by a sociopolitical conflict that developed into religious conflict involving large numbers of people and causing casualties and great destruction of property. The conflicts in East Java were associated with a recurrent high level of crime. In order to ensure variations in rates of growth, five districts were selected: North Halmahera (high-growth), West Halmahera (low-growth), and Ternate (high-growth) in the Province of North Maluku, and Probolinggo (high-growth) and Pamekasan (low-growth) in the Province of East Java. In total, ten communities from these areas were chosen in a manner that would represent variations in the extent of the conflict (high/medium or low/non-conflict) as well as the ethnic or religious composition of the village or neighborhood selected. Hamlets (RWs) that consisted of four to six neighborhoods

3 were chosen as sample

communities to represent the villages, as previous experience has shown that informants might

1 Led by Deepa Narayan from the World Bank Office of India.

2

Ten years ago (1995) Currently (2005 Mobility

Rich (above the poverty line) Rich (above the poverty line) Never poor

Poor (below the poverty line) Rich (above the poverty line) Mover

Poor (below the poverty line) Poor (below the poverty line) Chronic poor

Rich (above the poverty line) Poor (below the poverty line) Faller

3A neighborhood usually consists of 30-40 households.


SMERU Research Institute, June 2007 xiii

only be able to identify the welfare status of a maximum of 200, whereas the size of a village could be more than 1,000 families. Field research in eight communities was undertaken simultaneously from July to August 2005,

followed by fieldwork in the two other communities in August–September 2005. The researchers spent approximately two weeks in each village. In total, this study involved 81 FGDs, 372 household respondents (37–39 per community), and 156 individual life stories from respondents in the ten communities. Reports on each community (Community Synthesis Reports) are presented separately, complete with community profiles, transcripts of each FGD and the life stories of each individual who was interviewed.

The analytic framework for the “Moving Out of Poverty” study is broad and looks at the relationship between the agency of different actors and the opportunity structure within which they operate. It assumes that most societies are stratified and hence assumes inequality in power relations that are reflected in a society’s institutions. The framework focuses on the interaction between the agency of different actors and the opportunity structure leading to different

outcomes in mobility (Narayan, 2005). Mobility indices calculated from the mobility matrixes compiled from the LoL were also used to compare community mobility.

Research Findings Community Prosperity and Mobility

North Maluku (high-conflict areas) and East Java (low-conflict areas) were selected because both have experienced conflicts. However, there are striking differences between the regions that contribute to the variations in prosperity and mobility: (1) the sources of income and the commodities grown by the people in rural areas: the majority of the people in low-conflict areas rely on seasonal crops such as tobacco, rice and various secondary food crops, which they plant in rotation, while in high-conflict areas, tree crops and secondary food crops are grown. The real problem for the communities in low-conflict areas is their dependence on tobacco cultivation. Tobacco farming is highly dependent on rainfall, and if the tobacco leaves get wet the sale price is reduced. Farmers frequently experience a deficit as a consequence of agricultural production costs being higher than the selling prices. The result is that they have to borrow at high interest rates. ‘Being in debt’ has become an important survival strategy in these villages. The majority of villagers in one community earn their living as fishers. Fishers must face a lack of fish in the dry season and the import of fish from outside the village, which causes local fish prices to fall; (2) number of civil servants: communities in high-conflict areas have a high proportion of civil servants compared to the low-conflict areas; (3) different ethnic backgrounds and religions: almost all of the people in the communities in low-conflict areas belong to the Madurese

4 ethnic group and

almost all are Muslims, with Christians successfully integrated. Communities in the high-conflict areas have either a Christian or Muslim majority, and are from local ethnic groups in the areas of Tobelo, Tidore and Sahu. In the areas of high conflict, Muslims and Christians live in separate RTs or hamlets; (4) All communities in low-conflict areas have experienced a population

increase over the past ten years. In the high-conflict area, three communities experienced a population decline and two experienced an increase. The population changes in the high-conflict area are a result of the conflict that occurred at the end of 1999 and the beginning of 2000. Apart from the factors of safety or conflict trauma, it is mainly economic factors that encourage people from the villages in both regions to out-migrate; (5) in high-conflict areas, most people were forced to migrate to other areas for more than 2 years; (6) the low-conflict

areas are in Java, which is more developed and close to the capital and central government

4Madura, (where the village of Bulu is located), is a small island located off the north coast of Java, and

part East Java Province.


SMERU Research Institute, June 2007 xiv

attention, while the high-conflict areas is located off Java in a remote location, and was neglected by the central government before the disturbance occurred. (7) more new districts emerged in the high-conflict areas, which provided more economic and employment opportunities, but also caused competition due to the large numbers of newcomers.

Men’s FGDs and women’s FGDs made different assessments of the changes in the level of community welfare, and of changes in the difficulty or ease of making a living. In general, the women’s groups in low-conflict areas were optimistic that their communities have experienced an increase in welfare over the past ten years, while members of the men’s group mostly believed that community prosperity has stayed the same or is now lower. Areas of high conflict as a whole have

experienced improved prosperity, even though they experienced heavy conflict. Unlike the community view that is based on economic conditions like income and employment, all household data related to the ownership of assets and the availability of electricity in houses indicates that the economic welfare of the community in all areas has risen.

The summary statistics using the mobility indices support the women’s judgment that generally all communities have experienced enhanced prosperity. There is a counter intuitive finding that NPI and MOPI suggested opposite movements between low conflict and high-conflict areas. Both regions have a positive Net Prosperity Index (NPI), which shows the net upward mobility, but the NPI in low-conflict districts is higher than the NPI in high-conflict districts. However, high-conflict districts have a far higher Moving Out of Poverty Index (MOPI), which captures only upward movement across the poverty line. This phenomenon shows that more poor community members have successfully moved out of poverty in high-conflict areas than low-conflict areas. In low-conflict areas there was upward movement, but this did not successfully push the poor above the poverty line. The Net Prosperity of the Poor (NPP) and the Net Prosperity of the Rich (NPR) indexes confirms this, where NPP in low-conflict areas is high but the NPR is negative, and in high-conflict areas the NPP is also high and NPR is positive.

During the last ten years the communities in low-conflict areas have enjoyed infrastructure developments, such as road improvements, village electrification, provision of clean water, the construction of wharves, and the building of an agricultural produce market. Improvements in the

agricultural sector have led to better harvests. However farmers have also experienced falls in prices for agricultural products and unstable prices for major inputs. In addition, productive farmland has been appropriated for housing and office developments. While this construction has created jobs for some members of the communities, it has created problems for farmers. Fishers still face the long present obstacles such as irregular seasons, quarrels over fishing areas, the import of cheaper fish from Java, criminal activities like the entry of trouble-makers from outside

the village and sea pirates. Like communities throughout Indonesia, community members in low-conflict areas experienced the impacts of the monetary crisis and removal of fuel and electricity subsidies, both of which led to a rise in the price of basic necessities. Community members mentioned that the presence of a cigarette factory and a new housing complex have created employment opportunities for women. However, there has been an overall reduction of job opportunities due to the closure of infrastructure projects, the influx of workers from other villages

for construction jobs, an increased population competing for fewer available opportunities, the introduction of machinery which has reduced the need for agricultural laborers, and limited work in the civil service and in other fixed salary positions.

Before the conflict occurred, high-conflict areas benefited from infrastructure development such village electrification, the provision of clean water, and better access to schooling, however the improvements have been slower than in low-conflict areas. Since returning to their villages, communities have been assisted by post-conflict restoration programs concentrating on housing reestablishment, road improvements, and increasing access to business capital. In addition, the regional subdivision and the formation of new districts in 2003 have had a positive impact on the


SMERU Research Institute, June 2007 xv

village by providing job opportunities. These positive forces appear to have reduced the impact of the high-intensity conflict. Security conditions are now conducive to progress. The monetary crisis in 1997–1998 raised the value of agricultural export commodities, which led to an increase in income for farmers in the high-conflict areas. However, it is now more difficult to obtain jobs

due to the stiff competition for work. Many companies were closed down because of the disturbances, and newcomer numbers are continually increasing. Many people do not have sufficient education as a consequence of the high cost of education, and those who passed senior high school and vocational schools find it difficult to find work. Today there is more collusion, corruption, and nepotism so it is difficult to become a public servant – there are lots of young men and women with no backing. Both government and private circles do not give very much

attention to the problem of unemployment. Community members in high-conflict areas have also experienced the impact of the removal of fuel and electricity subsidies, which caused the prices of basic necessities to rise.

The social stratification in this study is mainly based on economic aspects, which are slightly more stratified in areas of high conflict than in areas of low conflict. The study found that this higher social stratification did not hinder community prosperity mobility. In areas of low conflict, especially those with low economic growth, existing social stratification is a combination of open economic stratification, and closed religious-political power stratification. Although communities in high-conflict areas are more stratified economically than those in low-conflict areas, many communities possess good social capital. Only a few community members said directly that the social capital elements of security and social relationships have influenced community prosperity. In low-conflict, high-growth areas, social ties, called koleman, tighten

social capital but also burden community members with an obligation to contribute cash for special occasions. The majority of respondents are members of at least one organization in the village, most commonly religious organizations. The number of local organizations in areas of low conflict is greatest in two high-growth communities, where religious associations are dominant. It is apparent that in areas of low conflict, the greater the participation of the community in organizations and groups, the higher the NPI and MOPI of that community. This tendency, however, does not always apply in areas of high conflict. Local democracy is improving at the village level but not fully functioning at the district levels. The majority of respondents in both areas said they now feel that they are now able to speak freely and express their opinions on various problems, which they could not have done ten years ago. The community has become increasingly daring and critical and there are several mechanisms available for open discussion and representation. To a certain extent, these changes have affected their prosperity. The communities consider that the elections for village head that were held in all sample communities in rural areas

5 during the past ten years were conducted

fairly. The elections for district heads and mayors (Pilkada) in high-conflict areas are also believed to have been conducted in a fair manner. In spite of this, the respondents commented that candidates often misrepresented themselves, and after being elected, some successful candidates did not help the community even though they had made lots of promises. The villagers believe that political access in their village, but not at the district level, is steadily improving because important decisions are increasingly being made after community consultation, either directly or through representatives. However not all village representative bodies (BPDs) include members from all elements of the community, such as women and the poor. Less than half of respondents believe that they are able to control all their personal decisions.

5In Indonesia the village head is only chosen directly by the people in rural areas. In kelurahan (villages in urban areas), Semampir and Kampung Pisang in this study, the head of administration is a public servant

appointed by a higher-level administration.


SMERU Research Institute, June 2007 xvi

Local governance is not functioning well, especially at the district level. This has impeded community mobility. In both areas, infrastructure projects that were implemented between 2001 and 2005 were limited. In low-conflict areas, most of the project designs, and implementation and management of the projects involved the community. The projects in

high-conflict areas tended to be programs initiated and implemented by the central government. Only one community had projects that were implemented and initiated by the village apparatus. However despite these functional limitations, respondents in most communities feel that the local government attention to the interests of community members is greater today than it was ten years ago.

In the household survey, in-depth interviews, and FGDs, respondents said that most government officials at the district, provincial, and the national level are currently engaged in bribe taking and corruption. Nevertheless, most communities feel that there has been little or no corruption at the village level. If there is any corruption in the village administration, it is considered to be on a minor scale involving only small sums of money, and a decreasing trend. Regardless of community belief that the majority of government employees are involved in corruption and

bribe taking, most respondents still have trust in district-level and central-level government officials. It would seem that people do not care very much about the corruption and bribe taking that occurs so long as they are able to benefit from the system and receive the services that they want.

Individual Mobility

The estimation result from the quantitative analysis suggested that from the changes in community conditions between 1995 and 2005, three variables are significant negative correlates: local government increasingly taking the residents' concerns into account, easier access to information regarding government programs, and conflict. The results also show that living in a more peaceful community supports movement out of poverty.

6

Given that the majority of sample areas are rural, the main livelihood of respondent households is farming. A position in the civil service brings in a fixed income and can lead to better prosperity. There are no civil servants among ‘chronic poor’ and ‘faller’ households in low-conflict areas, while there are in high-conflict areas. Most male household heads in the ‘never poor’ group are aged between 51 and 60 years, which indicates that ‘never poor’ families tend to be older than other groups. The most common age group among ‘movers’ is 31 to 40 years. Most female household heads are aged between 51 and 60 years. There are more ‘chronic poor’ and ‘faller’ female-headed households than ‘mover’ and ‘never poor’. Female household heads are generally widows. The two factors which can account for the falling economic state of households where the husband has died are the high level of dependence that a wife usually has on her husband, combined with the lack of social security for widows in Indonesia. Nevertheless, some female-headed households have maintained their wealth (‘never poor’), or have become ‘movers’. Several factors have helped them achieve this. Households can survive financially if the woman has an independent source of income and was not financially dependent on her husband. These women generally had been working since before they were married. Interaction with the community, both in group activities and general community involvement can also help, however the culture of patriarchy generally found in the community means that women must also be self-confident if they are to get involved with the community. In addition, although there is no special social security program for widows, there are empowerment programs aimed at widows or women in general that can help female-headed households to succeed.

6The peace variable is not necessarily correlated with the occurrence of conflict variable because the former is the opinion of respondents while the latter is whether there had been an actual conflict occurring

in the past decade.


SMERU Research Institute, June 2007 xvii

The estimation result from the quantitative analysis suggested that two significant household control variables positively correlate with moving out of poverty: ownership of assets and ownership of land in 1995. This shows that ownership variables are important ways to enable the poor to increase their welfare. Analysis of the qualitative data shows capital is often mentioned

as a factor that has aided mobility. Forms of capital mentioned include savings, inheritance, and credit. The possession of savings assists prosperity improvement and is a continuing factor for maintaining prosperity. Several respondents, especially the ‘never poor’ and ‘movers’, stated that they currently have savings, kept either in the bank, arisan, a cooperative, or at home. The type of savings varied between high-conflict and low-conflict regions. In high-conflict areas, savings were often in the form of land, plantations, and livestock ownership. In low-conflict areas, because the banking system is more developed, more respondents have savings in the form of cash in banks, with a greater value than the amount of savings held by respondents in high-conflict areas. Many FGD participants mentioned inheritance as a factor that impacted their level of prosperity. In low-conflict, most life story respondents mentioned that inheritance increased their material assets and improved their prosperity, however only a few respondents (almost all of which are ‘movers’) in high-conflict areas stated that inheritance is important for improving prosperity.

There is no proof that ‘mover’ and ‘never poor’ participants access more credit than ‘chronic poor’ households. In fact, ‘chronic poor’ households in low-conflict areas access credit far more often than ‘mover’ and ‘never poor’ participants. In high-conflict areas, however, access to credit is spread almost evenly across all mobility groups. With regard to allocation of credit, more households access credit for business development needs than for daily consumption or essential needs. However, ‘chronic poor’ respondents not only need business loans but also need

consumption loans to maintain their prosperity or to move out of poverty. Most ‘chronic poor’ households in low-conflict areas have to meet their consumption needs by credit, while in high-conflict areas only some ‘chronic poor’ households access credit for this purpose.

Respondents who borrow for essential needs and consumption only do so to overcome their immediate problems; however this borrowing leads to problems further down the track when the loan must be repaid. This problem is most prevalent in ‘chronic poor’ and ‘faller’ households. In low-conflict areas essential loans were accessed out for ceremonial needs in line with koleman, such as for weddings, funerals, or for celebrating a birth. In high-conflict areas, essential loans are more often used for long-term investment purposes, such as for education, medical expenses, and home improvement. These differences can be explained by the cultural differences between the two study areas. Another interesting comparison is that in low-conflict areas the ‘chronic poor’ most often use credit for family weddings while ‘movers’ most often use credit for educational fees or for medical purposes.

The level of formal education obtained by household members positively correlates with mobility status and appears to have made a contribution to improvements in community welfare. In the specific case of the ‘never poor’ and ‘mover’ groups, the educational level of the household head tends to be higher than that of household heads in the ‘chronic poor’ and ‘faller’ groups. The level of education for communities in high-conflict areas is better across all mobility groups than in low-conflict areas. This is very interesting in view of the fact that low-conflict areas tend to have better educational infrastructure than high-conflict areas. There are several explanations for this observation. First, some households in low-conflict areas (in East Java) still prefer pesantren (Islamic Boarding Schools) to schools that follow national curriculum guidelines. Second, in low-conflict areas, those with higher levels of education tend to leave their village and look for work in a larger city. Those who are permanently settled are those who generally possess a lower level of education.


SMERU Research Institute, June 2007 xviii

Formal education is not considered to be enough to raise an individual’s economic prosperity, however informal education and skills were suspected to influence prosperity, mainly for those who have an outside source of income such as civil servants or private office employees.

While all communities relied on the agricultural sector as for their primary livelihood and source of income, livelihoods outside the agricultural sector have helped the community move out of poverty and improve their prosperity. As an example, the ‘mover’ and ‘never poor’ groups in high-conflict areas more often come into contact with the trade and business sectors, and in both regions the ‘chronic poor’ are very dependent on the agricultural sector. Besides the various sources of household livelihoods, income from permanent workers’ salaries appears to be an important

differentiating factor for household economic mobility status. The household survey indicated that the proportion of ‘never poor’ households who have permanent work with regular salary is far above the proportion of other mobility status households, while the greater proportion of ‘chronic poor’ and ‘faller’ groups rely on the salary of non-permanent workers. Almost half of the sample households in both high-conflict and low-conflict areas depend on

two or more livelihoods, with ‘mover’ and the ‘never poor’ group usually having the most sources of income. Most ‘chronic poor’ and ‘faller’ households only had one source of income ten years ago. In addition to dependence on more than one source of income or livelihood, work experience, changes in employment, the number of jobs ever held, the process of obtaining work, the age at which work was commenced, salary or income while working, and other aspects connected with work experience are likely to have influenced the increase or decline in

prosperity.

FGD participants mentioned that social and psychological factors influence improvements in household prosperity more than economic factors. Social and psychological factors mentioned include: being highly motivated and industrious, possessing a strong work ethic, ability to manage their finances and save, honesty, marrying someone who is rich, having a wide social network and

connections, joining community groups, and utilizing freedom and power.

FGD participants identified several social and psychological factors that have the ability to hamper efforts to move out of poverty, including bad habits, poor management of household finances, inability to maintain a business, children who cannot manage a business left to them by their parents, not being trusted to borrow money or goods, womanizing, the death of a parent, laziness, being very stupid, decline in work ethic, vanity and feeling too self-important, having the life perspective of a sufi (low level of faith, join the koleman, carok, wastefulness), an extravagant lifestyle, arrogance, making false promises, children getting into mischief, limited network-work contact, and not being blessed by God with good fortune.

Relationships within the family could support the maintenance or improvement of the household’s prosperity. The ‘never poor’ and ‘mover’ respondents felt the relationship with one’s parents and other relatives can influence prosperity because they provide financial support, give advice and pass on business skills, and help manage household matters. Relationships with friends can bring about a positive change. For the ‘never poor’ and ‘mover’

respondents, business partners can help manage capital where profits are shared or through the provision and loan of goods, and exchanging business information. For ‘movers’, a good relationship with one’s superiors can lead to financial support, the exchange of information, experiences, skills, and further work opportunities. The relationship with important religious and community figures is also an important factor that

can affect people’s prosperity over time. This is especially so for most respondents in low-conflict areas who have an important relationship with kyai (Islamic religious leaders). The ‘never poor’


SMERU Research Institute, June 2007 xix

said that the level of prosperity that they had achieved was because of the prayers and blessings of the kyai. Respondents in low-conflict areas also frequently mentioned that a good relationship with village authorities is believed to be capable of influencing someone’s prosperity. In high-conflict areas, however, a relationship with religious or community figures was not mentioned as a factor that can influence prosperity. Household surveys indicate that ‘never poor’ have better access to information on government programs and other information that has helped them with their livelihoods. The ‘never poor’ and ‘mover’ respondents in high-conflict areas have better access to information on government programs than those in low-conflict areas. The study indicates that some collective assets and capabilities have helped people to move out of poverty. FGD participants mentioned that joining a working group or economic organization in the village has helped them; farmers believe that participating in farmer’s groups has helped them to improve their prosperity. Household survey data indicates that in general, almost all respondents across all mobility groups in low-conflict areas participate in such organizations now, and also did ten years ago. The community participation rate in community organizations in high-conflict areas is low. The ‘chronic poor’ have the lowest participation rate, while a high proportion of the ‘never poor’ and ‘movers’ get involved in such organizations.

In high-conflict areas, the aspirations of the ‘never poor’ and ‘movers’ are more often listened to than those of other groups, but most respondents from all mobility statuses have control over their personal decisions. In low-conflict areas, the ‘never poor’ have the highest control over their personal decisions and ‘fallers’ have the lowest control.

According to the results of the household survey, the main factors that raise household prosperity are associated with employment, livelihoods, and income. The dominant factors often mentioned are: (1) doing the same work for greater returns; (2) finding employment, or finding better or more work; and (3) the addition of new income sources. In high-conflict and high-growth areas, the importance of becoming a civil servant was specifically mentioned. Despite striking difference in conditions among areas, it can be concluded that agency factors (individual and collective assets and capabilities) are more dominant than opportunity structure factors in helping people to move out of poverty and maintain their wealth. The individual assets and capabilities factors which are common include having access to capital, receiving an inheritance, gaining non-formal education and skills, receiving guidance from parents, possessing additional non-agricultural sources of income, commencing work at a young age and continuing to learn, working hard, possessing willpower and being motivated. The collective assets and capabilities that helped the ‘mover’ and ‘never poor’ are having a wide social network and social relationship. The agency factors only mentioned by respondents and discussants in low-conflict areas are having a good relationship with kyai, asking for blessing from kyai, and always praying to God. An important agency factor for moving out of poverty that was only mentioned in high-conflict areas is migration. While respondents in high-conflict areas consider community participation and economic organization and support as important, the respondents in low conflict and low-growth areas have never mentioned those factors as being important. The study found that to be able people to move out of poverty, farmers, fishers and other informal non-permanent workers in both low and high-conflict areas, must have: (1) skills; (2) motivation and will power to increase prosperity; (3) commence work at a young age; (4) work hard; (5) have working capital: land and tools for farmers, net or boat for fishermen, tools for carpenter and bricklayers, and cash for cake makers and small traders; (7) the desire to learn new things; (7) additional non agricultural income; and (8) a wide social network and social relationship.


SMERU Research Institute, June 2007 xx

The community members are very vulnerable to various disturbances that can make them fall into poverty or trapped in poverty. Conflict, natural disasters, the monetary crisis, and the reduction of subsidies can cause a household to reduce or lose their income. Apart from vulnerability to economic disturbances, they are also highly vulnerable to illness, which requires

high costs and loss of income for those the informal sectors (farmers, fishers, carpenter, bricklayers, traders, and others) who are usually not covered by insurance.

Recommendations The suggested policy recommendations based on the study’s findings are divided into the macro-national level, community level, and individual level.

Macro-level recommendations:

1. Design policies that offer security and certainty so that there will not be a repeat of the disturbances;

2. Design policies that guarantee the implementation of good and transparent central and local government;

3. Create employment opportunities for both men and women and supporting the establishment of home industries and small-scale businesses that hire local people;

4. Spread growth centers, so regions far from the city centers can also feel the effects of the development of new growth centers;

5. Develop and maintain infrastructure, including physical, social, and information infrastructures;

6. Support farming enterprises, those who want to work overseas, and micro, small, and medium enterprises;

7. Overhaul the current system of credit provision and find and implement a modern system of credit that is appropriate for rural communities;

8. Provide a social security system to protect people from falling into poverty and to protect poor people from falling into greater poverty;

9. Tackle the problems of alcoholism and gambling that occur in almost all communities, and which prevent people from moving out of poverty and can even cause some to fall into poverty;

10. Include women in the design, implementation, and evaluation of programs developed to combat poverty and other community projects.

Community-level recommendations

1. Safeguard and continue to enhance the community’s feeling of security; 2. Support the implementation of good and transparent local apparatus; 3. Promote community participation, including participation from women and the poor in

development, decision-making processes, and control of local government; 4. Improve local apparatus and people’s understanding on a simple inter-correlated among

factors (between opportunity structures and agency of the poor) in improving their prosperity;

5. Create employment opportunities at the community level so that the local people could have income or multiple income sources;

6. Increase access to education for the children of poor households; 7. Provide education, training and support for young men and women so they can choose

other livelihood sources besides farming and become more productive; 8. Promote economically productive activities to women’s groups given that women are

responsive and potential; 9. Create youth organizations, for example, by introducing sports and cultural competitions

that involve young people in order to strengthen solidarity and social ties, and at the


SMERU Research Institute, June 2007 xxi

same time encouraging their motivation to be more productive and give up the habit of consuming alcohol and getting drunk;

10. Support the formation of and strengthen economic organizations for farmers, fishers, women, and other livelihood groups, cooperatives, and other organizations that can help

people to improve their welfare, specifically providing technical and financial assistance to establish and manage the Fishermen’s Cooperative so fishermen can obtain cheap loans for a variety of their needs;

11. Support the expansion of small business among the poor; 12. Establish and develop markets. Markets are growth centers for most economic activities.

In fisheries sector, support the establishment of and management of a more professional

public fish auction site; 13. Support the identification of suitable alternative crops for specific areas to decrease

seasonal vulnerabilities, to undertake their cultivation, and to market them, with participation from both local apparatus and communities;

14. Support the development of microfinance institutions with low-interest micro loans with a more modern system;

Individual-level recommendations:

1. Improve the understanding of parents and youth, both male and female, of the importance of education, and motivating them to improve their education and skills;

2. Improve people’s understanding on a simple inter-correlated factor (between opportunity

structures and agency of the poor) in improving their prosperity; 3. Encourage farmers, young men and women, and others to attend training for a fairly long

period in a place that is more advanced than this community so that participants can acquire knowledge and a wider outlook;

4. Encourage motivation and the desire to have a better future; 5. Improve skills for catching economic opportunities and at the same time developing

motivations, especially for the youth; and 6. Encourage women to participate in formal and non-formal education, community

organizations, community meetings, village representative bodies, and businesses.

FINAL DRAFT: TO BE REPORTED TO THE GLOBAL TEAM OF MOP

SMERU Research Institute, June 2007 1

I. INTRODUCTION A. BACKGROUND

Based on national statistics, the number of poor people in Indonesia had fallen from 54.2 million

in 1976 to around 22.5 million in 1996. The economic crisis, however, brought this outstanding record to a halt. It caused a clear deterioration in the welfare of the Indonesian people and increased the poverty rate from 15% at the onset of the crisis in mid 1997 to around 33% near the end of 1998. This implied that around 36 million additional people were pushed into absolute poverty due to the crisis (Suryahadi, et al, 2003). Seven years after the economic crisis (2005), its impact has lessened and the poverty rate has declined to 15.9%, which is still higher

than the pre-crisis level. Hence poverty remains an important issue in Indonesia. Furthermore, other indicators of poverty remain at distressingly high levels – a third of households still have no access to safe water and a quarter of households have no access to sanitation. The onset of the economic crisis also witnessed the outbreak of violent conflicts in various regions in Indonesia. Among the large-scale conflicts were the religious conflict in Maluku and

North Maluku, the ethnic conflict in Kalimantan and the conflicts resulting from the separatist movement in Aceh. As well as these high-profile conflicts, there were also many widespread small-scale conflicts of various natures all over the country. These conflicts have hampered development efforts and the delivery of social services. In the light of the decreasing trend in poverty and the outbreak of violent conflicts, several

crucial questions emerge. Who are the people who have successfully moved out of poverty? Why and how did they move out of poverty? On the other hand, why do people remain trapped in chronic poverty? Do more people move out of poverty in areas with higher economic growth or better governance? How does the occurrence of conflict affect movement out of poverty? It is believed that searching for answers to these questions will provide a better understanding of poverty issues in Indonesia and serve as a basis to assist the poor to escape poverty permanently.

B. PURPOSES AND SCOPE OF STUDY

The purposes of the study are to look for answers on who the people are who have successfully moved out of poverty and the process of moving out of poverty. The study also tried to look the reason why and how did they move out of poverty and why do some people remain trapped in chronic poverty.

With regard to specific conditions in Indonesia, there are two issues that are highly relevant to the dynamics of people’s socioeconomic mobility: growth and conflict. Conflict is the confrontation of power (Rummel, 1976). In Indonesia, a heterogeneous country with hundreds of ethnic groups, cultural heritages, traditions and local languages, conflict has a complex mix of historical, political, social, economic and structural causes (Mawdsley, 2002). Local tensions based on ethno-religious or spontaneous migration to other regions can lead to local competition

for jobs and to disputes over land and resources between newcomers and indigenous people that result in social jealousy and economic disparities between groups (Mawdsley, 2002). Outbreaks of violent conflict have not only direct costs for lives, livelihoods and material property but also the potential to escalate further (Barron, 2004). Conflict is generally thought to have a negative impact on people’s welfare. There is always long-

term movement out of poverty, however, regardless of whether conflict exists or not. It is



interesting to learn the identity of the people who move, the reasons for their movement, and the impact of conflict on movement out of poverty in general. It is most likely that the nature of the people who move out of poverty in a conflict-free region is different from that of the people who move out of poverty in a conflict-ridden region.

Economic growth is defined as a positive change in the level of production of goods and services by a country over a certain period of time. The quantities most commonly used to measure economic growth rate are Gross National Product (GNP) and Gross Domestic Product (GDP).

1

In Indonesia, Statistics Indonesia (BPS) officially calculates and presents economic growth figures at the national, provincial and district/city levels. A picture of economic growth is available annually as a time series and can be accessed by the public. In the context of responses to these conditions and the main questions, this study will also try to find answers to whether more people move out of poverty in areas with better opportunity climate: less conflict, higher economic development, and/or better local factors, such as social capital, democratic and governance functioning, and the opposite whether less people move out of poverty in areas with less opportunity climate. What factors helped people to move out of

poverty and maintain their wealth in areas with less opportunity and what factors hindered people to out of poverty in areas with better opportunity? This study explores a wide range of physical, social, psychological, political, institutional and economic mechanisms that hinder or facilitate the movement of poor people out of poverty. The study complements and makes use of ongoing work at the macro level and is highly relevant to

the design and monitoring of poverty reduction strategies and policies in Indonesia. The perspectives of policy-makers and local people on key events and policies that have impacted on poverty over the last decade will also be captured in this study. The key questions that the study tries to examine and answer are: - How important are economic growth and other economic factors in the regions in affecting

people’s movement out of poverty? - How does conflict impact on the movement out of poverty? - Why and how have some people in high conflict areas with low growth (and other economic

factors) successfully moved out of poverty and maintained their wealth? - Why and how have some people in low conflict areas with high growth (and other economic

factors) been trapped and fallen into poverty?

The main arguments are: 1. Conflict changes the demographic composition, economic stratification and social mobility

of a community; 2. Conflict may not always disadvantage every member of the community (conflict does not

harm community members in the same manner and to the same extent);

3. Some people can benefit from a conflict situation and manage to accumulate wealth, and therefore move and stay out of poverty;

4. Different types of conflict will lead to different groups of winners and losers.

In this study conflict takes in violence between people, killing, fighting, beating, rampaging and warring, which involve physical force. As described above, conflict and violence in Indonesia can be very complex and can be caused by a mixture of historical, political, social, economic and

structural causes.

1Investorwords.com: definition of economic growth and economic growth rate.



This study has identified six levels of conflict based on the degree of tension within the community. These levels are:

6 = The occurrence of fighting, community protests or demonstrations that involve large

numbers of people and cause loss of property as well as injuries and victims 5 = The occurrence of fighting, community protests or demonstrations that cause loss of

property as well as injuries and victims 4 =

The occurrence of fighting, community protests or demonstrations that cause loss of property as well as injuries

3 = The occurrence of fighting, community protests or demonstrations that cause loss of property

2 = The occurrence of community protests or demonstrations 1 = The existence of tension but not to the extent of causing fighting or community

protests or demonstrations.

Classification of the study areas has been made in terms of these six levels of conflict. Levels 5-6 indicate a high level of conflict, levels 3-4 describe medium conflict and levels 1-2 refer to low

conflict.

C. METHODOLOGY AND SAMPLING 1. Methodology

An integrated package of qualitative and quantitative methods developed by the Moving Out of Poverty Global Team

2 was used in this study. The qualitative methods discovered the unknown,

the how and why behind people’s movements, and explored whether the factors are multidimensional and combine or are sequenced in certain ways. The quantitative methods

produced data that demonstrate the magnitude of various experiences in escaping poverty. In addition, the quantitative methods identified the factors that have the strongest correlation with movements out of poverty. In adopting a qualitative approach at the village level, the research team interviewed community leaders and conducted at least eight focus group discussions (FGDs) with groups of men and

women separately.3 The community leaders were men and/or women who had a certain level of

knowledge of the village. In addition, the team also sought the assistance of community leaders to obtain a list of village community members and, wherever necessary, to confirm the movers and non-movers (those who have been trapped in poverty over a period of time) who were identified in the FGDs using the Ladder of Life technique.

The preparatory stage of the study began in early 2005. This included reviewing literature, studying the instruments and designing the sampling. The interview and recruitment process to select around 16-20 local researchers was carried out in Surabaya (East Java) and Ternate (North Maluku). After the Regional Capacity Building Workshop for East Asia in Jakarta from 17 to 26 May 2005, a training session for the Indonesian team and the local researchers was conducted in Malang, East Java, from 22 to 29 June 2005. During the training, field piloting and testing of the instruments were carried out in two conflict villages in the District of Malang. These two days

2Led by Deepa Narayan, Senior Adviser, Poverty Reduction and Economic Management, the World Bank.

3In two communities (Idamdehe Gamsungi and Soakonora, both in high conflict areas), however, for some

reasons certain FGDs were conducted with mix men/male and women/female.



spent in communities were used to practice the methods specific to this study in order to ensure that there was a common understanding among the team and that the team would use the methods appropriately. The training and field practice also provided opportunities for ensuring adequate documentation and analysis of data during the fieldwork. A review of the field test and improvement of the instrument were conducted until early July 2005. This included improving the household questionnaire. The research plan and the pilot Community Synthesis Report were submitted before fieldwork was conducted in July 2005. Field research in eight communities in East Java and North Maluku was undertaken simultaneously from July to August 2005, followed by fieldwork in two more communities in August and September 2005. The researchers spent approximately two weeks in each village. In total, they undertook 1.5 months of fieldwork to carry out the study in 10 villages. Reports on each community and the Community Synthesis Report are presented separately, complete with community profiles, transcripts of each FGD and the life stories of each individual who was interviewed. These are included in the Annexes.

Information from the Ladder of Life FGD was used to select 35 to 39 respondents for the household questionnaire and 15-27 respondents for the individual life story. The respondents were grouped into four categories by composition, namely, ‘never poor, ‘mover’, ‘chronic poor’ and ‘faller’.

4 The groups are shown in Table 1.3.1 below.

Table 1.3.1. Composition of Required Respondents

Now 10 years ago

Poor or worse off Rich or better off

Poor or worse off Chronic poor (20%)

Movers (40%)

Rich or better off Fallers (10%)

Never Poor (30%)

The analytic framework for the Moving Out of Poverty study is broad and looks at the relationship between the agency of different actors and the opportunity structure within which they operate. It assumes that most societies are stratified and hence assumes inequality in power relations that are reflected in a society’s institutions. The framework focuses on the relationship or the

interaction between the agency of different actors and the opportunity structure leading to different outcomes in mobility (Narayan, 2005). Figure 1.3.1 presents the four domains of the framework or the key forces that interact to facilitate or constrain poor people’s efforts to improve their own well-being and also affect broader development outcomes. The figure highlights the fact that the empowerment and movement out of poverty of individuals or groups are influenced by (a) a change in the capacity of these actors to take purposeful actions, that is, to exercise agency, and (b) a change in the social, political, and institutional context that defines the broader opportunity structure in which these actors pursue their interests. There are multiple interactions between agency and opportunity structure, indicated by the arrow in the center of the figure (Narayan, 2005).

The concepts of opportunity structure and agency developed by Patti Petesch, Catalina Smulovitz and Michael Walton are superimposed on these building blocks (Narayan, 2005). The first two building blocks constitute the opportunity structure that poor people face, while the second two make up the capacity for agency of poor people themselves. The opportunity

4See the definition and measurement of the four categories in Section 1.5 on Mobility Measurement page 21.



structure of a society is defined by the broader institutional, social, and political context of formal and informal rules and norms within which actors pursue their interests. Agency is defined by the capacity of actors to take purposeful action, a function of both individual and collective assets and capabilities. All four components influence each other, and together they have effects on development outcomes. The empowerment of poor, excluded or subordinate groups, which ultimately enables the poor to move out of poverty, is a product of the interaction between the agency of these individuals and groups and the opportunity structure in which this agency is potentially exercised.

Figure 1.3.1 Conceptual Framework

Opportunity structure Agency of the poor

The Opportunity Structure Investment in poor people’s assets and capabilities on a large scale requires changes in the opportunity structure within which poor people pursue their interests. This involves the removal of formal and informal institutional barriers that prevent the poor from taking effective action to improve their well-being—individually or collectively—and that limit their choices. It also implies the need for changes in social and political structures that perpetuate unequal power relations (Narayan, 2005).

INSTITUTIONAL

CLIMATE

• Information

• Inclusion and

participation

• Accountability

• Local organizational

INDIVIDUAL ASSETS

AND CAPABILITIES

• Material

• Human

• Social

• Political

• Psychological

SOCIAL, ECONOMIC,

AND POLITICAL

STRUCTURES

• Openness

• Competition

• Conflict

COLLECTIVE ASSETS

AND CAPABILITIES

• Voice

• Organization

• Representation

• Identity

DEVELOPMENT OUTCOMES

• Improved incomes, assets for the poor

• Improved governance, peace, and access to justice

• Functioning and more inclusive basic services

• More equitable access to markets and business services

• Strengthened civil society

• Strengthened poor people’s organizations

Norms, Values,

Behaviour

Rights, Rules and

Resources



Poor People’s Agency Poor women and men have limited ability to act to further their own interests. This “inequality of agency” plays a central role in perpetuating inequality and poverty (Rao and Walton 2004 in Narayan 2005). Embedded in a culture of inequality, poor people need a range of assets and capabilities to influence, negotiate, control and hold accountable other actors in order to increase their own well-being. These assets and capabilities can be individual or collective.

Because poverty is multi-dimensional, these assets and capabilities are likewise multi-dimensional (Narayan, 2005). A further description of this variable will be presented in Chapter V. 2. Sampling

The sampling frame was developed using a combination of the 1996-2002 Gross Domestic Regional Product (GDRP) data from Statistics Indonesia (BPS), the 2003 Village Potential (Podes),

5 and other resources and informants. These data were then combined with other sources

or reports specifically focused on conflict issues. Among other sources were the World Bank Conflict Team (Patrick Barron), UNSFIR, LIPI, and local informants who have knowledge of their areas. The 1996-2002 GDRP was used to select the districts based on economic growth,

6

while the 2003 (Podes) and other conflict reports as well as the information gathered from key local informants were used to identify villages where conflict had occurred.

The local conflicts that were considered in selection of the villages for this study included open violence conflict between groups (villagers and inter-ethnic disputes) and other local horizontal conflicts that have been resolved peacefully.

7 The conflict questions appeared only

in the 2003 Podes and there are no data covering 10 years ago. One of the questions also asked was whether the conflict was new or old but this question does not mention when the conflict started.

5The Village Potential Statistics (Podes) has been conducted three times in 10 years by Statistics Indonesia

(BPS). BPS has adopted a definition of local conflict beyond some threshold of violence within a given locality in the past year that may have resulted in loss of life, serious injury or property damage (Barron, 4).

Localities are rural villages or their urban equivalent. Responses were compiled from village leaders and

central government statistical agents (mantri statistik) posted at the sub-district level.

6Except in North Maluku; since data were not available, local judgment was used.

7Podes 2003 questions that relate to the definition of local conflict appear in the politics and security

module (question numbers 1703 to 1704). These are: 1) Has there been any conflict in the village over the past year? (2) If yes, what type of conflict has frequently occurred over the last year (disputes between

groups or villagers, disputes between villagers and apparatus, disputes between students, inter-ethnic disputes and other security issues)? (3) If yes, is the conflict new or old? (4) Number of conflict victims (dead, injured, material damage)? (5) Was the conflict resolved peacefully? (6) If yes, who resolved the

conflict (the community, village officials or security apparatus)?



To the extent that was possible, the study was originally intended to be linked to existing longitudinal datasets. The datasets were to be used primarily to identify the movers and non-movers and secondly to complement and compare the data available with the information gathered from the proposed study. Unfortunately, the existing panel datasets available in Indonesia do not match the purposes and sample of this study.

8 The 100-Village Survey of BPS

does not cover the conflict areas, BKKBN data, which are collected annually, may not be available in the conflict areas, and finally the ID numbers of the IFLS respondents are not accessible. Based on the fact that panel datasets were not available, the Indonesian case study was carried out without using any panel data. The respondents for the household questionnaires and individual life stories were selected from participants in Focus Group Discussions (FGD). The study was undertaken across two provinces in Indonesia, North Maluku and East Java. While North Maluku has been a high-intensity conflict area, East Java is a province less associated with violent conflict and more with a recurrent high level of violent crime. In each

province two or three districts were chosen for further research in order to ensure variations in rates of growth. Based on these criteria, five areas were selected: North Halmahera (high growth), West Halmahera (low growth), and Ternate (high growth) in the Province of North Maluku, and Probolinggo (high growth) and Pamekasan (low growth) in East Java. One, two or three villages/communities from each of the five selected areas were chosen in a

manner that would represent variations in the extent of the conflict (high/medium or low/non-conflict) as well as the ethnic or religious composition of the village or neighbourhood selected. In total, the study covered 10 villages/communities across North Maluku and East Java, each 5 communities/villages. The lowest level growth data that are available and have been used for sampling are at the

district and municipal level and, based on experience, do not accurately reflect growth in a study community. The nearest proxies for growth in this study are economic development, such as infrastructure, access to markets, and employment. This will combine with researcher qualitative observation of people’s current livelihoods, production, market situation, and the dynamics of community members compared to the same information from informants about the situation 10 years ago.

8There are at least four datasets available for Indonesia. These are the IFLS (Indonesia Family Life

Surveys), the 100-Village Survey, Patanas (National Agriculture) and BKKBN (National Family Planning)

welfare status.

The IFLS (Indonesia Family Life Surveys) were conducted in 1993, 1997, 1998 and 2000. RAND conducted IFLS1, IFLS2 and IFLS2+ in collaboration with the Demography Institute of the University of

Indonesia while the 2000 data (IFLS3) was a collaborative undertaking with the Demography Institute of Gadjah Mada University. The 100-Village Survey of BPS Indonesia was conducted in 1997, 1998 and

1999. The data for Patanas (National Agriculture), conducted by the Ministry of Agriculture and the

World Bank, have been collected twice, first in 1995 and later in the year 1999/2000. The BKKBN data were previously collected annually beginning in 1994 but have not been updated since 2003. Within the context of the proposed study, all of these datasets have strengths and weaknesses.

The 1993 IFLS Survey involved around 7,558 households in 13 provinces, while the 1998 100-Village Survey involved around 12,000 households in 12 districts and 8 provinces, and Patanas took in 1,560

households in 6 provinces and 35 districts.

An early check of data available on the IFLS website concerning respondents’ identities showed that information is only available at the sub-district (kecamatan) level. Respondent identity at the village level,

which is more relevant for the study, is not accessible.



Based on previous experience that informants (FGD participants) might only be able to identify the welfare status of maximum 100 persons who are/were community members now and ten years ago, whereas the size of a village could be more than 1,000 families, it was decided to choose hamlets (RWs) that consisted of 4-6 neighbourhoods

9 as a sample community to represent a

village. An exception was made in the case of Idamdehe Gamsungi village, where the whole village area formed the study area since the number of households in the village was very low, being only 98. To make it simpler for the purpose of the Country Synthesis Report, the names of villages are used to represent these hamlets. The names of the selected provinces, districts, and villages/communities are shown in Table 1.3.2 and the locations of the selected districts and provinces are shown in Figure 1.3.2

Table 1.3.2. Sample Villages/Communities

Growth (district level) Growth Conflict Low High

Low/ None

LcLg

Angsoka Temor (Palengaan Daja)

Cemkepak (Banyupelle)

Lunas (Branta Pesisir)

LcHg

RW 2 (Bulu)

RW 4 (Semampir)

Conflict

incidence

High HcLg

Dusun Induk and Kusumadehe

(Soakonora) Idamdehe Gamsungi

HcHg

Dusun I (Gorua)

RWs 1 and 5 (Gura)

RTs 3,4,7,8 (Kampung Pisang)

Note: The names in brackets are villages. L = Low, H = High, g = growth, c = conflict. North Maluku: North Halmahera: Gorua and Gura.

West Halmahera: Soakonora and Idandehe Gamsungi. Ternate: Kampung Pisang. East Java: Pamekasan (average growth: 1.93): Palengaan Daja, Banyupelle, and Branta Pesisir,.

Probolinggo (average growth: 2.92): Bulu and Semampir.

In total, this study has involved around 81 FGDs in 10 communities (8 per community), 372 household respondents, and 156 individual life story respondents (Table 1.3.3).

9A neighbourhood usually consists of 30-40 households.



Table 1.3.3. Number of FGDs, Household Survey Respondents and Individual Life Stories

COMMUNITY LEVEL

Data Collection Method Informants Number of FGDs/respondents

per community

Total

Community Profile Key informants 1 10

Key Informant Interview: Community Timeline

Local key informants in a group or separately

1 10

Focus Group Discussion: Ladder of Life

• 1 FGD for adult men

• 1 FGD for adult women

or mixed men and women

2 22

Focus Group Discussion:

Livelihoods, Freedom, Power, Democracy and Local Governance

• 1 FGD for adult men

• 1 FGD for adult women

2 20

Focus Group Discussion: Aspirations of Youth

• 1 FGD for male youth

• 1 FGD for female youth

or mixed male and female

2 19

Focus Group Discussion: Conflict

Timeline and Institutional Mapping • 1 FGD for adult men

• 1 FGD for adult women or

• 1 FGD for Moslem’s group

• 1 FGD for Christian’s group

2 20

Household Survey (questionnaire) Random selected respondents 37-39 372

Open-Ended Interview: Individual Life Stories

Selected respondents 15-17 156

D. GENERAL PICTURE OF THE SAMPLE COMMUNITIES

The physical conditions of East Java differ considerably from those of North Maluku, as do the agricultural commodities that these areas produce. On the whole, East Java consists of rice-land which produces mainly rice, vegetables and tobacco. The land holdings owned by farmers is also small. By contrast, North Maluku consists of land largely used for perennials, the main products being coconuts, cloves, nutmeg, and cocoa and certain annuals like cassava (kasbi), bananas and

lemong (a citrus fruit used to treat fish so that it does not have a bad smell). For the majority of people in North Maluku, the main source of livelihood is the cultivation of coconuts, cloves, nutmeg and cocoa. Meanwhile, the main source of livelihood in East Java is employment as a farmer or agricultural labourer in the cultivation of rice, secondary food crops and tobacco. As an occupation, farming is followed by fishing, employment as a public servant (PNS), carpentry, construction work and trade. A number of women are also engaged in trade and in the making of cakes. Most members of the community have multiple occupations; for example, in addition to being public servants, they are also farmers, while farmers are often also fishermen (who farm during the day and go to sea at night), or else they are also carpenters or construction workers and/or ojek drivers. 1. The Province of North Maluku

Administratively the government of North Maluku had only been effective from early in 2003 after the governor was definitively chosen by the DPRD (Province Parliament). Although the Province of North Maluku had been in existence since 1999 (based on Law No. 46 of 1999), the



SARA10 conflict that took place in North Maluku at the end of 1999 was followed by a local

political crisis has triggered a protracted election process for the position of governor. This meant that data on demographics (including the size of the area, population, number of men and women, livelihoods, kind of product produce by the people) and GDRP was not available at the time fieldwork was conducted. Before the administrative separation of the region in early 2003, the area of North Maluku Province consisted of only two kabupaten (districts) and 1 kota (municipality or city), namely, the District of North Maluku), the District of Central Maluku, and Kota Ternate. Based on Law No. 1 of 2003, the Districts of North Maluku and Central Maluku were administratively separated, so North Maluku Province now covers 6 kabupaten and 2 kota, included West Halmahera and North Maluku. In North Halmahera District, the election of the new bupati was undertaken on 27 June 2005. Due to the change in administration and the conflict situation, complete demographic data were not available and cannot be presented in this report.

The tradition of inter-ethnic and inter-religious harmony in North Maluku, which goes back to earlier times, has been a long one and has often constituted a reference point in the model of religious tolerance. The village community, which has a multi-religious population, has formalized this model of harmony into the pela system, meaning a system of relationships that refers to mutually beneficial assistance between groups. In the frame of this pela system, for example, if one village establishes a mosque, the Christian population (from the relevant village and from neighbouring villages) will automatically help them. It is also the same in reverse; if a village establishes a church, then the Muslim population will automatically help them (Taylor, 2001). But in 1999/2000 this harmonious order of social life unexpectedly fell apart with the explosion of social conflict that finally polarized into a religious conflict. The social conflict that ended in the SARA conflict and social violence in the Province of North Maluku had a negative impact on various sectors. In the economic sector, the negative impact was very profound and, in several respects, is still continuing even now. The picture of economic deterioration that was the consequence of the conflict can be seen from the GDRP (Gross Domestic Regional Product) of North Maluku District in 2000 (at constant prices), which experienced a decline of 7.89% (BPS, 2001).

North Halmahera District North Halmahera District is one of the new districts located on the island of Halmahera. It covers an area of 7,842 square km and is made up of 9 sub districts, 174 villages. The population consists of 165,326 persons, 0f whom 85,452 men and 79,875 women (2003. The main sources

of livelihood are farming, fishing, trading, labor, and civil servant. The main products include coconut, cloves, nutmeg, wood, lemon, cattle, and marine fish. West Halmahera District West Halmahera District is one of the new districts located on the island of Halmahera.. It

covers an area of 22,346 square km and is made up of 5 sub districts, 140 villages. The population consists of 91,549 persons. The main sources of livelihood are farming, fishing, labor, and civil servant. The main products include coconut, cloves, nutmeg, coffee, cocoa, wood, pepper, cattle, and marine fish.

10

SARA: Suku, agama, ras dan antar-golongan: ethnic affiliations, religion, race and societal groups.



Table 1.4.1. The Province of North Maluku and Sample Districts (2003)

North Maluku North Halmahera* West Halmahera**

Area (square km) Na 7,842 22,346

Population (persons) Na 165,326 91,549

Note: Na = data is not available Source: ** Halmahera Utara in Figures 2003, Statistics Indonesia

*** Monografi Kabupaten Halmahera Barat

2. The Province of East Java

The Province of East Java, which covers an area of 47,157.72 sq.km consists of two main sections, the “mainland” (the eastern part of the island of Java), which takes in approximately 90% of the province and the island of Madura, which accounts for only 10% of the land area of the province. Administratively, East Java has 29 districts and 9 cities, and 642 subdistricts (kecamatan). In 2004 East Java had a population of 36.5 million and an annual population growth rate of 0.77%. Of these people, 20% were classed as poor. In view of the area and population of the province, population density is high at 774 persons per sq. km. By comparison with the other 30 provinces in Indonesia, East Java’s GDRP of Rp 63 trillion in 2003 ranked second in size to that of the national capital, where the figure was Rp67 trillion.

11

The average growth rate of GDRP in the 2000-2003 period was 3.6%. The Moving Out of Poverty Study in the Province of East Java was conducted in one mainland district, namely, the District of Probolinggo, and one district on the island of Madura, namely, the District of Pamekasan. The growth rate of districts on Madura is relatively slower than the average figures for other districts in the Province of East Java. The average per capita value of the GDRP in districts on the mainland is two or three times larger than the average in districts on Madura. The structure of the economy of districts on Madura is still dominated by the primary (agricultural) sector, which contributes 54.1 percent.

The island of Madura is in fact not very far from the mainland of Java and can be reached by

ferry from Panjang Harbour in Surabaya (the capital of East Java) in approximately 20 minutes. Because of this proximity, many of the people from Madura work in Java and the reverse. In an attempt to accelerate the development of Madura, the central government has plans to construct a bridge connecting Surabaya and Madura. It is hoped that construction of the bridge will be completed by 2008. ProbolinggoDistrict The District of Probolinggo is situated at the foot of three mountains, Mt Semeru, Mt Argopuro and the Tengger Ranges. Because of its location, Probolinggo has a transitional season (between the hot season and the wet season) when there are strong, dry winds known as 'angin gending'. These winds frequently destroy crops planted by farmers. Probolinggo District has an area of 1,696.166 sq.km, and consists of 24 subdistricts, 325 villages and five urban villages (kelurahan). In 2004 its population was 984,918 persons, of whom 26%

were classed as poor. With a growth rate of 0.95%, population density was 580 per sq.km. Most of the people of Probolinggo District originate from the Madurese sub-ethnic group and the majority (98%) are Moslems. The main source of livelihood is still agriculture, the most important crops being rice, secondary food crops (pulses) and tobacco.

11

Gross Regional Domestic Product without oil and gas at constant 1993 prices; 1 dollar = Rp9500.



Pamekasan District Pamekasan District is one of the four East Java districts located on the island of Madura. It covers an area of 1,696 sq.km and is made up of 13 subdistricts, 178 villages and 11 kelurahan. The population consists of 695,505 persons, of whom 32% are classed as poor. Virtually 100% of the people belong to the Madurese sub-ethnic group and are Moslems. The main sources of livelihood are farming, fishing and animal husbandry. The main products include rice, secondary

food crops (especially corn), tobacco, cattle and marine fish. Pamekasan District is also a major producer of salt and seaweed.

Table 1.4.2. The Province of East Java and Sample Districts (2004)

East Java Probolinggo Pamekasan

Area (square km) 47,157.72 1,696.16 792.30

Population (persons) 36,535,527 984,918 695,505

% of poor 20% 26% 32%

GDRP per capita* (Rp) 1,782,391 1,560,502 743,832

Note: *GDRP in 2003, based on 1993 constant prices.

Source: Statistics Indonesia



Figure 1.3.2 Map of Indonesia ‘Moving out of Poverty’ Sample Areas

East Java (Low Conflict) North Maluku (High Conflict)

North Halmahera Pamekasan

West Halmahera Probolinggo Ternate



3. The Sample Communities

Eight of the 10 communities that were studied are located in rural areas. Two communities are semi-urban and urban and Branta Pesisir is a coastal village. In low conflict areas, only Branta Pesisir has experienced violent conflict in the past 10 years. The village of Bulu has experienced occasional conflict and Palengaan Daja once experienced riots. With the exception of Branta Pesisir, all sample communities have experienced epidemics of insect/crop blight and in the case of Bulu there was once a natural disaster in the form of a flood. In addition to these disturbances, Palengaan Daja once experienced severe drought and outbreaks of disease while Semampir was once affected by an earthquake. In the context of land ownership, there has never been a land reform program in any of the sample villages. With the exception of Kampung Pisang, which is in an urban area, and Gura, which is semi-urban, the villages in this high conflict region are rural in nature. In December 1999 and January 2000 all sample villages and communities experienced high-level religious and political violence that caused almost all of the houses and even schools and places of worship to be destroyed and a large-scale exodus of people from the village to take place. Most of the people returned to the villages from evacuation only after the government officially took them home again in 2002. During the disturbances the area was virtually empty, for no evacuees came into the village from outside. Today the people are busy rebuilding their ruined homes with government assistance in the form of cement, sheets of iron and plywood. Even though there are still signs of reluctance on the part of people in each group to express their inner feelings, the situation is now conducive to stability and the community is able to go about its routine activities. Similarly, people from outside are free to travel into the village and communicate with the local people. When one enters the villages, traces of the disturbances are still to be seen, including the ruins of houses and places of worship that were destroyed by fire and have not yet been rebuilt. Now, however, part of the community already has houses made of concrete bricks. In addition to the disasters of the conflict, Soakonora and Gorua experienced outbreaks of disease during the past 10 years. Idamdehe Gamsungi was once shaken by an earthquake and a drought while Gorua experienced an epidemic of insect and crop blight.



Box 1.3.1. East Java (Low Conflict) Sample Communities in Brief

Palengaan Daja

Palengaan Daja, which is situated 17 km from the capital of Pamekasan District, is an agricultural village in which tobacco is the main crop. The scenery surrounding the village, which was established in about

1923, is dominated by undulating fields of tobacco. In addition to tobacco, there are also large numbers of

coconut palms and stands of bamboo. Among the coconut palms, bamboo, trees and fields are the houses of the village residents, which are generally grouped on one home-lot (pekarangan). On the whole, the

houses in this village have a home-lot on which a household can build a main house, kitchen, animal stalls and prayer house. The period when the research was done in the months of July and August was really the dry season. Rain, however, still fell frequently, causing damage to tobacco leaves. The unusually long wet

season made the red-yellow soil in Palengaan Daja very slippery. The village is linked to the subdistrict and district offices by a road that can be used throughout the year. But there are no public vehicles (buses or minibuses) to serve the route to and from the village. For this purpose people generally make use of an

ojek (a motor-cycle that is hired like a taxi), while some villagers rent a pick-up to take them to the nearest market on market days. The majority of village people use clean water from wells for their daily needs.

Palengaan Daja village has 15 mosques, one market, four telephone kiosks (wartel) and an electricity

network.

In 2005 there were branches of five political parties (PKB, PPP, PDIP, PAN and PBB) in the village. In addition, there were two religious organizations, namely, Nahdlatul Ulama (NU) and Jamaah Tabligh. According to key informants in the community profile discussion, the most important organization for

villagers both in the year 2005 and ten years ago was NU. The most important government institution is the administration of the village, which consists of nine hamlets (communities), one among them being the hamlet of Angsoka Temor.

Semampir

The location of Semampir, which was established in 1860, is 0.5 km from the centre of the Sub-district of Kraksaan. Semampir is accessed by a main road that connects two districts in East Java. In

Semampir there is the Semampir Market whose service area takes in almost the whole region of the District of Probolinggo. Although the villages around Semampir are still rural in nature, the presence of a main road and market make the atmosphere in Semampir very busy. Most of the houses

are permanent structures. The entire area of Semampir can be accessed by road and, in fact, many of the roads are often jammed with traffic because of the large number of traders selling along the road. Semampir is traversed by inter-city buses that operate 24 hours a day. To enter parts of Semampir,

becak (paddy cap) are available to transport passengers 24 hours a day. In addition, some of the people own motorcycles or bicycles. Access to potable water and electricity in Semampir is quite

good. It can be said that 90 per cent of the population of Semampir drinks clean water. The villagers

of Semampir are very grateful because of the provision of an artesian well from the World Bank’s KDP Program. Because it was deemed to have fulfilled the requirements to become an urban village (based on population size, existing facilities and infrastructure), the village of Semampir changed its

administrative status to that of Kelurahan Semampir. As a consequence of this change, the village head of Semampir is no longer elected by the villagers directly but is appointed by the district

government. Administratively, Semampir is divided into five RW (Rukun Warga or hamlets).

Bulu

The village of Bulu is located 1 km from the centre of Kraksaan, the capital of Probolinggo District.

Although it is quite close to the capital, Bulu is a relatively rural village where the main livelihood is

farming/farm labouring, and especially rice and tobacco cultivation. On entering Bulu from the

north, one feels something of an urban atmosphere. This is because of a housing complex in the

northern part of Bulu, where construction commenced in 1999. But if we enter Bulu from the south

by foot, there is a more rural atmosphere since rice-fields and the green tobacco crop are spread out

on both sides of the road, a small stream flows on the left side of the road, goats are busily eating grass

and some of the houses are built from bilik (woven bamboo). The terrain in Bulu is relatively flat. In

several places in the southern part, there are depressions left by the excavation of soil to make bricks.



In that area, people still produce bricks. When the soil can no longer be removed, the land is used as

rice-fields. Bulu was established long ago (before 1937), but no one knows exactly when. In the dry

season a dry wind blows in the afternoon, filling houses with dust. According to villagers, this wind

is know as the east wind and blows from approximately June to August. Several years ago, this wind

caused a plant disease called penyakit kuning (yellow disease) that destroyed crops. But villagers have

found a suitable treatment, so their crops are now free of penyakit kuning.

Banyupelle

Banyupelle is located 20 km from the district capital. It takes 45 minutes to get the village from the capital along the asphalt road. Most of the community earns its income from farming. As farmers

people are very dependent on rainfall. In the wet season they usually plant rice followed by dry season crops (peanuts, beans, and corn), chilli and other vegetables. The third crop is usually tobacco until the wet season returns once more. In the second cropping season, they must be careful in determining

the most suitable crops in order to achieve the best productivity. It is not unusual for farmers to earn no income because of the low sale price during the main harvest. Tobacco is considered the best cash crop and farmers rely heavily on a successful tobacco harvest. Tobacco farming is very dependent on

rainfall and if the tobacco leaves get wet, dampness reduces the sale price. Banyupelle consists of 7

hamlets or communities. There is electricity from the State Electricity Company (PLN) network. Clean water for daily use is supplied by wells; most people use pails to draw water but a small number

use a mechanical pump.

Branta Pesisir

The village of Branta Pesisir, which is located approximately 7 km from the centre of the town of Pamekasan, is a fishing village. Not a single key informant, including the village head, knew when

this fishing village was established. The area is now crowded with houses, although in the past the coastline had only one or two houses. One main road that is rather broad divides the village. Both sides of the main street are lined with houses, various shops, warung (small shops), storehouses and a

number of trucks for the transport of rice. The main street ends in front of the main entrance to the

port of Branta. Behind the main gate, there is a pier that has just been built and is not yet fully functioning. Here, Branta fishermen tie up their boats, which are painted in a variety of colours.

During the day the villagers use the side of the pier as a place to dry fish. At night, the new pier is a place for the youths of the village to gather. Behind the houses, warung and shops that line the main street can be seen the fishermen’s crowded housing settlement with its special smell. In various places

it gives the impression of being a slum. Nevertheless, here and there can be seen attractive new buildings with walls that are covered in glossy ceramic tiles. In general, in this kampung the fishermen do not have their own home-lots. For that reason, villagers undertake their various daily activities in

the narrow street in front of their homes.



Box 1.3.2. North Maluku (High Conflict) Sample Communities in Brief

Soakonora

Located in the centre of the district, it is only one kilometre from Jailolo, which is the subdistrict capital and at the same time the capital of the District of West Halmahera, which lies along the west

coast of the island of Halmahera. With the subdivision of the region into a number of administrative districts in 2003, the effect of the transfer of the capital of West Halmahera to this area has begun to be felt. Even though an asphalted road that can be used in all seasons connects Soakonora to it, ojek

(motorcycle taxi) are the only means of public transport in the village. Previously there had been a number of public transport vehicles in the form of mini vans. Members of the community chose the village head after they returned from evacuation at the end of 2002. The people of Soakonora earn a

living as farmers produce cloves, copra, nutmegs, cocoa, and bananas, and some work as government

employee. Idamdehe Gamsungi

Idamdehe Gamsungi village was established in the 1900s with a population of only 10 families, the

majority of whom are from the Jeremoh and Garawa clans. The village, which is around 750 meters above sea level, is situated 13 km from Jailolo, the capital of West Halmahera District. The people of Idamdehe Gamsungi live in an area encircled by mountains and forests, where they earn a living as

farmers. They produce cloves, copra, nutmegs and cocoa. Most houses have no fences of the kind that normally separate one house from another. Uniform fences, half a metre high of cement and half a

metre high of bamboo, are built in front of the houses that face the village roads. The combination of

neat fences and colourful flowers makes the village very beautiful when seen from afar. Houses with no fences give an impression of a close relationship among people in the community. In 1980 many people from outside the village came and married the local people and finally stayed permanently in Idamdehe

Gamsungi. Currently, Idamdehe Gamsungi village which is divided into three neighborhoods, has 98 families (388 people).

Gorua

The village is located close to Tobelo, which is the subdistrict capital and at the same time the capital of the District of North Halmahera, which stretches along the east coast of Halmahera. The village is connected to Tobelo by a very good asphalt road that can be used in all seasons by private cars, public

transport vehicles in the form of mini vans, and ojek (motor-cycle taxis). The transport situation has become more developed since the conflict. The scenery along the way from the port of Sidangoli to

Tobelo and Gorua was very attractive. Coconuts, cloves, nutmeg, cassava and bananas can be seen along the sides of the road, which also indicate the source of living of the people of Gorua. A glance at the homes of the local people shows that there is virtually no house without lemong, a type of citrus tree whose

fruit is rubbed on fish so that they do not smell rancid. These trees usually bear an abundance of yellowish fruit. The beauty of the scenery is greatly spoiled, however, by the still obvious traces of the 1999/2000’s conflict. Mosques, churches and schools were ruined and burned at that time. The houses of the local

people had also been destroyed but rebuilding has already commenced. The village has had electricity for ten years now. Kampung Pisang

The kelurahan (urban village) of Kampung Pisang is located in the Subdistrict of South Ternate of Ternate City. It was established in the 1940s. Since it is an area that is urban in nature, the main

source of livelihood of its people lies in the service sector. Good asphalt roads link all parts; noisy traffic passes through Kampung Pisang every day. Office buildings and a dense settlement pattern are characteristics of this kelurahan. Along certain stretches of the road, the economic activities of the

formal and informal sectors are to be found, like photocopy kiosks, shops selling the nine basic necessities and food stalls as well as retail sellers of fuel and petrol.



Gura

Gura is geographically located in a very strategic position on the coastline and is one of the four villages that

form the town of Tobelo, only one kilometre from the centre of government administration of North Halmahera District and approximately one kilometre from the centre of business activities (the main market, shops and the like) of Tobelo. Before becoming capital of North Halmahera District, Tobelo was the capital of

Tobelo Subdistrict and was the centre of economic activity in the northern part of the island of Halmahera. In

the Province of North Maluku, Tobelo is the second largest town after Ternate. The village of Gura itself is a coastal settlement that was established a long time ago. As a section of Tobelo, which started to prepare itself to

adapt to its new status as district capital, the village of Gura became part of that process of adjustment. One of these adjustments took the form of adaptation from a rural community based on a traditional economic sector (agriculture) to an urban community based on a modern economic sector like trading services. All the public

roads in Gura are asphalted and used as public transport routes.

E. POVERTY AND MOBILITY MEASUREMENT

1. Poverty Measurement

In Indonesia, the official poverty line (OPL) is calculated and determined by the Statistics Indonesia (BPS) at the national, provincial and district/city levels. Because income data in

Indonesia cannot be relied upon,12 BPS uses data on expenditure as a proxy for income in

determining the poverty line. This poverty line is calculated on the basis of food and non-food expenditure per capita. Expenditure for food is defined as the expenditure necessary to achieve a food energy intake requirement of 2,100 calories per person per day.

13 The basic need for non-

food items is estimated from the minimum amount necessary for housing, clothing, health, education, transport and other basic necessities. The poverty line is differentiated according to

urban and rural areas by considering differences in the pattern of consumption and the price of goods between urban and rural areas. In addition, another consideration is the proximity to the district centre. The volume of goods, both food and non-food, changes during each data collection period, based on current developments. Currently, approximately 52 food items are used as a parameter in calculating the food poverty line by considering differences in characteristics between provinces in Indonesia. In addition, the number of non-food variables

selected consists of 51 types for urban districts and 47 for rural ones. The average expenditure for each type of non-food item per capita per month is then totaled to obtain the minimum standard. Data are collected through a national socio-economic survey known as the Susenas, which contains approximately 300 types of expenditure data (covering quantities and the value of rupiah expended) for Susenas Consumption Module. In size, the Susenas sample survey covers approximately 65,000 households for Susenas Module and around 200,000 households for Susenas Core, distributed across all provinces in Indonesia. The Susenas has been conducted every year since 1981 using three different modules that change every three years, namely, a housing

module, a health module and a consumption module.

12

One reason is that a very large proportion of household revenue comes from the informal sector.

13The total of 2,100 calories per day is based on the results of a national workshop on Food and Nutrition

held in 1978. In this workshop it was reported that for consistent health, a person should consume at least

2,100 calories per day. See also Pradhan (2000).



The poverty line is usually presented based on per capita expenditure per month according to urban or rural location. Those people below a level of per capita expenditure per month (the poverty line) in one district are classified as poor. This research utilizes the official poverty line determined by BPS. Because the approach for individual mobility is the household, the value of the per capita poverty line is converted to a household rate. By assuming that the average household in Indonesia consists of 4.2 individuals, the per capita poverty line is multiplied by 4.2 to obtain the OPL per household. At the time this study was being conducted (2005), the OPL that was used was the poverty line available at that time (2003); in the Province of East Java this was Rp400,000/month/household and for North Maluku Province it was Rp 550,000/ month/household. This OPL was then translated into the Ladder of Life. Participants in the Ladder of Life FGD, which consisted of 6-12 men and women who represented their communities, then decided on which rung to place the households that had expenditures of the same scale as this poverty line. At the time of the discussion, FGD participants were also asked to determine the community poverty line (CPL). This CPL is determined by the community in a relative way, based on the

lives of the local people and using life in the area/community concerned as a reference; in this case it is expressed in the Ladder of Life. The CPL is intended to determine the limits of the households that are considered no longer poor on the Ladder of Life. As a result of discussions with the community, it was found that, of 10 sample communities, 9 had a CPL that coincided with the OPL, which means that life as it occurs in this area/community is the same as the average life of other communities in the district (kabupaten).

14 Only in Palengaan Daja was the

OPL of a household higher than its CPL, meaning that life in this area/community is actually worse than that in other communities in the district. Table 1.5.1 presents the position of the OPL and CPL on the Ladder of Life for each sample community.

Table 1.5.1. Official Poverty Line (OPL) and Community Poverty Line (CPL)

Community Number of steps in the Ladder of Life OPL*) CPL

Low Conflict (East Java)

Palengaan Daja 4 2 1

Semampir 6 3 3

Bulu 5 2 2

Banyupelle 5 3 3

Branta Pesisir 5 2 2 High Conflict (North Maluku)

Soakonora 7 2 2

Idamdehe Gamsungi 7 2 2

Gorua 5 2 2

Kampung Pisang 6 2 2

Gura 4 1 1 *) OPL 2 means the households on step 3 and above are not included in the category of poor households.

2. Mobility Measurement

The prosperity mobility of a household is determined by examining the change in the position of the household on the Ladder of Life at the current time (2005) and 10 years ago (1995). A

household is classified as belonging to the chronic poor if the position of this household on the

14

The official Poverty Line is calculated by BPS only to the district/city level.



Ladder of Life is below the poverty line (CPL or OPL), both now and 10 years ago. Alternately, households can be said to be ‘never poor’ if they are above the poverty line (CPL or OPL) at the present time as well as 10 years ago. Households that were below the poverty line 10 years ago but have now passed the poverty line are classified as ‘movers’. On the other hand, a household that 10 years ago was above the poverty line but is now below the poverty line is classified as a ‘faller’ (see Table 1.5.2)

Table 1.5.2. Classification of the Mobility Status of Households

Ten years ago (1995) Currently (2005 Mobility

Rich (above the poverty line) Rich (above the poverty line) Never poor

Poor (below the poverty line) Rich (above the poverty line) Mover

Poor (below the poverty line) Poor (below the poverty line) Chronic poor

Rich (above the poverty line) Poor (below the poverty line) Faller

During this study, the position of the welfare of a household was determined by the participants of a FGD that consisted of a maximum of 12 people. After the FGD participants (the men’s group was separated to the women’s group)

15 discussed the Ladder of Life, they were then asked to

determine the position of households in this community (sometimes as many as 200 households) on the steps of the Ladder of Life, both at the present time and 10 years ago. FGD participants

needed only an average of 30 seconds to determine the placement of a household on the steps available. Given these factors, it was estimated that there was a possibility that FGD participants would not be accurate. This inaccuracy was mainly caused by participants in the FGD not understanding the condition of these households. For example, in Soakonora FGD participants from a certain hamlet (majority Moslem) were not familiar with households from other hamlets (majority Christian). Apart from this reason, other factors resulted in FGD participants being less

than objective in the placement of households on the Ladder of Life. For example, in Palengaan Daja, FGD participants thought that this MOP study was associated with a program or project for the poor, so they placed most households on the lowest steps of the ladder (step 1 or the poorest). Attempts were made to eliminate the inaccuracy of this placement by comparing the results of the men’s FGD with the women’s. If differences in status were too extreme, for example, if there were households that the men’s FGD categorized as movers while the women’s FGD classified them as fallers, then the status of this household was verified by questioning a community figure who was considered to be knowledgeable about the situation of local villagers. Based on a researchers’ agreement, the Ladder of Life that was used in the selection of respondents was the one that had the most steps. In general, the Ladder of Life produced by the women’s FGD had more steps than the one produced by the men’s FGD. In other communities where there is still friction between one community group (Christian) and other groups (Moslem) due to the conflict, verification was conducted for the two groups that used the Ladder of Life, which was the result of discussions with those two groups. 3. Summary of Statistics for Community Mobility from the Ladder of Life

The position of each household on the Ladder of Life was then transferred to the Mobility Matrix. Table 1.5.3 presents an example of the Mobility Matrix for one community. The patterns of mobility in the study communities are described and compared by using the twelve different

mobility indices, namely, (1) the Prosperity Index, (2) the Falling Index, (3) the Net Prosperity

15

In Soakonora there were separate discussion groups for Muslims and Christians; each had a mixture of men and women participants. In Idamdehe Gamsungi there were also discussions with a mixture of men

and women participants.



Index, (4) the Mobility Index, (5) the Moving out of Poverty Index, (6) the Shared Prosperity Index, (7) the Mobility of the Poor Index, (8) the Mobility of the Rich Index, (9) the Falling of the Poor Index, (10) the Falling of the Rich Index, (11) the Net Prosperity of the Poor Index and (12) the Net Prosperity of the Rich Index. In short, the summary statistics are a way to sort communities by type of movement. The analysis of the summary statistics is intended to provide an understanding of how mobility patterns may or may not be linked to the policy focus, growth and conflict context, or other key findings of the study. This will be supplemented by quantitative and qualitative data to confirm and enrich the understanding of why these patterns of mobility are emerging and the factors and processes underpinning them. Below is an overview of the twelve summary statistics. (1) Prosperity Index

The Prosperity Index (PI) is the extent of all upward mobility in a community which captures only upward movement in a village, irrespective of the individual’s position on the Ladder of Life 10 years ago. (2) Falling Index

The Falling Index (FI) is the extent of all downward mobility in a community which captures only downward movement in a village, irrespective of the individual’s position on the Ladder of Life 10 years ago. (3) Net Prosperity Index

The Net Prosperity Index (NPI) is the extent of net upward mobility (upward minus downward) in a community which captures net upward mobility in a village, that is, it shows whether the share of upward movement was greater than the share of downward movement. (4) Mobility Index

The Mobility Index (MI) is the extent of all (upward + downward) mobility in a community,

irrespective of the direction of mobility, which captures all movement or changes in status in a village irrespective of whether it is downward or upward. (5) Moving out of Poverty Index

The Moving out of Poverty Index (MOPI) is the extent of upward mobility by the poor across the community poverty line in a community which captures only upward movements across the poverty line, that is, from below to above the poverty line. This index differs from other indices because the prosperity and mobility indices are independent of the individual’s initial position on the ladder 10

years ago. They only capture upward movement (in the case of the prosperity indices – gross and net) and both upward and downward movement (in the case of the mobility index). (6) Shared Prosperity Index

The Shared Prosperity Index (SPI) is the extent of upward mobility by the poor minus the non-poor in a community, which compares upward movers who were poor in P1 with upward movers who were non-poor in P1. The shared prosperity index is simply the difference between the two ratios. (7) Mobility of the Poor Index

The Mobility of the Poor Index (MPI) is the extent of upward mobility by those who were poor 10 years ago. It calculates the percentage of those poor in P1 who moved upwards, irrespective of whether they did or did not cross the CPL (8) Mobility of the Rich Index

The Mobility of the Rich Index (MRI) is the extent of upward mobility by those who were non-poor 10 years ago. It calculates the percentage of those non-poor in P1 who moved upwards.



(9) Falling of the Poor Index

The Falling of the Poor Index (FPI) is the extent of downward mobility by those who were poor 10 years ago. It calculates the percentage of those poor in P1 who moved downwards. (10) Falling of the Rich Index

The Falling of the Rich Index (FRI) is the extent of downward mobility by those who were non-poor 10 years ago. It calculates the percentage of those non-poor in P1 who moved downwards. (11) Net Prosperity of the Poor Index

The Net Prosperity of the Poor Index (NPP) is the extent of net upward mobility (upward minus downward) by those who were poor 10 years ago. (12) Net Prosperity of the Rich Index

The Net Prosperity of the Rich Index (NPR) is the extent of net upward mobility (upward minus downward) by those who were non-poor 10 years ago.

Table 1.5.3: Number of Household in the Mobility Matrix (Semampir: Female)

Today

Rung

1 Destitute

2 Poor

3 Average

4 Middle

5 Well-off

6 Rich Total

1 Destitute

2 5 8

2

Poor

6 39 45

3 Average

2 16 40 6 5 69

4 Middle

1 7 3 1 12

5 Well-off

1 2 3

6

Rich

10 Y

ears

Ago

Total

2 15 62 41 9 8 137

Source: CSR, Semampir, Indonesia.

Based on these indices, data in the Mobility Matrix was then processed using formulas that were used in each index. Table 1.5.4 presents the formula and several notes for each index.



Table 1.5.4. Formula for Counting of Indices

Index Formula Note

Prosperity Index (PI)

Proportion of households that move upwards to all households. Every household that moves is given 1 point

(climbing from step 1 to 2 or from step 1 to 3 is treated as the same).

Does not describe households that experience downward movement.

Falling Index

(FI)

Proportion of households that fall to all

households. Every household that falls is given 1 point (falling from step 2 to 1 or from step 3 to 1 is treated the same).

Does not describe households that

experience upward movement.

Net Prosperity Index (NPI)

Proportion of households that have moved after deducting households that

have fallen: - Every household that has moved is given

1 point (moving from step 1 to step 2 or

from step 1 to 3 is treated the same)

- Every household that fell is given 1

point (falling from step 2 to 1 or from

3 to 1 are treated the same)

(Number of points for movers minus

number of points for fallers) divided by

total households

- Describes differences between upwards and downwards

- Can have a negative value if the proportion of falling households is larger than that of mover households.

Mobility Index (MI)

Proportion of mover households together with households that fell

- Does not differentiate between

households that moved and those that

fell; every movement is allocated 1 point

- Number of points divided by total

households

- This index examines the movement dynamics of households, without

differentiating between movers and fallers.

- A low index shows that the

community is very stable/stagnant

Moving Out of

Poverty Index

(MOPI)

The number of households that have

passed the poverty line divided by the

number of households that were poor 10

years ago.

- This index shows how many

households have moved out of poverty.

- Poverty line placement/position is very crucial.

Shared Prosperity

Index (SPI)

Proportion of poor households that

moved – proportion of non-poor

households that moved.

- This index can compare the upward movement between poor and rich

households. - A large index = poor households that

moved are greater than rich

households (inequality can be said to have fallen).

- Need to be careful in using the SPI as

an indicator of inequality, because the SPI does not consider households that have fallen.

Mobility of the Poor

Index (MPI)

Number of poor households that have

moved divided by the number of poor

households 10 years ago.

This index shows the upward movement of poor households.

Mobility of the Rich

Index (MRI)

Number of non-poor households that

moved divided by the number of non-

poor households 10 years ago.

This index shows the upward movement of rich households.

Falling of the Poor

Index (FPI)

Number of poor households that have

fallen divided by the number of poor


This index shows the downward movement of poor households.



Index Formula Note

Falling of the Rich

Index (FRI)

Number of non-poor households that

have fallen divided by the number of rich


This index shows the downward movement of rich households.

Net Prosperity of

the Poor (NPP)

Proportion of poor households that have moved after subtracting the proportion of

poor households that have fallen (MPI-FPI)

To ascertain the movement of poor households. Where the NPP is larger, the

prosperity of poor households is increasingly better.

Net Prosperity of

the Rich Index

(NPR)

Proportion of non-poor households that

have moved after deducting the

proportion of non-poor households that

have fallen (MRI-FRI)

To ascertain the movement of rich households.

The community mobility was rank by Net Prosperity Indexes (NPI), from the highest to the lowest. NPI is used because it captures net upward mobility in a village, that is, it shows whether the share of upward movement was greater than the share of downward movement. The results of the estimation of indexes are presented in Chapter IV, Table 4.2.1. 3. The Respondents

Household survey respondents were randomly selected from the member of the communities whose status on Ladder of Life (LoL) was identified by FGD participants. Table 1.6.1 below shows the number of households that were identified in FGDs by comparison with the number of households in the sample area (hamlet/RW).

Table 1.6.1. Number of Households Identified by FGD Participants and Comparison with

Number of Households in the Sample Village and the Community Sample

Study Focus Area Village Household number %*

Village Sample

communities/RW

Identified household

A. Low conflict Palengaan Daja (F) 3,000 141 141 100

Semampir (F) 811 137 137 100

Bulu (F) 1207 182 168 92

Banyupelle (F) 1,635 242 219 90

Branta Pesisir (F) 1,113 122 122 100

B High conflict Soakonora** 653 157 78 50

Idamdehe Gamsungi (M) 98 98 78 75

Gorua (F) 762 198 198 100

Kampung Pisang (F) 395 97 97 100

Gura (F) 817 201 201 100

Note: * Identified households as a percentage of total households in the sample hamlet ** Initially, in the Ladder of Life FGD with the women’s and men’s groups all people in the

sample hamlet could be identified, but at the time of verification,16

only those who were aged <60 years and still living in the village were identified.

16

See Community Synthesis Report – Soakonora village.



Respondents were the household head or a household member who was aged up to 60 and had lived in the community for a minimum of 10 years (and had had a household for years). Table 1.6.2 shows the composition of 372 respondents in 10 communities based on the four transition groups. The composition of the ‘movers’ and ‘chronic poor’ respondents interviewed for household survey are slightly higher than the requirement while the ‘faller’ and ‘never poor’ are lower.

Table 1.6.2. Composition of Respondents

Now 10 years ago

Poor or worse off Rich or better off

Poor or worse off Chronic poor (25.3%) Movers (40.6%)

Rich or better off Fallers (9.4%) Never Poor (24.7%)

Details of household survey respondents per area by the four transition groups are presented in

Table 1.6.3. Respondents’ individual life stories, the number of which is approximately a half of the number of respondents in the household survey, are shown in Table 1.6.4.

Table 1.6.3. Composition of Household Survey Respondents in Transition Groups

by Gender of Household Head

Never Poor Mover Chronic Poor Faller Total Community

M F M F M F M F M F

East Java (low conflict)

Palengaan Daja 7 0 20 0 7 0 3 1 37 1

Semampir 5 0 20 0 6 1 6 0 36 1

Bulu 8 0 15 4 5 1 4 0 32 5

Banyupelle 3 1 7 3 19 5 1 0 30 9

Branta Pesisir 14 3 10 0 7 0 4 0 35 3

Sub Total 37 4 72 7 44 7 18 1 170 19

North Maluku (high conflict)

Soakonora 11 2 12 1 7 1 1 1 31 5

Idamdehe Gamsungi 10 0 15 1 7 0 3 1 35 2

Gorua 8 0 14 2 10 0 2 1 34 3

Kampung Pisang 7 3 10 1 8 3 3 1 28 8

Gura 10 0 16 0 5 2 4 0 35 2

Sub Total 46 5 67 5 37 6 13 4 163 20

Total 83 9 139 12 81 13 31 5 333 39

Source: Processed from the Household Survey.

Respondent of individual lifestories were selected among the housesold survey and the number

are half of the household survey respondents. As much as possibly random sampling method were used to select the respondents. However, because of some respondents are not articulative, the ability to communite well was also used for selecting the respondents.



Table 1.6.4. Composition of Individual Life Story Respondents in Transition Groups by Gender of Household Head

Never Poor Mover Chronic Poor Faller Total Community

M F M F M F M F M F

East Java (low conflict)

Palengaan Daja 5 0 7 0 2 1 1 1 15 2

Semampir 4 0 7 0 1 1 2 0 14 1

Bulu 4 1 5 1 3 0 2 0 14 2

Banyupelle 2 0 3 0 8 1 0 0 13 1

Branta Pesisir 8 1 4 0 4 0 0 0 16 1

Sub Total 23 2 26 1 18 3 5 1 72 7

North Maluku (high conflict)

Soakonora 3 3 2 3 2 1 1 0 8 7

Idamdehe Gamsungi 0 0

Gorua 2 2 5 2 3 0 1 0 11 4

Kampung Pisang 3 2 4 1 5 0 1 0 13 3

Gura 5 0 8 0 2 0 1 0 16 0

Sub Total 13 7 19 6 12 1 4 0 48 14

Total 36 9 45 7 30 4 9 1 120 21

F. STRUCTURE OF THE REPORT

The Country Synthesis Report for Indonesia, which is divided into 9 chapters, combines and synthesizes field findings in the ten communities. Chapter I presents the Introduction, which gives a general picture of the background of the study, its purpose and scope, methodology (including the research process and the method of analysis) and sampling (include the general picture of the research communities, poverty and mobility measurement), and the structure of

the report. Chapter II describes the national conditions and trends and the key policies related to the focus of study; this chapter is based on the results of literature reading and information from key informants. Chapter III presents key national events and local perspectives on key events affecting mobility. Chapter IV presents an understanding of community prosperity and mobility, from the perspectives of community figures and informants and from those of community members, men and women. Chapters V and VI attempt to interpret opportunity

structure which affects mobility, first by looking at the growth and conflict affecting community mobility, and then by local factors, which include social stratification and social capital, the extent of democratic functioning, and finally the extent of local governance functioning. Household or individual mobility will be presented in Chapter VII; this will also combine with the agency of the poor factors. Chapter VIII offers more analytical detail on how and why people were successful in moving out of poverty and maintaining their wealth, especially in less

opportunity climate while others were not able to move out of poverty and some even fell in poverty in better opportunity climate. As a conclusion Chapter IX will sum up all findings and propose some policy recommendations.



II. NATIONAL CONDITIONS AND TRENDS

A. MACRO CONDITIONS AND TRENDS IN GROWTH, CONFLICT, POVERTY AND INEQUALITY

At the beginning of the New Order regime, the Indonesian economy was in a very depressed state, with per capita income around US$ 50 in 1967, which made Indonesia one of the poorest countries

in the world (Agrawal 1996, in Suryahadi et al, 2005). The national economy then began to improve, with real per capita GDP reaching US$ 610 in 1991, which meant an annual growth of 4.6% (Hill 1996, in Suryahadi et al, 2005). In 1995 national economic growth reached a peak at close to 9% and remained fairly strong at around 5 % until the economic crisis occurred (Figure 2.1.1).

Figure 2.1.1

GDP growth (%)

-15.00

-10.00

-5.00

0.00

5.00

10.00

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

Year

Source: Statistics Indonesia (BPS).

The economic crisis brought chaos to the results already achieved up to that time and had a negative impact on the livelihoods of most of the Indonesian people.

1 After

experiencing rapid growth, the economy underwent a period of decline (negative growth) because of the crisis, falling to –13.1% in 1998. A series of government policies and efforts enabled economic growth to improve slowly. In 1999 growth was 0.8% over the previous year and by 2003 had reached 4.5%.

Nevertheless, the current economic growth (2005) is still below the pre-crisis figures and far from the peak that was achieved in 1995. As a consequence, the improvement in economic performance is still insufficient to absorb the increase in the labour force and to do away with unemployment, which remains not only widespread but steadily rising. Nor can it solve the problem of poverty. Economic growth is undoubtedly closely related to attempts to cope with poverty. According to the findings of a recent study (Suryahadi et al, 2005), economic growth is indeed an essential recipe for poverty reduction. This study found that one percent economic growth in Indonesia reduces the poverty rate by 0.4 percentage points. The figures are 0.28 for urban areas and 0.44 for rural areas. As a result of various attempts to alleviate poverty and in parallel with growth in the national economy, poverty fell from 54.2 million persons (40.1%) in 1976 to 22.5 million (11.3%) in 1996.

2 The economic crisis that occurred in Asia, including Indonesia, however, caused the

1In several parts of Indonesia, however, especially those regions that produce agricultural and fishery

commodities for export (like pepper, palm-oil, rubber, nutmeg, cloves, copra, and shrimp), producers actually experienced a rise in levels of prosperity as a consequence of the huge increase in the value of the rupiah and in export earnings. According to Suryahadi et al (2005), agriculture was the only sector that

still recorded positive growth during the crisis.

2According to World Bank estimates, the number of people with a level of expenditure below US $ 2 per

person per day reached 53.4% or around 114.8 million in 1997.



number of poor people to more than double. According to BPS, there were 49.5 million poor people (24.2%) in Indonesia in 1998 and 23.4% in 1999. This runs parallel with the negative growth that occurred in the economy. Efforts to overcome the negative impact of the crisis together with steady improvements in the state of the economy and control of the prices of goods and services as well as the rise in community incomes, have begun to reduce the number of poor people, which had fallen to 35.1 million (16.6%) in 2004, even though this figure is still higher than the figure for the number of poor people before the crisis (Figure 2.1.2). In 2005 the level of poverty had reached 15.5%.

Figure 2.1.2. Poverty Rate and Number of Poor People in Indonesia, 1996-2004

Source: Statistics Indonesia.

Unlike the attention given to this question by a number of people who connect economic growth with the handling of poverty, in Indonesia there is not yet much attention to linking economic growth with the inequality between population, regions and groups within a region. A study carried out recently concluded that “there is evidence of the importance of reducing inequality as a means to increase the impact of economic growth on poverty reduction” (Suryadarma, 2005). The same study also found that “at high levels of inequality, growth would have less effect on Indonesia’s quest to reduce poverty”. According to Suryadarma, “this is partly attested by the fact that poverty was reduced rapidly between 1999 and 2002 because inequality in 1999 was at its lowest level in 15 years and resulted in the increased impact of growth on poverty reduction”. Inequality is usually measured statistically by the Gini Ratio, which ranges in value from 0 to 1. The higher the value of the Gini Ratio, that is, the closer it is to 1, the greater the inequality. National data indicate that before the crisis, the Gini Ratio and hence inequality underwent an increase from 0.32 in 1990 to 0.34 in 1996 (Suryahadi, 2005). Unlike its effects on economic growth and poverty figures, the economic crisis actually brought down the Gini Ratio to 0.30 in 1999, which indicated that the inequality had in fact declined. This is due, among other things, to the fact that the economic crisis overwhelmed or was felt strongly by the economic upper classes. As it turned out, there were signs after the crisis that the inequality was starting to increase again to the point where the Gini Ratio reached 0.32 in 2002. It is feared that this increase in inequality continued in the following years (Figure 2.1.3). In 2005, Alisyahbana (2005) estimated the Gini Index to be 0.36.

0

10

20

30

40

50

60

1976 1980 1984 1987 1990 1993 1996 1996 1999 2002 2003 2004

million

percent



Source: Suryahadi, 2005.

The inequality is also multidimensional in nature. In Indonesia the state of the inequality can be studied from a number of important issues, such as access to educational and health services, access to economic opportunities, regional inequalitys and the like. According to Budiyati (2005), the low utilization of the health card by the poor, which is due to lack of information, public perceptions and transportation costs, indicates that there is inequality in obtaining health services. People who are financially better off benefit from the greater opportunity to enjoy free

health services, which are actually targeted towards the poor. Akhmadi (2005) has noted the disparities that prevail between the rich and the poor and also between regions in access to basic educational services. Suspected of being a consequence of the implementation of regional autonomy, these disparities have decreased because several regions have implemented universal free primary education. Mawardi (2005) sees one of the chronic problems in poverty alleviation as the disparity in access to credit by the poor. This is due mainly to two aspects, the fact that the

loan provider institutions, which provide relatively low-interest loans require collateral, and the fact that other loan provider institutions whose procedures are relatively simple impose high interest rates. Both problems are making it difficult for the poor to access loans. Alisyahbana (2005) has pointed out that, despite the moderate trend in overall inequality, regional inequality is still a cause for concern. Wide differences in per capita GDRP between the western and eastern regions of Indonesia have persisted. Regional inequality, however, occurs not only between these

two regions of the country but also across provinces and within provinces. The problem of regional inequality could grow, especially if regions endowed with certain natural resources do not receive their share of those resources. Quite apart from the economic crisis, people in a number of regions have experienced conflicts that have caused the standard of living of the poor to fall and have led to the emergence of newly

poor people and also new inequality. Data collected by UNSFIR (in SNPK, 2005) describe how during a three-year period (1997-2000) 3,600 conflicts occurred with 10,700 victims and more than one million evacuees. Although the number of evacuees has fallen, it was estimated in 2001 that there were still more than 850,000 evacuees in various conflict areas. Other data put forward by SNPK give a picture of how, in the 1990-2001 period, communal violence occurred approximately 465 times, violence with overtones of separatism 502 times, community violence

with the state 88 times, and violence related to labour matters 38 times. It has been estimated that 6,208 victims died, around 76.9% of them as a consequence of communal violence, 22.1% due to separatist violence and the remainder as the result of state violence and labour problems. Podes data for 2003 from BPS (SNPK, 2005) show that there were approximately 109 districts/towns (kabupaten/kota) that had experienced conflicts in both the medium and high categories during the previous year. The findings of Barron and Sharpe (2005) reveal that the

Figure 2.1.3 Gini Ratio in Indonesia 1984-2002

0.27

0.28

0.29

0.30

0.31

0.32

0.33

0.34

0.35

0.36

1984 1987 1990 1993 1996 1999 2002



levels and impacts of conflict in Indonesia are considerably greater than previously expected. There is also significant variation in the levels and impacts of violent conflict across districts. In addition, local conflict is present everywhere, but there are particularly hot spots. B. KEY POLICIES RELATED TO GROWTH, CONFLICT AND POVERTY REDUCTION

The government of Indonesia has already done much in the form of macro policies to create economic stability, increase economic growth and expand employment opportunities that will ultimately raise community incomes. Economic development in Indonesia during the years of the New Order regime can be divided into three phases (Suryahadi et al., 2005). The first phase lasted from the late 1960s to the mid 1970s, when Indonesia embraced remarkably open trade and investment policies. The second phase was from the mid 1970s to the mid 1980s, when Indonesia adopted an inward-looking, import substitution strategy. The third phase started in the mid 1980s, when the Indonesian economy began to reopen as an indirect result of the large drop in oil prices. Macro policies were also introduced through monetary and fiscal policies. Monetary policies involved control over inflation and the value of the rupiah, while fiscal policies provided an economic stimulus that was appropriate to the country’s capacity. The government has also made a series of efforts in connection with the handling of poverty over the past 30 years, both through a sectoral approach to development and special poverty alleviation institutions and through special strategies and approaches. During the New Order period institutions as well as strategies and approaches were not explicitly stated as a means to overcome poverty but emphasis was placed on national development with a sectoral approach. It was only in the period from 1994 to 1998 that the program known as IDT (Presidential Instruction for Neglected Areas), which placed greater emphasis on regions described as ‘left behind’ (rather than ‘poor’), was introduced. The IDT program provided grants amounting to Rp 20 million per neglected village, use of which was entrusted to the village people on a group basis for the construction of productive infrastructure and group-based economic activities. Prior to the IDT program, the government had had only a national development strategy, which did not contain specific strategies for overcoming poverty and which was expressed in the five-year development plans (Pelita) and the national development program (Propenas). Each department carried out its own programs and activities under the coordination of the National Planning Board (Bappenas). An institution intended to deal specifically with poverty was established only in 2000, namely,

the Coordinating Body for Overcoming Poverty (Badan Koordinasi Penanggulangan Kemiskinan or BKPK),

3 which was directly responsible to the President. This institution was later done away

with and its work was continued by a new institution, namely, the Committee for Poverty Reduction (Komite Penanggulangan Kemiskinan or KPK), which was formed in 2002 and is under the coordination of the Coordinating Minister for the People’s Welfare (Menko Kesra). Eventhough the effectiveness of these two institutions are still questionable, the later institution is still operating. In 2005 a strategic document concerning the overcoming of poverty, later known as the National Strategy for Poverty Reduction (Strategi Nasional Penanggulangan Kemiskinan or SNPK), was

prepared using a new approach. The process of compiling the document began in 2001 with the formation of a Team under the coordination of the Coordinating Minister for the People’s Welfare, which had prepared an interim Poverty Reduction Strategy Paper in 2002-2003. The new approach that was adopted involved a series of processes for preparation of the SNPK that

3The SMERU Research Institute worked together with this institution in publishing the ”Basic

Information Package for Poverty Reduction”, 2001.



gave priority to the principles of public participation, transparency and accountability by involving a number of development actors, not only from government circles but also from the business world, civil society, research institutes and universities. Data used in the preparation of the SNPK also accommodated qualitative data obtained through Participatory Poverty Assessment (PPA). Finalization of the document was carried out by the Team under the coordination of the PPN State Ministry/Bappenas.

4 Another difference in the SNPK is the

document’s recognition that poverty, as a multidimensional problem, can no longer be interpreted just within the limits of economic capacity. It also has to be understood as failure to consider basic human rights and the differential treatment of persons or groups, men or women that prevents them from living their lives with dignity. For that reason the SNPK is based on an approach whose basis is rights (SNPK, 2005). It is hoped that this SNPK will be a reference for the regions (provincial and district levels) in drawing up strategies and undertaking programs to alleviate poverty. Since 2005, the various regions have been preparing strategies and programs for dealing with regional poverty (SPKD=Strategi Penanggulangan Kemiskinan Daerah) by adopting the same approach as that of the SNPK, namely, involvement of all stakeholders and the diagnosis of poverty through the use of PPAs. Various ways of handling poverty have been done by government through the sectoral approach; these include food, health, education, labour, housing, the provision of clean water, expansion in participation access, and special efforts for rural regions and villages. In providing and expanding access to food, the government has since 1998 made subsidized rice available for the purpose of assisting poor groups to meet their food needs. This intention has been expressed through the OPK rice program (Operasi Pasar Khusus). In an attempt to sharpen its target, namely, poor families, this program became the Rice for Poor Families (Raskin) program in 2001. Other policies in the field of food include the government’s decision in 1999 to set a rice import tariff and in 2001 to establish a floor price for unmilled rice in order to protect farmers at harvest time.

In the health field, the strategies that were adopted to widen access to health services included, the provision of services within the reach of the community, such as the Puskesmas (Community Health Care Centre) at subdistrict level. To expanding the reach of the Puskesmas, secondary health care centres (Pustu) have been established at village level as well as mobile health care clinics (Pusling). By 2000, 7,000 Puskesmas had already been provided throughout Indonesia. Even so, the reach of these Puskesmas is still very limited. The need for paramedics was at first handled by appointing doctors and midwives in villages in all parts of Indonesia as non-permanent (PTT) public servants through the Graduates’ Work Obligation. Nevertheless, in actual practice, the distribution of health staff is still concentrated in urban regions and big cities,

which means that it is difficult for the poor to access high-quality health services. In 2002 the government did away with the Graduates’ Work Obligation for doctors, as a result of whom there are now no doctors or village midwives in the Community Health Centers. The ratio of health workers to the population is still low, being one doctor per 5,000 people, one nurse per 2,850 people and one midwife per 2,600 (Rahayu, 2004).

The policy of imposing no health charges was introduced in 1993 through the Health Card/Kartu Sehat system. This initiative was continued in the context of compensation for the negative impact of the economic crisis, which took the form of the Social Safety Net (Jaring Pengaman Sosial or SSN) programs, that is, the Social Safety Net in the Health Field (Jaring Pengaman Sosial

Bidang Kesehatan or JPS-BK). This program was also continued as a program to compensate for the impact of the reduction in fuel subsidies, together with programs from other sectors that began in 2003, which were known as the PPKS-BBM program. A further attempt made in the

4The SMERU Research Institute was involved in the preparation of the SNPK through discussions, the

contribution of the findings of studies (including the PPA consolidation study) and membership in the Team for Finalization of the SNPK (Tim Penyusun Finalisasi SNPK).



context of improving health services was based on involvement of the community in Posyandu activities (integrated health post services), where community cadres undertake the weighing of babies and infants once a month at the community level.

In the educational field, four basic policies formed the foundations for the development of education after 1980, namely, equitable distribution of opportunities for children to obtain an education, improvements in the quality of education, efficiency in the management of education, and greater relevance of education beginning from early childhood. In 1994 the government introduced a policy of Compulsory Nine-year Basic Education (Wajar Dikdas), the aim of which was to have every child aged 7 to 15 complete a minimum education up to graduation from junior secondary school or the equivalent. This step was accompanied by additions and improvements in educational infrastructure and facilities. In order to respond to the effects of the economic crisis, that is, to prevent an increase in the number of school drop-outs, the government provided scholarships for pupils from poor families through SSN programs in the field of education between 1998 and 2003. As in the field of health, these programs were later continued in the context of compensation for the impact of the fuel subsidy reduction (PKPS-BBM) beginning in 2003. This program is still being conducted. Various evaluations and studies show that the implementation of the SSN programs has contained weaknesses. For example, in the subsidized rice program, there has been inaccuracy in the targeting of program recipients and too much dependence on rice as the basic staple. Mistargeting has also occurred in implementation of the PKPS-BBM program in the health and educational fields. In the context of dealing with labour problems, the efforts undertaken by the government include ratification of Statute No.21/2000 concerning Workers Unions/Labourers Unions to overcome the problem of vulnerability of workers to retrenchment, Statute No.13/2003 concerning Manpower and Statute No.2/2004 concerning the Resolution of Disputes in Industrial Relations (PPHI). In connection with migrant workers, Statute No.39/2004 concerns the Placement and Protection of Indonesian Workers Overseas. Nevertheless, several evaluations show that these policies have not yet been fully applied. One result is that migrant workers employed overseas still do not obtain real protection from the government. The problem of housing as a basic necessity has not yet been overcome because of limitations on access, quality and ownership, even though a number of attempts have already been made. These attempts were expressed in policies that regulated the construction of simple, healthy houses in 2002 and the provision of simple, healthy houses and housing subsidy facilities in 2003. It is hoped that this policy will enable poor groups in the community to gain access to ownership of a place to live. Other efforts related to housing include the provision of clean water and community empowerment in overcoming urban poverty through the urban poverty program (P2KP=Program Penanggulangan Kemiskinan Perkotaan), which was initiated by the government and the World Bank, for subsidized credit for home ownership (KPR=Kredit Perumahan Rakyat). The basis for the policies that have been introduced specifically for the provision of clean water is Statute No.7/2004 concerning Water Resources. It is hoped that through this Statute the community, especially the poor, can obtain access to clean water. Other attempts include improvement in the management of the various PDAMs (Regional Drinking Water Companies or Perusahaan Daerah Air Minum). It appears, however, that this undertaking is progressing extremely slowly because the situation of the majority of local PDAMs is not adequate. In addition to sectoral efforts, the government has also introduced specific policies to improve rural and urban areas and neglected regions. In the case of rural areas, this policy, which was at the same time an attempt to overcome poverty, began with the Inpres Desa Tertinggal (IDT) or



negelected village program. It involved improving and extending previous programs such as the integrated area development program and the project for improving the incomes of farmers and fishermen (P4K). The IDT program was then widened through the program for construction of infrastructure in neglected villages (P3DT), which later became the P2D program for village infrastructure and then at a later stage, at the initiative of the Indonesian government and the World Bank, the Subdistrict Development Program/ Kecamatan Development Program (PPK/KDP). The specific attempts that have been introduced for urban areas include the development of basic infrastructure and facilities such as clean water, urban sanitation and urban economic facilities in an integrated way. Policies designed to improvement the environment have included the Kampong Improvement Program (KIP), which was initiated by the Indonesian government with the support of the World Bank, ADB, UNICEF and UNEP; it later developed into the pilot project for kampong improvement (P3K) and integrated kampong improvement (PKT). Evaluations of these programs suggest that their weakness lay in the stress placed upon physical development. In 1999, a program known as P2KP, which emphasized the empowerment of poor communities, was launched specifically for the handling of poverty in urban areas. Through this program the poor were able to participate in the decision-making process. The

program, however, has not yet been able to reach wider areas. Another important attempt to deal with poverty involves community access to participation, especially for the poor, in decision-making and in a variety of other activities. It is hoped that, if room for participation is available, the community can influence decisions in a manner suited to their own interests. Government policies in the context of expanding this access to participation

were arranged specifically in 2004 through guidelines for the implementation of a forum for consultations on development planning and participative regional planning. Nevertheless, evaluation results show that the level of community participation in the planning and budgeting process is still low. One reason, among others, is the lack of understanding about the participatory and information process. A number of programs like the KDP, P2KP, P2D and others have already provided sufficient scope for the poorer members of the community to

participate. Even so, the level of participation of the poor in these programs is judged to be not yet optimum. The participation of women has been specially regulated through Statute No.7/1984 concerning ratification of the convention on the elimination of all forms of discrimination and Presidential Instruction No.9/2000 concerning the mainstreaming of gender. Attempts to overcome the problem of inequality have been undertaken by stressing the core of

inequality, for example, the lack of access to economic opportunities for the poor has been overcome by the provision of credit by the government and the central bank for special groups such as farmers, small and medium businessmen and indigenous entrepreneurs. In the political arena, in an attempt to bridge the gap limiting women’s participation, a law was posted in 2003 requiring political parties to have at least 30% representation of women in parliamentary elections (Suryahadi, 2005). In overcoming the gap in the access of the poor to health and

educational services, a health card has been issued that enables poor people to obtain free medical treatment and scholarships. More recently, this has taken the form of a reduction in (and exemption from) the payment of school expenses through the PKPS-BBM

5 program so that

children from poor families can keep attending school. One can argue that the Indonesian government has not been successful in satisfactorily resolving

most of the regional conflicts that have occurred in the country within the past decade or so. This has resulted in the loss of lives, public infrastructure and property for those who were caught in the middle of the conflicts. In addition, the full economic potential of these areas has not been realized due to the conflicts. Most production in these areas has been disrupted and those people

5Program Kompensasu Pengurangan Subsidi Bahan Bakar Minyak (Compensation Program for Fuel Subsidy

Reduction)



who try to export products from these places have to face barriers in the form of illegal taxes and fees imposed by public servants and military personnel alike (Mawardi, 2004). These obstacles have undoubtedly caused a reduction in the economic welfare and human development of Indonesian citizens living in these areas.



III. KEY NATIONAL EVENTS/POLICIES AND LOCAL PERSPECTIVE ON KEY EVENTS AFFECTING

MOBILITY

This chapter explains and compares key national events and local perspectives on key events that affect mobility. At the community level, key events affecting mobility have been obtained from FGDs with community figures using the Community Timeline as a tool. FGDs were held on the first day of field research in each community, together with Community Profile

discussions. Unlike the collection of information at the local level, information about national events that affect mobility is not obtained through FGDs but is mostly gathered from a number of references and informants. Events at both the national and the local levels are limited to those that occurred between 1995 and 2005. Several policies that might have influenced community mobility before 1995 have already been presented in Chapter II.

A. KEY NATIONAL EVENTS AND POLICIES AFFECTING MOBILITY

Key national events affecting mobility during the 1995-2005 period consist of a number of aspects, beginning with the program to overcome poverty, the economic turmoil that led to the reformation era and changes in the political situation and the outbreak of conflicts as well as other economic matters. The National Timeline, which also shows key national events affecting mobility, is arranged chronologically in the following way: 1994-1998: In the context of accelerating development in neglected areas, the government introduced the IDT (Inpres Desa Tertinggal or Presidential Instruction for Neglected Villages) program. This program provided a financial grant of Rp 20 million to each village regarded as having been left behind in development. The use of these funds was up to groups in the village community, and could be used for the development of productive infrastructure or for group economic activities. 1995-2003: The government carried out the P3DT program (Program Pembangunan Prasarana Desa Tertinggal or the Program for Construction of Infrastructure in Neglected Villages). The aim of the P3DT program was to strengthen production capacity and the marketing of small business products and at the same time to strengthen existing infrastructure. This program, which was a continuation of the IDT program, provided assistance to villages considered to be neglected. Each neglected village in Java received a grant of Rp 120 million, while those outside Java received Rp 130 million. From 2000 to 2003 the P3DT program was replaced by P2D (Program Prasarana Pedesaan or the Rural Infrastructure Program). Mid 1997: Like other Asia countries, Indonesia was also hit hard by the financial crisis, which is known among Indonesians as the krismon (krisis moneter/monetary crisis). The crisis turned out to be an

economic crisis. Economic turmoil caused the rupiah to depreciate from 2,450 IDR in July 1997 to 16,000 IDR in July 1998. This created a rise in the inflation rate from 8.6% in 1996 to 77.6% in 1998, while around 15,000 additional people were unemployed and the number of people below the poverty line increased. According to BPS, the poverty rate rose to 24.2%, which meant that around 47.9 million people lived in poverty. The impact of the crisis was still being felt during the course of the study.



January 1998: Riots broke out in several parts of Indonesia over rising food prices. These riots led to looting and arson, and other larger and wider riots.

March 1998: Despite the protests of university students throughout Indonesia demanding reformation, former President Soeharto was sworn in for a seventh five-year term (since 1966) as president of Indonesia. May 1998:

Former President Soeharto resigned after serious rioting and looting broke out in Jakarta, where over 500 people were killed. Habibie, the incumbent Vice President, became President of Indonesia until the next election. A new cabinet, named the Reformation Cabinet, was installed. July 1998-2002: To assist poor families in responding to the impact of the economic crisis, the government launched the first Social Safety Net Program, known as SSN or JPS (Jaring Pengaman Sosial).

The JPS program included the availability of food at affordable prices (the OPK/cheap rice program or rice for the poor), employment creation to supplement purchasing power, and the provision of social services, particularly in education and health. These services took the form of scholarships and the school block grant program as well as health cards to enable the poor to access education and health care. These JPS programs are still running even now, with some modifications in the names and elements of the programs to respond to the increase in fuel prices caused by the fuel subsidy reduction. Mid 1998-until now: The government worked together with the World Bank to carry out the Program Pengembangan Kecamatan (PPK) or Kecamatan Development Program (KDP). The aim of the program, which

was designed specifically for rural areas, was to improve community welfare in rural areas by expanding community self-reliance. The PPK program, which places emphasis on the process of planning activities that involve the full participation of the community, both men and women, and also of the poorer members of the community, consists of two parts, namely, the provision of facilities and infrastructure as well as social and economic activities in keeping with the needs of the community. The first phase of this program (PPK I) commenced in 1998/1999 and ran until 2002, while the second phase (PPK II) began in 2003 and will finish in 2006. June 1999: The first general election (pemilu) was held after reformation. This Pemilu was contested by a great number of political parties, 48 in all, by comparison with previous years, when only the same three political parties always took part in elections. The purpose of the election was to select 462 members of parliament. September 1999: A referendum in East Timor Province resulted in a 78% vote for independence. After the referendum, violence broke out in Dili (the capital city of the province) and looting, burning and rioting became widespread in East Timor. October 1999: Abdurrahman Wahid (Gus Dur) was elected President and Megawati, whose party had won the election, was elected Vice President. Gus Dur is the leader of one of biggest Moslem Parties in Indonesia (Nahdatul Ulama/NU).



1999: Indonesia commenced the implementation of regional autonomy through Statute No.22/1999 concerning Regional Government and Statute No.25/1999 concerning Financial Balance between the Central and Regional Governments. Before the introduction of regional autonomy,

Indonesia’s governmental system was centralistic in nature, with the majority of decisions being made at the central government level. After regional autonomy, most decisions (with the exception of those in five sectors, namely, defense and security, foreign policy, monetary matters, religion, and justice) became the responsibility of the regional governments, in particular those at district/town level.

October 1999-until now: Based on Statute No.22/1999 and Statute No.25/1999, the government undertook the subdivision of existing provinces and districts and also the formation of new provinces. This subdivision was intended to increase equitability in development, also because of the demands of the community in the era of reformasi. The first new province to be formed was the Province of North Maluku, which was established in October 1999. By 2005, seven new provinces had been formed from the 26 former provinces, while 161 new districts/towns were established from 279 old districts and towns. January 2000: The government started to reduce the fuel (BBM) subsidy, which caused fuel prices to rise gradually. The purpose was to reduce the burden on the state budget, which was overloaded by the need to subsidize BBM every year. Another purpose in the reduction was to transfer the BBM subsidy, which was enjoyed more by the middle and upper classes than by the poor into direct assistance that could be enjoyed by the poor. Starting in January 2000, the government increased fuel prices by 12%. This rise caused an increase in the prices of basic necessities. Later, in 2002 and 2005 the government further reduced the BBM subsidy, which meant that fuel prices rose once more. Mid 2000- until now: In compensation for the rise in fuel prices, the government has, since the year 2000, allocated aid programs to the poor. In form, some of these programs (like Raskin or rice for the poor) are the same as and even continue the JPS programs, and help with health and educational services, There were also a number of new programs like the provision and upgrading of infrastructure. 1998-2001: A number of government policies in the field of labour led to large-scale demonstrations by employees and workers, with or without labour unions, who did not agree with the policies referred to. Under the government of Gus Dur, legislation concerning workers unions and labour unions (SP/SB) was ratified through Statute No.21/2000. This Statute enables 10 workers or labourers to form an SP/SB. July 2001: Megawati Sukarnoputri was sworn in as the fifth president of Indonesia. January-May 2002: The government again reduced the fuel subsidy, which caused another increase in fuel prices. In January, the price of fuel rose by 22% and in May 2002 it increased again by an average of 10%.



2003: The government increased its efforts to include NGOs in poverty diagnostics, poverty reduction strategies, the implementation of poverty reduction programs, and other activities related to assistance for the poor.

2004: The government announced legislation for the direct election of heads of regions (Statute No. 33/2004). Previously, regional heads had been elected by members of the DPRD (Regional House of Representatives). With the ratification of this new legislation, regions in which the term in office of the regional head (the governor, district head or mayor) finished after 2004

conducted direct elections. April 2004: General elections were held, with the participation of 24 political parties. The parties that obtained 30 % or more of the votes could nominate a pair of candidates to participate in the next stage, that is, the election of president and vice-president.

September 2004: For the first time Indonesia conducted a direct election for the positions of president and vice-president. Prior to this, the president had been chosen by members of the MPR (People’s Representative Assembly). Susilo Bambang Yudhoyono was elected president and his running mate, Yusuf Kalla, vice-president.

December 2004: On 26 December 2004 a very strong earthquake struck the coastal of Aceh and Nias followed by the tsunami that caused 13,000 people were killed and 37,000 remain missing. March 2005:

The government again decreased the fuel subsidy, which caused an average increase in fuel prices of 29%. July 2005- until now: The government introduced the BOS program (operational assistance for schools) for elementary (SD) and junior secondary (SMP) schools. This program represents one program derived from the BBM subsidy. With the introduction of the BOS program, many schools at both elementary and junior secondary levels have been able to exempt pupils from the payment of school fees. In the special case of the Province of East Java, before the BOS program was introduced the provincial government already had a program which was very similar and which had commenced in 2004. The community knows these two programs as the School Fee Exemption Programs for SD and SMP. October 2005- until now: The government again reduced the fuel subsidy, which once again caused an increase in fuel prices. The rise in BBM prices has added to the burdens of the people. In an attempt to lessen these burdens, the government commenced a direct cash transfer program (SLT) for poor households that the BPS identified by using the method of proxy-means testing. Each poor household receives Rp100,000 per month, paid every three months. For the first stage of disbursement, which commenced on 1 October 2005, the government provided Rp 4.6 trillion for 15.5 million households. PT Pos Indonesia undertook distribution through its branch offices (Hastuti et al, 2006). Because the implementations of these two programs were commenced only after fieldwork for the present study ended, these events did not mentioned as affected

community welfare.



B. LOCAL PERSPECTIVES ON KEY EVENTS AND POLICIES AFFECTING MOBILITY

From the results of discussions with community figures who participated in the FGDs to discuss the community timeline, several important factors and events were identified that encouraged or hampered an increase in community prosperity and mobility over the past 10 years, as shown in Table 3.2.1 below.

Table 3.2.1. Local Perspectives on Key Events Affecting Mobility

Year Low Conflict Areas High Conflict Areas

1995 − Opening the thoroughfare (Semampir),

putting down the artesian well (Semampir), asphalting of road (Bulu),

− Election of the village head (Banyupelle)

− Grant of Rp 20 million cash aid under the IDT program (Idamdehe Gamsungi)

− Assistance in the form of cattle (Gorua)

− Conflict between community and the

army (Kampung Pisang)

− Start of improvements in transportation

(Gura)

1996 − Installation of electricity (Bulu)

− Commencement of the new housing

complex (Bulu)

1997 − The monetary crisis (krismon) (Palengaan Daja, Semampir, Bulu, Branta Pesisir)

− Asphalting of the road (Bulu)

− The murder of Banyupelle person in

another village (Banyupelle)

− The monetary crisis (krismon) (Soakonora, Idamdehe Gamsungi, Gorua, Kampung Pisang, Gura)

− Drinking water project under P3DT

1998 − The monetary crisis (krismon) (Palengaan Daja, Semampir, Bulu)

− Rice-plant disease (Bulu)

− Failure of tobacco harvest (Banyupelle)

− Election of the village head (Branta

Pesisir)

− Primary health care post (Posyandu) for

those of advanced age (Soakonora)

− Assistance by agricultural service

(Soakonora)

− The unstable situation leading to the resignation of former President Soeharto (Gorua)

− Revolving fund assistance for PKK (Gorua)

1999 − The monetary crisis (Palengaan Daja,

Semampir)

− Artesian water supply (Bulu)

− A robbery (Banyupelle)

− Disputes over fishing areas (Branta Pesisir)

2000 − Food shortage: people eat cassava (Palengaan Daja)

− Presence of GSM signal (Bulu)

− Housing complex fully occupied (Bulu)

− Religious conflict (Soakonora, Idamdehe Gamsungi, Gorua, Kampung Pisang,

Gura)

− White-Yellow conflict (Kampung Pisang)

− Maritime trade with Surabaya ended

(Gura)

2001 − Reduction in fuel subsidy (Palengaan Daja)

− Presence of the new housing complex

(Semampir)

− Restoration stage (Soakonora), Gorua,

Gura)



Year Low Conflict Areas High Conflict Areas

2002 − Development of the pier (Palengaan

Daja, Branta Pesisir)

− Establishment of cigarette factories (Bulu)

− Drop in tobacco prices (Bulu, Banyupelle)

− Difficulty in obtaining clean water (Branta Pesisir)

− Simultaneous return home of evacuees

(Soakonora, Gorua)

− Government assistance in the form of building materials (Soakonora)

− The increase in clove prices (Idamdehe Gamsungi)

− Malaria, chicken pox (Gorua)

− The formation of North Halmahera District (Gura)

2003 − Number of theft cases: motor-cycles,

water pumps (Palengaan Daja)

− Traders selling at night using the road

surface (Semampir)

− Protests by market traders (Semampir)

− Road sealing (Semampir)

− Election of the village head (Banyupelle)

− Health assistance, green cards (Banyupelle)

− Inauguration of the special clean water

channel (Branta Pesisir)

− Construction of offices for the district

administration of West Halmahera (Soakonora)

− Village road damaged by heavy trucks carrying sand (Idamdehe Gamsungi)

− Maritime trade with Surabaya re-opened

(Gura)

2004 − Rice crop affected by wereng disease (Palengaan Daja)

− New road to Hamlet 3 (Semampir)

− Artesian water (Semampir)

− KDP assistance: Rp 37.5 million to build a tourist site along the beach (Idamdehe Gamsungi)

− Assistance from the Department of

Agriculture in the form of cattle (Gorua)

− Return of displaced people: social life

back to normal (Gura)

2005 − Rioters from outside (Palengaan Daja)

− Opening of private bank (Semampir)

− ‘Black magic’ case (Bulu)

− Strong wind disaster (Banyupelle)

− Assistance from UNDP in the form of

chickens (Gorua)

− Assistance from Department of Social

Affairs in the form of small boats (Gorua)

Source: CSRs-Community Timelines. Note: The events written in bold are happened at the national level.

C. A COMPARISON OF KEY NATIONAL EVENTS AND LOCAL PERSPECTIVES

ON KEY EVENTS AFFECTING MOBILITY

A consideration of key national events/policies and local perspectives on key events/policies affecting mobility during the 1995-2005 period reveals that most, although not all, of the events/policies that occurred at the national level had an influence on community welfare and that the reverse was also true: that most of the events and policies mentioned by the community

as matters affecting their welfare were also of interest or occurred at the national level (bold mark). The national-level events and policies, which communities said affected their welfare at the village level, included: (1) The monetary or economic crisis, which had already affected welfare in low conflict areas

(in the form of a decline) and also in high conflict areas (in the form of an improvement).

(2) Changes in the political climate as the indirect effect of the economic crisis and the emergence of democracy, which was marked by the fall of former President Soeharto, the General Elections in which many political parties took part, the election of Gus Dur as



president, which influenced community welfare in low conflict areas where his greatest supporters lived, and the direct presidential election.

(3) The subdivision of regions (provinces and districts) as an indirect effect of the introduction of new legislation, namely, Statute No.22/1999 concerning Regional Government and

Statute No.25/1999 concerning Financial Balance between the Central and Regional Governments, which led to the formation of the Province of North Maluku, followed by the establishment of North Halmahera District and West Halmahera District.

(4) The increase in the price of fuel (BBM) as a consequence of the government decision to reduce the fuel subsidy, which then caused the prices of basic necessities to rise.

(5) Conflicts in several areas, including North Maluku.

(6) Government programs including the IDT, P3DT, Raskin, health card and PPK programs. Other key national events, namely, the SLT and the BOS programs, two new programs that have been established by the government to compensate for the increase in fuel prices, were not mentioned as events that affected community welfare because their implementation commenced only after fieldwork for the present study ended.



IV. COMMUNITY PROSPERITY AND MOBILITY

Why have some communities prospered? Why have others declined or stagnated? What factors most help and hinder the prosperity of communities? Do typologies emerge of communities with similar mobility patterns? Before the above questions and the wider questions of the study can be answered, and in the context of providing a general picture of community conditions, it is necessary to know what the current situation of the community is, what changes have occurred over the past ten years in community prosperity according to the community, and what the local perspectives are on factors affecting mobility. This chapter will present and discuss the above aspects, which are divided into two sections: (1) current conditions in the sample communities, which covers population, livelihoods and major ethnic and religious groups and (2) community prosperity, mobility and key factors affecting mobility. The factors affecting mobility that are described in this chapter are those mentioned by the community, both men and women, in the Ladder of Life FGD. In the following chapters a more detailed discussion and analysis is presented of the factors that are likely to influence mobility.

A. CURRENT CONDITION OF THE SAMPLE COMMUNITIES

Chapter I have given a brief explanation of the physical condition and natural environment of the sample communities. In order to provide a better understanding of the local context of the sample communities, the following subsections will describe more specifically the population, livelihoods and major ethnic and religious groups of the sample communities

1. Population

Table 4.1.1 and Figure 4.1.1 show that in all communitiesin low conflict areas (East Java), the population has increased over the past 10 years. Explanations from informants confirmed that during this period more people moved in than moved away. In areas of high conflict (North Maluku), however, the number of people in three communities has declined over the past 10 years while in two villages it has risen. In Soakonora, one of the communities that experienced a decline, population has fallen to one-third of what it was. It is suspected that this situation is the consequence of the conflict that occurred at the end of 1999 and the beginning of 2000. In the case of villages whose population decreased, the reason is that some of the people who evacuated did not return because of the trauma that they had experienced, while in the case of those villages whose population increased, it is suspected that many victims of the conflict moved to these communities for reasons of safety.

Apart from the factors of safety or conflict trauma, the main factor encouraging people from the villages in both regions to migrate out is economics. Those who migrate wish to look for better work that will lead to an improvement in their welfare. Some people have left the villages to look for work in Malaysia or Saudi Arabia or to obtain better wages outside the village, as drivers or the like. Other more specific reasons were also given: the need to obtain money to pay for children’s education and the bankruptcy of a business. The reason for in-migration is usually marriage with a resident of that village.



Table 4.1.1. Population of the Sample Communities

Population

Now (2005) 10 years ago (1995)

Community Persons HH Persons HH

A. Low conflict Palengaan Daja 10,200 3,000 3,000 1,000*

(East Java) Semampir 3,700 811 2,960 621

Bulu 4,522 1,207 3,862 865

Banyupele 10,000 1,635 8,000 1,500*

Branta Pesisir 4,964 1,113 4,230 900

B. High conflict Soakonora 1,023 653 3,000 1,000

(North Maluku) Idamdehe Gamsungi 388 98 400 110

Gorua 3,038 762 2,080 500*

Kampung Pisang 2,092 395 2,929 600*

Gura 3,503 817 2,794 700* Source: Community Profiles. Note: *= informant’s prediction

In most areas community figures did not have data disaggregated by number of men and women in the population. The exceptions were Kampung Pisang (1,031 men and 1,061 women), and Idamdehe Gamsungi (205 men and 183 women).

Figure 4.1.1. Demographic Changes in the Sample Communities

0500

1,0001,5002,0002,5003,0003,5004,000

Soak

onora

Idam

dehe G

amsu

ngi

Gor

ua

Kam

pung

Pisan

g

Gur

a

North Maluku (High Conflict)

2005

1995

2. Livelihoods

Since most of the sample communities are in rural areas, the majority of their people depend on the agricultural sector for their primary source of livelihood as farmers or agricultural labourers. In low conflict areas they rely on certain major crops such as tobacco, rice and various secondary food crops (beans and chilli), which they plant in rotation, depending on the season. Meanwhile, in high conflict areas, coconuts (copra), nutmeg, cloves, citrus fruit (limes) and secondary food crops (cassava and kasbi) are grown. Some of the people in high conflict areas have now also started growing vegetables.

0

2,000

4,000

6,000

8,000

10,000

12,000

Palen

gaan

Daj

aSem

ampi

r

Bul

u Ban

yupe

le

Bra

nta Pes

isir

East Java (Low Conflict)

2005

1995



Besides depending on the agricultural sector, people in both low and high conflict areas have other livelihoods that include trade (in agricultural products, roof tiles, cooked food, etc), and kiosks in front of their houses to sell basic household necessities. Some are employees (public servants and private employees), artisans, bricklayers, carpenters, construction labourers, ojek (motor-cycle taxi) drivers and becak (pedicab) drivers.

1

In a number of communities there are livelihoods that predominate. For example, in Branta Pesisir, which is a coastal area, most of the people (70%) have fishing as their main livelihood. Usually it is the men who are employed as fishermen, while the women work as traders. In Soakonora, Kampung Pisang and Semampir many residents are employed as public servants, the figures are as high as 40%, 60%, and 40% of the people respectively. In general, the communities in the two regions do not rely on only one source of livelihood to support their lives. Instead, people have two to three jobs at the same time. This includes public servants who also own agricultural land. A more detailed description of livelihoods in the sample areas is given below, based on information from informants, including community figures. a. East Java (Low Conflict)

Palengaan Daja More than 95% of the villagers obtain their main source of income from the agricultural sector, either as land owners/tenants or as labourers (30%). A small number of people also work as traders (tobacco, basic household necessities, roof tiles, cooked food etc), bricklayers, carpenters and construction labourers. Usually those people who are classed as well-off and who constitute a source of credit ( in the form of both cash and goods) for other local people have multiple sources of livelihood as tobacco farmers and traders. Semampir Most of the population is made up of civil servants (40%): teachers, hospital workers and district office staff. Others are traders (16%) in the market or in open kiosks, farmers, labourers and private employees. Bulu The majority of villagers work as farmers and becak drivers as well as brick-makers. Farm labourers (rice and tobacco) represent the greatest proportion (40% to 50%). The rest work as makers of tempe (soyabean cake), sellers of daily necessities, civil servants, and police. Banyupelle Most members of the community gain their income from farming. The main commodities are rice (in the wet season), peanuts, beans, corn, chilli, other vegetables and tobacco (in the dry season).

1In the high conflict areas, there are also pedicabs that have a motor and are not powered by human

energy. They are often called bentor (becak motor). In general these bentor are found in semi-urban areas (Gura) and urban areas (Kampung Pisang).



Branta Pesisir The majority of villagers work as fishermen (approximately 70%).

2 In general, those

employed as fishermen are men. In addition, many villagers work as traders (in rice, fish, daily necessities and fishing requirements) and entrepreneurs (for example, owners of krupuk factories). Most women work in the trade sector and many female labourers generally work at unloading fish from the boats. A minority are employed as tailors, civil servants, pedicab drivers, wharf labourers, building labourers, food sellers and the like. b. North Maluku (High Conflict)

Soakonora A large proportion of the local population (40%) is employed in the government public service. Most public servants work in Ternate (at the former district office) and the rest work as farmers. Ten years ago there was a mixture of farmers, artisans, drivers and the like. Agriculture represents an important source of income for the community, even today. Nevertheless, some 60% to 70% of the village people who are engaged in the agricultural sector do not own land.

Idamdehe Gamsungi Almost the whole population of Idamdehe Gamsungi village is made up of farmers who own land. The main commodities are cloves, coconuts and nutmeg. Besides farming, a small number of people are traders who buy and sell cloves and groceries. People who are employed as public servants like village officials usually also work as farmers. Gorua A large part of the community is engaged in farming. Agriculture represents an important source of income, even today. A very small proportion of the local people (1.3%) work in the government public service. Kampung Pisang Approximately 60% of the people of the village obtain a living as office workers; this figure includes both public servants and employees of private businesses. Others seek a livelihood as traders, labourers, farmers and workers in the informal sector. The economic crisis and conflict have created various new fields of employment. These include jobs as drivers of ojek (motor-cycles that function as taxis) and small traders, selling basic household necessities, fuel, snack foods and the like or else running food stalls. In the case of office workers, there would appear to be no striking differences between men and women. But in other kinds of employment, there are very clear differences. For example, the labourers who load and unload cargo in the harbour are all men. Similarly, ojek drivers are all men (usually youths). But in the informal sector, in fields such as small trade and the running of food stalls and kiosks, the majority of workers are women. The existence of PPK, that is, the Subdistrict Development Program (Program Pengembangan Kecamatan), which provided loans through a revolving fund, has succeeded in increasing employment opportunities for women in Kampung Pisang.

2Fishing as a livelihood in Branta Pesisir consists of three levels: that of small-scale fishermen

(approximately 45%, with non-motorised boats, income around Rp10,000 each trip to sea), that of medium-scale fishermen (approximately 30%, using motorised boats, gross income of around Rp50,000

from each trip) and that of large-scale fishermen (approximately 25%, using large motorised vessels equipped with large trawling nets and income around Rp500,000 per trip).



Gura The composition of livelihoods at the present time consists of coconut/copra farmers (80%), fishermen (10%), civil servants (8%), carpenters and bricklayers (1%) and traders 1%. Although Gura is in an urban area, the agricultural sector (plantations) still holds a dominant role in the daily life of the village. The fisheries sector also represents a rather significant source of livelihoods. Many of the villagers go to sea to fish either as their main source of income or as a part-time job. During the post-conflict period, livelihoods that have evolved to some extent are to be found in the handicraft sector. It is estimated that the number of civil servants at the present time is around 6%, an increase from 3% ten years ago. This increase is the direct consequence of the formation of the District of North Halmahera, which was inaugurated in 2003 and which has transferred civil servants from other regions to the new district. The newcomers have then settled in the village.

3. Major Ethnic and Religious Groups

There is a striking difference between areas of low conflict and those of high conflict in the case of ethnic background and the religion that is observed by the community. All of the people of Palengaan Daja, Banyupelle and Branta Pesisir in Pamekasan District belong to the Madurese

3 ethnic sub-group and almost all are Muslims (Table 4.1.2). The main language is

Madurese and only 10% of the people are fluent in Indonesian. This homogeneity within the population of these villages is about the same as it was ten years ago. For that reason key informants stated that the degree of inequality among ethnic and religious groups is extremely small. In Bulu and Semampir in Proboliggo District, around 60% to 70% of the people are Madurese

4 and most of the others are Javanese (20%) and Batak or else ethnic Chinese who

occupy the area around the market and the new housing complexes in Semampir. Most of the population (97%) are Muslims while the remaining 3% are Christians and Buddhists. The main language used by the villagers on a daily basis is Madurese (80%). The other 20 per cent use the Javanese and Batak languages. Indonesian is taught in schools from Year One of elementary school, so most villagers (80%), especially those who have experienced a school desk, can speak Indonesian. Only the elderly and those who have never been to school cannot speak Indonesian. Unlike the low conflict areas, where most of the people are Moslems, communities in the high conflict areas are divided into two in terms of religious belief. The areas where a majority or all of the people are Christian are Soakonora (60%) and Idamdehe Gamsungi (100%), and those where the majority are Moslems are Gorua (87%), Gura (75%), and Kampung Pisang (90%). Ethnically, the majority are people from local ethnic groups in the area are Tobelo, Tidore and Sahu. In Soakonora most of the newcomers are ethnically Sanger people, that is, an ethnic group from North Sulawesi. In low conflict areas, where Moslems and Christians reside in the same neighborhood (RTs) or hamlet in houses that are intermingled side by side, in the areas of high conflict, with the exception of the semi-urban Gura and urban Kampung Pisang, they live in different RTs or hamlets. For example, in Soakonora Moslems live in RT 4 and RT 5 in Kusumadehe hamlet, while Christians live in RT 1 and RT 2 in the main hamlet. Almost all of the people in high conflict areas speak Indonesian fluently.

3Madura, (where the village of Bulu is located), is a small island located off the north coast of Java. It

is part of the Province of East Java.

4Because the land in Madura is relatively dry and infertile, many of its inhabitants leave to seek their

fortune elsewhere, especially in districts in East Java, including Probolinggo District.



Table 4.1.2. Major Ethnic, Religious and Language Groups

Community Ethnicity Religion Language


Palengaan Daja

(NPI = 0.82); (MOPI = 0.00)

Madurese (100%)

Javanese

Moslem (100%) Madurese (90%)

Indonesian

Javanese

Semampir

(NPI = 0.66); (MOPI = 0.42)

Madurese (70%)

Javanese, Batak

Chinese

Moslem (97%)

Christian

Buddist

Madurese (80%)

Indonesian

Javanese, Batak

Bulu

(NPI = 0.50); (MOPI = 0.17)

Madurese (60%)

Javanese, Batak

Chinese

Moslem (97%)

Christian

Buddist

Madurese (60%)

Indonesian

Javanese, Batak

Banyupelle

(NPI = 0.48); (MOPI = 0.05)

Madurese (100%)

Moslem (100%)

Madurese (100%)

Indonesian

Branta Pesisir

(NPI = 0.04); (MOPI = 0.19)

Madurese (100%)

Moslem (100%)

Madurese (95%)

Indonesian

High Conflict (North Maluku)

Soakonora

(NPI = 0.40); (MOPI = 0.43)

Sanger (45%) Christian (60%)

Moslem (40%)

Ternate (50%)

Idamdehe Gamsungi

(NPI = 0.38); (MOPI = 0.68)

Sahu (54%) Christian (100%)

Sahu (75%)

Gorua

(NPI = 0.33); (MOPI = 0.16)

Tobelo (60%) Moslem (87%)

Christian (13%)

Galela (80%)

Kampung Pisang

(NPI = 0.29); (MOPI = 0.42)

Tidore (60%) Moslem (90%)

Christian (10%)

Indonesian (90%)

Gura

(NPI = 0.06); (MOPI = 0.20)

Tobelo (90%) Moslem (75%)

Christian (25%)

Indonesian (80%)

Source: Community Profiles.



B. COMMUNITY PROSPERITY AND MOBILITY

1. Summary Statistics of Community Mobility Based on Mobility Matrixes

a. General

Based on the mobility matrices produced by FGD participants (Section 1.4 of Chapter I), then the estimation used 12 indexes. The summary statistics derived from the Ladder of Life and community ratings is provided below to provide a general background on mobility and prosperity in the community (Table 4.2.1) In general, all communities experience enhanced prosperity. This is shown by several positive indices during the last 10 years, namely the Net Prosperity Index (NPI), Moving Out of Poverty Index (MOPI), Mobility of the Poor Index (MPI), Mobility of the Rich Index (MRI), Net Prosperity of the Poor Index (NPP), and Net Prosperity of the Rich Index (NPR). Although the two districts have a positive NPI, the NPI in low-conflict districts, with the exception of Branta Pesisir, is higher that the average NPI and at the same time higher than NPI in high-conflict districts. NPI captures net upward mobility in a village; it shows whether the share of upward movement was greater than the share of downward movement.

Tabel 4.2.1. Community Mobility Indexes Based on Mobility Matrixes

Community/Index PI FI NPI MI MOPI SPI MPI MRI FPI FRI NPP NPR

Mean 0.47 0.07 0.40 0.53 0.27 0.33 0.54 0.21 0.01 0.21 0.53 -0.01

Low Conflict

Palengaan Daja 0.85 0.03 0.82 0.87 0.00 0.89 0.89 0.00 0.03 0.00 0.87 0.00

Semampir 0.74 0.08 0.66 0.82 0.42 0.39 0.79 0.40 0.02 0.53 0.77 -0.13

Bulu 0.57 0.0.7 0.50 0.64 0.17 0.55 0.64 0.09 0.00 0.55 0.64 -0.45

Banyupelle 0.49 0.00 0.48 0.49 0.05 0.21 0.50 0.29 0.02 0.00 0.48 0.29

Branta Pesisir 0.11 0.07 0.04 0.17 0.19 0.16 0.19 0.03 0.00 0.12 0.19 -0.09

High Conflict

Soakonora 0.50 0.10 0.40 0.60 0.43 -0.11 0.43 0.54 0.00 0.15 0.43 0.40

Idamdehe Gamsungi 0.50 0.12 0.38 0.62 0.68 0.68 0.88 0.20 0.03 0.16 0.85 0.05

Gorua 0.36 0.04 0.33 0.40 0.16 0.35 0.40 0.05 0.03 0.05 0.37 0.00

Kampung Pisang 0.41 0.12 0.29 0.38 0.42 0.09 0.46 0.37 0.00 0.24 0.46 0.12

Gura 0.17 0.10 0.06 0.27 0.20 0.10 0.20 0.10 0.00 0.33 0.20 -0.23

The Moving Out of Poverty Index (MOPI), which captures only upward movement across the poverty line, shows that poor community members in most communities have moved out of poverty (i.e they have passed the poverty line), with the exception of Palengaan Daja and Banyupelle in low-conflict districts. High-conflict districts have a MOPI that is far higher compared to low-conflict districts and most communities have a MOPI higher than the average. This shows that in high-conflict areas more poor community members have moved out of poverty compared with low-conflict areas. There is a counter intuitive finding that by studying NPI and MOPI, both indexes suggested the opposite direction between low conflict and high conflict areas. On the one hand, the NPI in low-conflict areas is higher than high-conflict areas, and on the other hand the MOPI in low conflict areas is lower than the high conflict areas. This phenomenon shows that in high-conflict areas more poor community members have successfully moved out of poverty compared with low-conflict areas, while in low conflict areas there was upward movement, however not enough to



push the previously poor past the poverty line and into the ‘moved out of poverty’ bracket. This is confirmed by both the NPP and NPR indexes. What is the reason for this phenomenon? Later, Chapter V and VI will examine factors that explain the findings. In regards the MPI, the extent of upward mobility by those who were poor 10 years ago compared with MRI, the extent of upward mobility by those who were non-poor 10 years ago, then it appears that in the two districts MPI is higher than MRI, with the exception of Soakonora that is located in a high-conflict area. This shows that during the last 10 years, more poor households have improved their prosperity compared with the wealthy. In parallel with that matter, the Falling of the Poor Index (FPI), namely the decline in the prosperity of poor households is smaller than the Falling of the Rich Index (FRI), namely the decline of the prosperity of wealthy households. The NPP (Net Prosperity of the Poor) in the whole district is positive, which shows more upward movement less the downward movement of poor households. In fact, the NPP in low-conflict districts tends to be higher than the NPP of high-conflict districts and the average NPP, with the exception of Banyupelle and Branta Pesisir. The NPP in high-conflict areas is lower than the average NPP, with the exception of Idamdehe Gamsungi only. The final index is the NPR (Net Prosperity of the Rich), that, in general, a negative NPR, meaning there were more wealthy households whose prosperity fell, compared to those whose prosperity rose. In low-conflict areas, there are more communities with negative NPRs compared to high-conflict districts. In fact, in high-conflict areas, there are communities with a positive NPR. b. Communities

Table 4.2.2 below presents the results of the calculations of indices per community and their explanation. The indices that were analyzed are only those indices that show movement in the prosperity of community and households, especially poor households, namely NPI, MOPI, MPI, MRI, and NPP. Examining the results of the estimation of these indices and the presence of community with extreme indices, it indicates the very important role of the poverty line (CPL or NPL) that was used by the FGD as a reference. As an example in Palengaan Daja where the NPL and CPL is different, using one of these two poverty lines will change drastically the MOPI with the field observation that tended to be worse. Other factors that were also important were the psychological effect of the community. In one very poor area, a fairly small change will result in the community far better off than their previous condition.



Tabel 4.2.2. Indexes per Community

Palengaan Daja

0

50

100

150

1 2 3 4

Step on Lader of Life

10 YearsagoNow

NPI = 0.82 MPI = 0.89 NPP = 0.87

MOPI = 0.00 MRI = 0.00 NPR = 0.00

SPI = 0.89

There are several very extreme indices (very low and very high). One of them was caused by the mass mobility of households from step 1 to step 2. In Palenggan Daja, in particular, CPL was different to the NPL (this did not happen in other communities). The

CPL is located between step 1 and 2, whereas the NPL is between step 2 and 3. When the FGD used the CPL as a reference in determining the prosperity of community members, a lot of households had passed the poverty line. On the other hand, if we use the NPL, then very few households had passed the poverty line. The value of the SPI which is relatively high shows declining inequality.

Semampir

Village Semampir Distribution

0

20

40

60

80

1 2 3 4 5 6


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.66 MPI = 0.79 NPP = 0.77

MOPI = 0.42 MRI = 0.40 NPR = -0.13

SPI = 0.39

The movement of household prosperity is very dynamic and occurred almost equally between poor households and wealthy households. Almost all indices show enhanced prosperity. In addition, quite a lot of households have passed the poverty line and relative inequality declined. Nevertheless, poor households have a tendency to move up while rich households tended to fall (susceptible) so the NPR is negative.

One of the causes is because most rich households are traders/entrepreneurs who have quite a high risk of falling if there are shocks, for example through economic crises that cause their businesses to fail. The SPI index shows that inequality is declining.



Bulu

Village Bulu Distribution

0

20

40

60

80

100

120

1 2 3 4 5


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.50 MPI = 0.64 NPP = 0.64

MOPI = 0.17 MRI = 0.09 NPR = -0.45

SPI = 0.55

The MOPI index shows there are not too many households that have passed the poverty line although the MPI is high. Many poor households have only moved up one step and have not passed the poverty line. This is possibly caused

by the types of livelihoods of poor households, namely labourers (both farm laborers and becak drivers). They do not have capital, so they cannot develop their businesses. The value of the SPI shows a declining level of inequality. The low MRI shows there are not a lot of rich groups that have experienced movement in their prosperity. The NPP tends to be high which shows more poor groups have enhanced their prosperity rather than fallen, on the contrary in fact, a large negative NPR shows the prosperity of many more wealthy groups has fallen

rather than risen. This has produced inequality that has tended to decline.

Banyupelle

Village Banyupelle Distribution

0

50

100

150

200

1 2 3 4 5


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.48 MPI = 0.50 NPP = 0.48

MOPI = 0.05 MRI = 0.29 NPR = 0.29

SPI = 0.21

Both wealthy as well as poor households have tended to move

upwards, of the NPP and NPR is positive. However, not a lot of poor households have passed the poverty line, which is evident from a small MOPI index. One of the causes is because the position of the poverty line is quite high, between steps 3 and 4. Very many poor households have only moved up one step, from step 2 to step 3. The SPI index shows relatively high inequality.



Branta Pesisir

Village Branta Pesisir Distribution

0

20

40

60

80

1 2 3 4 5


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.04 MPI = 0.19 NPP = 0.19

MOPI = 0.19 MRI = 0.03 NPR = -0.09

SPI = 0.16

Households, whether they are wealthy or poor tend to have stagnated, and have not experienced a change in their prosperity over the last 10 years. Almost their entire index values are small. Several wealthy households have had falls in their prosperity, so the NPR is negative. This is possibly caused by the lack of diversification in the community livelihoods apart from fishing. Nevertheless, although the

numbers are small, there are several households that are around the poverty line who have, over the last 10 years succeeded in moving up a step and passing the poverty line. The SPI index shows significant or broadening inequality.

North Maluku

Soakonora

Village Soakonora Distribution

0

10

20

30

40

1 2 3 4 5 6 7


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.40 MPI = 0.43 NPP = 0.43

MOPI = 0.43 MRI = 0.54 NPR = 0.40

SPI = -0.11

More wealthy and poor households have tended to enhance their

prosperity compared with those who have fallen (positive NPP and NPR). Unlike other communities whose NPR is negative meaning more rich groups have had falls in their prosperity, in Soakonora there is definitely a positive NPR with a large index value. However, although the poor and rich have risen equally, inequality has tended to rise, evident from a negative SPI. In addition, there are also a lot of households that have jumped several steps simultaneously.



Idamdehe Gamsungi

Village Idamdehe Gamsungi Distribution

0

5

10

15

20

25

30

1 2 3 4 5 6 7


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.38 MPI = 0.88 NPP = 0.85

MOPI = 0.68 MRI = 0.20 NPR = 0.05

SPI = 0.68

The mobility of community prosperity is relatively the same as Semampir. The mobility of household prosperity occurs both with households below as well as

above the poverty line. MOPI is positive with a very large index value, showing that a lot of households have passed the poverty line during the last 10 years. The NPP is positive with a very large value, showing a lot poor households have improved their prosperity rather than fallen. In addition, the NPR is also positive, however with a small index value. The NPP is far greater than the NPR showing

mobility in the prosperity of poor households that is greater than wealthy households. This also causes inequality to become very small, evident in an SPI value that is very large.

Gorua

Village Gorua Distribution

0

50

100

150

1 2 3 4 5


No

. o

f H

ou

seh

old

10 Yearsago

Now

NPI = 0.33 MPI = 0.40 NPP = 0.37

MOPI = 0.16 MRI = 0.05 NPR = 0.00

SPI = 0.35

In Gorua, a positive NPI shows that, in general, this community has enhanced its prosperity during the last 10 years. More poor than wealthy households have tended to improve their prosperity. Although most poor households only moving one step, namely from step 1 to step

2, and not many who passed the poverty line (MOPI tends to be small), the value of NPR=0 showing that wealthy households have tended to stagnate. Because more poor households have moved upwards and wealthy households stagnate, this has resulted in inequality tending to decline, as evident from a positive SPI with relative high value.



Kampung Pisang

Village Kampung Pisang Distribution

0

10

20

30

40

50

1 2 3 4 5 6


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.29 MPI = 0.46 NPP = 0.46

MOPI = 0.42 MRI = 0.37 NPR = 0.12

SPI = 0.09

A positive NPI shows that, in general, the prosperity of this community has improved during the last 10 years, although the

improvement is small. The mobility of wealthy household prosperity is quite dynamic with an MRI greater than the average and a positive NPR. A high MOPI value that exceeds the average shows that many poor households have passed the poverty line. The SPI index shows inequality was relatively stagnant.

Gura

Village Gura Distribution

0

50

100

150

1 2 3 4


No

. o

f H

ou

seh

old

10 Years ago

Now

NPI = 0.06 MPI = 0.20 NPP = 0.20

MOPI = 0.20 MRI = 0.10 NPR = -0.23

SPI = 0.10

The NPI in Gura that is small,

although positive, shows the mobility of community welfare has tended to stagnate during the last 10 years. Although several poor households have passed the poverty line, as is evident from a positive MOPI, most households are still below the poverty line although the position of the poverty line is quite low, between step 1 and 2. There are more poor households have improved their prosperity compared

to the wealthy ones. A negative NPR with a large value, shows more rich households have experienced

falls in their prosperity compared with those that have risen

In order to compare communities, indices were used to rank communities. The NPI is basically chosen to show community net prosperity, without discriminating between the rich or poor, the greatest NPI is at the highest level and the smallest is at the lowest. This sequence is presented in the following graph (Figure 4.2.1). In order to complete the comparison between communities, Figure 4.2.2 presents the MOPI, NPP and NPR indixes.



Figure 4.2.1 Rank of Communities Based on NPI

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Palen

gaan

Daj

a

Semam

pir

Bul

u

Ban

yupe

lle

Bra

nta

Pesisir

Soako

nora

Idam

dehe

Gam

sung

i

Gor

ua

Kam

pung

Pisan

gG

ura

NPI

NPI

Figure 4.2.2 Community Comparison Based on MOPI, NPP, and NPR

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

Palen

gaan

Daja

Semam

pir

Bul

u

Ban

yupe

lle

Bra

nta Pes

isir

Soako

nora

Idam

dehe

Gam

sung

i

Gor

ua

Kam

pung

Pisan

gGur

a

MOPI

NPP

NPR



2. Community Prosperity According to the Women’s and Men’s Groups

Men’s and women’s group who participated in FGDs made different assessments of the changes in the level of community welfare nowadays by comparison with what it was ten years ago. The same was true of their opinions about the difficulty or ease of making a living today by comparison with ten years ago. Table 4.2.3 presents the opinions of the men’s and women’s groups in the Ladder of Life FGD about community prosperity today and ten years ago. In general, the women’s groups in low conflict areas were optimistic in their view that their communities have experienced an increase in welfare over the past ten years, while members of the men’s group mostly believed that community prosperity is the same or lower. Both men and women agreed that it is harder to make a living nowadays. In areas of high conflict, although they experienced heavy conflict at the end of 1999 and the beginning of 2000, as a whole they have experienced improved prosperity during the past ten years. An exception is Gura, where the community stated that there has been a decline in prosperity. The differences in opinion come from or are influenced by different factors. The people who believe that the level of community welfare has risen made this judgment from the presence of improvements in physical conditions such as infrastructure like roads, electricity and clean water, as well as education and health.

Table 4.2.3. Community Prosperity

More, same or less prosperous

Easier or harder to make a living

Easier or harder to fall back down

Community Rank

by NPI M F M F M F


Palengaan Daja

(NPI=0.82; MOPI = 0.00)

Same

More

Harder

Harder

Easier

Easier

Semampir

(NPI = 0.66; MOPI = 0.42)

Same

More

Harder

Easier

Harder

Harder

Bulu

(NPI = 0.50; MOPI = 0.17)

More

More

Harder

Harder

Harder

Easier

Banyupelle

(NPI = 0.48; MOPI = 0.05)

Less

Less

Harder

Harder

Harder

Harder

Branta Pesisir

.(NPI = 0.04; MOPI = 0.19)

More

More

Harder

Harder

Easier

Easier


Soakonora

(NPI = 0.40; MOPI = 0.43)

More

More

Easier

Easier

Easier

Easier

Idamdehe Gamsungi

(NPI = 0.38; MOPI = 0.68)

More

More

Easier

Easier

Harder

Harder

Gorua

(NPI = 0.33; MOPI = 0.16)

Same/ Less

More

Easier

Harder

Easier

Easier

Kampung Pisang

(NPI = 0.29; MOPI = 0.42)

More

Less

Harder

Harder

Easier

Easier

Gura

(NPI = 0.06; MOPI = 0.20)

Less

Less

Easier

Harder

Harder

Harder

Source: Ladder of Life FGDs.



On the topic of the degree of difficulty in making a living, the men’s groups said that it is easier to make a living today, whereas the women’s groups said that it is harder. When the situation was related to economic conditions such as income and fields of employment, a large proportion felt that prosperity has declined and that it is now more difficult to find work. A description of reasons for the opinions of informants and FGD participants about trends in prosperity in the communities in which they have been living for the past ten years is given Table 4.2.4. These community opinions are also discussed in more detail in the sub-section connected with infrastructure, access to markets, employment, and other economic opportunities.



Table 4.2.4. Community Prosperity and Reasons for Changes

Community

More/Less Prosperous

Reasons for Changes in Prosperity

More/ better (F)

Economic/Physical Infrastructure: - “There is clean water where once river water was used” (F, 25) - “There is a macadamized road but formerly the road was damaged; vehicles can

now enter the village” (F, 32) Social Infrastructure: - Health services: “There is now a midwife” (F)

Palengaan Daja

(NPI=0.82,

MOPI= 0.00)

Less/ declining (M, F)

Incomes: - “Have decreased, before 1997 income was more than adequate (M, 35) Natural environment: - “Due to natural factors there is no rain in the rice-growing season, yet rain falls

when tobacco is planted” (M, F) Work opportunities: - “It is increasingly difficult to obtain work overseas; in Malaysia people are

arrested by the police and sent home to the village to become farmers again” (F, 32).

Lifestyle: - “Before 1997 men could afford to buy ‘Surya’ cigarettes” (M, 35)

More/ better (F)

Economic/Physical Infrastructure : - “It is easier to obtain clean water” (F); - “People did not have their own wells in the past” (F) Social Infrastructure: - (Education): “People are now smarter, especially young children” (F) Work opportunities: - “It can be said that there are no unemployed housewives here. Some sell

pracangan (basic needs) at home and take in the washing of clothes from time to time.” (F)

- “It is easier for villagers to find work but they have to have will power or else strive to do business.” (F)

Semampir

(NPI = 0.66)

(MOPI = 0.42)

The same (M, F)

Income: - “The impact of the monetary crisis (krismon) caused stagnation. It had a big

effect on the prices of the basic necessities of life; price rises affected the less well-off in particular” (F)

- “There is also the problem of fuel prices, which are very different from those in other places” (M)

Work opportunities/creativity: - “There are no teenagers with the creativity to identify business opportunities,

there are only those who are looking for work” (M)

More/better/ increasing

Economic/Physical Infrastructure: - “Now there is an asphalt road and electricity” (M, 59) Work opportunities: - “There is now a cigarette factory” (F, 39) Access to market: - “There is ‘medicine’ for plants” (F) Self esteem: - “There is more enthusiasm for work; if the neighbours own something, others

wish to have the same. If the neighbour builds a house, then we have to build a house (M, 29)

Bulu

(NPI = 0.50)

(MOPI = 0.17)

Less Work opportunities: - “The steam-powered electricity generator has been shut down” (M, 29) - “House construction uses labour from other villages because outside workers are

more reliable (expert) in their work” (M, 29) - “More people are looking for work than there are opportunities available” (F, 33) - “Plaguing of rice-fields uses machinery, so manpower is no longer needed” (F, 33)



Community



More (F) Economic/Physical Infrastructure:

- “Roads are now good but were very bad in the past” (F) - “Electricity is available in the village” (F) - “There is mutual assistance in the construction of drainage” (F)

Condition of houses: - “Houses have tiled roofs but in the past woven palm-fronds were used” Work opportunities: - “There are ojek, which makes it easy to go to the market” Social Infrastructure - (Health services): “Now, there is a medical post. So that children can get

medicine. Before it was far from the village” (M, 24) - (Education services): “Children can go to school” (F) Social capital: - “The community project strengthened relations within the community. So it’s

safer (F, 24) - “Everyone’s sense of responsibility increase, making the area safer (F, 50)

Banyupelle

(NPI = 0.48)

(MOPI = 0.05)

Less (M, F)

Natural environment: - “Water for rice is in short supply but rain falls when tobacco is planted” Capital: - “No one undertakes trade because people do not have capital” (M,F) - “Many people have debts” (M, F) Access to markets: - “Agricultural products are sold at low prices, not in proportion to the capital that

has to be expended” (M) Work opportunities: - “It is hard to find work; a job overseas requires capital” Economic/Physical Infrastructure-: - (Transportation): “Ojek exist but to travel by ojek requires money”

More (M, F)

Work opportunities: - “There is an increase in employment opportunities” (F, 29) Asset/capital: - “Fishermen now use motorized boats (F, 63) and go to sea with modern

equipment, whereas in the past they used fishing lines and boats without motors; income was sufficient only to eat daily but now it is higher” (M, 27)

Environment: - “Cleanliness is better, latrines have been introduced” (F) Crime/bad habits: - “Delinquency among young men has fallen” (F) Condition of houses: - “Many houses are now made of brick but in the past walls were woven bamboo and

roofs were of iron; house styles now change continuously” (M) Social Infrastructure: - (Education services): “In the past there were insufficient educational facilities

and schools were far away, but now a junior high school (SMP) has been built” (M, 33)

Incomes: - “Local incomes have risen; many people own trucks, which means that young

men can earn a living as drivers or assistant drivers” (M, 48)

Branta Pesisir

(NPI = 0.04)

(MOPI = 0.19)

Less (F) Work opportunities: - “It is difficult to find work (especially as public servants); even though many

people have educational certificates or tertiary degrees, it is necessary to have money”

- “Like me a graduate of a tertiary school but can’t find work anywhere, in the end I became a seller of spiced fruit (rujak) (F, 29)

- “It is a shame for him, here he would just be a fishermen although it has already cost me millions of rupiah. I advised his children not to return to the village because of the difficulty of finding work” (F, 63)



Community




More/ better

Access to markets: - “Now there is a market called BaRiTo (meaning onions, pepper and tomatoes);

goods are brought to the house by vegetable sellers who travel by motor-cycle; in the past buyers had to go to the market” (M, 63)

- “Many commercial goods are in demand because of the greater number of people and offices, which means there are more purchasers” (F)

Work opportunities: - “Young men work as ojek drivers, but in the past they only ‘sat with their hands

in their lap” (M, 44)) - “Regional subdivision has created work opportunities; there are public service

admission tests in Jailolo but in the past people had to go to Ternate or Ambon for the test” (F)

Social capital: - “After the return from evacuation, the level of religious harmony became

greater, although it is now becoming somewhat less close” (M) Economic/Physical Infrasturcture: - Transportation: “The existence of ojek helps greatly; people can go to the market

quickly but the trip is expensive” (F)

The same Work opportunities: - “Looking for work is both easy and difficult; so far no new employees or public

servants have been appointed” (M, 68) - “Although there are employment opportunities due to regional subdivision, jobs

depend on human resources” (F) Income: - “Income is used for children’s education and the rebuilding of house” (F) - “Income has increased but so have prices” (F)

Soakonora

(NPI = 0.40)

(MOPI = 0.43)

Less/ declining

Condition of houses: - “Houses are smaller in size since the disturbances and they have been built with

government funds” (F) Economic/Physical Infrastructure: - (Transportation): “In the past there were minibuses: a man could become a

driver and public transport was available, but now it does not exist (F) and ojek

are expensive” (F) Social capital/solidarity: - “Mutual assistance is less common than formerly because people now

concentrate on building their own respective houses” (F) - “Relationships between religions are not as close as they once were” (F)

Idamdehe

Gamsungi

(NPI = 0.38)

(MOPI = 0.68)

More/better Condition of houses: - “Houses are better; in the past walls and roofs were made from palm-fronds but

now walls are of brick and roofs of iron and there are many windows” (F) Assets: - “There are now TV sets, parabolas and other electronic equipment” (F) Economic/Physical Infrastructure: - (Clean water):“Now there is reticulated drinking water from PDAM but in the

past people used rain water” (F) - (Transportation): “There is now transport to Jailolo but in the past people had to

walk” (F) Social Infrastructure- - Education services: “Many people have completed senior high school (SMA); in

the past primary school (SD) was the highest level” (F) - Health services: “Now there is a village polyclinic but in the past there was no

such facility” (F) Capital:

- “There have been government programs (IDT and PPK)” (M)



Community



Gorua

(NPI = 0.33)

(MOPI = 0.16)

Same/ Less

Condition of houses: - “Houses that were destroyed in the conflict have been rebuilt, but the condition

of these houses is not what it was in former times” (F) Work opportunities: - “People have had to start from nothing, including the search for a source of

livelihood in the midst of limited job opportunities” (F, M) - “There are many evacuees and newcomers, and hence great competition for

work” (F, M) Incomes: - “A fall has occurred in incomes” (M) Access to markets: - “Prices are high, including the cost of agricultural inputs like fertilizers” (M)

Less (F) Capital: - “In the past people had their own capital to use for their own business purposes

but now they have to wait for aid” Work opportunities: - “There are lots of people of working age but there are no employment

opportunities because they do not have sufficient education as a consequence of the high cost of education”

Kampung Pisang

(NPI = 0.29)

(MOPI = 0.42)

More/better Condition of houses: - “Before the disturbances, the houses people owned were of a temporary type but

since the disturbances houses have been better”

Gura

(NPI = 0.06)

(MOPI = 0.20)

Less (F, M) Income: - “Previously incomes could be Rp300,000 to Rp400,000 but now they are around

Rp 200.000 or less” (F); - “Previously incomes were quite high but now they have declined” (M) Psychology: - “Previously people had quite a good life but at the time of the conflict (1999-

2000) everything collapsed, so they had to start from scratch” (F) Work opportunities: - “Previously the situation was better because each villager had a job; now this is

no longer the case” (F) - “Previously there was no unemployment because there were a lot of companies

operating in this area; now looking for work is difficult” (F) - “With the outbreak of the conflict Tobelo was flooded with displaced people;

there is a bigger population and it is hard to find work” (M) Price of agricultural inputs: - “The price of fertiliser has now reached Rp3,000 per kg, it does not make sense,

whereas in 1995 the price was Rp1,050” (M) Government projects: - “Ten years ago there were far more government projects” (M).

Source: Ladder of Life FGDs.

In addition to putting forward these reasons, the community also mentioned events that have helped (positive) and hindered (negative) community welfare. The factors that they mentioned are a combination of economic and non-economic factors. Table 4.2.5 and Table 4.2.6 show these factors in a detailed way for each community.



Table 4.2.5. Major Positive Events that have Helped Community Prosperity

Community Positive factors that have Helped Community Prosperity


Palengaan Daja Paving of the road with asphalt (FGD Timeline, informants). Health Cards (informant), Social Safety Net (FGD Timeline), Green Card/Health

Insurance, 2005 (informant). No crop failures, regular season (tobacco not affected by rain) (FGD F). Cultivation of other commodities (rice, chilli, corn) (FGD F). The Cheap Rice program (FGD M). Aid program providing seed/fertiliser (FGD M).

Semampir Market access (Informants, FGD M). Construction of artesian well (Informants). Permanent work opportunities (FGD M). The presence of a cigarette factory (FGD F). Government assistance (FGD F).

Bulu Paving of the road with asphalt (Informants, FGD F). Installation of electricity (Informants). Extra work/side jobs (FGD M). Many women starting to work. Clean water (FGD F).

Banyupelle Election of village head (informants). No crop failures (FGD F-M). Moving to other places as overseas workers (TKW/TKI) (FGD F).

Branta Pesisir Construction of a dock, 2002 (Informant, FGD Timeline). Construction of clean water channels, 2003 (FGD Timeline). Increases in education (FGD M). Monetary crisis, causing prices of export commodities to rise (informant). Financial aid program for small traders (FGD F). Good social relationships (FGD M).


Soakonora Assistance (restoration) after the disturbances (Informants). Monetary crisis (Informants). Clean water (FGD-F). Subdivision of the province (FGD-F). Help with housing, post-conflict assistance (FGD-M). Help with rice (FGD-M).

Idamdehe Gamsungi Construction of a road to the village (1984) (Informants). Government programs in the form of a revolving fund (IDT, PPK) and clean water (Informants, FGD-M). Surfacing of the road with asphalt (1990) (Informants, FGD-M). Security (FGD-F). High motivation to work (FGD-F).

Gorua Help through revolving funds (Informants). Conflict settlement; post-conflict assistance (Informants). Security (FGD-F). Determination (FGD-F, FGD-M). Mutual assistance (FGD-M). Education (FGD-M).

Kampung Pisang IDT Program (Informants, FGD-F, FGD-M). PPK Program (Informants, FGD-F, FGD-M).

Gura Post-conflict assistance (Informants, FGD-F). Formation of the new District of North Halmahera (Informants). Additional business capital (FGD-F). Markets for agricultural products (FGD-M). Security conducive to progress (FGD-M).

Source: Community Timeline, Ladder of Life FGDs, Community Synthesis Reports (CSRs).



According to the communities in the low conflict areas, the positive events and factors that have improved community welfare can be regrouped as: (1) infrastructure: the surfacing/ asphalting of roads, village electrification, the provision of clean water, the construction of wharves and the building of a market for agricultural produce; (2) work opportunities: the presence of a cigarette factory; wage employment in the cigarette factory of women who usually managed the household; the emergence of permanent employment opportunities, jobs overseas as TKW/TKI workers, the fact that many women have begun to work, and the existence of additional or part-time employment; (3) the agricultural development: adjustment of planting seasons so that the rice and tobacco harvests did not fail and the introduction of crops like chilli (4) access to markets: the presence of a market it relates to villagers’ livelihoods (traders, becak driving, carrying of goods, and others); (5) political development: election of the village head; and (6) assistance programs: Rice for the Poor (Raskin), health cards, the Social Safety Net (SSN/JPS), help with seed and fertilisers, assistance for small traders and additional business capital. Meanwhile, in the high conflict areas the positive events and factors suggested by the community as having improved community welfare are regrouped into: (1) infrastructure: the surfacing/asphalting of roads, village electrification and the provision of clean water; (2) education: better access to schooling as well as the introduction of improvements in education; (3) work opportunities: the emergence of permanent employment opportunities; (4) important events: the monetary crisis, which raised the value of agricultural export commodities, subdivision of the region with the formation of a new district (kabupaten), which also had a positive impact on the village; (5) good social relationships; (6) security: security conditions conducive to progress; (7) motivation: high work motivation; and (8) assistance programs: Rice for the Poor (Raskin), health cards, the Social Safety Net (SSN/JPS), assistance for small traders, additional business capital and restoration after the conflict; As it turned out, the communities in both low and high conflict areas put forward almost the same positive factors, especially where they are related to physical and social infrastructure, employment, access to markets and assistance programs. The difference is that in the high conflict areas the people also put forward individual factors such as good social relationships, high work motivation and security conditions conducive to progress. The negative factors that have hindered improvements in community welfare in low conflict areas can be regrouped into: (1) the natural environment: crop failures caused by irregular seasons (at the time when rice is planted there is heavy rain yet when water is needed there is none) and drought, causing fish and food supplies to be low; (2) access to markets: the fall in prices for agricultural products (tobacco) and unstable prices for major inputs; (3) important events: the monetary crisis, which caused the prices of basic necessities to rise; (4) the removal of subsidies: the fuel and electricity subsidies; (5) economic competition: quarrels over fishing areas and the entry of fish from Java; (6) agricultural land conversion: the conversion of farm land to housing and construction of the district office on productive land owned by farmers; (7) work opportunities: a reduction in employment opportunities and uncertainty of work; (8) lack of capital; (9) criminal activities: the entry of trouble-makers from outside the village and sea pirates; (10) conflict: medium and low intensity clashes such as quarrelling and disputes that involve only a few individuals; (11) social ties: koleman; (12) bad habits: gambling, consumption of alcohol, intoxication, the presence of red-light kiosks; and (13) lack of will power.



Table 4.2.6. Major Negative Factors that have Hindered Community Prosperity

Community Negative factors that have hindered community prosperity


Palengaan Daja Crop failures (Informants, FGD Timeline, FGD F, FGD M). Rise in prices of basic necessities (FGD F). Monetary crisis, causing prices to rise (FGD M). Natural factors leading to crop failure (FGD M). Removal of fuel and electricity subsidies (FGD Timeline, FGD M).

Semampir Red-light kiosks (Informants). Monetary crisis (Informants). Prices of main inputs not fixed (FGD M). Uncertainty of work (FGD M). Rise in prices of basic necessities (FGD F). Lack of will power (FGD F).

Bulu Monetary crisis (FGD Timeline, FGD M-F). Drop in tobacco prices, 2003 (FGD Timeline). Much rice-land converted to housing (FGD F). Local culture (koleman)

5 (FGD M).

Banyupelle Mass fighting (carok) (Informant). Crop failures (FGD F-M). Rise in prices of basic necessities (FGD F-M).

Branta Pesisir Lack of fish in the dry season (FGD F). Entry of fish from outside the village, causing local fish prices to fall (FGD F). Quarrels over fishing areas with outside fishermen (FGD Timeline, informant). Hijacking of boats (informant). Entry of trouble-makers from outside the village (FGD Timeline).

Removal of fuel and electricity subsidies (FGD M).


Soakonora The conflict in 2000 (Informants, FGD-F, FGD-M). Construction of the district office of West Halmahera (Informants, FGD-M). The decline in agricultural incomes (FGD-F).

Idamdehe Gamsungi The conflict of 2000 (Informants, FGD-F). The fall in prices for agricultural products (cloves, nutmeg, copra) (FGD-M). Village road damage caused by heavy trucks in 2003 (Informants, FGD-M). Low agricultural produce prices causing income decreases (FGD-F).

Gorua The conflict of 1999 (Informants, FGD-M). The decline in prices for agricultural products (Informants). Lack of opportunities and capital (FGD-M). Delinquency (drunkenness and gambling) (FGD-F). Laziness (FGD-F and FGD-M) and stupidity (FGD-M).

Kampung Pisang The Putih-Kuning (White-Yellow) conflict (Informants, FGD-F, FGD-M). The economic crisis (Informants). Conflict with the army (FGD-F). Increases in fuel prices (FGD-M).

Gura The conflict of 1999 (Informants, FGD-F). The decline in prices for agricultural products (copra) (Informants). The decline in work opportunities (FGD-M). Gambling and alcohol (FGD-M).

Source: Community Timeline, Ladder of Life FGDs, Community Synthesis Reports (CSRs).

In the high conflict areas the negative factors that hinder improvements in community welfare are: (1) conflicts, high-intensity conflict that has already thrown the lives of the whole community into disarray for at least three years since the disturbances and conflicts of medium; (2) access to markets: the fall in prices of agricultural products; (3) the removal of subsidies: the

5Koleman is a traditional system that obliges a person invited to attend a wedding reception or some other

celebration to give a donation (money or goods) to the person who has invited him. At a later time, if the guest later has a celebration of his own, the donation that he gave will be returned to him by the person who has invited him now. Basically, this traditional system has the value of cooperation and contains aspects of mutual assistance (gotong royong). Unfortunately it is now directed toward activities of a consumptive nature.



fuel and electricity subsidies; (4) work opportunities: a reduction in employment opportunities; and (4) bad habits, such as gambling, consumption of alcohol and drunkenness. It appeared that there was no appreciable difference between the factors mentioned by the women’s groups and those stated by the men’s groups. Meanwhile, informants and participants in the Timeline FGD, who in all communities were generally village officials, community figures and entrepreneurs, more frequently mentioned the factors of infrastructure and assistance to the community than other factors.

3. Community Prosperity Based on Asset Ownership

Unlike the community view that based on economic conditions like income and employment, that the welfare has declined or were the same, all household data related to the ownership of assets like land, houses, motor-cycles, coloured television sets and the availability of electricity in houses indicate that the economic welfare of the community in all areas has risen (Tables 4.2.7 to 4.2.9). For example, the number of respondents who do not own land has declined over the past ten years, even though the change is rather small and there are more respondents who own a house today than there were ten years ago. The greatest increase has occurred in the high conflict areas.

Table 4.2.7. Changes in Land Ownership

Ownership of land (% of Respondents)

No land 0.1 – 1 ha > 1 ha Community

Now Then Now Then Now Then

All Areas 44 50 35 29 22 21

Low Conflict (East Java) 51 58 43 36 6 6

High Conflict (North Maluku) 38 42 24 22 38 37

Source: Processed from Household Survey.

The differences between the data obtained from the household questionnaire and the FGD opinions can be explained in the following way: (1) the household questionnaire sample has a bias toward movers (40%) and the rich (30%) rather than the poor (20%) and fallers (10%), which indicates that more respondents at the present time enjoy greater prosperity and so can own more assets, and (2) the community, both men’s and women’s groups, have different reasons in supporting their opinions about changes in prosperity.

Table. 4.2.8. Changes in Ownership of Cattle

Ownership of cattle (% of Respondents)

0 cattle 1-5 cattle 6-10 cattle >10 cattle

Community

Now Then Now Then Now Then Now Then

All Areas 92 80 8 12 0 3 0 3

Low Conflict (East Java) 93 91 6 8 1 1 0 0

High Conflict (North Maluku) 91 70 8 17 0 6 1 7

Source: Processed from Household Survey.



Table 4.2.9. Changes in House and Asset Ownership

Asset Ownership (% of Respondents)

House Motor-cycle Coloured TV Electricity

Community


All Areas 90 81 34 18 61 27 91 62



Source: Processed from Household Survey



V. GROWTH/ECONOMIC DEVELOPMENT, CONFLICT, AND COMMUNITY MOBILITY

In almost all communities the people judged that the level of community welfare is higher today than it was ten years ago, especially in the context of physical infrastructure like roads, electricity and clean water, and education and health (refer back to Table 4.2.4). But when this was related to economic conditions like income and employment, the majority of the people felt that welfare has declined and that it is now harder to find work. Based on the above views mentioned by both women and men, this chapter will emphasize on the focus of the Indonesian case study, those are the economic development as proxy of growth and the conflict. Both factors are part of the opportunity structures that are suspected to influence the community mobility. The first section of this chapter will describe economic development, including physical, social and information infrastructure, market access, employment and other economic opportunities, by comparing the changes that have occurred in the past 10 years and describing development over the same period. The second section describes the conflict, which is assumed of being the factor that brought chaos to development during this time.

A. GROWTH/ECONOMIC DEVELOPMENT

The lowest level growth data that are available and have been used for sampling in this study are at the district and municipal levels and do not cover the differences of growth between villages in the same districts. The nearest proxies for growth in this study at the village level are certain aspects of economic development, such as infrastructure, access to markets, employment and other economic opportunities. These proxies are combined with the researchers’ qualitative observations on current community dynamics and are then compared with the same information from informants about the situation 10 years ago. The household questionnaire shows that in both areas certain physical infrastructure like electricity and clean water, and information infrastructure like TV and radio have existed for the past 10 years. This indicates that each of these forms of infrastructure does not represent a single factor that brought change to community prosperity during the past 10 years. However, the social infrastructures, education and health facilities have been limited. The availability of national newspapers and the public phone network have improved over the last 10 years. Where community members feel that certain infrastructures have improved community prosperity, if the infrastructure was present 10 years ago, this is not taken as a factor that brought change to community prosperity. However, in places where new infrastructure works (such as the construction of roads, installation of electricity and improvement/introduction of information infrastructure) have been carried out during the past 10 years, it is suspected that this has increased community prosperity. The quality of roads is another factor that could have had an influence on changes in community prosperity. In regards to work opportunities, while people in low conflict areas have enjoyed the existence of private employers, there have been few private employers in high conflict areas. This has made it almost impossible to find work with a private employer, and has led people to migrate to other areas in order to find private employment. In low conflict areas there are also more public works projects employing residents, unlike high conflict areas where there are only very few that employ locals. People in low conflict areas however feel that the numbers of work opportunities are decreasing. In the new districts in high conflict areas



many people are hoping to become government employees, even though it is difficult to achieve.

1. Infrastructure The condition of three types of community infrastructure is discussed, namely, (1) economic infrastructure, which includes availability of electricity, clean water, means of transportation (the condition of roads and availability of transport) and the existence of telephones, (2) social infrastructure, which covers the provision, both in quantity and quality, of educational and health facilities, and (3) information infrastructure, which takes in access to television, radio, local and national newspapers, public telephones and the internet.

Economic infrastructure Even though each of the economic infrastructures do not represent a single factor that brought change to community prosperity during the past 10 years, as mentioned earlier in Chapter IV (Table 4.2.4), the communities in low and high conflict areas belief that some economic infrastructures have helped their communities prosper. In some cases clean water is given as a reason: “There is clean water where once river water was used” (F, 25, Palengaan Daja), “In the past, people relied on their own wells, but the quality of the water is not good and during the drought it is scarce” (F, 36, Semampir), “now it is also easy to obtain clean water, because there is artesian water; with only Rp1,500 per month the water always flows” (F, 43, Semampir), “in the past water was collected from Gorango (the name of a spring) every day at 4.00pm, but that is salobar (swamp water). Now we can obtain clean water because there is a water bore (F, 30, Soakonora), and “now there is reticulated drinking water from PDAM supplied to our houses, but in the past people used rain water” (F, 45, Idamdehe Gamsungi). Other comments relate to road construction and improvements: “there is a macadamized road where before the road was damaged; vehicles can now enter the village” (F, 32, Palengaan Daja), “now there is an asphalt road” (M, 59 Bulu), and “if you go the market you can use a motorbike, even if you have to use motorbike taxi, because now roads are good; before you had to walk to the market because the roads were very bad in the past, ” (M, 24, Banyupelle), and “in the past it took one to two days to get to Ternate, but now it takes only a few hours because the road to the harbor has been steadily improved” (M, 37, Gorua). The men’s group in Banyupelle hopes that the government can assist them in marketing/selling their crops by “building better roads” (M, 45), and providing “better irrigation for farming” (M, 53). Some also feel they have been helped by the transportation: “The existence of ojek helps greatly; people can go to the market quickly but the trip is expensive” (F, 30, Soakonora), “in the past, people went to Jailolo on foot, now by car” (F,45, Idamdehe Gamsungi), and “there are good means of transportation to the harbor to get to Ternate” (M, 37, Gorua). However, some feel that transportation availability has declined: “in 1995 there were lots of public vehicles (angkot) but because of the conflict they were all taken to Manado” (F, 30, Soakonora), and “an ojek is extremely expensive” (F, 30, Soakonora). These comments reflect a feeling of a decline in community prosperity. Some people gave different reasons: “we have electricity now” (M, 40, Banyupelle), “now there is electricity” (M, 59, Bulu), and “there was a community initiative to build a drain” (F, 24, Banyupelle). They also mentioned the condition of the houses: “Our roof was made of alang-alang (type of grass), now it’s made from tiles” (M, 40, Banyupelle), “previously there were a lot of houses that were made from woven bamboo or iron, now many have concrete walls” (M, 52, Branta Pesisir), “before the walls and roofs were made of palm leaves, whereas now the walls are made of cement and the roofs are made of zinc” (F, 45, Idamdehe



Gamsungi), “on the whole people have a good house. Before the disturbances, the houses we owned were still temporary, but since the disturbances our houses have been better” (M, 42, Kampung Pisang). However, “in 1995 Gorua was a pretty place which visitors from outside often described as a metropolitan village, but now the houses of well-to-do people are the same as those of people who are not well off” (F, 58, Gorua). The picture of village and community infrastructure as explained by community figures (see Community Profile data) and presented in Table 5.1.1 shows that certain infrastructure like electricity and clean water has existed for the past 10 years. The change that has occurred in economic infrastructure is the introduction of telephones, which previously were not available but are now to be found in most sample villages, especially in low conflict areas. Gorua is the only community in the high conflict areas that does not yet have telephones.

Table 5.1.1. Availability of Economic Infrastructure

The Availability of Physical Infrastructure

Electricity Clean water Telephone Bus terminal

Community



Palengaan Daja Yes Yes No No

Semampir Yes Yes No

Bulu Yes Yes No No

Banyupelle Yes Yes No

Branta Pesisir Yes Yes No No


Soakonora Yes Yes No No

Idamdehe Gamsungi Yes Yes No No

Gorua Yes No No

Kampung Pisang Yes Yes No

Gura Yes Yes No


According to the records of community figures and informants, development of infrastructure has taken place over the past 10 years in almost all communities in both low and high conflict areas (Table 5.1.2). The type of infrastructure development has ranged from the construction and asphalting of roads, the sinking of artesian wells, the supply of drinking water, the building of housing complexes and construction of housing for people affected by the conflicts to the opening of cigarette factories and the establishment of bank branches. In the high conflict areas between 1995 and 2000 there was only one type of development, namely, drinking water projects from the P3DT project in Idamdehe Gamsungi in 1997. After that, development began again only in 2002 and even then mostly consisted of post-conflict programs including housing, roads and clean water projects, and the expansion of new districts. These programs are suspected to have helped the community prosperity. Meanwhile, much development took place between 1995 and 2000 in low conflict areas, except in the communities of Palengaan Daja and Banyupelle. Most projects involved the construction of roads and water channels. Information from community figures shows that electricity and clean water in a number of areas such as Palengaan Daja (NPI=0.82) in a low conflict area, and in Soakonora (NPI=0.40) in a high conflict area existed even 10 years ago. This indicates that each of these forms of infrastructure does not represent a single factor that brought change to community prosperity during the past 10 years. In places where the construction of roads and installation of electricity were carried out only in the past 10 years (Table 5.1.2), however, it



is very likely that this infrastructure has influenced improvements in community prosperity. For example, in Bulu the impact of road surfacing with asphalt has meant easier and quicker marketing of village produce, while the arrival of electricity in the village has enabled villagers to work at night and also to depart to the market before sunset. In view of the fact that the telephone only became available in the last ten years in the majority of communities, it is suspected that its existence has increased community prosperity. This is especially so in Palengaan Daja, which is in a low conflict area, and Soakonora and Idamdehe Gamsungi in high conflict areas. Another factor that could have had an influence on changes in community prosperity is the quality of roads (in Idamdehe Gamsungi and Soakonora).

Table 5.1.2. Infrastructure Development in the 1995-2005 Period

Community 1995-2000 2001-2005


Palengaan Daja

(NPI=0.82; MOPI = 0.00)

- Road project (2001)

Semampir

(NPI= 0.66;MOPI = 0.42)

- Sinking of artesian wells (1995)


- Establishment of housing complex (2001, 2004)

- Road sealing (2003, 2004) - Opening of bank (2005)

Bulu

(NPI=0.50; MOPI = 0.17)

- Installation of electricity (1995) - Establishment of housing

complex (1996) - Asphalting of road (1995, 1997) - Sinking of artesian well

(1999/2000)

- Housing complexes fully occupied (2000)

- Presence of GSM signal (2000)

- Opening of several cigarette factories (2003)

Banyupelle

(NPI=0.48; MOPI = 0.05)


Branta Pesisir

(NPI=0.04; MOPI = 0.19)

- Road project (1997) - Development of wharf (2000)

- Inauguration of the special clean water channel to Branta (2003)


Soakonora

(NPI=0.40; MOPI = 0.43)

- Post-conflict house construction (2002)

- Construction of new district offices (2003)


Idamdehe Gamsungi

(NPI=0.38; MOPI = 0.68)

- Drinking water project under P3DT (1997)


- Building of a tourist site along the beach and a road into the tourist site (2004)

- Building of two public sanitary facilities and a resting place for tourists in the tourist site (2004)

- Change of water pumps for water supply (2004)

Gorua

(NPI=0.33; MOPI = 0.16)


Kampung Pisang

(NPI=0.29; MOPI = 0.42)


Gura

(NPI=0.06; MOPI = 0.20)

- Road project (2002) - Post-conflict house

construction (2002)

Source: Community Synthesis Reports.



In connection with road and transportation infrastructure, the condition of the roads in almost all areas with the exception of Idamdehe Gamsungi and Soakonora, which are located in high conflict areas, is very good; roads are asphalted and can be used by motor vehicles (Table 5.1.3). Even so, not all areas have facilities for access by four-wheeled vehicles. To reach a number of communities, it is sometimes necessary to depend on an ojek (a motorcycle taxi) because of the lack of public vehicles. In sample communities in all areas, there are no bus terminals, although four-wheeled vehicles are available in several areas and sometimes wait for passengers in the villages in question.

Table 5.1.3. Road and Transportation Infrastructure

Community Road and Transportation Infrastructure


Palengaan Daja

(NPI=0.82;

MOPI = 0.00)

The village is linked to the subdistrict and district offices by a road that can be used throughout the year, but there are no public vehicles (buses or minibuses) serving the route to and from the village. For this purpose people generally make use of an

ojek while some rent a pick-up to take them to the nearest market on market days.

Semampir

(NPI= 0.66;

MOPI = 0.42)

The village can be accessed by four-wheeled vehicles. Inter-city buses that operate 24 hours a day pass through it. For passengers to reach different parts of the village, becak are available 24 hours a day. In addition, some of the people own motorcycles or bicycles.

Bulu

(NPI=0.50;

MOPI = 0.17)

The road is asphalted and can be used by motor vehicles throughout the year. Previously, the road was unsealed and, if rain fell, it was difficult for people and vehicles to travel along it.

Banyupelle

(NPI=0.48;

MOPI = 0.05)

There is an all-weather road that connects this village with the subdistrict and district offices. Public transport vehicles (angkutan pedesaan) can be seen servicing the route in and out of the village.

Branta Pesisir

(NPI=0.04;

MOPI = 0.19)

The asphalt road is very good and can be used throughout the year by four-wheeled motor vehicles and even by large trucks that transport fish and other trade

commodities. The community can use a range of public transport vehicles from pedicabs and motorcycles to vehicles that go into various parts of the village.


Soakonora

(NPI=0.40;

MOPI = 0.43)

Even though the village is close to the district capital and is connected to it by an asphalt road that can be used in all seasons, ojek are the only means of public transport in the village. According to the local people, this situation developed only after the conflict; previously, there had been a number of public transport

vehicles in the form of mini vans but they disappeared after the conflict.

Idamdehe

Gamsungi

(NPI=0.38;

MOPI = 0.68)

The village can be accessed by motorcycle along the only road, which goes from the capital city of the subdistrict and district to the village. This road is quite risky, even for four-wheeled vehicles. There are many sharp, steep curves and thick jungles over a distance of 5 km. The public vehicles, which are vans, open at the back and which go to and from the capital of the subdistrict, are available only during the day. For everyday purposes the villagers use ojek or their own motorcycles. For high school students, the village administration provides a van (open at the back) with the funds collected from sand excavators on the beach.

Gorua

(NPI=0.33;

MOPI = 0.16)

Gorua village is close to the district capital and is connected to it by a very good asphalt road that can be used in all seasons by private cars, public transport vehicles in the form of mini vans, and ojek. The transport situation has become more developed since the conflict.

Kampung Pisang

(NPI=0.29;

MOPI = 0.42)

As a kelurahan that is situated in the middle of the city of Ternate, this village has very easy access to various means of transport. Transport is available for the community in the form of minibuses (angkot), taxis and ojek.

Gura

(NPI=0.06;

MOPI = 0.20)

Public roads are asphalted, and the majority of roads in the area have been strengthened. Only a few of the district roads are still unsealed. Public transport is readily available in the form of angkutan kota and becak (motorized and non-motorized), as well as ojek.




Social infrastructure

Social infrastructures are limited in all areas, which indicates that change in social infrastructure is not a factor that brought change to community prosperity during the past 10 years. “Education is also limited. The physical development of schools at all levels from kindergarten to senior high school is still limited because of the conflict” (F, 30, Soakonora). However, as mentioned earlier in Chapter IV (Table 4.2.4), five communities, four in low conflict areas and one in a high conflict area, stated their conviction during FGDs that the factor of education has influenced community prosperity: “People are now smarter, especially young children” (F, 45, Semampir), “now, school fees are free and the school participation rate is improving (F, 42, Semampir), “the wages of teachers have also improved, possibly after they are rich they will help the little people in need (F, 45, Semampir), “children can go to school” (F, 24, Banyupelle), “in the past there were insufficient educational facilities and schools were far away, but now a junior high school (SMP) has been built” (M, 33, Branta Pesisir), “many people have completed senior high school (SMA); in the past primary school (SD) was the highest level” (F, 45, Idamdehe Gamsungi), “before, the condition of the primary school building was so poor, but now it’s quite decent” (F, 45, Idamdehe Gamsungi), and “there were very few people who had completed senior high school, whereas today many have S1 and S2 university degrees” (M, 37, Gorua). Other comments relate to health services: “There is now a midwife” (F, 27, Palengaan Daja), “previously the use of toilets was unknown, now from the perspective of cleanliness it is also better” (F, 63, Branta Pesisir), “now there is a village polyclinic but in the past there was no such facility” (F, 45, Idamdehe Gamsungi), and “health is good and the primary health care posts (posyandu) function well, so there is no malnutrition” (F, 58, Gorua). The community’s belief that education can influence the prosperity of the community or the individual is revealed in the household (HH) questionnaire questions about parents’ hopes for the highest educational level for their daughters and sons might achieve. In low conflict areas, 53% (of 89 respondents) would like their daughters to reach university or academy level and 20% would like them to complete SMA. In the case of hopes for sons, 68% (of 96 respondents) want them to attend university and 15% hope that they complete SMA. In high conflict areas the hopes of parents are greater than in low conflict areas, where 82% (of 137 respondents) want their daughters to go on to a university or academy and 12% want them to finish SMA. Some 85% of parents (from 153 respondents) hope that sons will be able to graduate from a university or academy and 13% hope that they will complete SMA. In almost all sample communities there is an elementary school (SD). The exceptions are Branta Pesisir in a low conflict area) and Kampung Pisang in a high conflict area (Table 5.1.4). While many changes have occurred in the availability of junior high schools (SMP) in both low and high conflict areas, there have not been many changes in the provision of senior high schools (SMA), only one new SMA in Gorua during 10 years. Unlike the case of physical and information infrastructure, whose availability has a direct impact on the community, the effects of expansion in social infrastructure like education can only be felt or can only influence community prosperity after the community has enjoyed the benefits for a certain period of time, that is, after six years of SD schooling, three years in SMP and another three years in SMA. In any case, where communities do not have schools, it is possible for children to access education in schools in surrounding communities. For example, Idamdehe Gamsungi, which has no SMPs and SMAs and where children have to undertake a long journey to attend secondary schools, has a higher NPI than those of communities that have SMPs and SMAs and even the highest MOPI. The community in Soakonora (whose NPI and MOPI are quite high) is also able to access universities in Ternate. This indicates that the existence of school infrastructure is not just one single factor that influences community prosperity and mobility. There are several other factors that play a part in influencing prosperity, such as finance, access,



the quality of schools and their availability in surrounding communities, although it cannot be denied that the presence of a school in a community is still important nor does it mean that it does not exert an influence on community prosperity.

Table 5.1.4. Social Infrastructure: Education

Social infrastructure: education

Elementary School

Junior High School

Senior High School

College, University

Community Center

Community

Now Then Now Then Now Then Now Then Now Then


Palengaan Daja (NPI=0.82)

Yes Yes No No No No

Semampir (NPI= 0.66)

Yes Yes Yes Yes Yes

Bulu (NPI=0.50)

Yes No No No No

Banyupelle (NPI=0.48)

Yes Yes No No No Yes

Branta Pesisir (NPI=0.04)

No No No No Yes No


Soakonora (NPI=0.40)

Yes No Yes Yes No Yes

Idamdehe G (NPI=0.38)

Yes No No No Yes

Gorua (NPI=0.33)

Yes Yes Yes No No No

Kampung Pisang (NPI=0.29)

No Yes No No Yes Yes No No

Gura (NPI=0.06)

Yes Yes No No No

Source: Community Synthesis Reports and Community Profiles.

Table 5.1.5. Social Infrastructure: Health

Social infrastructure: health

Public clinic Private clinic Doctor Nurse

Community



Palengaan Daja Yes No No No Yes No

Semampir No Yes Yes Yes

Bulu Yes No Yes No Yes Yes

Banyupelle Yes No Yes No Yes

Branta Pesisir No No No No Yes


Soakonora No No No Yes

Idamdehe Gamsungi Yes No No No Yes

Gorua No No No Yes

Kampung Pisang No No Yes No No Yes

Gura No No Yes Yes


In the case of health infrastructure, more than half of the sample communities do not have a public clinic, yet there has been an increase in the availability of clinics over the past 10 years, that is, in two communities in low conflict areas, Palengaan Daja (NPI=0.82) and Bulu (NPI=0.50), and in one in a high conflict area, namely, Idamdehe Gamsungi (NPI=0.38). As elsewhere outside Java in general, there is a shortage of doctors and so the high conflict areas,



especially in rural districts, even now still do not have a doctor. Doctors are to be found only in semi-urban and urban communities. In theory, public health facilities can contribute to poverty reduction. In the community, however, the presence of these facilities could not be effective in improving the welfare of the poor because the lack of good services and access for the poor. For example, Idamdehe Gamsungi, which is located some considerable distance from the city and where road and transportation infrastructure is minimal, has only just obtained a clinic, yet its NPI and MOPI are high. Even so, it is also possible that this health infrastructure can influence community prosperity. For example, the Branta Pesisir community, which has very basic health infrastructure, has an NPI and MOPI that are also low. It cannot be denied that the presence of health facilities and medical staff in a community, like the educational situation, exerts an important effect on community prosperity and mobility, but there are other factors that also influence community prosperity such as the cost of, access to and quality of health services as well as the availability of health facilities and medical staff in surrounding communities.

Table 5.1.6. Quality of Social Care in the Past Ten Years

Community The quality of social care

Education Health care East Java (Low Conflict)

Formerly Now Formerly

Palengaan Daja

(NPI = 0.82)

Bad Alright Bad Good

Semampir

(NPI = 0.66)

Very good Very good Good Good

Bulu

(NPI = 0.50)

Bad Alright Alright Good

Banyupelle

(NPI = 0.48)

Alright Good Good Good

Branta Pesisir

(NPI = 0.04)

Good Good Good Good


Soakonora

(NPI = 0.40)

Good Good Good Good

Idamdehe Gamsungi

(NPI = 0.38)

Good Very good Very good Very good

Gorua

(NPI = 0.33)

Alright Good Good Good

Kampung Pisang

(NPI = 0.29)

Good Good Good Good

Gura

(NPI = 0.06)

Good Good Good Good


Information infrastructure It is believed that information infrastructures could improve the community prosperity and lack of these infrastructures will hinder the community to a better prosperity. However, during the discussions none of the women’s and men’s groups in all areas mentioned information facilities as a reason for community prosperity mobility. This section tries to analyze the information infrastructure in particular access to national newspapers, national television, national radio and public telephones (Table 5.1.7).



Table 5.1.7. Access to Information Infrastructure

Access to information infrastructure

Community National television

National radio National newspapers

Public phone



Palengaan Daja

(NPI = 0.82)

Yes Yes Yes Yes No No Yes No

Semampir

(NPI = 0.66)

Yes Yes Yes Yes Yes No Yes Yes

Bulu

(NPI = 0.50)

Yes Yes Yes Yes Yes Yes Yes No

Banyupelle

(NPI = 0.48)

Yes Yes Yes Yes No No No No

Branta Pesisir

(NPI = 0.04)



Soakonora

(NPI = 0.40)

Yes No Yes Yes Yes No Yes No

Idamdehe

Gamsungi

(NPI = 0.38)

Yes Yes Yes Yes No No Yes No

Gorua

(NPI = 0.33)

Yes Yes Yes Yes Yes No No No

Kampung Pisang

(NPI = 0.29)

Yes Yes Yes Yes Yes No Yes Yes

Gura

(NPI = 0.06)


All communities in low conflict areas have had access to national television and radio for the past 10 years. Even so, although they live not far from the provincial capital, some of them do not have access to a national newspaper and only recently have been able to enjoy the use of public telephones. By comparison with low conflict areas, high conflict areas apparently have far better information infrastructure. Almost all sample communities now have the benefit of public telephones and national newspapers, while previously almost all had access to national radio and television. Only Idamdehe Gamsungi, which is located in a relatively isolated area, does not have these information infrastructures.

2. Market Access

Market access plays an important role in influencing welfare in communities that depend mostly on production in the agricultural, home industries and fisheries sectors. Some communities that rely on businesses, both agricultural and non-agricultural, mentioned market access as a factor that has influenced community prosperity over the past 10 years (see Table 4.2.4) but most of these communities experienced a decrease in prosperity. This is because “the impact of monetary crisis caused stagnation. It had a big effect on the prices of the basic necessities of life. Price rises affected the less well-off in particular” (F, Semampir), “agricultural products are sold at low prices, not in proportion to the capital that has to be expended” (F/M, Banyupelle). Only one mentioned that market access has raised community prosperity because “many commercial goods are now in demand, many purchasers, lots of people, lots of offices (F, 61, Soakonora). “Now there is a market called BaRiTo (meaning



onions, pepper and tomatoes); goods are brought to the house by mas Jawa (vegetable sellers who travel by motorcycle); in the past buyers had to go to the market” (M, 63 Soakonora). Production and demand In low conflict areas, farmers are still farming and producing the same seasonal agricultural commodities they were producing 10 years ago (tobacco, paddy, corn, and others). However, communities that depend on tobacco like Palengaan Daja and Banyupelle have experienced crop failures in the past two years because of excessive rainfall in the dry season. “Rain fell during the tobacco season but in the rice planting season there was no rain at all” (M, 29, Palengaan Daja), “tobacco plants were affected by rain, which caused great destruction and farmers were at a disadvantage and obtained no yields” (F, 24, Palengaan Daja). The tobacco crop was very good in 1995 and prices were high. But since 2003 there has been a lack of water for farming in the wet season and too much in the dry season. Communities that depend on paddy experienced the same problems “in the rice planting season there was no rain at all and there has been a decrease in rice output since 1999” (M, 29, Palengaan Daja). “When we plant rice there’s a lack of water, there’s no rain” (M, 28, Banyupelle). Bulu is the only area that has had successful crops over the last two years because there has been no ‘yellow disease’. In almost all communities in high conflict areas, the goods produced by farmers are generally primary products, that is, agricultural commodities such as coconuts/copra, nutmeg, cloves, bananas, and citrus fruit. But there have been changes in the last 10 years. The changes include (1) a shift in the type of commodities, from crops that yield annually like coconuts (and hence copra), bananas and citrus fruit, to ones that yield seasonally or monthly. This is as a consequence of factors like price, plant disease, aid from the government or NGOs and technological know-how that includes the use of fertilizers and pesticides. New commodities include beans, tomatoes, chilies and onions; (2) harvests are showing a tendency to decline because of the age of perennials; in Gorua most farmers used to obtain two tons of coconuts every harvest but now they get only 300 kg because the palms are old and there has been no rejuvenation; (3) improved equipment for soil preparation; in the past farmers used a hoe but now they plough with hand tractors; (4) the wider availability of seeds; in the past there were none but now seed can be easily obtained; (5) increases in the prices of agricultural inputs. In Idamdehe Gamsungi there are now “more peanut farmers”, (F, 50). This is caused by several factors like prices, plant diseases, aid from the government or NGOs, and technological improvements. “There are farmers that don’t take care of their coconut trees for years because the trees are suffering from a plant disease” (F, 38, Idamdehe Gamsungi), and it is also admitted that harvests are showing a tendency to decline because of the age of perennials. “Most farmers obtained 2 ton of coconuts every harvest but now they get only 300 kg at harvest time because the palms are old and there has been no rejuvenation” (M, 36, Gorua). On the other hand, “quality peanuts can be sold at a good price” (F, 35, Idamdehe Gamsungi), while “the price of copra is currently falling. We now have experience in farming beans, tomatoes, chili and onions and take our harvested vegetables to the market. Sometimes income goes up and sometimes it falls” (M, 36, Gorua). In Soakonora, people plant corn, but “if it is hard to get corn seed, people plant it less frequently”. Many people nowadays also grow cassava (kasbi) but it becomes rotten because there are none who want to purchase it”. In connection with the ownership of agricultural land, it appears that many of the people who work in and depend on the agricultural sector, in both low and high conflict areas, do not own land at the present time. These people rent or sharecrop land, or else they work as agricultural laborers. In low conflict areas the community with the highest



proportion of landless people is Bulu (40% to 50%); here the majority of people are agricultural laborers. Around 20%-30% community member in Palengaan Daja community is landlessness. In areas of high conflict the greatest rate of landlessness is to be found in Soakonora (60% to 70%). In low conflict areas, demand, that is, the number of buyers has fallen because of the decline in the purchasing power while in high conflict areas has increased because of the population growth. In communities where more people live in compare to 10 years ago, with more people living in the communities, certain seasonal agricultural commodities like vegetables are definitely in demand as there are more buyers. Even so, because of these changes, certain commodities that people used to obtain by bartering with each other instead of buying now have to be paid for. “In the past vegetables were often given away but now they have to be bought” (F, 30, Gorua), and “In the past people just asked for cassava leaves but now they have to be purchased” (F, 39 and F, 30, Gorua). On the other hand, the women’s group in Soakonora said that expansion in the new administrative district has attracted many newcomers and hence there are many buyers for the cakes that they produce. In Gura the trade sector also provides greater economic opportunities. Commerce is developing well because of the growing size of the population. “With more people living in the town, vegetables are definitely in demand as there are lots of buyers” (F, 43) and ”prices are good. Prices are extremely different nowadays, for the vegetables that were worth Rp250 in the past are now worth Rp1,000” (F, 30). Trading activities are increasingly busy; “it is now more profitable because, despite the conflict, the flow of goods is still smooth” (M, 36). “Trade and farming are better and profits are greater” (M, 57, Soakonora). The cakes produced by the Kampung Pisang’s villagers are usually sold within the kelurahan. Although there are bread makers who sell their products outside the kelurahan, the number is very limited. The trade sector provides greater economic opportunities: “Commerce is also developing well because of the increasing size of the population here. The demand for basic necessities is increasing so trading activities is increasingly busy” (M-43, Gura). In the case of supply of and demand for daily necessities, communities in high conflict areas usually obtain all the goods that they need from the market in the district capital. For example, in North Halmahera the market is in Tobelo while the market for West Halmahera is in Jailolo. Various requirements are always available in these two towns. People in high conflict areas feel that there have been changes over the past 10 years in the variety of new goods that can be obtained in the market. For example, “In the past there was nothing; no one sold Bugis

1

clothing and there were only a few sidewalk vendors, but now there are many and the place is crowded” (F, 43, Gorua). This change makes the people feel that they have obtained benefits since all kinds of goods are now available whereas in the past they did not even know that certain goods existed. Market outlets

Community figures explained that only Semampir and Branta Pesisir in low conflict areas have market outlets, whereas in other communities there has been no market outlet even though the people has an access to a market nearby. In high conflict areas, only Gura, which is located in the district capital, has experienced an increase in the number of markets and market outlets; in other communities there has been a downward trend. In the high conflict areas of North Halmahera, members of the community usually sell their agricultural products and at the same time buy necessities for their households or kiosks in the Tobelo market. “All markets are centralized in the town of Tobelo” (M, 62,

1 A South Sulawesi tribe



Gorua). There has been a change during the past 10 years, especially since the conflict, and today the market place is very crowded. At the moment members of the community have difficulty in obtaining a place to trade because space has to be rented and the rent depends on the location. The most expensive places are on the roadside. Small traders feel that this is a heavy cost. The constraint encountered by those who want to sell in the market is the limited number of places, which means that they have to set out from home very early in the morning (around 3:00 am or 2:00 am on Saturdays) in order to obtain a place. Because there are not enough selling places for the large number of vendors, the community has suggested that the government should extend the market. In addition, there have been physical changes since 2003: “There were no house-shops (ruko) in the past but now there are; changes began around 2003”

2 (F, 30, Gorua). “The

market building now is a supermarket” (F, 31, Gorua). ”Today there are big shops and there is a mini market” (F, 43, Gorua). However, other community members in Gorua expressed a different view: “there is a market here; it was built in 2003 or 2004 but is not yet functioning” (M, 60). “The local market does not function because the women here do not sell anything since everyone has the same goods, so who will buy things?” Another informant explained their view: “Perhaps the market here in Gorua cannot be used because there are insufficient buyers since everyone goes to Tobelo to purchase things.”(F, 41) Nevertheless, the community feels that it is necessary for the future to have a market.

Table 5.1.8. Changes in the Availability of Market Outlets

Community Ratings

Rank by NPI:

Distance to the capital city/district and the

availability of market outlets

Community Ratings (Rank by NPI)

Distance to the capital city/district and the

availability of market outlets

East Java (Low Conflict) North Maluku (High Conflict) Palengaan Daja

(NPI = 0.82)

Distance: 17 km

No market Soakonora

(NPI = 0.40)

Distance: 0.5 km

No market

Semampir

(NPI = 0.66)

Distance: 0.5 km A market has existed since 10 years ago

Idamdehe

Gamsungi

(NPI = 0.38)

Distance: 11 km No market

Bulu

(NPI = 0.50)

Distance: 1 km No market, but has an access to market

nearby

Gorua

(NPI = 0.33)

Distance: 5 km The market built in 2003 does not function

Banyupelle

(NPI = 0.48)

Distance: 16 km No market, but has an access to market nearby

Kampung Pisang

(NPI = 0.29)

Distance: 1 km No market

Branta Pesisir

(NPI = 0.04)

Distance: 17 km A market has existed since 10 years ago

Gura

(NPI = 0.06)

Distance: 1 km No market, but has an access to market nearby


The majority of the community in low conflict areas, especially in Palengaan Daja and Banyupelle, is dependant on tobacco cultivation, which has been the major source of income for several generation. Tobacco is a high-risk crop that can experience failure, for example during a heavy rainy season. Farmers frequently experience a deficit as a consequence of the fact that agricultural production costs are higher than the selling prices of products. Meanwhile in high conflict areas, the natural environment is very conducive for growing

2 After the conflict evacuees returned to their respective villages and many newcomers arrived.



produce such as coconuts, nutmeg, and cloves. However, the price of some of these commodities, for example coconut, is continuing its downward trend, resulting in the neglect of many coconut plantations.

“Tobacco farmers in low conflict areas cannot sell directly to the factory storage shed because they are not trusted, so they have to sell through an intermediate trader (blantik)” (M, 25, Palengaan Daja), even though the price that they offer is lower than if the tobacco is sold to the factory. Although the farmer can choose the purchaser who offers the highest price, in actual practice “he still sells to the intermediate trader, even though the price is lower than if the tobacco is sold direct to the factory, because he has debts to the trader” (M, 25, Palengaan Daja). In high conflict areas farmers normally market their agricultural produce (coconut/copra, nutmeg and cloves) through two kinds of traders. The sale of a large quantity of copra is generally done directly to large-scale traders from outside the village, while small quantities are usually sold through middlemen (tengkulak) living in the village. There are also intermediate traders called dibo-dibo and ijon. Ijon buy un-harvested crops before they are ready to be harvested, while dibo-dibo trade in large quantities of tree crops and also vegetables and fish. Some dibo-dibo buy crops when they are ready to harvest, and then employ workers to harvest the crop. These traders are also referred to as penebas, and generally come from Ternate. Other dibo-dibo buy large quantities of vegetables or fish at a cheap price, then resell them for a higher price. For example, the dibo-dibo buys long beans for Rp700 per bunch and resells them at Rp1,000. Dibo-dibo can influence market prices because they have capital to buy large quantity. The women’s group explained that the practice of ‘dibo-dibo’ is common these days. Many farmers feel that the presence of the dibo-dibo is to their disadvantage because they are competitors who have the power to determine prices. These changes obviously resulted in certain groups in the community gaining more profits than others. According to the women’s group of Gorua, “traders do well because they sell goods” (all FGD participants). People who sell goods in kiosks and stalls can make a profit; for example, one package

3 of cigarettes can bring a profit of Rp20,000. “If we own a kiosk, we

get to know prices; if prices rise, we raise our prices” (F, 41). “Fishermen also earn a profit; in the past a fish was worth Rp1,000-Rp1,500 but now the price is Rp5,000” (F, 47). “Farmers also do well because they can market their products” (F, 41). “The general community also profits because goods are available” (F, 31). “Whereas in the past I did not even know that certain goods existed and there were rare goods that I had never seen, now I know” (F, 31). In fishing communities in particular, the people complained about the handling and marketing of fish. “If fishermen bring in a large number of fish, there is nowhere to land the catch. So a great many fish drop onto the ground. The catch is large but there are no fish traders to buy the fish. If there is no demand, the fish have to be dried, but there is also no place or time to handle drying. In the past there was a fish auction center (TPI or Tempat

Pelelangan Ikan) but it closed a long time ago” (M, 42, Branta Pesisir). Market Prices of Agricultural Products

Communities in low conflict areas feel that the prices for unhulled rice and tobacco have fallen during the past 10 years. In the case of rice, the current price is actually less than the price of fertilizer. Tobacco prices were high in 1995 but they have declined in the last two years. In Banyupelle, for example, irregularities in the seasons have caused crop failures. “In the last two years the price of tobacco has fallen because much of it has been ruined. This is due to

3One package contains 20 packets of cigarettes. The contents of one packet vary between 12 and 16

cigarettes.



increased rain (M, 45). “Because it often rains much of the tobacco is ruined and the price is low” (M, 53). “In 2003 to 2005 the harvest failed” (F, 45). “In the dry season it rained, and in the wet season it was dry. From 2003 there was a lack of water for farming in the wet season and too much in the dry season” (F, 25). The women’s group said that the government must increase the sale price of crops so that the community is able to purchase basic goods (F, 25). In regards to fishing communities, it was mentioned that the price of fish in Branta Pesisir had declined because of the entry of cheaper fish from Java (F, 37, Branta Pesisir). On the whole people in high conflict areas feel that the market situation is now far different from what it was 10 years ago. One indicator that they mentioned is the increase in vegetable prices. In Gorua, “as a vegetable grower, I used to sell one bundle of vegetables for Rp250 but now I can get Rp750 per bundle” (M, 60, Gorua). On the other hand, developments during the last 10 years for fishermen have been increasingly advantageous. The higher price for fish (which was formerly only Rp5,000 per kg but can now reach Rp10,000) makes the work of a fisherman “very profitable”. Unlike vegetable prices, which have risen, the prices for coconut/copra are currently falling by comparison with prices in earlier years. In Gorua, “copra used to be worth Rp3,000 per kg but now the price is Rp2,200 per kg” (M, 60, Gorua). The reason for the fall is “the buyers have seen the quality, which nowadays is not very good, and so the price has fallen; the price for a small amount is Rp2,200 per kg and for a large amount Rp2,000 per kg” (M, 46, Gorua). In Gura, the price of copra previously could reach Rp3,000/kg, now it is stuck at Rp1.800/kg, or at most Rp2.000/kg. In Idamdehe Gamsungi, “the price of copra at this time is falling down. In 1999 the price of copra was high, Rp3,000/kg, during the conflict, the price fell down, only Rp600/kg, and now, the price increases to Rp2,000/kg” (F, 33). Producers in Gorua know about this change in price only from the buyers (traders), the majority of who are Chinese. The sale of a large quantity of copra is generally done directly to the buyer, while small quantities are usually sold through intermediate traders living in the village. The fact that “a lot of coconut plantations are not being maintained now” (M,45) has caused the decline in quality. Unlike other communities, however, the people of Soakonora are at present enjoying good prices for copra. Coconuts were Rp150,000 per quintal but now the price can reach Rp250,000 per quintal. Cacao is now Rp12,000 per kg but in the past it was only Rp5,000. Nutmeg used to be Rp15,000 but now it is Rp30,000” (F, 53). With regard to the possibility of producers obtaining fair prices, information given by respondents in the household survey shows that in general there are now more people who receive fair prices than there were ten years ago, except in Banyupelle (a low conflict area) and Gorua (a high conflict area) (Table 5.1.9).

Market competition

In the case of certain communities in the low conflict areas, villagers who sell in the market say that the situation today is better than in the past. However, there are more sellers now, so there is more competition. One form of competition that people face in low conflict areas stems from the culture of latah, that is, the tendency, when one kind of business has become successful, for other people to set up similar businesses in the expectation that they will do as well as the first. “If a business folds because someone else opens a similar business because it is fashionable and that business becomes successful that is the culture of ‘latah’” (M, 35, Bulu). Branta Pesisir, where most people are fishermen, has experienced competition over fishing areas with fishermen from other communities. The consequence of this is that the catch of the local fishermen has declined because they cannot fish in the zone where fish are most plentiful. In addition, there is also the problem of competition from fish brought to the area from Java, the result of which has been a fall in the price of fish in Branta Pesisir.



Table 5.1.9 Receipt of Fair Prices

Always receive

fair prices Sometimes

receive fair prices

Have never

received fair prices

(% of respondents)

Community Ratings (Rank by NPI:


East Java (Low Conflict) 26 26 32 39 41 34 Palengaan Daja (NPI = 0.82) 24 16 24 39 53 45

Semampir (NPI = 0.66) 55 39 39 42 6 20

Bulu (NPI = 0.50) 25 39 44 33 31 28

Banyupelle (NPI = 0.48) 0 26 21 23 79 51

Branta Pesisir (NPI = 0.04) 29 16 34 61 37 24

North Maluku (High Conflict) 35 18 49 67 16 15

Soakonora (NPI = 0.40) 23 9 68 73 9 18

Idamdehe Gamsungi (NPI = 0.38) 43 24 35 59 22 16

Gorua (NPI = 0.33) 16 24 51 57 32 19

Kampung Pisang (NPI = 0.29) 61 17 36 81 3 3

Gura (NPI = 0.06) 32 16 57 50 11 16

All areas 30 22 40 53 30 25 Source: Household survey.

3. Employment Opportunities

Employment opportunities can be examined from the presence of private employers who employ local people, the existence of public works projects that employ residents, the difficulty of getting a job with a private employer in the local area, and the number of people who leave temporarily during certain times of the year. Almost all communities in the two areas mentioned work opportunities as a factor that influenced community prosperity, with a decrease or increase, for a variety of reasons. The participants of the discussion mentioned this factor more often than other factors, which indicates work/employment opportunity as a very important factor. The following are employment-related reasons that have been given for an increase in community prosperity: “It can be said that there are no unemployed housewives here. Some sell pracangan (basic needs) at home and take in the washing of clothes from time to time.” (F, 47, Semampir), “it is easier for villagers to find work but they have to have will power or else strive to do business.” (F, 36, Semampir), “there is more enthusiasm for work; if the neighbors own something, others wish to have the same” (M, 29, Bulu), “there is now a cigarette factory” (F, 39, Bulu) “There are ojek, which makes it easy to go to the market” (Banyupelle), “there is an increase in employment opportunities” (F, 29, Branta Pesisir), “local incomes have risen; many people own trucks, which means that young men can earn a living as drivers or assistant drivers” (M, 48, Branta Pesisir), “young men work as ojek drivers, but in the past they only ‘sat with their hands in their lap” (M, 37, Soakonora), “regional subdivision has created work opportunities; there are public service admission tests in Jailolo but in the past people had to go to Ternate or Ambon for the test” (F, 32, Soakonora). On the other hand, many communities also mentioned that the community prosperity has fallen because: “It is increasingly difficult to obtain work overseas; in Malaysia people are arrested by the police and sent home to the village to become farmers again” (F, 32, Palengaan Daja), “the steam-powered electricity generator has been shut down” (M 29, Bulu), “house construction uses labor from other villages because outside workers are more experienced” (M,…Bulu), “more people are looking for work than there are opportunities



available”(F, 33, Bulu), “plowing of rice-fields uses machinery, so manpower is no longer needed” (F, 33, Bulu), “it is hard to find work; a job overseas requires capital” (M,24, Banyupelle), “it is difficult to find work (especially as public servants); even though many people have educational certificates or tertiary degrees, it is necessary to have money; in the end they become fishermen and parents advise children with degrees not to return to the village because of the difficulty of finding work” (F, 63 and 29, Branta Pesisir), “people have had to start from nothing, including the search for a source of livelihood in the midst of limited job opportunities” (F, M, Gorua), “there are many evacuees and newcomers, and hence great competition for work” (F, M, Gorua), “there are lots of people of working age but there are no employment opportunities because they do not have sufficient education as a consequence of the high cost of education” (F, 58, Kampung Pisang), “previously the situation was better because each villager had a job; now this is no longer the case” (F, 45, Gura), “previously there was no unemployment because there were a lot of companies operating in this area; now looking for work is difficult” (F, 36, Gura), and “with the outbreak of the conflict Tobelo was flooded with displaced people; there is a bigger population and it is hard to find work” (M, 65, Gura). Some participants of discussions in a few communities also mentioned that the community prosperity is the same compared to 10 years ago because “there are no teenagers with the creativity to identify business opportunities, there are only those who are looking for work” (M, 67, Semampir), “looking for work is both easy and difficult; so far no new employees or public servants have been appointed” (M, 63, Soakonora), and “although there are employment opportunities due to regional subdivision, jobs depend on human resources” (F, 30, Soakonora). Meanwhile, the household survey showed a tendency to experience greater difficulties in obtaining jobs now than they did ten years ago (Table 5.1.10). Only in Bulu (NPI=0.50) in low conflict areas and Idamdehe Gamsungi (NPI=0.38) in high conflict areas did most of the respondents say that it is easier to obtain a job with a private employer at the present time.

This is in keeping with findings from the household survey, in which 70% of respondents stated that there were no members of their family who did not work (or who wanted to work but could not find a job) during the past one year.

Table 5.1.10 Difficulty in Obtaining Work

Changes in difficulty of obtaining work with a private

employer (%)

Community

Easier The same More difficult

Low Conflict (East Java) 16 19 66

Palengaan Daja (NPI = 0.82) 11 18 69

Semampir (NPI = 0.66) 22 30 49

Bulu (NPI = 0.50) 41 22 38

Banyupelle (NPI = 0.48) 5 10 85

Branta Pesisir (NPI = 0.04) 3 13 84

High Conflict (North Maluku) 24 28 48

Soakonora (NPI = 0.40) 19 36 44

Idamdehe Gamsungi (NPI = 0.38) 51 30 19

Gorua (NPI = 0.33) 15 28 58

Kampung Pisang (NPI = 0.29) 8 19 72

Gura (NPI = 0.06) 27 30 43

All Areas 20 23 57

Source: Household survey

As an initial picture, it is interesting to note some of the changes relevant to work opportunities that were mentioned by the community. These changes are reflected in the



type of work that provided the main livelihoods of the community during this period. In areas of low conflict in particular, the types of jobs that have changed are generally those in the informal sector such as migrant work, pedicab driving, employment in the red brick industry and home industries, work in cigarette factories, work as private sector laborers and agricultural laboring. During the last ten years many people were employed as migrant workers in Saudi Arabia and Malaysia. They went overseas because as farmers they often experienced losses and they needed to debts. However, work as a migrant worker is not easy as the women’s group in Palengaan Daja said, it is increasingly difficult to obtain work abroad. In Malaysia people are arrested by the police and sent home to the village to become farmers again. For some villagers in Bulu, becak driving is a job that they fall back on, if there is no work in the rice fields. There are two types of becak drivers, those who own their own becak and those who rent a becak from another person. The income of becak drivers fluctuates from Rp5,000 to Rp7,000 per day. The level of welfare of becak drivers has not changed over the past 10 years and has, if anything tended to decline. In the past there were only a few becak drivers but there were also only a few passengers. Nowadays almost everyone has a motorcycle or bicycle. “Now there aren’t many people using becaks, previously this wasn’t the case” (F, 42 Bulu). “After the harvest there are a lot of people using becaks to go to the market” (F, 34 Bulu). In the past it was good being a becak driver because after krismon it was rare for people to take a becak, many people walked and had bicycles, while the number of becak drivers went up” (M, 55, Bulu). A downturn in the brick making industry has also caused others to turn to becak driving: “Red brick making was better in the past, but because now there is little land left and the price is expensive, and there are a lot of brick makers” (M, 60, Bulu), “...for example, brick makers, because their land is dry and gone, and they have moved into farm laboring or becak drivers. And they may possibly already be bored with their work. The condition 10 years ago - most were farm laborers, then brick businesses” (M, 55, Bulu).

New jobs have appeared in low conflict areas in the past 10 years as a result of the cigarette factories that have opened. The number of domestic workers has also increased, as a consequence of the construction of housing complexes in neighboring villages. Meanwhile, work opportunities of a formal kind are limited. The women’s group in Branta Pesisir said that it is difficult to find jobs and in particular to become a public servant, even though many people now have educational certificates or tertiary degrees. In the end these people become fishermen as they lack the money that is needed to become public servants. At the same time, changes have occurred in livelihoods in areas of high conflict over the past 10 years, particularly in the number of farmers and the development of new sources of income. The number of farmers has also fallen in high conflict areas. After the conflict, people found new livelihoods as ojek drivers, artisans, carpenters, bricklayers and other tradesmen. They had learned these new occupations when they were in places of evacuation. In Gura 10 years ago, “the number of carpenters and bricklayers could still be counted on the fingers, but since then a lot of villagers have become tradesmen” (M, Gura). “The increase in the number of tradesmen can also be traced to the formation of North Halmahera District, where the construction of new buildings for offices and housing has needed a lot of carpenters and bricklayers. Now tradesmen are not likely to be unemployed because work is always available” (M, Gura). At the same time, the level of wages has undergone an increase. The wages of tradesmen in Gura have reached Rp30,000 a day, which is twice as much as the daily wages paid 10 years ago, while there has been a threefold rise in wages for carpenters making door frames for houses. Another new form of employment is that of porters carrying luggage at the ferry terminal, which developed after the ferry harbor was constructed at Gorua. This job can produce earnings of up to Rp80,000 a day. The development of a new



administrative district and the increase in the number of ojek and motorcycles have led to new livelihoods in Soakonora, such as the sale of petrol in plastic bottles holding as much as five liters, from stalls set up in front of homes. In Kampung Pisang, jobs as a private-sector employee, as a public servant over level III, and as an entrepreneur are regarded as sources of income sufficient to make a family prosperous. In addition to the above jobs, women in low conflict areas nowadays do domestic work like washing or are employed as housemaids in the new housing complexes that have been built in the past 10 years. Others are small-scale traders or else work in the rice fields. In high conflict areas, other main livelihoods from which women obtain an income include running a food stall or kiosk, making cakes and selling vegetables like eggplant and petsai in the market. On the other hand, in both areas there are livelihoods that no longer interest most villagers, including jobs as agricultural or farm laborers. In low conflict areas, the people who used to work as farm laborers are now old. The young people in the village do not want to do this kind of work. As a consequence, if landowners need to employ laborers for rice cultivation, they have to look for them outside the district. In high conflict areas, it was agricultural laborers who constituted the most dominant occupational group ten years ago but now there are only small numbers. The reason for the loss of interest in working as agricultural laborers is the frequency of crop failures; hence it is not a reliable source of income. In communities that grow tobacco, laborers are paid less. Employers do not want to pay too much in case the crop fails. Laborers are now paid Rp6,000 per day but previously the wage was Rp7,500. The presence of private employers Table 5.1.11 shows that in areas of high conflict, there were no private employers operating and employing people in the sample communities even 10 years ago. Where there were a few, they were normally located outside the sample community but employed people from the sample communities. Meanwhile, in all low conflict areas with the exception of Banyupelle, there are now a few private employers who operate in and employ people from the sample communities; in Bulu and Branta Pesisir there were already employers of this kind 10 years ago.

Table 5.1.11 Changes in Private Employers Who Employ Local Residents

Presence of private

employers

Presence of private employers Community Ratings

(Rank by NPI): Now 10 years ago

Community Ratings


Low Conflict (East Java) High Conflict (North Maluku)

Palengaan Daja

(NPI = 0.82)

Yes No Soakonora

(NPI = 0.40)

No No

Semampir

(NPI = 0.66)

Yes No Idamdehe Gamsungi

(NPI = 0.38)

No No

Bulu

(NPI = 0.50)

Yes Yes Gorua

(NPI = 0.33)

No No

Banyupelle

(NPI = 0.48)

No No Kampung Pisang

(NPI = 0.29)

No No

Branta Pesisir

(NPI = 0.04)

Yes Yes Gura

(NPI = 0.06)

No No


The members of two communities in low conflict areas, namely, Semampir and Bulu, have obtained wider employment opportunities with the establishment of new cigarette factories



in the 2003-2005 period. Community figures and informants in Semampir, for example, said that the presence of a cigarette factory is the main positive factor that has helped to raise the community’s level of welfare. On the other hand, after completion of the Paiton power station project, at which many villagers were employed, there was no longer much work, so a lot of people are now unemployed. During this ten-year period, not even one factory was opened in the high conflict areas. In fact, two companies that had operated before the conflict and had absorbed labor from Gorua village closed down because of the conflict. One was a factory, located between the villages of Gura and Wari that produced frying oil, while the other was a plantation company that grew Cavendish bananas for the production of baby food located in Galela village, not far from Gorua. The consequence was that many people found themselves without a job.

Difficulty in Getting Jobs with Private Employers in Local Areas

Community figures and informants in most low conflict areas said that at the present time people tend to encounter more difficulty in obtaining jobs with a private employer than they did ten years ago (Table 5.1.12). It was only in Branta Pesisir, where most people earn a living as fishermen, that informants described job-hunting as fairly easy. Meanwhile, in high conflict areas many changes have taken place. In Idamdehe Gamsungi (NPI=0.38) and Gura (NPI=0.06) it was fairly easy in past times to obtain work with a private employer, while in Soakonora (NPI=0.40) and Kampung Pisang (NPI=0.29) it has always been somewhat difficult. Respondents of household survey in all areas (372 respondents) tended to have difficulty in obtaining jobs with private employers at the present time (73%). More respondents (80%) in low conflict areas displayed this tendency by comparison with respondents (65%) in high conflict areas (Table 5.1.13). Only in Gura (NPI=0.06), which is in a high conflict area, did some respondents (35%) say that it is still easy to obtain a job with a private employer at the present time. In Kampung Pisang, which is in a high conflict area, it is showed clearly that respondents have greater trouble in obtaining jobs with private employers at the present time than they did 10 years ago.

Table 5.1.12 Community Figure and Informants’ Views on Changes in Difficulty of

Obtaining Work with a Private Employer

Difficulty in

Getting a Job with a

Private Employer

Difficulty in Getting a Job with a Private

Employer

Community Ratings

(Rank by NPI):

Now 10 years

ago

Community Ratings

(Rank by NPI): Now 10 years

ago


Palengaan Daja

(NPI = 0.82)

3 6 Soakonora

(NPI = 0.40)

5 5

Semampir

(NPI = 0.66)

5 3 Idamdehe Gamsungi

(NPI = 0.38)

2 2

Bulu

(NPI = 0.50)

5 6 Gorua

(NPI = 0.33)

n.a. n.a.

Banyupelle

(NPI = 0.48)

5 5 Kampung Pisang

(NPI = 0.29)

5 5

Branta Pesisir

(NPI = 0.04)

2 2 Gura

(NPI = 0.06)

2 2

Source: Community Profiles. Note: 1= very easy



2= fairly easy 3= not so hard if help is available from relatives and friends 4= not so hard if help is available from a paid agent or middleman 5= somewhat difficult 6= very difficult

Table 5.1.13 Respondent’s Views on Difficulty in Obtaining Work with a Private Employer (%)

Community 1 and 2 3 4 5 and 6

Low Conflict (East Java) 9 7 37 80

Palengaan Daja

(NPI = 0.82)

13 3 0 79

Semampir

(NPI = 0.66)

5 14 5 76

Bulu

(NPI = 0.50)

19 16 5 59

Banyupelle

(NPI = 0.48)

6 0 0 94

Branta Pesisir

(NPI = 0.04)

6 5 0 90

High Conflict (N Maluku) 15 14 3 65

Soakonora

(NPI = 0.40)

14 22 0 58

Idamdehe Gamsungi

(NPI = 0.38)

11 14 3 73

Gorua

(NPI = 0.33)

8 19 3 62

Kampung Pisang

(NPI = 0.29)

8 19 8 75

Gura

(NPI = 0.06)

35 8 0 56

All Areas 13 11 2 73

Source: Household survey. Note: 1= extremely easy.

2=fairly easy. 3= Not too difficult if there is help from relatives and friends. 4= Not too difficult if a person can pay an agent. 5= rather difficult. 6=extremely difficult. 7= not available (n.a.).

Public works projects that employ local people Community figures in all sample communities in low conflict areas showed that there are job opportunities for local people in public works projects. Meanwhile, in areas of high conflict not all communities have these job opportunities and if they do exist, only a small number of people participate, except in Kampung Pisang. By contrast, in low conflict areas fairly large numbers of people are involved, the greatest number being in Palengaan Daja (Table 5.1.14).



Table 5.1.14. Changes in Public Works Projects that Employ Residents

Availability of Public

works projects

employing residents

Availability of Public works projects employing

residents

Community Ratings

(Rank by NPI):

Now 10 years ago

Community Ratings



Palengaan Daja

(NPI = 0.82)

Yes No Soakonora

(NPI = 0.40)

Yes Yes

Semampir

(NPI = 0.66)

Yes Yes Idamdehe Gamsungi

(NPI = 0.38)

No No

Bulu

(NPI = 0.50)

Yes No Gorua

(NPI = 0.33)

Yes No

Banyupelle

(NPI = 0.48)

Yes No Kampung Pisang

(NPI = 0.29)

Yes Yes

Branta Pesisir

(NPI = 0.04)

Yes Yes Gura

(NPI = 0.06)

No No

Sources: Community Profiles.

People Who Leave Temporarily

In low conflict areas, not many people leave their community temporarily. The exceptions are Bulu and Banyupelle, where the percentage is only less than 5%. In Branta Pesisir, fishermen undertake seasonal migration every year. They leave in June to look for fish in the area of Puger and Muncar and return in September, “fishermen who migrate seasonally are usually prosperous and have large fishing boats. Every time they return they usually bring Rp25 million to Rp60 million. Sometimes they buy refrigerators as a place to keep clothes” (M, 57). Apart from fishermen, “there are a lot who leave the village to further their education, there are also a lot of academics, but they do not leave because they are looking for work” (W, 63) and according to other participants, “after graduating they live in other cities because they are working as university lecturers or as lawyers. Their level of prosperity has indeed risen” (W, 38). In areas of high conflict, there are only two communities, Soakonora and Kampung Pisang where the proportion of people who leave the community temporarily during certain times of the year is quite high (40% to 60%). In Soakonora those who leave the community temporarily are public servants who work in Ternate, the provincial capital, but live with their families in Soakonora. At the end of the week they return to their families in Soakonora after taking the ferry across the sea; they then return to work the following week. In Kampung Pisang, which is an urban area, those who leave temporarily are commuters whose work takes them outside the community every day. Youth and Employment Information about youth and employment was based on the results of the FGDs held separately with young male and young female in each community as well as the FGD participants’ questionnaire that was completed by each participant before the FGD took place (N=85, 45 male and 38 female) and from the household questionnaire (N=188), which involved interviewing respondents’ children aged from 15 to 25. The information that was sought covered the work that young male and female would like to be doing when they reach the age of 30, the preparations or steps that they are taking to obtain that work, and the problems that they face in trying to achieve their ideals. On the whole the young people, male and female, who participated in the FGDs want to have work of a fixed nature. By “fixed” they mean work that is undertaken in a regular manner and with a fixed salary or wage as well as continuity. They also wish to be successful



in their job, which means earning enough for a prosperous life. By working and having a fixed, regular income, they want to be able to lead independent lives and not rely any longer on their parents. Not all FGD participants could say what type of job they would like to have in future years. Based on the youth questionnaire, only 40% of 85 FGD participants in sample communities mentioned the type of work that they want. The majority of those who answered said that they would like to be a public servant; this was followed by a job in a private company or as a private businessman/woman. In general, young male differed from young female in the type of work that they want. The young men want jobs with a masculine ‘image’ such as work as a pilot, construction worker, workshop employee and trader, whereas young women would like to be midwives, nurses, or kindergarten teachers. Meanwhile, the results from the household survey indicated that 50% of 188 young male and female want to have a fixed job when they are 30 years old, 23% want to own a business, and 25% would like to have a combination of a fixed job and a business. Only 2%, all of them in low conflict areas, said that they do not want to be working at the age of 30. Those who replied in this way were young women who are already married at the present time. Unlike their parents, who give most of their time to earning a living as farmers in a supportive natural environment, more young male and female in high conflict areas (65% of 89 respondents) wish to have a job rather than a business (17%). In low conflict areas, the wishes of young men and women were more or less evenly distributed between 36% (of 99 respondents) who would prefer to have a job, 29% who favor having a business and 31% who want a combination of the two. The types of employment that young people in all areas wish to have are ownership of a business (33%), the public service as an official or ordinary staff member (25%) and a professional occupation such as that of a doctor, teacher, midwife, lawyer, etc (13%) (Table 5.1.15). In low conflict areas the majority of young people (44%) would like to own a business, 15% wish to be public servants (officials or ordinary staff members) and 17% want to be farmers. In areas of high conflict, most (20%) would like to own a business, 35% wish to be public servants (officials or ordinary staff members) and 21% want to be professionals. It is interesting to note the other jobs that young people would like to obtain, apart from those mentioned above, and the trends in preferences in each community.

Table 5.1.15. Work Desired by Young Men and Young Women When Aged 30

Type of Work Desired by Young Men/Women (%) Community

1+2 3+4 5 6 7 8 9 10



All Areas 15 10 13 33 10 1 6 3

Source: Household survey.

Note: Low conflict areas N= 98; high conflict areas N=89.

1= Job with fixed salary (government official). 6= Ownership of own business.

2= Job with fixed salary (staff member in government). 7= Farming.

3= Job with fixed salary (official in private company). 8= Work in formal sector .

4= Job with fixed salary (staff member in private company). 9= Army/police.

5= Professional work (teacher, midwife, doctor, lawyer, etc). 10= Other.



Most of the young FGD participants wish to obtain work that is different from that of their parents. Only 15% of the jobs that were mentioned by FGD participants are the same as those of their parents. It would seem that, by comparison with the situation of their parents who mostly earn a living as farmers, not many young men and young women in the two regions want to become farmers, even in areas of high conflict with a favorable natural environment. It is possible that, after seeing the experiences of their parents or environment during the past, young male may regard employment as a farmer as a job that does not bring in a fixed, regular income and even faces the risk of crop failure to the point where there is no income at all. For purposes of comparison, reference can be made to a study that was carried out by SMERU in Cirebon District. It put forward a number of reasons why there is very low interest among young people in working in the agricultural sector.

4 These reasons are: (i)

work as an agricultural laborer lowers one’s own self esteem because it is dirty; (ii) agricultural work is only seasonal in nature; (iii) work as an agricultural laborer is very tiring; (iv) industrial work (in a rattan factory) gives a higher income; (v) in a factory there are opportunities to borrow money from the company. In addition to what has already been mentioned, there are some young male who would like to join the army or police force. The interesting thing about this preference is that it is also the choice of young male in areas, which experienced terrifying conflicts and where several informants were convinced that the army and police were involved in the conflicts. It is also interesting to note that young male and women in Palengaan Daja and Banyupelle (which are in areas of low conflict) are not interested to join the army. In several communities in both regions at the same time some young male and female are not interested in becoming private employees. The wishes of young men and women shown above are certainly greatly influenced by the experiences of their parents, conditions within the community and information from outside the community. For example, in the case of those who are not interested in becoming public servants, it is very likely that there are few people who are employed in the public service in their community or else they feel that they do not have the ability to become public servants for certain reasons. In the case of those not interested in working as non-government employees, it may be that in their community or surrounding communities there are no private employers. In the context of achieving their hopes, young men and women have already made or else are making or will make one of the following preparations: (1) increased self ability which will be done by improving knowledge and skills through schooling and courses (for example, drawing, sewing and artisanship) suited to the work that is desired, as well as serious study and training about the selected field; (2) development of motivation and mental qualities through independent study, expansion in mixing with other people, mental preparations, strong will power, preparation of a strong mind and body, time discipline and prayer, and (3) preparation of capital to help in the achievement of ideals through saving, working with parents, the support of the family and environment, and the purchase of equipment like a sewing machine. Young men and women realize that in trying to achieve the jobs that they desire, there are obstacles that have to be faced. Money or capital is certainly the first obstacle. It is an open secret that money is needed to ‘pave the way’ when applying for a job, especially in a government office. 4SMERU, Kegiatan Ekonomi Penduduk Desa di Luar Pertanian: Sebuah Cerita dari Satu Desa di Kabupaten

Cirebon (Non-agricultural Economic Activities of Rural People: A Tale from a Village in Cirebon District), April 2002.



Another problem faced particularly by girls is related to the family, that is, parental refusal to allow the girl to continue her education or to work outside the village. Young women who are already married also encounter family obstacles. Such women feel that they are no longer free because they have to stay at home and look after the children. Some young men and women also feel that their parents are ‘old-fashioned’, which often leads to conflict between the hopes of the parents and those of the children. There are other obstacles also: the high price of business equipment, obstacles from the community such as tight business competition and strict local social conditions, problems connected with the government, for example, lack of serious attention to employment for young people by the local government, the distance of access to education, and the reliance of agriculture on the production of only one commodity. Data from the household questionnaire support the opinion expressed by young men and women in FGDs (52% of 187 respondents in all areas) that the factor of capital or finance is a major constraint. This financial obstacle is felt by more people (60%) in areas of low conflict than in areas of high conflict (43%). In all areas the other big obstacles include the limited fields of employment (12%) and the lack of sufficient education (10%). Hindrances in high conflict areas include limited fields of employment (16%) and family conditions and responsibilities (17%), while in low conflict areas the main problems are lack of adequate education (13%) and family conditions and responsibilities as well as limited fields of employment (each 9%). But although these obstacles exist, most young men and women (88%) are confident that they will be able to obtain the job that they would like to have. The strength of this conviction shows optimism on the part of young people that employment opportunities will continue to exist and that they themselves will be capable of facing obstacles. 4. Other Economic Opportunities

Apart from changes in infrastructure as well as access to markets and employment opportunities, there are several other economic opportunities that have played a part in influencing community prosperity and mobility over the past 10 years. These economic opportunities are connected with access to agricultural (and fisheries) input, credit, and technical support, the existence home industry, access to credit, economic organization and freedom to expand businesses. In speaking of economic opportunities, almost all women’s and men’s groups were of the opinion that at the present time all communities in high conflict areas appear to have more economic opportunities than they did 10 years ago (Table 5.1.16). In areas of low conflict, however, only two communities stated that economic opportunities are better; the others said that opportunities are fewer or just the same.

Community figures and informants regarded the current strength of the local economy is varying from one sample community to another. Two communities in low conflict areas, Palengaan Daja (NPI=0.82) and Banyupelle (NPI=0.48), are in a ‘weak’ condition and Bulu (NPI=0.50) is in a ‘medium’ condition, while two other communities, Semampir (NPI=0.66), which is a semi-urban community, and Branta Pesisir (NPI=0.04), which is in a coastal area, have ‘strong’ economies. These supported by the experiences mentioned by community members: “before 1997, the income of the community was more than adequate and the people could afford to smoke Surya cigarettes

5. After 1997, particularly since 1998

and the monetary crisis, people found that their income declined” (M, 35, Palengaan Daja), “The economy is decreased because no one trades due to a lack of capital” (M, 40, Banyupelle), “income has decreased because there’s not enough rain for the rice fields so that income for food has dropped” (M, 27, Banyupelle), “over the last two years there’s been no income from farming, so our debts increase” (M, 60, Banyupelle), “it’s more difficult because if you want to work overseas there’s no savings to cover the cost” (M, 24, Banyupelle), “it’s

5A kind of expensive cigarette



difficult to even borrow money in this village; if we borrow from someone outside this village, the interest is 50%” (M, 28, Banyupelle). ”wages were previously Rp4,000 and are now Rp5,900 to Rp7,000 [per day], an increase of only Rp2,000 whereas prices have increased by more than Rp2,000” (M, 29, Bulu). Even so, the economic situation of most of the sample communities has experienced a rise by comparison with conditions 10 years ago.

Meanwhile, community figures and informants in high conflict areas judge that at the present time the economy of two communities, namely, Soakonora (NPI=0.40) and Gorua (NPI=0.33), is in a ‘weak’ condition, while that of two other communities, namely, Idamdehe Gamsungi (NPI=0.38) and Kampung Pisang (NPI=0.29), is in a ‘medium’ condition. Only Gura (NPI= 0.06), which is in a semi-urban area and is the capital of the new district of North Halmahera, is in a ‘strong’ economic state. Economic conditions in Gura were judged not to have changed from what they were 10 years ago. Economically, Kampung Pisang, which is in an urban area, and Idamdehe Gamsungi have experienced a slight improvement, while the economy of Soakonora has declined considerably.

Table 5.1.16. Changes in Economic Opportunities

Changes in economic

opportunities

Changes in economic opportunities

Community Ratings

Male Female

Community Ratings

Male Female


Palengaan Daja

(NPI = 0.82)

1 3 Soakonora

(NPI = 0.40)

1 1

Semampir

(NPI = 0.66)

3 3 Idamdehe G

(NPI = 0.38)

1 2

Bulu

(NPI = 0.50)

1 1 Gorua

(NPI = 0.33)

1 1

Banyupelle

(NPI = 0.48)

2 3 Kampung Pisang

(NPI = 0.29)

2 1

Branta Pesisir

(NPI = 0.04)

1 1 Gura

(NPI = 0.06)

1 1

Source: Community Profiles. Note: Economic opportunities: 1= more opportunities; 2= the same; 3= fewer.

Access to agricultural inputs, credit, and technical support

The changes that predicted to have a role during the past 10 years in influencing community welfare dependent on agricultural undertakings include changes in access of agricultural inputs, in access to credit as working capital, in technical support and in government support. Table 5.1.17 shows that in low conflict areas there was not much change and a downward tendency in some cases. The exception was Bulu, where access to agricultural inputs experienced a small rise. From the aspect of capital, only Branta Pesisir experienced an increase in access to credit while in other community, access tended to decrease, although government credit programs were available in Palengaan Daja and Bulu. In the case of these two changes, Palengaan Daja actually experienced a substantial decline. Concerning technical support, which is usually given by the government or other institutions in the form of extension services, all communities in low conflict areas experienced a fall during the past 10 years. Apart from credit and revolving funds, government support to farmers in low conflict areas takes the form of irrigation in Bulu. In fact, two communities, Semampir and Banyupelle, have received no government farm programs at all over the past 10 years.



Table 5.1.17. Access to Credit, Agricultural Inputs, Technical Support and Government Support Programs in the Past 10 years, According to the Community

Figures and Informants

Community Access to

credit Access to agricultural

inputs Technical support

Government support programs


Palengaan Daja

(NPI = 0.82)

5 5 4 Credit

Semampir

(NPI = 0.66)

3 3 4 None

Bulu

(NPI = 0.50)

4 2 4 Irrigation, credit

Banyupelle

(NPI = 0.48)

4 4 4 None

Branta Pesisir

(NPI = 0.04)

2 n.a. 4 Revolving fund


Soakonora

(NPI = 0.40)

3 4 3 Corn seed, revolving fund

Idamdehe Gamsungi

(NPI = 0.38)

2 2 2 Revolving fund

Gorua

(NPI = 0.33)

Na 2 1 Agric. inputs, help with boats

Kampung Pisang

(NPI = 0.29)

Urban area

Gura

(NPI = 0.06)

3 3 3 None

Source: Community Profiles. Note: 1= Improved substantially 3=Stayed roughly the same 5=Deteriorated substantially 2= Improved slightly 4= Deteriorated slightly

Meanwhile, two of the communities in areas of high conflict have tended to experience greater access to agricultural inputs over the past 10 years. The exception is Soakonora, where there has been a downward trend. In the case of access to credit for farmers, only Idamdehe Gamsungi has experienced a rise. This is related to the revolving fund program run by the government at the present time. Even so, in Soakonora, where a revolving fund program is available, it would seem that access to this credit has not very greatly affected the agricultural activities of community members. Unlike the situation in low conflict areas, technical support for farmers in high conflict areas has actually tended to rise in the past 10 years. This is probably linked to post-conflict assistance. Besides providing revolving funds, government programs include the supply of seed for farmers and of boats for fishermen. Agricultural inputs In contrast to the opinion of most community figures and informants, FGD participants in low conflict areas mentioned that people now find it easier to obtain agricultural inputs, meaning that they are available and easier to obtain. They experience other constraints, however, in accessing agricultural inputs because the prices are higher, especially since the monetary crisis. The villagers of Semampir do not feel it is difficult to obtain inputs for their businesses. These materials can be obtained in the Semampir market. “It isn’t difficult. There are more materials these days. It is only the price that has risen” (M, 58). The community of Bulu felt that it is now easier to obtain agricultural inputs, but the prices are higher after krismon: “Things are more easily obtained now, like fertilizer, seed, chemicals. As



long as there is money then things are available. But the price of gabah (unhulled rice) is less than the price of fertilizer…” (M, 60). “It was better in the past because after krismon the prices of things are expensive” (M, 35). “The price of fertilizer in the village is higher than kiosks outside the village. Traders in the village are rich people, they buy a lot of fertilizer and then sell it in the village” (F, 43, Bulu). The community of Banyupelle does not have difficulty finding enough seeds and fertilizer. They can obtain these at the Pamekasan market or closer at Aengnyono market. However, farmers sometimes have difficulties obtaining good quality seeds because they all need them at the same time, even though they are expensive. “Good seeds are RpRp20,000, in 1995 seeds cost Rp5,000. Every year the fertilizer price rises: before it was Rp40,000 and now it’s Rp70,000” (F, 28). “The cost of seeds has now increased, 100 seeds are Rp15,000. Fertilizer has been expensive since four years ago. Good fertilizer now costs Rp100,000” (F, 25). “Fertilizer is expensive now, before it was Rp45,000, now it’s become Rp65,000. This makes farming costs even greater, even though the harvest sells cheap. Manure is also expensive, before it was Rp2,500 now it’s Rp5,000 (M, 37). Rice seeds were R 5,000 before, now they’re Rp30,000” (M, 30). “Tobacco seeds were Rp2,000-Rp5,000 before, now they’re Rp10,000” (M, 32). The women’ group in Banyupelle, however, said that there needs to be assistance in the availability of fertilizer (F, 45), the price of fertilizer needs to be lowered as well as the price on sugar, coffee, and rice (F, 45), and we also need financial assistance (F, 45). In the special case of Branta Pesisir, the biggest input-related problem for fishermen is the rise in fuel prices. “Previously the price of diesel was low, now it has gone up. Previously diesel was Rp650/liter but now it is Rp2,200 per liter” (M, 50). In addition, “the price of fishing equipment has gone up by approximately 10 percent” (M, 31)

and “the price of boats

has also gone up. Small boats that previously cost Rp8 million are now Rp15 million” (M, 50). This indirectly will affect on the productivity of fish catching. However, “fishermen now use motorized vessels (katinting) and go to sea with modern equipment, whereas in the past they used fishing lines boats without motors” (M,…Branta Pesisir) so they have the capacity to catch many more fish.

Villagers also don’t have any problems obtaining information on the availability and the price of input and raw materials, they usually obtain these from the market or from shops where they shop every day (Semampir). “Information is not difficult to obtain, now it is very good. The price of fuel can be sought at the gas station. Information on fishing equipment is easily obtained from friends” (M, 31, Branta Pesisir). In addition, information can also be obtained from TV and radio. The distance between the community and the market where agricultural inputs are sold is sometimes a constraint for some people. For example, in Palengaan Daja, although “fertilizer and seed can be easily obtained if the purchaser has money” (W, 25, PD), the farmer has to go to the town to purchase them. Meanwhile, the Banyupelle community can obtain inputs at the Pamekasan market or closer to home.

In high conflict areas people now also find it easier to obtain agricultural inputs, meaning that they are available and easier to obtain. But again, the farmers faced higher prices of the inputs. The men’s group in Soakonora said that “it is easier to obtain raw materials” (M, 36). “It is easier because technology makes them accessible” (M, 57). The women’s group also said that things are now more readily available, even though prices are sometimes high. For example, “in the past corn seed could be obtained just by asking but now farmers have to buy it and so they can purchase only a little” (F, 47). The people of Idamdehe Gamsungi “earn more because of aid from the government and NGOs, and because of having more modern agricultural equipment and tools for carpentry”, (M, 36). “Agricultural know-how like the use of fertilizer and pest control increases the agricultural yield. Our people now know how to use tools for carpentry” (M, 36).



The women’s group of Gorua explained “in the past farmers used a hoe but now there are plows” (F, 30) and “in the past there were no seeds but now seed is available” (F, 31). The women’s group then explained aspects related to the sources of livelihood that they themselves have been pursuing, such as cake production and the selling of goods in the market. “The price of flour has risen and so has the price of white sugar” (F, 31). “Formerly the price of flour was low but now it is high. But cakes are also expensive, so we still make a profit” (F, 53). “If today the price is different, tomorrow it will differ once more; the price may be low today but tomorrow it will be high; prices change constantly” (F, 47). “In 1995 the price of sugar was Rp4,500 but now it is Rp7,000” (F, 30). But, there is one advantage today in the fact that “those people who run a kiosk or stall selling assorted goods once had to travel to the market by ox-cart to purchase goods, but now they can go by car, which is cheaper than an ox-cart” (F, 31). In Gura “a lot of fertilizer and agricultural medicines are also sold here, but their prices continue to rise; probably because fuel prices are also now expensive” (M-45). There is no problem now with raw materials. “At the time of the conflict, we all experienced difficulty here because there were no goods. Now, things are normal, everything [raw materials] can be bought here... There are also plenty of ingredients for making cakes. In regard to prices, it is just normal, according to the market prices. If the price [of raw materials] is expensive, we have to sell goods at expensive prices” (M-43, Gura). Developments during the last 10 years for fishermen in Gura have been increasingly profitable. This is supported by the increasing numbers of fishermen who use motorized boats (katinting). Of the Katinting owned by fishermen, some were organized by the fishermen themselves, and others were provided by the government’s post-conflict assistance package. By using katinting, fishermen can go further out to sea and bring back a larger catch. In addition, “spare parts and workshops for outboard motors are also here. So if we have a broken katinting, we don’t have to worry. Previously it was difficult, if you had a broken motor it needed to be repaired in Ternate”. Information about the availability and prices of inputs in Soakonora is obtained from “relatives and friends” (M, 36), and from ”newspapers and television” (M, 40). The women said they could get such news from the market and shops. The market and shops are usually those in Jailolo because Soakonora does not have a market of its own. People in Gorua obtain information “from buyers in the market” (F, 43), “from television” (F, 30), “from radio” (F, 43) and “by word of mouth” (F, 31). “Nowadays it is easier to get information than it was in the past” (F, 30). Information about market prices is obtained from “markets, shops, food stalls and fish vendors” (FGD participants), or “the boss, who is Chinese, and from buyers” (M, 62). In Gura, the information is easily obtained. “We hear it on the radio from RRI Ternate, as well as the newspapers of Halut Press [Halmahera Utara Press, a local paper]” (F-31), or by “asking friends, or asking traders in the market or shop because they certainly know the market prices” (M-45). Access to Credit For the general community, economic opportunities can also be examined from the existence of credit and access to credit, both for daily necessities and for important requirements and more particularly for business support. The women and men’s group also view that capital is important for community prosperity. Those who view that community prosperity is less because “No one undertakes trade because people do not have capital” (M, F, Banyupple), “many people have debts” (M, F, Banyupelle), and “In the past people had their own capital to use for their own business purposes, but now they have to wait for aid” (F, Kampung Pisang). One community sees capital in improving the community prosperity because “there have been government programs [IDT and PPK]” (M, Idamdehe Gamsungi). The production problems faced every year by farmers in Palengaan Daja are the shortage of capital and the



difficulty of obtaining credit. The main source of credit is a money lender (usually a neighbor who is wealthier) who gives loans selectively and at a high rate of interest.

6

Table 5.1.18 below presents information from community figures and informants about the sources of credit that are available in the sample communities.

Table 5.1.18. Sources of Credit for the Community

Sources of credit

Credit 1 Credit 2 Credit 3 Most important credit source

Community



Palengaan Daja

(NPI = 0.82)

1 1 3 2 4 99 3.3 1

Semampir

(NPI = 0.66)

8 4 7 99 99 9 99 9

Bulu

(NPI = 0.50)

2 2 99 99 9 3 2.2 99

Banyupelle

(NPI = 0.48)

1 1 2 2 4 4 1.1 2

Branta Pesisir

(NPI = 0.04)

1 1 4 4 12 12 1.1 4


Soakonora

(NPI = 0.40)

9 9 99 n.a. n.a. n.a. 9 n.a.

Idamdehe Gamsungi

(NPI = 0.38)

1 1 2 2 99 4 1 4

Gorua

(NPI = 0.33)

1 1 99 2 4 4 99 n.a.

Kampung Pisang

(NPI = 0.29)

8 8 9 9 n.a. n.a. 8 9

Gura

(NPI = 0.06)

4 4 n.a. n.a. n.a. n.a. 4 n.a.

Source: Community Profiles. Note: 1= Relatives 4= Trader/store 9= Government bank 2= Friends 7= Community credit group 12= Religious association 3= Money lenders 8= Commercial bank 99= Other sources

More sources of credit are available for the community in low than in high conflict areas.

The sources of credit in low conflict area are from relatives, friends, traders, stores and banks, both commercial and government, in low conflict areas and also money-lenders and community credit groups, which are rarely found in high conflict areas. The most important sources of credit according community figures in low conflict areas are those that are informal in nature, that is, relatives, friends, and money lenders. Only Semampir has a lot of groups and associations with financial activities (see Table 6.1.4, Chapter VI). Meanwhile, in two communities in high conflict areas the most important credit sources at the present time are banks, both commercial and government. 6 ‘…If a person borrows Rp 1 million, then within 4 months he has to repay Rp 1.5 million’ (W, aged

21, farmer). Activity 6: FGD LFPD. ‘It is hard to obtain capital; loans are given only when it is the tobacco season’ (W, aged 40, farmer). Activity 6: FGD LFPD).



Each community has its own special features. For example, none of the three communities in Pamekasan District has a formal credit source like a bank. The same is true in areas of high conflict, where three communities also do not have formal credit sources, while in Kampung Pisang, which is an urban community, and in Soakonora, the only source of credit that is available is formal credit from a bank. The difference is that the bank in Kampung Pisang is a private one, whereas the one in Soakonora is a government bank. But although these sources of credit exist, not everyone in the community can access them nor has everyone a desire to access this credit. In the majority of cases, the reason is that most members of the community are unable to provide a guarantee.

Capital in cash is often a problem faced by the community, especially in areas of low conflict. In connection with loans for business undertakings and daily needs, the main source of credit for the community in low conflict areas is money lenders who provide loans with high interest rates. The money-lender in Palengaan Daja is usually a neighbor who is wealthier than others and provides business loans in a selective way. In urban areas like Semampir, there are now lots of money-lenders who go around the market and housing areas offering credit for daily consumption necessities and not just for business purposes. Although the interest is very high, many villagers are dependent on these money-lenders. One reason for borrowing, among others, is that because husbands are unemployed, the work they do as breadwinners is casual but they still have to pay their children’s school expenses. In Bulu, apart from these money-lenders, the women’s group has an alternative source of credit, namely, the Muslimat group that does not impose a burden on credit because the loan is repaid in accordance with the borrower’s ability. In Bulu, farmers received a government credit program (KUT-Kredit Usaha Tani or Agricultural Credit) that was channeled via the BRI from 1992 onwards. Unfortunately the farmers did not want to repay the loans because their crops were hit by the ’yellow disease’ and harvests failed. As a consequence, Bulu was blacklisted by the BRI. Many communities are not used to cooperatives, for even when there is a cooperative, it is usually located too far away from the village for them to reach it. The community in Palengaan has thought about establishing a tobacco cooperative but it is hard to find trustworthy managers. In Semampir for the past year there has been a bank that traders can readily access. Market traders have been able to obtain credit from this bank by just showing proof of ownership of a kiosk. In the past, they had to provide collateral in the form of a BPKP, that is, documentation proving ownership of a motor vehicle or else house deeds, to obtain loans. In Branta Pesisir, which is a fishing village, if the fishermen need more capital, for example, to buy a boat and an engine, they borrow money from the ‘boss’ of the fish traders, but their catches have to be sold to him at a price that is lower than the general price. The community now obtains more loans from individuals, that is, from traders. For example, for a fisherman to obtain a loan of Rp5 million to buy a boat and engine, he has to sell whatever fish he catches to the ‘boss’ every time he goes to sea. If the sale of fish results in Rp100,000, that sum is split, with Rp5,000 for savings and the rest to pay off the loan. Access to credit in low conflict areas is relatively easy. For example, in Semampir it is because “there are a lot of moneylenders now who go around the whole market and housing in the area” (M, 43). Villagers usually called these moneylenders “bang user” or abang (older brother). Unfortunately, these moneylenders make it difficult for villagers because the interest on loans is very high. “If one borrows Rp500,000 then you have to repay Rp700,000 within 3 months” (M, 34). A lot of villagers are very dependent on moneylenders. “Sometimes you’ll find a person here taking credit from five credit providers. Each of them



could be daily, weekly or monthly loans. A lot of people obtain credit because there is no work, or their husbands work is casual and they still have to pay their children’s school costs” (F, 32, Semampir). Although access to credit is now much better, the lack of capital is still the main problem that they face. There are difficulties in borrowing from a bank because it is difficult to provide collateral (F, 31, Semampir). “I want to develop employment but don’t have capital. I wanted to obtain credit at the BRI but I don’t have a title” (M, 43, Semampir). According to women’s group in Bulu, farmers also pawn belongings if they don’t have capital when planting time arrives: “If they don’t have money for planting then they pawn things or borrow from neighbors or relatives” (F, 32, Bulu). In high conflict areas people are not yet used to the handling of bank credit. The majority knows nothing about credit information from banks or cooperatives. Usually it is only public servants who obtain bank credit because they have the collateral that the banks demand as a guarantee. “We know nothing about credit information from banks at the present time, let alone 10 years ago” (M, 60, Gorua). “There is no credit available from banks or cooperatives” (M, 62, Gorua). An exception is Soakonora, where people feel that it is easier to obtain credit from a government bank, besides cooperatives and money-lenders. “Now in 2005 it is easier to obtain credit from a government bank, a savings and borrowing cooperative or a money-lender. In the past only employees were able to obtain credit from a bank” (F, 47). “To obtain credit a person had to have a certificate as collateral; in former times our minds were still closed. But now a person can get credit for a motorcycle direct from the dealer” (F, 53). Many members of the community feel that their income is insufficient to support a credit application. “There must be some kind of guarantee to obtain credit; public servants can offer a guarantee but we have barely enough to live because our income does not support a credit application” (M, 62, Gorua). After the conflict, however, people were offered and obtained credit to purchase motorcycles, Some motorcycles used as ojek were bought on credit from a dealer; the initial payment was Rp4 million and the monthly installment is around Rp800,000” (M, 62, Gorua). Although small businessmen have had difficulty in accessing credit over the past 10 years, they can now obtain loans from a number of sources. In Gorua credit is available through the ‘Saronifero’ cooperative while in a number of other communities PPK (the Kecamatan Development Program) provides business capital on a revolving basis.

7 PPK assistance amounts to Rp1 million to be returned at 2% over a period of

12 months. There is also credit from the Good Morning 2000 Cooperative (a kind of cooperative which provides small loan and everyday payment) (M, 40, Soakonora).

8 The

Gura community feels that in general community access to the credit given by formal and informal financial institutions is quite easy to obtain, “Now it is easy to obtain credit because there are several credit bodies. There were previously only banks, now there are savings and loans cooperatives” (M-37, Gura). In fact, “from shops, customers can also obtain credit through a cash advance. This means if we need money we can ask at a shop, later paying it back in-kind with copra or cloves.” (M-45, Gura). Cooperatives do not function for the Gura community because their offices are still located in the town of Tobelo. So if people from Gura want to access their credit, they can do so easily.

7See also the description of economic organization.

8A cooperative of this kind operates every day and is used by villagers. Loans are repaid every day,

usually over a period of 40 days. The shortcoming is that credit of this kind has very high interest rates. Even so, villagers find it very easy to access for everyday consumption needs.



The women’s group of Kampung Pisang said that they have difficulty in obtaining capital to expand their businesses. “It is too hard to borrow from the bank and the procedure takes a long time. Fortunately, some time ago there was the PPK program, which provided business capital [on a revolving basis], even though not all people who needed capital obtained it because there was an assessment of the feasibility of the business.”

Information about credit is usually obtained from a brochure. The ease by which the community accesses credit is also supported by the availability of information on easy credit. “If you want to know about the credit issue, information is easy to obtain. It can be obtained from members of the cooperative, leaflets, advertising boards, or by asking directly from the bank” (M-45, Gura). The financial assistance package for house construction (BBR), a post-conflict government policy, had a very positive impact on the community of Kampung Pisang. In contrast, the regulations for bank loans, which require collateral and which take a long time to arrange, is considered to be a policy that has had a negative effect on the economic life of the community. For that reason, according to the people, policies of this kind should not apply to small businesses such as household industries. Economic Organization

According to community figures and informants, not many economic organizations have developed in the two areas (see Table 6 4.1, Chapter V). At the present time there are only seven in areas of low conflict and 14 in areas of high conflict. These are concentrated in three communities in each of the areas and are much less important than religious organizations. Only in Idamdehe Gamsungi (in a high conflict area) is the farmers’ group regarded as a very important organization today, just as it was 10 years ago. There are no economic organizations in Palengaan Daja that provide loans for either capital or farming materials. “There are prayer groups and no economic groups” (M, 30). Both women and men’s group mentioned that the initial capital used on farming activities, especially tobacco, was predominately acquired through loans from friends or relatives. These loans are usually subject to interest. The community here is still inexperienced and so people are not familiar with cooperatives. “...we have thought about establishing a tobacco cooperative but it is hard to find trustworthy managers” (M, 25, PD). In Bulu, the women’s group named Muslimat as the one religious and economic organization that is considered important: “In Muslimat they have a cooperative for savings and loans” (F, 43). “Loans at Muslimat depend on what your needs are, for example borrowing 2 quintals of fertilizer” (F, 43). The objective of Muslimat is: “To enhance ‘Ukhuwah Islamiya’ (brotherhood between Muslim). If each member collects rice during the harvest season, they are given 1 kg each. Their money is used for hajatan, visiting sick people, and halal bihalal (celebrating Idul Fitri)” (F, 43). “If members have a hajatan they can borrow plates, spoons and mats from Muslimat, if you are not a member you are not allowed to borrow. So, being a member of Muslimat is good, there are many benefits. If someone passes away, you can also borrow a place to prepare the deceased” (F, 34). In Bulu, “previously there was a cooperative, but it is not operating” (M, 55). “There have also been savings and loans groups in RW 4 but many people didn’t pay. Now there is the PPK, which provides loans. Its aim is economic improvement. Not all villagers can join.” (M, 55). Discussions with the community indicate that in Semampir, a semi-urban community located in a low conflict area where there are a lot of traders, the major economic organizations are different for market traders (who are mostly men) and ordinary housewives. For housewives, the important economic organization is the PKK (Program Kesejahteraan Keluarga: Family Prosperity Program). “The aim of the PKK is companionship, meetings for women’s needs as



well as discussing financial and family problems. Almost all women are involved in the PKK” (F, 32). “There is an initial payment of Rp1,000 for members of the PKK with compulsory savings of Rp500/month” (F, 31). ”This cash is then loaned to members. In this savings and loans scheme, all members are assured of sharing in the loans because everyone is part of the lottery” (F, 32). “The weakness of the PKK Program is: The loans are limited to Rp100,000. With amounts that small, they’re only sufficient for family needs and can’t be used for working capital” (F, 31), while, “the problem with PKK is the shortage of additional capital. Because of the lack of money, their loans are still small in size” (F, 32). For market traders, the most important economic organization is the market-based savings and loans cooperative (Kopas). The objective in the establishment of Kopas was to assist market traders. Its manager comes from the local government of Probolinggo District. Although it is not compulsory to do so, most traders in the Semampir market have joined Kopas. There is a compulsory initial payment to Kopas, paid on becoming a member of the cooperative, Rp5,000. Borrowing from Kopas is very easy, the only requirement being a KTP (identity card). Non-members are also allowed to borrow from Kopas. At the current time the maximum limit on loans is Rp3 million. The weakness of Kopas lies in its management. For example, a manager once ran off with the cooperative’s money. Several months ago, a branch of Bank Danamon was opened in Semampir. Traders in the market could obtain credit easily from this bank, by only showing proof of ownership of a kiosk. “To obtain credit in the past, one still needed a BPKB [Bukti Kepemilikan Kendaraan Bermotor: Proof of Ownership of a Motor Vehicle] or house title. But now, it is sufficient to provide a permit to open a kiosk. Traders who own a kiosk in the market can obtain credit of up to Rp10 million” (F, 31). Villagers in Branta Pesisir are involved in several economic organizations. These organizations include, among others, various types of arisan

9 and savings and loans

cooperatives managed by the women. “All the villagers can join the women’s savings and loans cooperative if they have a KTP (Identity card) and a business” (F, 37). In general, however, if the fishermen need greater capital, for example to buy a boat and its engine, then they will borrow money from the ‘boss of fish traders’. “The community now obtains more loans from individuals but their fish output has to be sold to him at a price that is lower than the general price ... to obtain a loan of Rp5 million to buy a boat and engine, the fish produce has to be sold to him (creditor). If the sale of fish results in Rp100,000 then that will be split Rp5,000 for saving and the rest to pay off the loan...” (F, 38). In high conflict areas, the economic organizations that are most important for the community in Soakonora are “...the cooperative, PPK, the rotating credit group (arisan) and the Good Morning 2000 Cooperative” (F, 47); “many people are involved and these organizations give a lot of help to the community” (M, 57). There is also the UEP (Usaha

Ekonomi Produktif/Productive Economic Activities) from the PPK, and arisan. “The PPK and UEP have now been running for two years, and there is also the arisan” (F, 47). “One group consists of 10 people” (F, 29). “ [The PPK and arisan] aim to raise the standard of living. The benefit if there is an arisan in PPK is that it encourages people to develop” (F, 51). “PPK also encourages people to continue meeting face to face” (F, 51).

9Also referred to as rosca (savings organisation). The way in which the arisan functions is for each

member of the arisan group to contribute a sum of money already fixed and agreed upon by the members at the beginning. The money is put in at meetings, the frequency of which is also agreed upon by members (usually once a week or once a month, but in the market normally every day). The

total amount of money that is collected is given to the member whose name is drawn out in the lottery that is held at every meeting.



The farmers’ group, one of the economic organizations in Idamdehe Gamsungi, was founded through IDT in 1995. Currently, economic organizations that play the role in promoting the people’s welfare are arisan for housing. Arisan for housing is an economic activity joined by the people in Idamdehe Gamsungi village in order to own a house. In the beginning, around 1985, the people formed an arisan to build fences made of cement for houses in each neighborhood. Through the arisan, they built fences in turn with the material provided by the owner of the house, and labor by arisan members. This arisan had become an arisan for housing since 1993, and was active up until the conflict began. After the conflict in 2000, arisan for housing was reactivated, and it is still currently running. Arisan for housing is carried out by building a house together in turn with the housing material provided by the government (BBR) or by the owner of the house. The members of the arisan build the house together without pay but are provided with lunch, coffee, and cigarettes by the owner. In Gorua, the economic organizations consist of “farmers’ groups and an arisan” (M, 62). The Saronifero cooperative is located outside Gorua but also operates in this village. “The purpose of the farmers’ groups is to raise the welfare of members, who number 30 persons in each group. There are two groups in this village” (M, 60). Nevertheless, the farmers’ groups sometimes face problems if the chairman or members put their own interests first. For example, “in 2004 the groups received assistance in the form of money from the government through a program that gave Rp30 million per group to empower farmers’ groups. In my group we bought a hand tractor and a cutting machine (paras)” (M, 60). “The community thinks only of obtaining money. In my group the money was used to buy equipment to support activities. Some members have the idea that the financial assistance should be shared out among the members of a group, but this hinders the development of the organization. Many people think of their own personal interests, even though in fact there are rules that regulate [use of the financial assistance] but they are not carried out properly” (M, 56). ”For Muslims there is the prayer group, which is associated with the weekly arisan; the arisan provides Rp200,000, which helps very much as additional earnings” (F, 30). In 1995 there was no assistance from the cooperative because it had no network. Now there is the ’Saronifero’ cooperative, which works together with UNDP to provide help for groups with business capital. The financial assistance has to be used for business purposes such as the purchase of a refrigerator for the production of ice-blocks or a motorcycle for use as an ojek. The assistance is as much as Rp2 million per group and repayment has to be made every month over a period of 10 months. Besides helping with group credit, Saronifero can also give loans to individuals who have already been members for three months. ’Saronifero’ operates by looking for people in their homes, so people do not have to go to the cooperative office. Membership is not restricted to women. Anyone can borrow for a business. So far the repayment of loans has gone smoothly. “In 1995 there was no assistance from the cooperative because it had no network” (F, 41). “Nowadays we can get assistance from the Saronifero cooperative but the individual must be in a group” (F, 47). “Saronifero works with the UNDP to provide assistance for groups”

10 (F,

41). The cooperative also provides business capital. “The assistance given by Saronifero for use as capital is Rp2 million per group” (F, 41). “Repayment has to be made every month. The loan of Rp2 million is for 10 months. The timing depends on members” (F, 41). Besides helping with group credit, Saronifero can also give loans to individuals. “Saronifero can give a loan to a person if he has already been a member for three months. If savings amount to Rp1 million, a person can borrow up to Rp3 million, which is returned in six months or up to one year. Deposits can be made on a daily or a monthly basis. Assistance has to be used for business purposes such as the purchase of a refrigerator for the sale of ice-blocks or a motorcycle for use as an ojek” (F, 43). “Individuals are treated the same; it depends on

10

Old groups or newly formed groups.



requests for loans and savings” (F, 43). “Bu Rusmani and I got this from Saronifero” (F, 41). “Saronifero goes looking for people in their homes, so we don’t have to go there” (F, 47). “[Membership] is not restricted to women; anyone can borrow money, provided that it is intended for a business” (all FGD participants). At first Saronifero worked through the village office but because of problems a change was made in 2005 and it now operates directly through groups or individuals. “In the past assistance was given through the village but there were many complications. Now, since 2004, it has worked directly with members” (F, 41). This has led to an improvement in the management of funds, “So far repayment of loans has gone smoothly” (F, 43). There have also been activities called Pekka (Female-headed Families) aimed towards the empowerment of women. The activities aim to provide help for widows in the form of capital, but it is not known if there was a follow up to the initial activities. Now there is also an economic organization that was formed at the time of PPK implementation. Unfortunately, the system has not functioned well because a lot of participants have not yet repaid their loans. “In Gura, there are no important economic organizations. At best, there are only small-scale arisan of the women of PKK. We have separate work” (M-45). Previously there was a KUD (KUD: Koperasi Unit Desa/ Village cooperative), but this organization “…didn’t develop and finally it closed … because of the problem of poor management” (M-43). “There was a cooperative in Gura, but it didn’t operate for the community of Gura” (F-25,). Other economic organizations, such as savings and loans cooperatives do not exist in Gura. Nevertheless, there is a cooperative in Tobelo town, so Gura villagers want to access it can do so very easily: “Anyone can join as long as they want to fulfill their requirements” (M-45). In the community of Kampung Pisang, there is a savings and loans cooperative but it is not used very much by the community, as it has not been operating for very long. Apart from that, there an economic organization was formed at the time of implementation of PPK. Approximately 108 people who own small businesses obtained revolving funds. Unfortunately, the system has not functioned well because a lot of participants have not yet repaid their loans. Home industry Home industry does not appear to be very prominent in the sample communities, especially in high conflict areas. The only industry that has developed in recent times is cake-making and even that is carried out on a small scale. In low conflict areas the production of tempe (soya bean cake), the drying of fish, and the krupuk (fish chips) are the only home industries. “Many more people make cakes today than in the past because there is assistance, so they make cakes. There are a lot of people who buy cakes, too, the reason being that people these days prefer to buy them than to go to the trouble of making them themselves” (F, 47, Soakonora). Difficulty of Establishing a Business

In areas of low conflict, communities feel that the government has not helped much and that every person has to act alone. Even so, villagers did not feel that there was any problem in arranging a permit for their business. For example, in Semampir and Bulu, “one needs the signature of the head of the RT and RW as well as the village, the sub-district, the Department of Labor and then they request a production permit. Arranging all of that is easy and there are no impediments. The administration cost in the village is cheap. Only Rp5,000 (F, 31, Semampir). “To sell things in the market: a permit to trade in the market comes from the local government in Probolinggo. The process does not take long. For example, if I buy a bedak (market kiosk), then changing the name from the former owner costs Rp600,000. This money is submitted to the head of the market, then he takes it to Probolinggo. This money



includes permits. The permit process takes 3 days. In 2000 the cost of this was still Rp250,000. Now it is increasingly expensive, because the ownership document for the bedak can be used as collateral to obtain credit, especially at the Bank Danamon” (F, 31). For routine costs, traders in the market are required to pay a security charge of Rp2,000 to Rp3,000/month. In addition, there is also a daily ticket of Rp200 that is imposed on traders. “Small-scale traders don’t need permits” (F, 43, Bulu). “To make a pen for ducks or chickens only requires a permit from the environment office. The village administration assists and obtains the business permit, the process is easy” (M, 55, Bulu). “Only the cigarette factory needs a permit, the government regulates the policy on the price of cigarettes” (F, 32, Bulu). In Banyupelle special permission is not needed from the government to start and operate a business, except if food producers want to market their produce in shops and supermarkets. They then need the permission of the local office of the Health Department. Most people in Banyupelle only make contact with the local government when requesting an identity card or seeking to obtain credit. The individual respondents also feel there are no government policies that impede their businesses or jobs: “government regulations are quite helpful, for example in 1993 there was the KUT, I obtained Rp500,000 with a low rate of interest of 1%, after harvest I repaid it. Extension officials are also very helpful in overcoming disease and appropriate means of farming so there is a good harvest” (M, 43, Mover, LS, Bulu). In Bulu, finding capital is the main obstacle faced by households wanting to develop their businesses: “The main problem is capital, small businesses wanting to develop their business need capital” (M, 60, Bulu). “There are banks but we are wary of borrowing there, there are a lot of rules and the costs are also high. If you borrow from a pengajian group you can only borrow a little, the repayment period is also 2 years” (F, 43, Bulu). Apart from the issue of capital, villagers of Semampir also experience problems in obtaining a place to trade. A place to trade has to be rented if it can’t be bought. The rent depends on the location. The most expensive is on the roadside, at Rp2million/month and the cheapest is Rp500,000/month (F, 32). Small traders feel this is a heavy cost. The decline in the purchasing power of the community is also a problem for villagers operating a business. “In the past I ran a business on ‘credit’, meaning I provided clothing that could be bought on credit. But the number of buyers has dropped. Buying essential commodities sembako is difficult, especially if one wants to buy clothing (F, 32, Semampir). Villagers of Semampir did not feel there was any problem in arranging a permit for their business. One FGD participant explained by giving the example of opening a factory: The participants of both the men’s and women’s groups said that they don’t often have contact with the local government in order to carry out their livelihoods. “The most contact is when there is a dispute, if requesting an identity card or to obtain credit” (M, 50). Apart from that, special permission is not needed from the government to start and operate a business, unless they wish to sell to shops. “If food producers want to market their produce to shops or supermarkets then they need the permission of the Health Agency” (F, 37). In order to help them develop their businesses, villages feel the government could assist by helping them form a savings and loan cooperative, and by providing assistance with capital and skills training: “they should help us with things that we don’t have here such as embroidery and making flowers to advance the community” (F, 37, Branta Pesisir). Starting a new business in Soakonora is definitely safe. “It is safe because there is a guarantee. The community also feels safe” (M, 40), although the FGD participants admitted that to commence a business a location is needed and the person concerned must obtain a permit to start a business. “To get a permit the person must begin with the village head and then move on to the subdistrict level” (M, 40), but, “it depends on the type of business; if the business is a large one, the permit has to go through the bupati and there must also be a building permit



and a business permit” (M, 57). “In reality, although regulations about these matters exist, they are not implemented” (M, 37). The men admitted that capital is the main problem faced by the community in developing their businesses. “Having capital means having no difficulties” (M, 37). There has to be a permit for an ojek and also for a stall (bakios), in addition to the payment of tax. “But so far there have been no permits for stalls” (F, 27). “If a person makes and sells cakes, a permit is not needed” (F, 53). “Ojek owners have to pay tax every year” (F, 29). “Rp150,000 per year. It can be arranged here in the [West Halmahera government] office” (F, 47). “You give the money to the head of the ojek group here, and then he pays the tax in Ternate” (F, 51). The Gorua women’s group was of the opinion it is now safe to start a new business activity. “I feel that things are safe nowadays, safe enough to commence a new undertaking” (F, 43). “We only returned [from evacuation] in 2002. After returning, we were afraid to set up new businesses. We were still scared that the disturbances would happen again. But now the situation is safe for business” (F, 30). But the women also admitted that capital and determination are necessary in order to begin a new undertaking. If a person has capital, she will and must possess determination. “I come from Tidore and have two children; my husband died and I married again. The conflict occurred at the time when one of my children was born. Now I just sell a small quantity of goods. The important thing is to possess determination. Even if a person has capital, they cannot progress without will power” (F, 41). So the constraints faced by community members when trying to progress include lack of capital and determination, lack of and influential acquaintances, and the difficulty of finding permanent employment. “People want to advance but there is the problem of capital” (F, 30). “Perhaps capital and contacts [are important]” (F, 41). In the context of obtaining government permits, the experiences of people in Gorua so far indicate that they do not need to request special permission to open a kiosk or food stall (warung), even though they know that there are warung permits available from the local government. “A kiosk or warung should obtain a five-year permit from the government at a cost of Rp200,000. But at present I do not have a permit because I have not yet paid. The important thing is to pay if funds are available. I have just started this business so I have not yet paid [for the permit]. I have now been in this business for just one year. When you pay, you receive a Letter of Permission” (F, 41). FGD participants also agreed that “there are no permits from the village office”. Vendors who sell in the market pay a market fee, which is normally collected every day. This money is used to clean up the rubbish in the market, although the vendors admit that there is also a fee so that they can obtain a place in which to sell.

11 “We pay an unofficial fee also

for a selling place. There is a person on duty; the cost is Rp500 per place per day and then another Rp500 for [the removal of] rubbish, so vendors have to pay Rp1,000” (FGD participants). The women admitted that payment of the unofficial fee has helped their businesses. “If we pay the tax (that is, the market fee), our sales go smoothly. If we don’t pay the fee, we do not get a selling spot” (F, 30). “We pay the money to clean the market because there is a lot of rubbish” (F, 43). The constraint encountered by those who want to sell in the market is the limited number of places, which means that they have to set out from home very early in the morning in order to get a place. “You have to go to the market at 3.00 am in the morning to get a spot; on Saturdays you have to go at 2.00 am. There are not enough selling places because of the large number of vendors, so the government should extend the market so that all can get places”.

11

On the whole, they sell on the side of the road close to the market because they do not have a kiosk.



The situation is slightly different in Gura. “For a stall or kiosk in the market, you have to ask for permission from the Market Agency. But if it is only to trade as a kaki lima (a sidewalk stall), you just need to pay a fee” (M, 43). Meanwhile, “for other work, you don’t need government permission” (M, 45). The women’s group felt it was difficult to obtain a permit. “The government makes it too difficult or complicated. …the government doesn’t see the lower classes in the community and rarely communicates anything to the community here” (F-31). In areas of high conflict, to establish a business or to work as artisans does not require a complicated permit process. In some cases a special permit from the regional government is not even needed. When forming farmers’ groups, people are simply told to gather together and form a group, but at least the head of the hamlet must be aware of the group. Permission from the government is only needed to form an organization. The process is started with the hamlet head and then the village head, after which there is the subdistrict head and if necessary the district head. As happens in areas of low conflict, vendors who sell in the market pay a market fee usually for rubbish collection and security. This is normally collected every day. In addition, vendors here also admit they must pay a fee to obtain a spot for their stall. They do not feel that this fee is a burden or a problem. Instead they feel that payment of the unofficial fee has helped their businesses because sales are good. They are afraid that if they do not pay the fee, they will not get a good selling spot and this will affect the volume of sales and their earnings. Most household survey respondents feel that it is easy to establish a business in their village or immediate surroundings. They say that even 10 years ago this was the case (Table 5.1.19). More respondents in low conflict areas stated that it is ‘easy’ to establish a business in their village than the number who made the same statement in high conflict areas.

The men’s group of Gorua agreed that at the present time the situation is safe to begin new businesses. “After the Pilkada

12 it will be safe to establish undertakings” (M,60/1). “The

people will not feel anxious because they will be safe” (M, 62). Establishing a business does not require a complicated permit process, and in some cases does not even need a special permit from the regional government. “In keeping with the custom in this village, people like those who work as artisans do not need a permit from the government” (M, 60/1).

Table 5.1.19. Ease and Difficulty in Establishing a Business

Ease in establishing a business (% of respondents)

Now Compared to ten years ago

Community

Easy Easier Same Difficult

Low Conflict (East Java) 76 30 63 5

High Conflict (North Maluku) 62 11 78 10

All 66 20 70 8 Source: Household survey.

12

Pilkada = Pemilihan Kepala Daerah (Election of Regional Head). Since the ratification of the Statute concerning Regional Government and Regional Autonomy in 1999 (which was revised

through another statute in 2004), the regional head at district level has been elected directly by the community.



Legal Titles to Houses and Land

According to community figures, most people in the areas of low conflict do not yet have legal ownership status for their houses and land. The situation was the same 10 years ago. It is only the communities in Palengaan Daja and Branta Pesisir who have ownership status. The same is true in areas of high conflict. It is only the communities of Gorua and Kampung Pisang that have legal clarity about the status of their house and the land on which it stands. Meanwhile, in Gorua people have obtained legal titles only very recently. The field observations of the researchers showed that communities are not too worried about this situation, even though they have experienced a remarkable conflict. Government Assistance

In high conflict areas much government assistance has been given to communities as post-conflict programs. This assistance includes BBR (Bantuan Bangunan Rumah or Housing Material Assistance), cash help for farmers’ groups, fishing equipment and boats for fishermen, rice (the Raskin Program for Poor Families), and revolving funds. It is believed that this help has opened up new economic opportunities in these areas. Sometimes, however, the assistance that is given is not suitable or the quality is inferior to the point where much of the assistance cannot be used. For example, the ship that brought the goods for assistance programs may have been leaking or the target group is inappropriate. The aid might have been intended for fishermen whereas the people who received it were farmers. B. CONFLICT, SECURITY, AND COMMUNITY MOBILITY

“… we are accustomed to hearing the sound of bombs but even now, if someone strikes the electricity poles,

13 the people panic because of the

trauma …”…(Kampung Pisang, Ternate) “Children saw the event and were traumatized. Children who could talk told their mothers: Mom, tra boku gendong di belakang harus di depan, kalau trada dating potong orang (don’t carry us on your back, we will be killed)”……(Gorua, North Halmahera)

“…When young men get drunk, they often shout and yell, causing us to experience a shock, because we are still traumatized”… (Gorua, North Halmahera).

As described in Chapter I of this study, conflict covers violence between people, killing, fighting, beating, rampaging and warring, which involve physical force. Conflict and violence in Indonesia can be very complex and can be caused by a mixture of historical, political, social, economic and structural factors. Local tensions based on ethno-religious or spontaneous migration to other regions can lead to local competition for jobs and to disputes over land and resources between newcomers and indigenous people that result in social jealousy and economic disparities between the groups (Mawdsley, 2002). All communities in North Maluku experienced violence during the conflicts, which occurred at the end of 1999 and the beginning of 2000, and which caused almost all the people of these communities to evacuate their villages for two to three years. This conflict has been recognized as a major factor that has influenced community prosperity and mobility. The conflicts in North Maluku and East Java were different in terms of characteristics, causes,

13

During the conflict electricity poles were struck in certain rhythms as a code to indicate an attack, to give a command to attack, to direct people to save themselves, and so on.



intensity and the number of victims. North Maluku experienced a high-intensity conflict caused by a socio-political conflict that finally developed into a religious conflict, involving very large numbers of people and causing great losses of property as well as injuries and death. The conflicts in East Java were less associated with communal conflict and more with a recurrent high level of crime, even though some were considered to have had a great effect on the people. The records of community figures and communities about tension and conflicts that have occurred in the past 10 years are shown in Tables 5.2.1 and 5.2.2. In the next subsection a detailed description will be given of selected conflict typologies about the causes and the subsequent effects on communities.

Table 5.2.1. The Conflict Timeline in East Java during the Past 10 Years

Community Tension and Conflict Level Year Palenggaan Daja

(NPI = 0.82)

(MOPI = 0.00)

Tension over the general elections Killing of practitioners of black magic

Extramarital affairs Theft of motorcycles A series of thefts (water-pumps, cables, plastic pipes)

1 5 1 1

1

1997 1999

2000 2001-2004 2003-2005

Semampir

(NPI = 0.66)

(MOPI = 0.42)

Data not available; the village was chosen as a non-conflict community

n.a. n.a.

Bulu

(NPI = 0.50)

(MOPI = 0.17)

Ninja case (those who had black magic isolated themselves in rice fields)

In-laws’ conflict Sexual assault case

Muslimat conflict

Black magic Billiard conflict

2 2 1 2 2 1

1997 1999 2000 2002

2004

2004

Banyupelle

(NPI = 0.48)

(MOPI = 0.05)

Carok (Madurese language= duel to defend one’s honor) Murder in Propo Robbery Murder Road protest Murder in Crokcok

2 2 3 2 3 2

1996 1997 1998 1999 2000 2003

Branta Pesisir

(NPI = 0.04)

(MOPI = 0.19)

Protest against the extension of Budiono’s warehouse Protest against trade in fish from outside the village Dispute over fishing areas with the fishermen of Camplong The hijacking of fishermen’s vessels and nets

2 3 3 3

1999 1999 2000 1995-2005


In seeking to understand the scale of these disturbances, the present study has identified six levels of conflict based on the extent of tension within the community: 6= The occurrence of fighting, community protests or demonstrations that involved very large

numbers of people and caused great losses of property as well as injuries and casualties; 5= The occurrence of fighting, community protests or demonstrations that caused loss of property as

well as injuries and casualties; 4= The occurrence of fighting, community protests or demonstrations that caused loss of property as

well as injuries; 3= The occurrence of fighting, community protests or demonstration that caused loss of property; 2= The occurrence of fighting, community protests or demonstrations; 1= The existence of tension but not to the extent of causing fighting or community protests and

demonstrations.



A classification of the study areas has been made in terms of these six levels of conflict. Levels 5-6 indicate a high level of conflict, levels 3-4 describe medium conflict and levels 1-2 refer to low conflict. Consideration of the conflicts that occurred in East Java and North Maluku has classed East Java as a region of low and medium conflict, while North Maluku is a region with high conflict.

Table 5.2.2. The Conflict Timeline in North Maluku during the Past 10 Years

Community Typology of Conflict Level Year

Soakonora

(NPI = 0.40)

(MOPI = 0.43)

Fighting among young men due to a football disruption

A Muslim person run over by a Christian The search for people with a rose tattoo Violent conflict that caused some 600 houses to be

destroyed, hundreds of cattle to be lost and five deaths

Protests on two occasions over the West Halmahera capital

Attack and fighting among young men, five people injured Demonstration over the results of the test for Public Service

candidates versus the promises of politicians Demonstration over unpaid compensation for land

4

1 1 6

2

3 4

5

1995

1997 1998 2000

end of 2002 end of 2003 2004 2005

Idamdehe

Gamsungi

(NPI = 0.38)

(MOPI = 0.68)

House and land border disputes Drinking water dispute due to complicated water distribution Violent conflict that caused deaths, loss of property, houses

burned down and evacuation

1995 1997-2005 2000

Gorua

(NPI = 0.33)

(MOPI = 0.16)

Tension already in existence due to previous issues Conflict over road construction between villages of Gorua (a Muslim majority) and Wari (a Christian majority) Violent conflict in which the death toll was 200 and all

houses were destroyed (around 700)

Attack on Muslim group causing three deaths and the burning of 24 houses and one elementary school

The shooting of one person from the Christian group by a security (satgas) officer

A demonstration as the follow-up to the shooting An ethnic Javanese ojek driver killed A bomb explosion in Gosoma Frequent bomb explosions during the fast month

1 2

6

6

5

4

4 1

1

1995-1999 1997 end 1999

end of 2002 2002 2003 2003 2004 2004 2004

Kampung Pisang

(NPI = 0.29)

(MOPI = 0.42)

Conflicts between the Army and the community Violent conflict, known as the White-Red (Muslim-

Christian) conflict, which caused Christian houses to be burned down, nine deaths and widespread trauma

The White-Yellow conflict (Sultan of Ternate supporters and non-supporters), which caused 106 houses to be burned down and 354 houses to be damaged

4

6

6

1995 end of 1999

1999

Gura

(NPI = 0.06)

(MOPI = 0.20)

Violent conflict that caused some 500 houses to be destroyed, hundreds of cattle and goats to be lost and two deaths

Tension between villagers and government authorities who had responsibility for channeling aid to them

6

1

end of 1999

2003


FGDs conducted in Kampung Pisang indicated that between 1995 and 2003 physical conflicts occurred nine times. They involved young men from different kampongs and kelurahan and originated in ethnic, religious, and race issues and clashes between young men and the Army, the Police and the Mobile Brigade. Only three of these conflicts (see Table 5.2.2 above), however, were judged to have had a large-scale negative effect and to have influenced the lives of the people of Kampung Pisang.



1. Typology and History of Conflict

High Conflict Areas

The conflicts that occurred in North Maluku (and Maluku) were of two kinds. The first and only large conflict, experienced by people in four of the research communities (Gura, Gorua, Soakonora and Idamdehe Gamsungi), occurred in 1999/2000. This was not a conflict between members of these communities but was rather a socio-political conflict in a much wider constellation that finally led to a religious conflict between Muslims (referred to as the White group) and Christians (referred to as the Red group). The conflict became known as White-Red Conflict. In addition to the White-Red conflict, there occurred at almost the same time a conflict that involved two different Islamic communities. This is known as the White-Yellow conflict. In this context the term “Yellow” represents the community (Islamic) that was on the side of the Sultanate of Ternate, while “White” refers to the community (also Islamic) that opposed the Sultanate. The second conflict took place in the City of Ternate (Kampung Pisang).

The White-Red Conflict14

This conflict had its origin in an issue that was composed of diverse elements, one of which was the existence of a group that wished to control the region.

15 On the whole, the communities do

not know what factors really caused the White-Red conflict. The information that they heard only stated that the conflict in North Maluku had been preceded by a difference of opinion over the administrative boundary between Kao Subdistrict and Malifut Subdistrict. “What the reason was we didn’t know. As a result, our lives became very difficult, poor, and full of fear”. “They were strangers who wanted to destroy everything”. “Before the occurrence on 27 December, we were terrified by the propaganda on 9 September 1999 that something would happen, so there was some suspicion”. “There had been issues previously, and from 1995 to 1999 there was already tension. There was only suspicion – no serious conflict”. According to Tomagola (in Yanuarti et al, 2004: 73-79), the conflict in North Maluku can be divided into three (or four) waves of fighting, which began in August 1999 and concluded around March 2000. The first and second waves started in Malifut Subdistrict on the Gulf of Kao and then spread to Ternate, Tidore and other places in North Maluku. The third wave consisted of disturbances back in Muslim villages in Tobelo Subdistrict near the Gulf of Kao. After that, there were attacks in Christian areas that resulted in a lot of casualties. These attacks destroyed the village of Duma in Galela Subdistrict, North Halmahera, which was a symbol of the expansion of Christianity in that region. Because this last incident had different characteristics, the attack on Duma has been described as the fourth wave in the period of conflict. The communities living in the villages, both Christian and Muslim, actually attempted to avoid the conflict by evacuating to safer places. The villages on the whole, however, became an arena for fighting between Christian and Muslim groups that originated from outside the villages. For up to this time Christian and Muslim groups in the research villages had lived peacefully side-by-side. From descriptions provided by informants, it appears that the attack on one village (with a majority of adherents of a certain religion) represented a reprisal because another village (in which the majority of people were adherents of a different religion) had been attacked. Thus, in the sample communities the first attack occurred in Gura, followed by one in Gorua; both villages are in North Halmahera. Then attacks took place in West Halmahera in the communities of Soakonora and Idamdehe Gamsungi. It is strongly suspected, however, that both groups, Christians and Muslims, had made preparations for the attacks separately. Attacks always took

14

For detail, please read the Community Synthesis Report/SMERU Field Reports of Soakonora, Idamdehe Gamsungi, Gorua, and Gura

15Before the occurrence on 27 December 1999, the people of Gorua, North Halmahera, had been

terrified by propaganda on 9 September 1999 stating that something would happen, so there was already some suspicion among the community of approaching trouble.



place very early, at dawn. The fighting in each village lasted for only a few days, although the conflict that took place in Maluku and North Maluku as a whole went on for three years, during which period the communities had to live in places of evacuation. Because the White-Red conflict was not one between local villagers, community members took the view that the people in the communities concerned were not those who had been the actors who commenced or were involved in the conflict. They also did not know whether the Army, police and regional government were involved in the conflict. At the time when the conflict had just started, village government institutions played a role in efforts to save the people by assisting in the evacuation process. According to the informants, however, community members suspected many institutions and individuals of being involved in the conflict, including members of the army, the law court and the police as well as the subdistrict head, village officials, groups of young men, the mosque council, the church council and community figures, and provocateurs. According to the Muslim group, religious figures, provocateurs and the church Synod triggered the conflict. There are two trends in community opinions: the first view is that the Christian community was absolutely not involved in the burning or destruction of the Muslim community’s assets, which were left behind when the owners evacuated. The second view indicates that there is still a feeling of distrust towards the Christian group, a suspicion that the Christian group damaged the property of the Muslim community, and regret that the Christians did not protect the assets owned by local people. In this context, the Christian community group did not suffer losses due to the conflict. In view of the fact that they did not evacuate for long, members of this group are judged by respondents to have been able to increase their welfare even though the conflict was still taking place at the time. According to the community, those who gained the greatest benefit from this incident included members of the army, who rose greatly in status, and entrepreneurs, who were able to increase their business activities. At the times when army members accompanied farmers to their fields to collect agricultural products, the farmers had to share those products with their army escorts. Members of the army and the police, as well as village officials profited from the conflict when they bought cattle in the village at a low price and then sold them in Ternate for a much higher price. “At the times when Army members accompanied farmers to their land to collect agricultural products, the farmers had to share those products with the Army escorts, and each farmer also had to pay Rp150,000 per person per trip”. “They [members of the Army and the police and also village officials] bought cattle here at Rp150,000 a head and then sold them in Ternate at Rp3,000,000, so the people who made the greatest profit [from the conflict] were the Army and the police” (Informant 7, Soakonora). Entrepreneurs were able to add to their profits and increase their income. “Dealers and businessmen did well because many of them gave credit for the purchase of motorcycles and thus made large profits”. Meanwhile, those who came out losing were the farmers and the owners of kiosks in the village. “There were those who obtained no crops at all from their land” (Informant 6, Soakonora). “Traders previously had large kiosks but after the conflict their businesses became small” (Informant 5, Soakonora).

Soakonora

When the conflict occurred in Ternate,16

the local people looked after security together; thus Christians and Muslims undertook the night watch together. On 31 December 1999 Christians held religious services not in the church but in the street and together with Muslims. When the incident happened, it was totally unexpected. There were extremely harmonious relationships between Christians and Muslims before the disturbances. During 1999, if there was some special event in the village and the Muslims made nasi jaha (bamboo rice), the Christians would be responsible for providing the drinks. When the disturbances happened, the majority of people had no time to save their possessions. Those who had the

16

Conflicts had already taken place in Ternate.



chance to do so put important items into a sack and departed. The people from this community were generally called the ’sack troop’ because they put their clothes and other goods into sacks and ran. Some Christians had already made holes in which to deposit the things that they could not take with them. Each of their houses had a hole. They entrusted their land to a person who lived close by or to people who chose not to evacuate. If a person buys land that has to be guarded, it is the custom here for people living close to the land in question to guard the land. The young men from the mosque and from the church did not evacuate but guarded the village. In this village they made genuine efforts to protect property and made no attempt to run away. Just before the attack took place, most people had already evacuated, so there are not many who can describe what actually happened in the village. Gorua The community had previously heard that disturbances had occurred in the town of Tobelo, the district capital, and would move towards Gorua village. So the village head ordered the people to evacuate. There was already trouble in Tobelo on 27 December 1999 at 9 o’clock at night but as yet there had been no attack. On Wednesday 28 December 1999, however, the village was attacked. Preliminary attacks were made every night but those involved could not enter right into the village until 30 December 1999. The early attacks reached only the PLPP Padamara (the name of a training hall). At midday on that day the community finally decided to evacuate, the Christians going to the south and the Muslims to the north, on foot or by cart. The Christians evacuated to the Tomahalu community and then moved to and remained in Gura village for six months. At 3 o’clock in the afternoon of 30 December, the Muslims ran from the village and went to Popilo (a village in Tobelo), then at 5 o’clock they ran into the forest. Many people took only the clothes that they were wearing and other small possessions but their farms had to be abandoned. Some people took carts pulled by oxen (in 1994 there had been aid in the form of cattle but they did not take the animals along; when they came back later, everything was gone). They stayed in the forest, in some cases for one or two days and even one week. While in the forest they ate papaya, sugar cane or whatever they could find, the important thing being to feel full and to keep within religious regulations (halal). One person remained in the forest for three months but he entered the forest from Gamhoku village and left through Galela. At that time people moved through their own initiative (without help from security officials). After that, the people were evacuated by the government and transported on a regular passenger ship to Ternate.

17

The conflict broke out again in 2002 but once again the community did not know the reason. In 2002 a group of strangers created a violent disturbance. Community members could not understand why it happened again as there were already security people in the area. In the year 2000, security was provided by the 501 Apparatus, in the year 2002 by the Zipur, in the year 2003 by the Marines, and in the year 2004 by the Brimob.

18 By 7 August

2002 everything had returned to normal, including schools, and there was no feeling of fear. But at 10.00 am that day there was a bomb blast. The attack happened at the time

17

This story is from a local researcher who experienced the situation when she was on the way home to Ambon with a relative to visit her parents and was travelling on the ‘Lomboku’, a passenger ship owned by the state company Pelni. When the ship arrived in Ternate, it was taken over and told to return to pick up evacuees in Galela and transport them to Ternate. The ship with its load of official passengers finally agreed to pick up the evacuees and transport them to Ternate. The local researcher said that she felt terrified and did not know what her fate would be. She and her relative decided to stay on the ship because she was afraid that if she disembarked she would not be able to get to Ambon. By that time the ship was loaded well beyond its capacity and the captain asked everyone to pray that they would be safe, despite the excessive

number of passengers. After the ship dropped the evacuees in Ternate, she and her relative continued to Ambon on the same ship. The journey, which normally takes three days, took almost a week because the ship had had to turn around to pick up and transport the evacuees.

18Zipur is a security unit for land fighting; the Marines constitute the security unit from the Navy and

the Brimob is the Police security unit.



when Zipur replaced the military commander. At that time the Muslims wanted to have Zipur but the Christian group preferred to retain Marines because they believed that Zipur defended the Muslims whereas Marines was more on their side. The second attack, which was also unexpected, left behind victims. One person from the Muslim group and two from the Christian group died. One elementary school was destroyed, as were 24 houses belonging to both Muslims and Christians and two barracks. The most severely affected area was RT 1 in the south. During the attack, the people sought temporary refuge in the Zipur Post, but only half of the people went there. The rest left for a nearby village. The burning occurred only on that day. Residents came back in the evening, having evacuated for only one night. Men returned first, while women and children stayed in a nearby community, where they received food from relatives.

Gura

In general, the tension in Gura and Tobelo started in October 1999. This tense condition arose because about 90 kilometers from Tobelo and Gura a conflict had been taking place between the people of Kao (the majority of whom are Christians) and the people of Malifut (the majority of whom are Muslims). As a result of this conflict in Kao, information and issues of a provocative nature continued to circulate in Tobelo and the surrounding area, making the situation increasingly uncertain. On the evening of 26 December 1999, open conflict exploded in the southern part of Tobelo (in the village of Gosoma). In Gura itself, which is only about 3 kilometers from Gosoma, there was no conflict between villagers. While the male Muslim villagers gathered in the mosque, the women and children fled to the military headquarters of Battalion 732, which was located about 2 kilometers from Gura. To avoid conflict, these Muslim villagers then joined in the evacuation to the army post.

The White-Yellow Conflict

19

The informant felt convinced that the conflict among fellow Muslims (White-Yellow) in Ternate stemmed from two important factors. The first was the wish (under a little pressure) of the Sultan of Ternate to become governor of North Maluku, even though the political elite and the community both rejected the idea. The second was the belief on the part of the Islamic community that the Sultan of Ternate had protected Christians, whom they regarded as having triggered the conflict in a number of areas and hence the cause of casualties among Muslims. The conflict started from a debate during a seminar in Ternate in 1998 about the name to be given to the new province after subdivision took place. The Sultanate group, (who consisted of supporters of the Traditional Law Council), wished to have the name Province of Moloku Kie Raha for historical reasons and wanted the new province to have the status of a Special Area (Daerah Istimewa or D.I). The group that did not support the Sultanate, however, preferred the name North Maluku. Their reason was that not all areas in North Maluku had been a part of the territory of the four kingdoms of earlier times. The debate came to an end when the central government announced a statute that established the new administrative region as the Province of North Maluku. High-level conflict was often triggered off by a high degree of solidarity, irrespective of where the truth lay. This included solidarity among people of the same religion. With the outbreak of the White-Red conflict, many Christians fled to Ternate and sought protection in the palace of the Sultan of Ternate. As a traditional figure whose existence was still recognized socio-culturally by the people of several areas and villages, the Sultan of Ternate accepted these Christian evacuees. This action was regarded as an attempt by the Sultan to protect the Christians, who, according to some Muslims, were responsible for the disturbances in many

19

For detail, please read Community Synthesis Report/ SMERU Field Report of Kampung Pisang



places. This caused the Muslims in the southern part of the City of Ternate to become angry and to unite in opposing the Sultan of Ternate. One area that they entered was Kampung Pisang. The conflict actually had no direct connection with the people of Kampung Pisang. Nevertheless, because of the location of this kelurahan in the middle of the city, it had become a crossing point between the northern and southern parts of Ternate. So even years ago conflicts between people from other areas often took place in Kampung Pisang. Another element suspected of causing the White-Yellow conflict to take place in Kampung Pisang was the fact that some of its residents were ethnically people from Tidore, which since olden times has been decidedly at odds with the Sultanate of Ternate. Since the days of the old kingdoms, Ternate and Tidore have never got along with each other. After the tense situation had continued for a couple of days, the conflict really erupted on the evening of 27 December 1999. As the residents began to evacuate, children, elderly people, women and mothers left the area at night on 26 December 1999. Some went to the kelurahan of Maliaro and others to Toboko, the island of Tidore and similar places. The fighting between the White group and the Yellow group took place around the boundary of Kampung Pisang. On 28 December 1999 the Muslims of South Ternate, commencing from Bastiong kelurahan, began to act to get rid of the Yellow group (that is, the Traditional Law Council supporters). The Golkar office, which was on the boundary of Kampung Pisang and was used by the Council as its base, was burned down by the masses. The Yellow group was then pushed back to the boundary of Kampung Makassar (the kelurahan that adjoins the “territory” of the Sultanate). By 5 o’clock on 29 December 1999 the White group had already surrounded the palace of the Sultan of Ternate, and all of the Yellow troops had been stripped (of both their weapons and their uniforms). They wanted to burn down the palace, but finally cancelled the plan because the Sultan of Tidore, the Sultan of Bacan and the Sultan of Ternate were all inside the building and announced that all damage and losses would be replaced by the Sultan of Ternate. Low Conflict Areas As shown in Table 5.2.2, there have been numerous tensions and conflicts in East Java. The present report looks at the three cases that people consider to have had the greatest impact on the life of community members. These cases are (1) the killing of practitioners of black magic, (2) the Muslimat conflict, and (3) the hijacking of fishermen’s vessels and nets. These cases, which stemmed from black magic, the management of local organizations and crime, reveal the range of conflicts in East Java,

The Killing of Practitioners of Black Magic in Palengaan Daja (1999)20

In 1999, a man and his wife were accused of being dukun santet, that is, practitioners of black magic, and were killed. Before the killings the local people had been restless because of the appearance of a strange sickness that had caused the deaths of several persons. In this sickness the body got hot, the stomach became swollen and the eyes lost their sight; then after one to two months of illness, the person died. The so-called dukun santet had often asked for assistance in the form of labor or goods, including chickens, and if the request was not met, the person concerned soon found that his stomach became bloated. The murder of the dukun santet has been a source of stress for the community, even though community members are still not really sure which, if any, residents were involved. Prior to the murders, community

20

For detail, please read Community Synthesis Report/SMERU Field Report of Palengaan Daja



figures had endeavored to quiet things down but because a lot of people were involved (the victims and their families), they were unable to prevent the killings.

21

The uncovering of the dukun santet started when a man, in a conversation with one of the local people, said that the death of a recently deceased person had been “requested” by someone who paid Rp30,000 for the death. This conversation was then passed on to other people. The community became restless and afraid. Relatives of the dukun santet’s victim held a meeting with some thugs (bajing) to plan the murder. This planning did not involve any other people such as the village head, the village officials or the kyai, because if plans had been reported to the village head or kyai, the latter would certainly not have permitted the murder, which took place very brutally one night. On the agreed day, the victim’s relatives and the thugs came to the dukun santet’s house. That night they killed the man by burning him. Before he was burned, he was hacked with machetes but since that was not successful, they finally tied him up and burned him. The thugs also burned down his prayer house (langgar). Since that incident, the police have often come to the village to talk with the kyai and the village head. They have also questioned people who lived close to the man. Then a month later the man’s wife was also killed by thugs, their excuse being that she had inherited a knowledge of black magic from her husband. Three years later the police arrested a thug from the community. He was cross-examined at the Pamekasan police station and put in jail for eight years. But some of the community members do not believe that the man who was put in jail was the murderer of the dukun santet. Their opinion was that friends of his had done the killings together as a noisy group. The Muslimat Conflict in Bulu

22

Muslimat is an Islamic religious group for women. This group is part of the NU (Nahdlatul Ulama) organization. It has a layered organizational structure, from the central or national level through the provincial, district and subdistrict levels down to the village level. The activities of Muslimat are not only religious in nature but also concern community affairs and finance (savings and loans). Muslimat is quite active in the village of Bulu. Before the conflict occurred, the number of active Muslimat members was 125. Routine activities were undertaken in turn in the homes of Muslimat members. The benefits that members of Muslimat obtain are not only of a religious nature but also include economic advantages. Among others is the availability of household credit, especially for women, assistance for the sick and the families of recently deceased persons, and free of charge, rent of plates, spoons, glasses, pots etc if members are organizing a party. Villagers also often borrow money to buy fertilizer. In addition, members can also save on a voluntary basis. According to Muslimat, if there was no Muslimat association, the villagers would lose out, because there is no other source from which to borrow goods or money.

For 20 years Muslimat in Bulu village was led by the same person. All funds that came in were accumulated and managed by the head. Seeing this, the head of Muslimat at the subdistrict level decided in 1999 to reform the management of Muslimat in Bulu. A direct election was then held with two candidates, namely the old head and her challenger. Finally, the new head was elected with a majority of the vote and the old head was replaced. After the election, the old head and several of her supporters refused to accept her defeat. She felt that the election had been carried out without following correct procedures. Ballot papers were given only to certain people (approximately 25 people) who were in favor of the new

21

In describing the incidents surrounding the killings, FGD participants became somewhat emotional

and each wanted to tell the story of what had happened.

22 For detail, please read Community Synthesis Report/SMERU Field Report of Bulu.



head, whereas there were lots of members in attendance who were not given papers. The old head and her supporters then established a similar group with the name ‘Alfirqatun’, which had a structure and activities that were almost the same as those of Muslimat.

The problem became increasingly serious due to the issue of members’ funds and inventory items. The two heads of the groups both felt that they had the right to this inventory. According to the new Muslimat head, the inventory items that should have been handed over to the new head were not surrendered and became the property of Alfirqatun. Meanwhile, the head of Alfiraqun said that at the time of the split, the inventory had been divided into two and the debts of the members of Muslimat who joined Alfirqatun were deemed to have been settled. The election almost developed into a carok

23 involving

husbands and sons and there were also several wars of words that reached as far as the village head. The situation between members became extraordinarily ridiculous. For example, some people went as far as fighting in the cemetery on the day of pengajian (Saturday). When the pengajian (or prayer meeting) commenced, the two groups approached and both of them used loudspeakers to swear at each other. Those who joined Alfirqatun would not allow their husbands to join NU, which meant that the husbands were no longer active in NU. Actually, it was not too much of an issue for members but it was the managers who had the problem. Even now, there is still no agreement and there is negative sentiment between the two heads. After two months of conflict, the seating at a wedding service still had to be separate for Alfirqatun and Muslimat members. The Hijacking of Fishing Boats from Branta Pesisir (2001 - 2004)

24

The fishermen of Branta Pesisir have experienced hijacking of their boats for many years but the problem reached a peak around 2003. In that year, incidents involving piracy happened about every one to one and a half months. They usually occurred at night, at around 9 or 10pm, especially if fishermen had gone to sea in an easterly direction, that is, in the vicinity of the island of Gili Raja, which is part of Sumenep District. It was already an open secret that the pirates were villagers from Gili Raja. These pirates usually threatened and terrified fishermen with sickles, knives and dynamite. They especially had their eye on the nets and engines of the vessels. These items were then taken to Gili Raja, where the owners had to pay if they wanted to regain their equipment. In most cases the pirates’ victims reported to the village head after returning to shore. The village head would then tell them to look for information in Gili Raja. The people of Gili Raja usually knew where the nets could be redeemed. Apparently everyone on that island had the same profession. The main point was that to redeem their nets, the victims had to go to Gili Raja. The pirated items had to be redeemed in only one day; if the owners were not quick enough, their property would be sold to someone else. After the victim had obtained the necessary information, he would meet directly with the hijacker. In Gili Raja the important thing is money. Owners could not bargain over the cost. For example, to redeem three nets could be up to Rp5 million, while the motor could require more than Rp10 million. It usually cost around 40% of the value of the item to redeem it. The fishermen of Branta even now do not resist if their vessels are hijacked and their nets taken. Nets that have been taken can be repurchased, whereas if the fishermen fight back and are killed or injured, the situation becomes more difficult. The people of Branta Pesisir have their own expression: “defeated to win, but not because we are cowards”. In addition, they also try to avoid areas where pirates are active, especially when it is the piracy season.

23

Carok (Madurese): a duel or fist fight to defend one’s honour.

24 For detail, please read Community Synthesis Report/SMERU Field Report of Branta Pesisir



For example, if the pirates are operating in the west, then that area is avoided and the fishermen head towards the east. Nevertheless, there are a lot of fishermen who still go fishing around Gili Raja because there are a lot of fish there. Recently there has been a change on Gili Raja. The ‘big fish’ (the pirates’ leader) has been arrested by the police, but although the teri-teri (members of the pirate group) still try to hijack vessels, they are not as clever as their leader. 2. The Impact of Conflict The White-Red Conflict This conflict caused great losses in the form of destruction of houses, kiosks, agricultural produce and livestock such as cattle and goats. The houses that were destroyed and burned, along with their contents, numbered between 175 and 700. On the whole, community members who evacuated did not have any chance to save their possessions; they took only the clothing that they were wearing. Schools, mosques and churches were also destroyed. Crops and plantations were destroyed. During the period of approximately three years that community members lived in evacuation in Ternate, all sources of livelihood in their village of origin ceased in actual practice to produce income. All the coconut, cloves, nutmeg and cocoa gardens, which had hitherto been the main source of income for the community, were neglected, destroyed or burned, or else their produce was taken by other people. The farmers were the people who suffered the greatest losses in this conflict. They found that their equipment was gone and during the period of tension those who remained were unable to go to their fields as they were afraid of being killed. Traders whose places of business and commercial commodities had been burned and whose stores of copra had been destroyed had to begin from zero again. The fishermen were in the same position because their boats had been destroyed, as were artisans like carpenters and bricklayers, whose tools had been damaged. In the year 2000 most children experienced malnutrition, while many got cholera, diarrhea or malaria because they ate inadequately, even though they received food from the government during evacuation. Children also had to go to school during evacuation. Meanwhile, those whose livelihoods were least affected, according to the community, were public servants because they still received their salaries during the time that they were in places of evacuation. The negative impact of the conflict in North Maluku can also be judged from the volume of commodity flows entering and leaving the port of A.M-26 Ternate, which is the main port in the North Maluku region. In 2000, the volume of goods entering (unloaded) experienced a decline of 14.5% compared with the year before the conflict (1999). During the same period, the volume of goods leaving (loaded) experienced a decline of 38.2%. In the fisheries sector, the conflict also had a serious impact because much of the fishing fleet was destroyed or lost. In 2000, the proportion of fishing vessels that were destroyed or lost reached 33.2%; it consisted of motorized vessels (10.2%), boats with outboard motors (28.1%), and non-motorized vessels (35.2%). As a consequence, open-water fisheries production at that time underwent a decline of 27.8%, from 51,342 tons in 1999 to 37,461 tons in 2000 (Maritime and Fisheries Office, District of North Maluku). One of the big fisheries companies that operate in North Maluku stated that for eight months their business activities practically stopped because their company office was converted to a housing location for displaced people. In addition, approximately 40% of the plasma

25 fishing fleet of

this company was damaged. As a consequence, the level of production in 2001-2002 fell dramatically, reaching only 1,000 tons per year or barely 18% of the 1999 production level. 25

Plasma: In this context, a fisherman who is part of a business production system where the output (the fish catch) is sent to the factory that provides the facilities and production costs.



Apart from the impact of the general decline in economic performance, the conflict also resulted in changes to several aspects of community economic activities. In the plantation sector, for example, many production centers, such as the subdistricts of Jailolo, Gane Timur and Ibu started to open a direct trading relationship with Manado and are continuing that connection even now. This development has reduced the flow of inter-island plantation commodities that are exported through the port of Ternate. Before the conflict, according to the estimate of one respondent, the flow of plantation commodities from North Maluku that were exported via Ternate reached approximately 80% of the total volume of trade, with the remainder exported from Tobelo and Sanana. After the conflict, this rate declined and it is still around 60% to 70%. Another impact of the conflict is that the trading relationship between Ternate and Kota Ambon has virtually ended. When people returned home after the conflict, the livelihoods that emerged were jobs as ojek drivers and drivers of public minibuses. Increasingly conducive security conditions, plus the factor of city expansion, meant that the need for transportation facilities grew steadily until scope was created for these two new occupations. With the increase in the number of ojek, motorcycle dealers were another group that profited greatly. Occupations that were considered to be profitable after the conflict included those of bricklayers and carpenters because these artisans rebuilt or rehabilitated houses and other buildings that had been damaged during the conflict. With the formation of the new district, their services were in great demand for the construction of district administrative offices. At the present time the situation between the Christian and Muslim communities is extremely conducive to good relationships, and friendships have returned to what they were before the conflict. Nevertheless, there are two trends in community opinions even now. The first view is that the Christian community was absolutely not involved in the burning or destruction of the Muslim community’s assets, which were left behind when the owners evacuated. The second view indicates that there is still a feeling of distrust towards the Christian group, a suspicion that the Christian group damaged the property of the Muslim community, and regret that the Christians did not protect the assets owned by local people. In this context, the community group that suffered the smallest losses was the Christian group. In view of the fact that they did not evacuate for long, members of this group are judged by respondents to have been able to increase their welfare even though the conflict was still taking place at the time. Up to 2002, relationships between the two groups (Muslims and Christians) were still tense. Improvements in the situation are thought to have been influenced or hastened by the 2003 establishment of the new administrative districts of North Halmahera and West Halmahera, which had previously formed part of the District of North Maluku. This new development caused the pulse of community life and dynamics to beat once again and encouraged people to forget the deep bitterness caused by the conflict. This was demonstrated when the establishment of district offices in Tobelo and Jailololed led to an influx of people to the area. This in turn led to a rise in the demand for the construction of office buildings, transport services, and for foodstuffs produced by the local people.

Soakonora At the time when the disturbances happened, the majority of people had no time to transport or save their possessions. “The things that were destroyed included approximately 600 houses, which were burned or wrecked, while three people in Soakonora village died and six others were injured” (Informant 1). “Some 700 households lost their homes in Soakonora village, while approximately 500 houses were damaged or burned” (Informant 5). “I myself lost my house and my tools while six cattle disappeared” (Informant 8). “My parents’ house was burned to the ground, their goats



were lost and everything else was damaged or lost” (Informant 7). Those who had the chance to save some of their possessions put important items into a sack and departed. “The people here are generally called the sack troop’ because they put their clothes and other goods into a sack and ran” (Informant 1). “The peak of the disturbances lasted for four days, then the jihad (holy war) troops came on the fifth day” (Informant 7). Usually villagers entrusted their land to a person who lived close by or to people who chose to remain and did not evacuate. Some men also lost their tools. Most crops were damaged. “The crops growing on the land were generally damaged because the two parties heard that there was someone trying to destroy them. Thus each party reciprocated” (Informant 1). “Among the two parties there were people who cut down each others’ trees” (Informant 4). A change in the pattern of leadership has occurred since the conflict. Villagers felt the former village head had a better morale than the current village head, who always makes decisions by himself, especially decisions related to aid. Another change can be seen in the villagers’ outlook, which has indirectly become more open from the presence of NGOs in the village. There is a feeling that the village is safe now: “In 2002 almost all of the Muslims who had evacuated returned home and by 2003 all had come back because the village was already safe” (Informant 8). Idamdehe Gamsungi

As a consequence of the conflict, Muslim villagers numbering around 30 families, or 100 people, did not return to the village to live. Instead, they went to live in another village located 13 kilometers from the Idamdehe Gamsungi. This group also lost their homes and livestock. Furthermore, relationships between individuals from the Christian group and members of the Muslim group (who no longer lived in the original village) deteriorated, even though some of them are related to one another. At the present time, there are 98 families living in the village, all Christians. 52 families (210 persons) are Protestants, while those who are Calvary Christians amount to 46 families or 188 persons. The conflict resulted in the deaths of two Muslims and three Christians, and one person was injured. In addition, 50 cows, 10 goats and thousands of chickens disappeared, one storage shed and several disc antennas were burned down and one public TV set was destroyed, as was a generator owned by the local church. Gorua

About 200 people died (80 persons from Gorua alone), while around 20 people were injured. The number who died was large because they had been gathered together in the mosque. About 168 families evacuated and even now have not returned. All property was destroyed, including approximately 764 houses. At the same time all school buildings were burnt down and hundreds of cattle were lost. These events also created profound trauma. “All school buildings were burnt down.” The impact of the conflict was extremely profound and caused trauma. “Children saw what happened and were traumatized. Children who could talk told their mothers: ‘Mum, don’t carry us on your back, because later they will kill us’”. “There are still effects, even now. When young men get drunk, they often shout and yell, making us experience a shock, because we are still traumatized”. Mothers and other women still feel tense even now. Until 2004 the men still felt afraid. They never slept at night, and if they did it was only ‘the light sleep of chickens’. As a consequence people had to remain in places of evacuation. In the year 2000 most children experienced malnutrition, while many got cholera, diarrhea or malaria because they ate inadequately, even though the government provided food aid. Children also had to go to school during evacuation. “When they returned to Gorua village, there were no school buildings standing but they still had to go to school. School started in March



2000, but there were no school buildings, so they attended school in Wari26

. In 2002 two barracks were built, and the community asked the subdistrict head to convert the buildings into schools. Children then started going to school”. Gura The impact of the conflict was the destruction of 175 Muslim houses and their contents, as well as the loss of hundreds of head of cattle and goats. Places of worship (mosques) and places of business (shops) were also destroyed. On the other hand, none of the assets belonging to the Christians group were destroyed. Two villagers died during the conflict, but they did not die in the fighting that took place in Gura. They died in Kampung Baru, approximately 10 km from Gura. These two people had moved from Gura to the village because they had married people from Kampung Baru. In general, the conflict that occurred in 1999-2000 did not have any influence on the configuration of local government, the participation of the community in the decision-making process or general relationships between members of the community. This was because the conflict was not one that involved the internal institutions of the village or the community of Gura. From the aspect of relationships between community members, the fact that the Christian and Muslim communities have been separated for approximately three years on the whole does not appear to have resulted in a tight segmentation of society. However, there were differences of community opinions with regard to the impact of this conflict.

The White-Yellow Conflict In the specific case of the White-Yellow conflict, the losses experienced by the people of Kampung Pisang were very great. Besides causing a loss of lives (three civilians and one policeman died) and the loss or destruction of houses (106 houses were burned down and 354 houses received light and heavy damage) and other property and forcing people to flee, this conflict also gave rise to deep trauma. For some people the trauma is still present, even today. In the social field the conflict also caused community and family relationships to become strained. At the time of this conflict, economic activities in the City of Ternate virtually stopped completely and the wheels of government, too, stopped turning, for all government offices were closed. According to informants, this situation continued for almost a month. The Killing of Practitioners of Black Magic The community had already been feeling stressed since 1994 as a consequence of the issue of black magic. People were frightened because several people had died and their deaths were suspected of being due to black magic. Before the dukun santet were killed, the community felt restless and people were afraid if the dukun santet asked them for money or the loan of money. Even after the killings people still felt nervous because security officials often came and interrogated the local people about the murderers and the motives for the killings. After the man concerned and his wife were killed, the community and the relatives of the dukun santet’s victims were by no means free from anxiety. They were now scared that the two might become ghosts of some kind. Nevertheless, people can now work more comfortably and more calmly.

There was no source of livelihood that was put at a specific advantage or disadvantage by the killings. No one became more prosperous because the dukun santet had been killed; people went about their work as usual but were no longer afraid of being affected by black magic. Everyone gained because there were no longer any disturbances and nobody became sick like the alleged victims black magic. Also, the conflict did not affect economic opportunities for the local people.

26

A nearby community in which the majority are Christians



At the same time relations among local residents did not alter because of the tension that had occurred. After the deaths of the dukun santet, people living in the surrounding area took part in a tahlilan

27 for the dead persons.

Since the incident of the killings the local people have found it easier to contact the village government because the community is getting more courage in meeting the village head and the subdistrict head (camat) and at the same time the level of knowledge among the community is steadily rising. The Muslimat Conflict The conflict within Muslimat brought the group’s activities to a halt, including members’ savings and loans activities. Members were the victims, because the inventory items could not be provided at the time of the conflict. Many members of Muslimat joined Alfirqatun, which retained the inventory, because they had cash and inventory items. The conflict in Muslimat was not just a question of the position of head. There was also interest in the cash and inventory items that had been collected from members during the twenty-year leadership of the original head, because the inventory and cash were not given to the new manager of Muslimat but were retained by the new group (Alfirqatun). Apart from the impact on the villagers’ source of credit, the Muslimat conflict also had an impact on the villagers’ economic affairs. People’s freedom to manage the economy was disturbed because they were busy looking for members. At that time, villagers could receive money or rice if they joined Alfirqatun, which wanted to find members, although private money was used to attract them. The impact of the Muslimat conflict also caused strained relationships within families. For example, women who joined Alfirqatun would not allow their husbands to remain in NU so the husbands were no longer active in that organization. After two months of conflict, the seating for Alfirqatun and Muslimat guests at a wedding service was kept separate, indicating that the women still could not sit together, even in communal activities in the village. For more than six months there was a cold war between the two groups. The Hijacking of the Boats The fishermen whose boats were hijacked, followed by the fish traders, experienced the greatest impact from the hijacking. The fishermen lost their livelihoods because of the loss of their fishing equipment and the cost of redeeming it. Finally they could not go fishing. This had a further impact in the fact that the fish traders had no fish to sell. Before the hijacking problem, the fish catch had been abundant. Nevertheless, the fishermen are still following their profession and they have not been influenced to change jobs. The people who were definitely not affected by the conflict were groups who had fixed incomes, like public servants. The problem did not benefit any particular group in the village. The hijacking problem did, however, change relationships between villagers. Villagers became more intimate because the people who lost their nets often held a berembuk (community consultation) to look for a solution. Women’s groups say that now the villagers find it increasingly easy to participate in important decision-making, because they were more often involved in meetings in the period of the hijackings. The response of the fishermen to protect themselves from hijackings was to shift to another fishing location. They understood that success in protecting oneself from piracy depended on the speed of their boat. Those who were most successful were the fishermen who had boats with fast engines because they could escape quickly from the pirates. Fishermen with weak engines could not escape.

27

A gathering of people to pray for a person who has just died.



3. Conflict Resolution The White- Red Conflict Restoration after the conflict commenced in mid 2001. Generally, settlement of the conflict involved village heads, community and religious figures, local governments at the district level, the police and the military and was undertaken in different ways in each community. The local governments also involved NGOs as facilitators. In 2002, the people who had evacuated were brought back to their own respective communities. After that, the government provided assistance that included BBR (Bantuan Bangunan Rumah or Assistance with Housing Materials) and also money for daily necessities and house construction, as well as Raskin (rice for the poor), agricultural inputs and capital, poultry (chickens), boats, revolving funds, and other items. In several communities there was also help from the international community and NGOs in the form of school buildings, MCKs (Mandi Cuci Kakus or bathing, washing and sanitation facilities) and the like.

Soakonora

The security situation at the present time is good and conducive to peace. People can run their businesses and go about their activities. Post-conflict restoration commenced in mid 2001. “By the middle of 2001 interaction had already begun, for example, we were able to send letters to each other, from people in Jailolo and relatives in Ternate. The peak was the tree-planting ceremony to indicate peace, conducted by a group of people who were known as the Team of 30. It consisted of 15 Muslims and 15 Christians. The ceremony was facilitated by the government and the subdistrict-level Sector Police from Jailolo” (Informant 1). Members of the community also began to improve their spiritual life “because they realized that whatever happened, it had already been decreed by God” (Informant 2). Community activities also have recommenced. The institutions that played a part in the post-conflict period included the village and the regional governments, which had a role in the registration of people, and the Army and the police, whose role included provision of a transportation fleet and an escort for evacuees returning to their village of origin. The Social Affairs agency played a role in distributing assistance to the evacuees in the form of both money for daily expenses and housing materials, while religious figures, youth groups and several NGOs played a part in helping with registration and in passing on assistance to the community. At the time of the demonstration over land, university students helped by providing suggestions. The parties who were most effective in settling the conflict were religious figures, community figures, the subdistrict government and provincial officials, who acted in an individual capacity as persons from the political parties, while traditional community figures also assisted. The things that helped the people to obtain a source of livelihood or to work at earning a living during this time were the existence of will power and aid. There was assistance from PPK, while CARDI (an international NGO) helped with the installation of water and bathrooms (MCKs) and Karang Taruna (a young people’s organization) gave social assistance for businesses that were operating but were not under control, which enabled them to become personal businesses. Gorua The post-conflict restoration process was initiated through an agreement known as the ’Hibualamo Declaration’. The Acting Governor attended the signing of this declaration, as did community figures from Tobelo and Muslim and Christian community figures. During the process there were clauses in the declaration that some people, especially the Muslims, did not agree with. Then they received support from a village head who was a Christian, so



the declaration was not signed. One of the points that was rejected was point 11: the return home of the evacuees must be done in stages and collectively, and must include only people who originated from Tobelo, while those who could not yet return consisted of the Nabiu family and people who ethnically had originated from Tidore, Makian and Makassar (Buginese), and from Java. The reason for refusing to sign was that the Nabiu family had originated from Tobelo and so could return. After the wording was changed to read that the return of the evacuees must be done in stages and collectively and that everyone could return, an agreement was finally reached. While shedding tears, they put down their weapons and fighting equipment, then swore (bobeto) that a large snake would swallow anyone who went into the forest, or whoever went to the sea would be consumed by a large fish.

The White-Yellow Conflict The Sultan of Tidore, the Sultan of Bacan and the Sultan of Ternate met together in the palace of the Sultan of Ternate and tried to resolve the conflict. Finally they agreed that all damage and losses caused by the Traditional Law Council would be replaced by the Sultan of Ternate. Even so, because this conflict was related to a long-standing quarrel in which the Sultanates of Ternate and Tidore have never got along with each other, it is suspected that the present settlement will be only temporary. The Killing of the Practitioners of Black Magic As mentioned above, the police have often come to the village to talk with the kyai and the village head since the incident of the murders. They have also questioned people who lived close to the man in question. Three years later the police arrested a thug from the community. He was cross-examined at the Pamekasan police station and put in jail for eight years, even though some of the community members did not believe that the individual who was jailed was the murderer of the dukun santet. They are of the opinion that it was friends of his who did the killings together as a group. In this case those who played the greatest role in resolving the conflict were the kyai, community figures and the security apparatus (police and military). The men’s group took the view that the thugs (bajing), who originated from other villages and who were suspected of also taking part in the planning of the killings, had a role in resolving the conflict, even though some did not agree.

28

The Muslimat Conflict The institution that played an important role in resolving the conflict was the village administration. One member of Muslimat called on the village to handle this problem. Then the village head summoned the two groups to agree on a schedule to discuss the problem without humiliating each other. Finally, Saturday night prayer activities were cancelled by the village head and the two groups were not allowed to hold pengajian on Saturday night. In the end the village conducted a lottery to determine days for pengajian. Muslimat members were allocated Sunday night and Alfirqatun members Wednesday night. Since then the two pengajian have been operating smoothly. Even so, there are still two different opinions about the situation. First, some people feel that at the present time the situation is peaceful and many of the Muslimat members have also joined Alfirqatun and vice versa. Secondly, at the some people are still trying to create problems out of this conflict because they feel the situation regarding the member funds is not halal. Even now there is still tension. The village authorities, who people feel cannot make a fair decision, have still not resolved the inventory problem. The researchers observed that the conflict over the Muslimat group is sometimes

28

The community makes a distinction between ‘good’ thugs or bajing tulen, who are respected by the community because of their experience (even though that experience is also connected with criminality) and their ability to protect the community, and outright thugs or jing-bajingan, who commit a variety of small crimes (for example, theft) and cause unrest within the community.



still the topic of villagers’ conversation. In general, the relationship between the two groups is good and the activities of these two groups are functioning normally. The Hijacking of the Boats Because the criminal element is more prominent in this conflict, the solution that was adopted involved capturing the pirates. The police arrested the ‘big fish’ (the pirates’ leader). It would seem, however, that the capture and arrest of the pirates’ leader did not really settle the matter because there are teri-teri or small fish (other members of the pirate group), who still attempt to hijack vessels. Other conflicts On the whole communities in low conflict areas help each other if there are disputes between villagers that are categorized as ‘family matters’. These actions are also referred to as ‘a social effort’ or ‘an effort in solidarity’. If disputes continue, they try to settle the matter through a religious approach, that is, through the kyai. In more serious matters the community requests the help of the village head and the police. But some people feel that if a problem is taken directly to the police, it will become more complicated and difficult to solve because the police will ask for money. Where women have quarrels with their husbands, the solution is usually undertaken in stages, starting with the husband and then his parents and/or family. If the family cannot resolve the problem, the woman can take the matter to community leaders and the village head. If the quarrel is with a neighbor, however, the matter is taken to the village authorities or the village head. If women encounter a problem, they usually resolve the matter within the family. If it cannot be settled, it is usually passed on to the head of the hamlet, a traditional law authority or a religious leader. Quarrels between women are not normally regarded as a big issue. Meanwhile, if quarrels break out among young men, they are usually settled by the leaders of the youth groups. If they cannot be solved in this way, those concerned seek the help of parents, the traditional head or the church. There is generally a youth leader in both the Christian and Muslim groups who can solve conflicts. Disputes concerning young people usually need to involve young community figures and the village head in their resolution. An approach through prominent youth figures is very successful. The qualities of the youth leader are trusted and all parties are mutually respected.

Branta Pesisir

A number of mosques in the village provide talks and religious advice. The community in this village is very obedient when it comes to religion. If there is a serious problem, such as the hijacking of the fishermen’s vessels, the villagers report the matter to the village head and the police. The approach to conflict resolution that is felt to be most credible and fair is through community consultation (musyawarah) involving prominent figures in the community.

In high conflict areas, whenever the community faces a difference of opinion, the usual way to settle the matter is by getting rid of mutual envy, because there are many cases of dispute and misunderstanding. Normally, such cases are taken to the community head or to religious leaders. They rarely involve the security apparatus since the community head can normally solve the problem. 4. Public Security

All community leaders and informants in all sample communities in both low conflict and high conflict areas said that at the present time the situation is either moderately or very peaceful. Community figures also confirmed that in general people feel moderately safe from



crime and violence if they are alone at home. People feel the same if they are walking along a street alone after dark. This situation is the same as it was 10 years ago. In areas of high conflict criminal actions still happen frequently and have in fact shown a tendency to increase over the past 10 years. The main ones are theft and drunken behavior, which leads to an uproar due to excessive consumption of alcohol. Thefts are common on farms; coconuts are stolen and so are cattle. In the last two years, thefts have been occurring frequently; before the conflict they were rare, but there have been many cases since the disturbances. In 2004, thefts happened everywhere. Meanwhile, the other crimes that have tended to increase in number over the past 10 years include fraud, gambling, the use of narcotics and robbery. In these areas the community is also disturbed by the habit of drinking alcohol to the point of drunkenness, which influences the welfare of both the community and the individual. The following tables (Table 5.2.3 to 5.2.7) give details of the scale and trends in the number of crimes mentioned above. The attempts made in low conflict areas to protect community security vary from place to place. Some communities have made no routine efforts, except in the case of special events. Civil defense volunteers (hansip) are activated for occasions such as elections for the Village Representative Body (BPD), for village head and for national president. In some communities the village head instructs the heads of the RWs (hamlets) and RTs (neighborhoods) as well as prominent figures, ulama and organizational figures to give suggestions to community members on vigilance and security. Other communities have established the systems known as siskamling (sistem keamanan keliling or mobile security system) and poskamling (pos keamanan lingkungan or neighbourhood security post) in every RT or RW. The Bulu community relies very much on the poskamling system and took part in a poskamling contest, in which it represented the police sector (Polsek) of Kraksaan in May 2005. Having won this contest, members of the community are now preparing to enter the poskamling contest in the police district (Polwil) of Malang. Other communities hold an open discussion and establish cooperation among hamlet residents and between villages as an approach to maintenance of security. In Palengaan Daja, however, people can hire local thugs (bajing or preman) to take care of security. On the whole, in areas of high conflict there are no special efforts at the present time to maintain security, and guard duties are not carried out in a routine manner because the situation is now safe. Even so, local people in some communities now make efforts to maintain public security through the introduction of civil defense officials (hansip) and siskamling. In one village, there is siskamling in each neighbourhood but it is done only occasionally and not in turn. In another village, two civilian guards are paid by the village office, while patrolling is done by ten people in turn. In this village five steps have been taken to maintain security: measures within the family, civil defense, community patrolling, neighbourhood head responsible for the neighbourhood area, and a bell or security post. At the time of the conflict, community members carried out an extremely tight system of guard duty. In one place village officials set up a group of watchmen every night, with 10 to 15 men on guard at special posts. Since the conflict this approach has not been undertaken again. In another village the steps originally intended to protect the surroundings consisted of nightly rounds, which were no longer carried out in 2000 due to the outbreak of the conflict. The system was introduced again in 2003. Security attempts, felt to be the most successful of all approaches, have also been made by a Christian religious group and are known as Gemusbha.



Table 5.2.3. Frequency of and Trends in Theft and Fraud during the Past 10 Years

Frequency of occurrences during the past 10 years

Trends during the past 10 years Community

Theft Fraud Theft Fraud


Palenggaan Daja 3 (F) 3 (F) 2 (F) 1 (F)

Semampir n.a. n.a. n.a. n.a.

Bulu 3 (F) 5 (F) 3 (F) 2 (F)

Banyupelle 4 (F, M) 5 (F, M) 3 (F, M) 2 (F, M)

Branta Pesisir 4 (F) 4 (F) 3 (F); 2 (M) 3 (F)


Soakonora 2 2 2 2

Idamdehe Gamsungi 5 5 2 2

Gorua 2 2 2 2

Kampung Pisang n.a. n.a. n.a. n.a.

Gura 2 5 3 2

Source: Community Synthesis Reports Frequency: 1=very often; 2=often; 3=not often but not rarely; 4=rarely; 5=almost never/never (hardly any) Trends: 1= increasing; 2= the same; 3= declining

Table 5.2.4. Frequency of and Trends in Gambling and Alcohol Consumption during the Past 10 years



Gambling Alcohol Gambling Alcohol




Bulu 4 (F) 3 (F) 3 (F) 3 (F)

Banyupelle 4 (M); 3 (F) 5 (F, M) 3 (F, M) 2 (F, M)

Branta Pesisir 4 (F); 3 (M) 4 (F) 3 (F) 3 (M)


Soakonora 2 1 2 1


Gorua 3 1 1 2


Gura 4 1 3 3 Source: Community Synthesis Reports Frequency: 1=very often; 2=often; 3=not often but not rarely; 4=rarely; 5=almost never/never (hardly any) Trends: 1= increasing; 2= the same; 3= declining



Table 5.2.5. Frequency of and Trends in Robbery and Assault during the Past 10 Years



Robbery Assault Robbery Assault




Bulu 5 5 2 2

Banyupelle 5 (M) 5 (M) 2 (M) 2 (M)

Branta Pesisir 4 (F) n.a. 3 (F) n.a. High Conflict (North Maluku)

Soakonora 4 5 1 3


Gorua 4 (2, during the conflict)

4 1 3


Gura 5 4 2 3 Source: Community Synthesis Reports. Frequency: 1=very often; 2=often; 3=not often, but not rarely; 4=rarely; 5=almost never/ never (hardly any)

Trends: 1= increasing; 2= the same; 3= declining

Table 5.2.6. Frequency of and Trends in Prostitution and Sexual Harassment/Rape

during the Past 10 Years



Prostitution Sexual harassment/rape

Prostitution Sexual harassment/rape




Bulu 5 5 2 2

Banyupelle 5 (F, M) 5 (F,M) 2 (F,M) 2 (F,M)

Branta Pesisir 4 (F); 3 (M) 4 (F) 3 (F) 3 (M)


Soakonora 5 5 3 3


Gorua 5 5 2 2


Gura 5 5 2 2 Source: Community Synthesis Reports Frequency: 1=very often; 2=often; 3=not often but not rarely; 4=rarely; 5=almost never/never (hardly any) Trends: 1= increasing; 2= the same; 3= declining



Table 5.2.7. Frequency of and Trends in Black Magic, Murders and Carok during the Past 10 Years


Trends during the past 10 years

Community

Santet (black magic) and murders

Carok

(duels) Santet (black magic)/murder

s

Carok

(duels)




Bulu 2 n.a. 3 N.a.

Banyupelle 4 (F); 5 (M) 4 (F) 2 (F, M) 3 (F)

Branta Pesisir 4(F); 3 (M) 4 (F) 3 (F) 3 (M) High Conflict (North Maluku)

Soakonora 5 (2, during the conflict)

n.a. 3 n.a.

Idamdehe Gamsungi 5 n.a. 2 n.a.

Gorua 5 (2, only during the conflict)

n.a. 3 n.a.


Gura 5 (during the conflict)

n.a. 2 n.a.

Source: Community Synthesis Reports Frequency: 1=very often; 2=often; 3=not often but not rarely; 4=rarely; 5=almost never/never (hardly any) Trends: 1= increasing; 2= the same; 3= declining C. SUMMARY OF THE ECONOMIC CHANGES, CONFLICT, AND

COMMUNITY MOBILITY

After discussing in detail several economic factors and conflicts that have possibly impacted on community prosperity during the last 10 years (1995-2005), this section summarizes the changes in economic factors and is supplemented by the conflict factors that have probably impacted on community prosperity. Table 5.3.1, Table 5.3.2 and Table 5.3.3 present the summary of the change in these factors in each community, in connection with the prosperity of each community that is based on indexes and the men’s and women’s FGDs.



Table 5.3.1. The Measurement of Economic Factors and Conflict

Indicators and Factors Measurement Explanation of the Measurement

Community Prosperity

0 No change

+ Change of up to +25%

++ Change between +26% to +50%

Assets Ownership:

Land, cattle, house, motorcycle, color TV, and electricity (Between 10 years ago and now) +++ Change of > +50%

Factors:

Infrastructure:

0 None now or 10 years ago

1 Exists now and 10 years ago

+ Exists now but did not 10 years ago

Presence of infrastructure Presence of private employers

Public works projects employing residents - Does not exist now but did 10 years ago

+ Formerly bad, now alright

++ Formerly bad, now good

+++ Formerly alright, now good

++++ Formerly good, now very good

1 Formerly and now good

Quality of social infrastructure

2 Formerly and now very good

Market access:

+ Proportion of who receive fairs prices increase

0 Proportion of who receive fairs prices the same

- Proportion of who receive fairs prices decline

Always receives fair prices/ Sometimes receives fair prices

-- The proportion much decline

Work Opportunities:

- More difficult (to 50 % respondent)

-- More difficult (50-75% respondent)

--- More difficult (> 75% respondent)

+ Easier (to 50 % respondent)

Obtaining work with a private employer (Household survey)

++ Much easier (50-75% respondent)

++ Very difficult then, not so hard now

+ Very difficult then, somewhat difficult now

-- Somewhat difficult then, not so hard now

5 Now and then somewhat difficult

Obtaining work with a private employer (Informants)

2 Now and then fairly easy

More More economic opportunities

The same The same economic opportunities

Economic opportunities

Fewer Fewer economic opportunities

+ Easier: answered by > 25 % respondents

0 Easier: answered by 15-25% respondents

Establishing a business

- Easier: answered by < 15% respondents

0 None The impact of conflict

----- Very bad



Table 5.3.2. Summary of Economic and Conflict Factors in Low Conflict Areas

Community Prosperity/ Factors

Palengaan Daja

Semampir Bulu Banyupelle Branta Pesisir

Low Conflict

*

Community Prosperity

Summary Indexes:

NPI 0.82 0.66 0.50 0.48 0.04 0.50

MOPI 0.00 0.42 0.17 0.05 0.19 0.17

NPP 0.87 0.77 0.64 0.48 0.49 0.65

NPR 0.00 -0.13 -0.45 0.29 -0.09 -0.08

FGDs:

- Prosperity (Men) The Same The Same More Less More S/M

- Prosperity (Women) More More More Less More More

- Making a living:

- Men Harder Harder Harder Harder Harder Harder

- Women Harder Easier Harder Harder Harder Harder

Asset Ownership:

- Land (0 ha) - - - 0 + -

- Land (1ha) + + - - 0 +/-

- Land (>1ha) - + + + - +

- Cattle (1-5 cattle) + + + 0 + +

- House + + + + + +

- Motorcycle + + + ++ + +

- Color TV ++ + + ++ ++ ++

- Electricity + + + + 0 +

Factors:

Infrastructure:

Physical:

- Electricity 1 1 1 1 1 1

- Clean water 1 1 1 1 1 1

- Telephone + 1 + 1 + +

- Bus terminal 0 0 0 0 0 0

Social:

- Elementary school 1 1 1 1 0 1

- Junior high school + 1 0 + 0 +/0

- Senior high school 0 1 0 0 0 0

- College, university 0 1 0 0 0 0

- Community center 0 1 0 1 + 1/0

- Public clinic + 0 + 1 0 +/0

- Private clinic 0 1 + 0 0 0

- Doctor 0 1 1 + 0 1/0

- Nurse + 1 1 1 - 1

- Quality of education 1 ++++ +++ 1 1 1/+++

- Quality of health care 1 2 1 1 1 1

Information:

- Access to national TV 1 1 1 1 1 1

- Access to national radio 1 1 1 1 1 1

- Access to national newspaper 0 + 1 0 1 1/0

- Access to public phone + 1 + 0 + +

Market access:

- Availability of market outlets

0 1 0 0 1 0

- Always receive fair prices + + - -- + +

- Sometimes receive fair prices

- - + - -- -

Note: * average common pattern experienced in 5 communities in this area.



Community Prosperity/ Factors

Palengaan Daja


Low Conflict*

Work opportunities:

Obtaining work with a private employer: - Household survey -- - - --- --- --

- Informants +++ -- + 5 2

Presence of private employers

+ + 1 0 1 ++/1

Public works projects employing residents

+ 1 + + 1 +


- Men More Fewer More The same More More

- Women Fewer Fewer More Fewer More Fewer

- Access to agric. credit -- 0 - - + -

- Access to agric. inputs -- 0 + - n.a. -

- Technical support - - - - - -

- Establishing a business - + + 0 + +

The impact of conflict

0 0 0 0 0 0

As was analyzed in Chapter IV, all areas have a positive NPI, where the NPI in low-conflict areas are higher than the NPI in high conflict areas. NPI captures net upward mobility in a village; it shows whether the share of upward movement was greater than the share of downward movement. Although FGD participants did not always agree on an enhancement to prosperity in their community, NPI and asset ownership indicates the existence of an improvement in prosperity in all communities. Assets ownership, in particular, was referred to by respondents with an increased ownership during the last 10 years of land less than 1 ha, houses, motorcycles, color TVs and electricity. It can also be concluded that higher conflict areas experienced a higher movement out of poverty than low conflict areas for there main reasons: (1) high conflict areas benefited from government programs in the post-conflict period; (2) high conflict areas enjoyed the development of new districts; and (3) farmers enjoyed and received fair prices for their produce more often. In high conflict areas people grow established, annual export commodities, while those in low conflict areas grow seasonal commodities that require a high financial outlay and are dependent on good weather conditions for crop success or failure.

Table 5.3.2 and Table 5.3.3 show that the main economic factors which were predicted to affect community mobility in both areas in the past 10 years, which is showed by (+) sign, in general are:

(1) Presence of telephone and access to public telephone; (2) Access to national newspapers; (3) Improvement of education quality; and (4) People always receive fair prices.

In both areas, there are other economic factors that are believed to have influenced community prosperity in fact there is little inter-regional difference. For example, on the issue of social infrastructure, the presence of schools in high conflict areas is at the junior high school level, while in low conflict areas it is at both the junior and senior high school levels simultaneously. It is a similar situation with health facilities, in low conflict areas there are public clinics, while in high conflict areas there are both public and private clinics.



In low conflict areas in particular, the presence of private employers and public works projects employing residents have influenced community prosperity, while this factor did not arise in high conflict areas. This indicates that few private employers have invested in high conflict areas.

Table 5.3.3. Summary of Economic Factors and Conflict in High Conflict Areas

Community Prosperity/Factors

Soakonora Idamdehe Gamsungi

Gorua Kampung Pisang

Gura High Conflict*

Community Prosperity:

Summary Indexes:

NPI 0.40 0.38 0.33 0.29 0.06 0.29

MOPI 0.43 0.68 0.16 0.42 0.20 0.38

NPP 0.43 0.85 0.37 0.46 0.20 0.46

NPR 0.40 0.05 0.00 0.11 -0.23 0.07

FGDs:

- Prosperity (Men) More More Same/ Less

More Less More

- Prosperity (Women) More More More Less Less More

- Making a living:

- Men Easier Easier Easier Harder Easier Easier

- Women Easier Easier Harder Harder Harder Harder

Asset Ownership:

- Land (0 ha) - - - - 0 -

- Land (1ha) + + + + 0 +

- Land (>1ha) - + 0 - 0 0

- Cattle 0 - - - + 0

- House + + + 0 + +

- Motorcycle + + + + + +

- Color TV ++ + +++ + +++ ++

- Electricity +++ + ++ +++ + +++

Factors:

Infrastructure

Physical:

- Electricity 1 1 1 1 1 1

- Clean water 1 1 1 1 1 1

- Telephone + + 0 1 1 +/1

- Bus terminal 0 0 0 0 0 0

Social:

- Elementary school 1 1 1 0 1 1

- Junior high school - 0 1 + 1 1

- Senior high school 1 0 + - 0 0

- College, university 0 0 0 + 0 0

- Community center 1 1 0 0 0 0

- Public clinic 0 + 0 0 0 0

- Private clinic 0 0 0 0 0 0

- Doctor 0 0 0 + 1 0

- Nurse 1 1 1 - 1 1

- Quality of education + 2 + +++ 1 +

- Quality of health care ++ 1 +++ 1 1 ++/1

Information:

- Access to national TV + 1 1 1 1 1

- Access to national Radio 1 1 1 1 1 1

- Access to national newspaper

+ 0 + + + +

- Access to public phone + + 0 1 + +

Note: * average or common pattern experienced in 5 communities in this area






Gura High Conflict*

Market Access:

- Availability of market outlets

0 0 0 0 0 0

- Always receive fair prices

+ + - ++ + +

- Sometimes receive fair prices

- - - -- + -

Work opportunities:

Obtaining work with a private employer

- Household survey - ++ - -- - --

- Informants 5 2 na 5 2

- Presence of private employers

0 0 0 0 0

Public works projects employing residents

1 0 + 1 0 0/1


- Men More More More The same More More

- Women More The same More More More More

- Access to agric. credit 0 + na na 0

- Access to agric. inputs - + + na 0 +

- Technical support 0 + ++ na 0 +

- Establishing a Business - - - - - -

The Impact of Conflict ----- ----- ----- ----- ----- -----



VI. LOCAL FACTORS THAT CAUSE VARIATIONS IN COMMUNITY MOBILITY

As already stated in earlier chapters, this study uses the empowerment approach, with its domains of institutional climate and social and political structures, both of which are the elements of opportunity structure, individual and collective assets and capabilities. The first two elements, which are also called local factors, will be discussed in this chapter. They are broken

down into four sections, namely: (1) social stratification and social capital, (2) local democratic functioning, (3) local governance functioning, and (4) the interaction among local factors and the importance of community mobility. Before these sections are discussed, the theories relevant to these local factors will be stated again in the context of providing a better understanding for the discussion that follows.

Institutional climate According to Narayan (2005),

1 the institutional climate creates incentives for action or

inaction. Key formal institutions include the laws, rules, regulations and implementation processes upheld by states, markets, civil society and international agencies. Informal institutions include norms of social solidarity, superiority, social exclusion, helplessness and corruption, which can subvert formal rules. The rules, regulations, processes and actions of states are very

important in creating the conditions in which poor people and other actors make decisions. In reality, the impetus for changes in state regulations often emerges because of the on-the-ground experiences of civil society or the private sector. The four elements that must underlie institutional reform are access to information, inclusion and participation, accountability, and local organizational capacity. Access to information: Information is power. Two-way information flows from government to citizens and from citizens to government are critical for responsible citizenship and responsive and accountable

governance. Informed citizens are better equipped to take advantage of opportunities, access services, exercise their rights, negotiate effectively, and hold state and non-state actors accountable. Critical areas include information about rules and rights to basic government services, about state and private sector performance, and about financial services, markets and prices. Information and communication technologies often play a pivotal role in broadening access to information.

Inclusion and participation: An empowering approach to participation treats poor people as co-producers, with authority and control over decisions and resources devolved to the lowest appropriate level. Inclusion of poor people and other traditionally excluded groups in priority setting and decision-making is critical to ensure that use of limited public resources reflects local knowledge and priorities, and to build commitment to change. In order to sustain inclusion and informed participation, however, it is usually necessary to change rules, rights and processes to create space for people to debate issues, participate in local and national priority setting and budget formation, and access basic and financial services. Accountability: State officials, public employees, private providers, employers and politicians must be held to account, making them answerable for their policies and actions that affect the well being of citizens. There are three main types of accountability mechanisms. Political accountability of

1 Chapter I: Conceptual Framework and Methodological Challenges.



political parties and representatives takes place increasingly through elections. Administrative accountability of government agencies is enforced through internal accountability mechanisms, both horizontal and vertical, within and between agencies. Social or public accountability mechanisms hold agencies accountable to citizens and can reinforce both political and

administrative accountability. Local organizational capacity: This refers to the ability of people to work together, organize themselves, and mobilize resources to solve problems of common interest. Organized communities are more likely to have their voices heard and their demands met than communities with little organization. When membership-based groups unite at higher levels, they can gain voice and representation in policy dialogues and decisions that affect their well being. Government rules, procedures, and resources

that support civil liberties – for example, by guaranteeing the right to form independent associations and unions – provide an institutional climate in which such organizations can flourish. Social and political structure Societies are always stratified to a greater or lesser degree, whether they are open or closed,

inclusive or exclusionary, cooperative or conflicting. When social structures and social cleavages are deep and systemic, opportunities and access to services are determined less by individual characteristics than by a culture of inequality that discriminates against and excludes entire social groups (Tilly 1999, in Petesch, 2005). The more powerful groups control the entry and exit options of the less powerful and prevent or limit their participation and voice in economic, political, and social life, often along ethnic lines. While those who “belong” benefit, the unequal access to power based on ethnicity can generate conflict (Bates 1999; Varshney 2003a; Weiner 2001, in Petesch, 2005). A. SOCIAL STRATIFICATION AND SOCIAL CAPITAL

1. Social Stratification

Social stratification is interpreted as a system of layers or tiers that divides members of the

community into several strata (Fitriyah, 2006). In the past social stratification in Indonesia was frequently linked with ancestry. An aristocrat who was poor and uneducated still occupied a high position in the prevailing social system, whereas a rich or well-educated person who was not of aristocratic origin would have a lower place in the system. In some parts of Indonesia social stratification based on ancestry still exists. Now, however, with the developments that have taken place in knowledge and with progress in technology, social stratification is not always

related to social origin but is often linked to community position, employment, power, ownership of rights, education and wealth as well as the possession of assets. Social stratification based on ancestry is of a closed nature in the sense that a person cannot move up to a higher level if he is not of aristocratic origin. Social stratification based on education and wealth is more open because a person can move to a higher level, provided that

he improves his education or increases his wealth. The conditions for social stratification are context specific. Apart from economic differences, ethnic and religious distinctions may indicate significant social stratification in one community but not in another. In some parts of Indonesia social stratification is based not just on one dimension such as economic position but also on other dimensions like religion and ethnicity;

sometimes, too, it is a combination of two or three of these dimensions.



At the time of the present research the concept of social stratification was not given major attention and hence data on social stratification are relatively limited. For that reason the understanding of social stratification in the sample communities has been deduced from the information and data that are available. This includes grouping or categorization of data that

were given labels at each level, which in this case is indicated by the Ladder of Life. In addition to labels, participants in FGDs also gave the characteristics of each level or layer. An examination of the levels produced in the Ladder of Life (LoL) discussions reveals that the characteristics of each reflect mainly the economic dimension. Since it would seem that existing social stratification is actually economic stratification, the main discussion of social stratification in this report will be based on that type.

The number of steps in the ‘Ladder of Life’ (LoL) indicates the social stratification in all sample communities. According to the men’s groups in areas of low conflict, economic stratification has three or four layers or steps on the ladder, whereas the women’s groups identified more economic layers (five to six strata). In areas of high conflict, the women’s groups identified five to six layers, whereas the men’s groups identified four to eight layers or strata. The opinions of the two

groups reveal that the social structure, if seen in economic terms, is slightly more stratified in areas of high conflict than in areas of low conflict. The indicators used by the majority of communities in identifying social stratification based on economic aspects are as follows: 1. Income generating activities: occupation, type of employment.

2. Ownership/availability of assets: house, land, livestock, motorcycle, jewelry, vehicle, house appliances, telephone, television, and other electronic equipment.

3. Type and/or condition of housing. 4. The extent of children’s education (the ability to educate children to a certain level of

schooling). 5. Access to food/nutrition.

6. Health conditions and access to health treatment. Discussion groups in a number of communities also put forward other indicators that can be used to identify social stratification. These include the following: 1. The size of income (not only the type of income-generating activities). 2. The amount of land/plantations and production (not only ownership as such). 3. Number of cattle owned (not only ownership of cattle in general). 4. Number of motorcycles (not only ownership of motorcycles). 5. The location of the house (not only ownership of a house and its size). 6. Access to loans, the size of loans. 7. Type of kitchen fuel (firewood, kerosene). 8. The availability of sanitation (WC), electricity and clean water. 9. Financial ability to go on the pilgrimage. 10. Ability to afford uniforms for children. 11. Other kinds of assets: cash, bank savings, ox-carts, speed boats. 12. Lifestyle: clothing, type of furniture, house cleanliness, employment of domestic help,

employment of a driver, happiness, travel, drinking instant coffee, eating in restaurants. 13. Social characteristics: age, willingness to help others, participation in arisan groups,

relationships with other community members, participation in community activities, respect from others, laziness and indolence.

Certain economic indicators found in each community can differentiate between strata. For example, in one area of low conflict, namely, Palengaan Daja, the ability of a person to possess

cash and to lend it or actually borrow money for income-generating activities is the factor that differentiates between strata. Those on whom the community relies for loans of money and who



are able to lend money (money-lenders) occupy the highest level. In this community the financial capacity to undertake the pilgrimage is also a measure of whether the person concerned belongs to the upper strata or not. In almost all areas of low conflict except Palengaan Daja, it is not only the existence of income-generating activities that constitute the yardstick but also the

size of economic activities and income. In Banyupelle, the area of land that is owned distinguishes one layer from another. In rural areas in areas of high conflict, the size of holdings is a prominent factor that differentiates between social or welfare strata, whereas in urban areas (Kampung Pisang, NPI=0.29) the rank of public servants and the types of vehicle that people own are prominent

indicators. In Soakonora (NPI=0.40) another prominent indicator is the availability of sanitation (WC), electricity and clean water. In Idamdehe Gamsungi (NPI=0.60), however, the main factor is the use of a stove for cooking and the type of domestic fuel that is used (firewood or kerosene). In Gorua (NPI=0.33) the outstanding indicator is the capacity to employ domestic help. A picture of community stratification based on economic aspects is presented in Figure 6.1.1.

Examination of the above figure shows that social stratification based on economic aspects is greater in high conflict areas than in low conflict areas. As is generally the case with social stratification in developing countries where the middle strata are “fatter”, social stratification in the communities in both areas appears to follow this pattern, that is, there are more people in the middle layers. In attempting to identify whether this stratification is open in nature,

attention is focused on seeing how many people are on the top couple of steps relative to the rest of the community. The above figure shows that the number of people in the two top strata has increased in the past 10 years. This indicates that social stratification of an economic kind tends to be open, which allows a person to rise up to the highest level. Furthermore, the number of community members at each level in stratification 10 years ago and today shows a movement up and down, which reveals stratification of an open kind.

Freedom, power, and social stratification Besides social systems that tend towards the economic stratification described by the community, social stratification can also be investigated from the aspects of religion, power and freedom, which were mentioned in a direct way by the community. In areas of low conflict, especially those of low growth (Palengaan Daja and Banyupelle), existing social stratification is a combination of open economic stratification and religious stratification, which is of a more closed nature. Stratification based on religious values is marked by the presence of kyai (religious leaders), who occupy the highest level. The position of a kyai is not only based on his knowledge of religion but is also often linked to his ancestry. The reason is that in many cases the father was also a kyai and this position was passed on to his son. For that reason the position is more closed in nature. In Banyupelle, the community is extremely respectful of kyai and people strive to obtain their blessings. Success in life is always connected with the blessings of the kyai. People occasionally visit the kyai to maintain good relations. They communicate their problems to him and ask for blessings to make it easier for them to overcome the problems. Although the kyai occupy the highest social level in religious stratification (and a fairly high level in power stratification), a kyai does not always occupy the highest level if stratification is based on economic aspects. On the other hand, a person who is at the top of economic stratification can be at a lower level in religious stratification if he does not have a high level of religious ability. Because of the open nature of the former, it is possible for a person to move up and down in economic stratification more easily than in religious stratification. Unlike the situation in the

two communities located on the island of Madura, the community of Branta Pesisir has no kyai although there are several ustadz (teachers of religion).



Figure 6.1.1. Economic Stratification


Palenggan Daja

0

0

10 years ago

now

ladder 4

ladder 3

ladder 2

ladder 1

Soakonora

0

0

10 years ago

now

ladder 7

ladder 6

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Semampir

10 years ago

now

ladder 6

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Idamdehe Gamsungi

10 years ago

now

ladder 7

ladder 6

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Bulu

10 years ago

now

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Gorua

0

0

10 years ago

now

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Banyupelle

10 years

ago

now

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Kampung Pisang

10 years ago

now

ladder 6

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Branta-Pesisir

10 years ago

now

ladder 5

ladder 4

ladder 3

ladder 2

ladder 1

Gura

10 years ago

now

ladder 4

ladder 3

ladder 2

ladder 1



Box 6.1.1. Definition of Power

The community members in both areas had relatively the same understanding of the concept of power, with a few variations in formulation. The important elements of power, included authority

and capacity to give commands, to arrange matters and to exert influence. The household survey showed that most respondents feel that at the present time they have control over their personal decision-making. The majority of respondents also said that ten years ago they had had the same

amount of control.

Capital and a good work ethos (enthusiasm, energy, etc) are important in order to obtain economic

power. Power does not always have a linkage with becoming rich, because there are people who have power even though they do not belong to the rich category (for example, religious leaders and community figures). But participants also said that power makes it easy for a person to obtain and

accumulate wealth or do things that are wrong (for example, act extravagantly, gamble etc), which can ultimately cause him to fall into poverty. However, “people who are powerful are not necessarily

rich’ and ‘there are poor people who are powerful like the kyai’. This interpretation emerged from Palengaan Daja, where the social structure and social relationships are very much influenced by paternalism. The individuals who are considered to be the most powerful in the village are the kyai

(religious figures, heads of religious boarding schools). Many of them have a good economic position. But in communities like Palengaan Daja there are those who have become charismatic and powerful leaders, even though they are not rich.

In Palengaan Daja specifically there is also social stratification based on power, which in nature is semi-closed. This form of stratification is mainly connected with the presence of bajing (village thugs). A bajing can occupy an upper-level position in the social and economic senses because he has great power, especially in the field of security (and sometimes in the economic field). The bajing acquire power from their physical strength in bashing people. Even so, the men’s groups were of the opinion that in reality people are afraid that the bajing will slaughter them. The women’s groups judged that it is actually the bajing who have least power precisely because the community does not like their actions. Whatever the community’s opinion, in actual fact their presence is often used by village authorities who need someone to look after security and external threats; this places them in the highest stratum. Most people do not want to and cannot

easily occupy the layer held by the bajing and for that reason it is somewhat closed in nature. Even so, their position is not like that of the kyai, where ancestry also plays a role. There are no indications that ancestry makes a person a bajing and keeps him in the highest social group. Bajing can also move down if they lose their power, for example, if people become aware of their

wrongdoings, or if they are put in prison. If social stratifications based on religion and power are compared, the former is more closed than the latter because the power of a kyai cannot be lost. One further aspect that is the basis of social stratification is the position of local authorities. In this case it is the klebun (village head) who occupies the highest position. Even so, a klebun can

lose his power when he is no longer a village official. The klebun, kyai and bajing are regarded as the most powerful persons in the village of Palengaan Daja. In all areas of high conflict, even though there are more strata than are found in areas of low conflict, communities tend to be egalitarian, with existing social stratification very open and based only on the economic dimension. Only one community, namely, Gorua, used non-

economic dimensions that included ‘respect by others’ and ‘participation in a group’ as criteria to determine stratification. Because of the open nature, members of the community can move up or down on the basis of economic factors, without the limitations of having to belong to a certain religious or ethnic group or a certain political power (Table 6.1.1). As in areas of high conflict, the communities of Semampir and Bulu (in low conflict areas) tend to be egalitarian



and social stratification within these communities is based on economic dimensions and to a small extent on non-economic aspects (willingness to help others and to participate in community activities), which are both of an open nature.

Table 6.1.1 Typology of Social Stratification

Community Typology of social stratification

Highest level

Persons with most power

Persons who are freest

Low Conflict (East Java) Economic: open The rich

Religious: semi-closed Kyai

Palengaan Daja

(NPI=0.82)

(Local) authority:

Semi-closed

Klebun, Bajing

Klebun, Kyai, The rich

(Bajing)

Those who are rich,

who have everything, who live alone; the poor, farmers, men

Economic: open The rich Semampir

(NPI=0.66) Religious: semi-closed Kyai

Those who are knowledgeable in

religion, polite in behavior, respected by others, econom-ically

strong; Village head

Entrepreneurs; the wealthy, those who

have lots of money, or earn high wages, have no debts; men

Economic: open The rich Bulu

(NPI = 0.50) Religious: semi-closed Kyai

Village head BPD

members Kyai The rich

Rice gleaners, becak

drivers, people who do not work for others, traders with their own

capital, husbands, men

Economic: open The rich

Religious: semi-closed Kyai

Banyupelle

(NPI = 0.48)

(Local) authorities

Semi-closed

Klebun

Village head

The rich

Village head, men

Branta Pesisir

(NPI = 0.04)

Economic: open

The rich Village head, kyai, ulama, husbands, old

people

The youth, men (F) Anyone (M)


Soakonora

(NPI = 0.40)

Nearly egalitarian

Economic: open Horizontal: religious, ethnic

The rich The rich, parents,

community and religious leaders, farmers, traders

The rich, the young,

men (and women)

Idamdehe

Gamsungi

(NPI = 0.38)

Nearly egalitarian Economic: open Horizontal: religious,

ethnic

The rich

Gorua

(NPI = 0.33)

Nearly egalitarian

Economic: open Horizontal: religious, ethnic

The rich The wealthy who

have influence, honest people, the village head,

religious scholars, household heads

Farmers, fishermen,

prosperous people (not the rich), children, drunkards, high-level

public servants, men

Kampung Pisang

(NPI = 0.29)

Nearly egalitarian

Economic: open Horizontal: religious,

ethnic

The rich Village head, iman

(kyai), the elderly, government officials,

those who have a high

level of education

Those who have

money, position, the young, men (and

women)

Gura

(NPI = 0.06)

Nearly egalitarian

Economic; open Horizontal: religious, ethnic

The rich Prominent religious

leaders, community leaders, adat figures, the village head,

the rich

The rich, bachelors,

people who are not in jail, religious leaders, the extended clan, men

Source: FGD LFPD, researchers’ analysis.



Social stratification can also be identified with social cohesion or the distinctions between a certain person or group and another person or group in community life. There are often variations in characteristics between people living in the same village or neighborhood such as differences in religion, ethnicity, social status or wealth. According to community figures, in this

connection factors like religion, ethnicity, social status or wealth in low and high conflict areas cause very little (if any) division between people in villages or communities today. The situation was the same 10 years ago. This is supported by survey results (Table 6.1.2) in which approximately 65% of respondents said that at the present time there are no distinctions between people because of religion or social status, and only 10% said that there are big differences. On the subject of whether these differences could possibly cause conflict, the

opinions of community figures and informants differed from the results of the household survey. While community figures and informants believed that these differences have never led to violence, the household survey shows that 20% of respondents felt that these differences could cause conflict. In high conflict areas the figure was 30%.

Table 6.1.2 Distinctions between People due to Religion or Social Status

Distinctions due to religion or social status (% of respondents)

No distinctions

Small distinctions

Large distinctions

Could these distinctions

lead to conflict?

Community

Now Then Now Then Now Then Yes

Low Conflict Areas 69 71 19 19 12 9 10

Palengaan Daja 61 68 18 14 21 19 11 (NPI = 0.82)

Semampir 95 97 3 3 3 0 8 (NPI = 0.66)

Bulu 68 70 30 27 3 3 14 (NPI = 0.50)

Banyupelle 72 72 18 25 10 3 0

(NPI = 0.48)

Branta Pesisir 50 50 24 27 26 24 16

(NPI = 0.04)

High Conflict Areas 61 64 31 29 8 7 30

Soakonora 44 53 42 31 14 17 31 (NPI = 0.40)

Idamdehe Gamsungi 81 78 19 22 0 0 22 (NPI = 0.38)

Gorua 24 32 68 57 8 11 59 (NPI = 0.33)

Kampung Pisang 69 69 22 27 8 3 25

(NPI = 0.29)

Gura 84 86 5 8 10 6 14

(NPI = 0.06) All areas 65 68 24 23 10 8 20


Social cohesion and the extent to which social stratification is open or closed can also be investigated from experiences of discrimination towards other groups in a community. In this context 93% of 372 respondents said that they have never experienced discrimination because of their religion or other social factors. According to community figures and informants in all communities, teachers and school authorities currently treat the children of different ethnic and



religious groups equally. This represents an improvement by comparison with the situation 10 years ago in two communities in low conflict areas (Semampir and Bulu) and two in high conflict areas (Gorua and Kampung Pisang). At that time some children were treated better than others, which means that there was discrimination. In the health field no respondents in

any area stated that members of the community have encountered difficulty in obtaining medical treatment because of ethnic or racial factors. Social Inequality

Social stratification can also be related to social inequality. Although communities found it hard to grasp the concept of inequality (see Box 6.1), most FGD participants in most villages have a positive view of trends in inequality and believe that inequality in their village is becoming less.

Box 6.1.2. The Understanding of the Concept of Inequality

In a number of FGDs, for example, in Palengaan Daja, Semampir, Soakonora, Idamdehe, and Gorua

villages, participants found it difficult and in fact were unable to formulate what they understood by inequality. Nevertheless, after the facilitators explained by using visualization methods (for example, with the hands), most men and women participants understood inequality as difference

both in the vertical sense (‘levels’, ‘desires’ (income), ‘capability’) and in the horizontal sense (‘far apart’, ‘unsuitable’, ‘not comparable’, ‘not balanced’). These interpretations of inequality were apparently not influenced by the level of growth and the existence of conflict. Other participants

only understood the concept in their local language as bidhe, which means ‘different’ (Palengaan

Daja), and tak padha, which means ‘not the same’ (Banyupelle). Interestingly, participants in other

villages understood inequality in a very different way, taking it to mean ‘stalling on the way’, ‘failure in business’, ‘bankruptcy’ and ‘failure in the household’. In Semampir, the inequality that exists within the sample community is between people who are happy just having fun, like watching

gemelan (a traditional orchestra) or ludruk ( a kind of East Javanese theatre), and those who belong to serious groups such as pengajian (religious study) groups.

All FGDs in villages with a high level of conflict said that inequality in their village had declined. The reasons for this positive trend include the fact that democracy is already functioning, community education has improved, technology is better and so people are more knowledgeable, more people are employed, income and welfare have risen, more people have jobs outside the agricultural sector, and there are more organizations that people can join. Participants also mentioned an area-specific reason, namely, the leveling effect of the conflict, which caused most members of the community, although they originated from different strata, to lose their material assets. This meant that ‘they all had to start together from zero’. FGD participants in two villages in low conflict areas (Palengaan Daja and Banyupelle) gave different responses. In Palengaan Daja the men’s FGD said that inequality is declining, the reason being that people can now obtain employment abroad as overseas workers, which means that there is a new economic opportunity to which villagers have access. The women’s FGD, however, said that inequality is growing because progress within the community has led to the rich becoming extremely rich than they had been in previous years. In Banyupelle it was the men’s FGD that described inequality as increasing as a consequence of the rise in operational costs, which was accompanied by an increase in the prices of basic necessities. According to the women’s FGD, however, inequality in Banyupelle is decreasing because nowadays people from the various economic strata can all eat rice, whereas in the past the rich ate rice and the poor ate cassava. In two villages (Semampir and Bulu), however, only the women’s group asserted that inequality has narrowed. Meanwhile, in Branta Pesisir, both FGDs consistently stated that inequality is steadily growing (a negative trend). Branta Pesisir, which is a fishing village, is experiencing rapid economic and social transition. There is a high rate of economic



diversification, including the emergence of several new livelihoods that yield very different incomes, as well as a relatively rapid circulation of money from trade in rice and fish. It would seem that economic expansion in this village has enabled a well-off group in the community to obtain steadily rising incomes and to accumulate wealth, thus creating a greater distance

between rich and poor.

In regards to religious inequality, community figures in areas of high conflict said that it is neither large nor small; in Gura they stated that it exists only to a very small extent. This is the same as the situation 10 years ago. Religious and ethnic inequality in areas of low conflict exists only to a small degree, which reveals a better situation by comparison with areas of high conflict, both today and 10 years ago. This difference is perhaps due to the religious and ethnic homogeneity that prevails in low conflict areas, where the majority of people are Moslems and ethnic Madurese. In high conflict areas there is more variation in the composition of the community. As described in Chapter IV, the majority of people in two of the communities in high conflict areas are Christians while three communities have a majority of Moslems. There are also people from various ethnic backgrounds, among others the Tobelo, Tidore, Sahu and Sanger groups. Community composition by religion and ethnicity in almost all areas has not changed over the past 10 years. In Idamdehe Gamsungi, Moslems evacuated to the forest and other places at the time of the 2000 conflict and have not returned to their original community, the result being that only Christians remain in the village.

On the topic of networks and associations (see the following section on social capital), FGD

participants said that currently most networks and associations in their communities are open to most members of the community. This openness, which exists despite economic stratification, obviously does not apply to networks and associations linked to a specific religion since these are open only to adherents of that religion. According to participants in women’s groups and most of the men’s groups in low conflict areas, they now have greater access to the networks and associations in their community. This differs from the statements of men’s and women’s groups in areas of high conflict, who said that they have the same or even less access to networks and associations in the community. 2. Social Capital

Social capital refers to the norms and networks that enable people to act collectively. This study examines three types of social capital: bonding social capital, bridging social capital, and linking

social capital. Bonding social capital includes formal and informal ties among people of similar backgrounds, such as relatives, friends and neighbors as well as more established local groups like a burial society or dairy cooperative. Relationships with a spouse’s family members (that is, the in-laws) would also be bonding social capital. Bridging social capital refers generally to ties among people who are unlike each other. For purposes of this study, this type of social capital indicates horizontal ties among people who, despite differences, are basically of the same status

or level of socio-economic well-being. For instance, this might be a different livelihood group or people who are of different religious or ethnic backgrounds but who otherwise have similar levels of well being. Relationships with family members, relatives and friends far outside the community are classified as bridging. Linking social capital refers to vertical ties among people of different status, such as those between a patron and client, a doctor and a patient, or a teacher and a student. Another example is the relationship between NGOs and government officials. In

considering these three types of social capital, the discussion will focus on the number and type of local groups or associations, community participation in local groups or associations, willingness to help and collective action for resolving community problems, and trust.



Number and type of local associations and community participation The number and type of organizations found in a community can indicate the strength of social capital in that community. Data in Table 6.1.3 and Table 6.1.4, which show the number of organizations of an economic, financial, health, political, religious or ethnic nature in the sample communities, reveal strong potential social capital in a number of communities. The tightness or strength of social capital in a community, however, cannot be judged merely from numbers and types, as the important thing is

information about the effectiveness of those groups and organizations. The number of local organizations in areas of low conflict is greatest in Semampir and Bulu, where religious associations are dominant. These are generally pengajian or religious groups whose activities include readings from the Koran and religious talks, which are held once a week in the evening. In these two communities, where the majority of villagers are Moslems, people are generally members or supporters of the organization Nahdlatul Ulama or NU, which is one of the biggest Islamic community organizations in Indonesia. Since membership consists of those who follow a certain religion (in this case Islam), the groups constitute bonding social capital. In Semampir the second largest group is connected with finance in the form of arisan and cooperatives. The formation of arisan groups is often an extension of pengajian groups. Several of the arisan groups, however, do not restrict membership to people of the same religion and so they constitute bridging social capital. In other three communities in low conflict area, not many organizations exist in other communities in areas of low conflict, especially in Banyupelle. It is interesting to note that at the present time there has been great expansion in political groups (linking social capital) in almost all areas.

Unlike the situation in areas of low conflict, where the differences in numbers of organizations and groups vary greatly, the number in areas of high conflict is almost the same, except in Gorua. At the present time the greatest numbers of economic and political groups are to be found in Gorua, of health groups in Idamdehe Gamsungi, of religious groups in Soakonora and of ethnic groups in Kampung Pisang.

Table 6.1.3. Number of Existing Groups or Associations

Community Economic Financial Health Political Religious Ethnic

Now Then Now Then Now Then Now Then Now Then Now Then


Palengaan Daja

NPI=0.82;MOPI=0)

0 1 0 0 0 0 5 3 1 1 0 0

Semampir

(NPI=0.66;MOPI=0.42)

3 2 19 10 9 7 8 3 23 20 0 0

Bulu

(NPI=0.50;MOPI=0.17)

2 2 2 1 9 5 5 3 23 23 2 2

Banyupelle

(NPI=0.48;MOPI=0.05)

0 0 1 0 1 1 0 0 2 2 0 0

Branta Pesisir

(NPI=0.04;MOPI=0.19)

2 1 1 2 1 1 5 3 3 3 2 2


Soakonora

(NPI=0.40;MOPI=0.43)

3 4 0 0 3 3 8 3 8 8 0 2

Idamdehe Gamsungi

(NPI=0.38;MOPI=0.68)

4 3 3 3 2 2 3 3 2 3 0 0

Gorua

(NPI=0.33;MOPI=0.16)

7 0 1 0 9 6 10 3 3 3 3 1

Kampung Pisang

(NPI=0.29;MOPI=0.42)

0 0 0 0 1 1 9 3 1 2 6 6

Gura

(NPI=0.06;MOPI=0.20)

0 0 0 0 2 2 8 3 3 3 4 4




The number of organizations/groups in a specific sector does not always reflect the importance of the sector. In Palengaan Daja, for example, there are more political groups than other types of groups, yet the most important groups for the community is those of a religious nature (bonding social capital). In Semampir, where most groups are religious, it turns out that the types of

organizations that are important for the community are actually financial groups (bridging social capital). Even though there are large numbers of political and ethnic groups in Kampung Pisang, the most important groups are those in the field of health, that is, the posyandu (bridging social capital). In areas of low conflict the most important groups for the majority of people are generally of a religious nature (bonding social capital). This situation has not changed over the past 10 years. Meanwhile, in areas of high conflict the most important groups vary from religious groups (bonding social capital) to youth, farmers’ and health groups (bridging social capital).

Table 6.1.4. Most Important Groups and Organizations in the Community

Number of organizations

Most Important Groups in the Community

Community

Now Then Now Then

East Java (Low Conflict) 129 98

Palengaan Daja NPI = 0.82; MOPI = 0.00)

6 5 Nahdatul Ulama (Religious group)

Nahdatul Ulama (Religious group)

Semampir (NPI = 0.66; MOPI = 0.42)

62 42 Cooperative (Financial group)

Cooperative (Financial group)

Bulu (NPI = 0.50; MOPI = 0.17)

43 36 Sholawat

(Religious group)

Sholawat

(Religious group)

Banyupelle (NPI = 0.48; MOPI = 0.05)

4 3 Jana’atus AS (Religious group)

Jana’atus AS (Religious group)

Branta Pesisir (NPI = 0.04; MOPI = 0.19)

14 12 Nahdatul Ulama (Religious group)

Nahdatul Ulama (Religious group)

North Maluku (High Conflict) 103 71

Soakonora (NPI = 0.40; MOPI = 0.43)

22 20 Karang Taruna

(Youth group)

Karang Taruna

(Youth group)

Idamdehe Gamsungi (NPI = 0.38; MOPI = 0.68)

14 14 Farmers’ group (production/trade)

Farmers’ group (production/trade)

Gorua (NPI = 0.33; MOPI = 0.16)

33 13 Religious group Religious group

Kampung Pisang

(NPI = 0.29; MOPI = 0.42)

17 12 Posyandu

(Health group)

Posyandu

(Health group)

Gura (NPI = 0.06; MOPI = 0.20)

17 12 Church group (Religious group)

Church group (Religious group)


The strength of social capital in the communities can also be seen from the views expressed by the majority of FGD participants, who said that there are social organizations, specifically religious groups and arisan, which any person can join. The household survey indicates that the majority of respondents (83%) are members of at least one organization in their village (Table 6.1.5). This is higher than 10 years ago, when the figure was 74%. Community participation in organizations, however, is lower in areas of high conflict than in areas of low conflict nowadays (75% by comparison with 92%) just as it was 10 years ago (63% compared with 85%).



The extent of participation in groups and organizations is not related to the number of groups that exist in an area. In Banyupelle, which has only four groups, 90% of respondents belong to an organization, while in Palengaan Daja, which has only six groups, 95% of respondents are members of a group. In Gura, however, where there is a large number of groups and organizations, community participation is only 59%.

Table 6.1.5 Proportion of the Community Belonging to Organizations

Membership in a local organization

(% of respondents)

Community

Now 10 years ago

East Java (Low Conflict) 92 85

Palengaan Daja (NPI = 0.82; MOPI = 0.00) 95 84

Semampir ((NPI = 0.66; MOPI = 0.42) 92 89

Bulu (NPI = 0.50; MOPI = 0.17) 95 92

Banyupelle (NPI = 0.48; MOPI = 0.05) 92 82

Branta Pesisir (NPI = 0.04; MOPI = 0.19) 84 76

North Maluku (High Conflict) 75 63

Soakonora (NPI = 0.40; MOPI = 0.43) 64 50

Idamdehe Gamsungi (NPI= 0.38; MOPI = 0.68) 100 89

Gorua (NPI = 0.33; MOPI = 0.16) 92 65

Kampung Pisang (NPI = 0.29; MOPI = 0.42) 58 58

Gura (NPI = 0.06; MOPI = 0.20) 59 54

All areas 83 74 Source: Household survey.

The highest proportion of respondents who are members of an organization in their village occurs in Idamdehe Gamsungi, which could be a reflection of socio-political conditions in that village and of the very different way in which village government is managed. As pointed out earlier, Idamdehe Gamsungi is a relatively small village with a homogeneous population (all its people are Christians) and it has a government that functions well. In this village local organizations also function well. The village has an Institute for Community Empowerment, church organizations, an arisan group for housing

2 and a Family Welfare (PKK) group. By

contrast, Soakonora is a village that is split between Moslem and Christian communities, each of which lives in a separate area. The only organizations in this village are a number of small arisan groups and a few religious groups. In Gura the number of respondents who are members of a local organization is almost the same as the number who are not. The household survey indicates that religious organizations are the type most frequently chosen or joined by most of the community at the present time in all areas (77%). In areas of low conflict the figure is 92%, while in areas of high conflict it is 58%. In high conflict areas many people belong to organizations whose main activity lies in the economic field (11%) and financial, credit and savings organizations (16%), which is more than in areas of low conflict, where the figures are 2% and 3% respectively. Community participation in religious groups in all areas as a whole has declined compare to 10 years ago, formerly it was 81%, with 93% in areas of low conflict and 64% in areas of high conflict.

2A housing arisan mobilizes people to help each other in turn to rebuild houses that were damaged in the

conflict.



Other organizations that exist in a community are those involving the parents of school children. At the present time there are parents’ groups in areas of both low and high conflict. There is no further information, however, about their activities in each community.

There are no signs of discrimination based on gender, religion, ethnicity, race, education, occupation or welfare status. There are, however, many organizations that from the beginning were designed to differentiate between individuals because of the nature of their membership. For example, religious organizations and groups differentiate by gender and religion, farmers’ groups by gender (groups for men and separate groups for women) and the type of work (farming) and sometimes health groups by gender if, for example, they are concerned with women’s health.

The same applies to ethnic groups, where membership is open only to people of a certain ethnicity. Willingness to help and collective action for resolving community problems

Social capital is also reflected in the extent of solidarity among villagers. Tables 6.1.6 and 6.1.7 show that all people in both regions are willing to help those who need assistance. The people in all communities are also preferred to work together to solve problems experienced by the community such as water shortages. This also includes helping persons who have experienced

some kind of difficulty. It is interesting to note that in areas of high conflict, the community’s willingness and cooperation to help others has not disappeared. It appears that those who live in a community where people are always willing to help others, both individually and collectively, do not necessarily expect help from other members of the community. For example, the household survey found that, if a person faces a health crisis, the efforts made by most of the community (70%) in areas of low conflict take the form of lending money (with low interest and easy conditions). This approach is different from that in areas of high conflict, where there is greater reliance on savings (38% of respondents). Attempts to obtain help from family members were mentioned by 17% of respondents in areas of high conflict and 6% in areas of low conflict. This indicates that willingness to help does not always involve assistance in the form of cash.

Table 6.1.6. Willingness to Help Those in Need of Assistance

% of respondents Community Willingness to

help those needing help

Willingness to solve water problems

Willingness to help those in difficulty

Low Conflict (East Java) 97 95 99

Palengaan Daja (NPI = 0.82; MOPI = 0.00) 100 97 100

Semampir ((NPI = 0.66; MOPI = 0.42) 92 97 100

Bulu (NPI = 0.50; MOPI = 0.17) 100 100 97

Banyupelle (NPI = 0.48; MOPI = 0.05) 97 87 100

Branta Pesisir (NPI = 0.04; MOPI = 0.19) 98 95 100

High Conflict (North Maluku) 99 98 98

Soakonora (NPI = 0.40; MOPI = 0.43) 100 100 94

Idamdehe Gamsungi (NPI=0.38;MOPI = 0.68) 100 100 100

Gorua (NPI = 0.33; MOPI = 0.16) 100 97 97

Kampung Pisang (NPI = 0.29; MOPI = 0.42) 97 97 97

Gura (NPI = 0.06; MOPI = 0.20) 97 95 100

All areas 99 97 99




Table 6.1.7. Community Cooperation to Solve Problems and Help Others

Community Cooperation to Solve Problems and Help Others

Problems in Getting Water Helping others in difficulty

Community

Now 10 years ago Now 10 years ago Low Conflict (East Java)

Palengaan Daja Likely Likely Very likely Very likely

Semampir Likely Likely Likely Likely

Bulu Very likely Likely Very likely Very likely

Banyupelle Likely Likely Likely Likely

Branta Pesisir Very likely Very likely Very likely Very likely


Soakonora Likely Likely Very likely Very likely

Idamdehe Gamsungi Very likely Very likely Very likely Very likely

Gorua Very likely Very likely Very likely Very likely

Kampung Pisang Likely Likely Very likely Very likely

Gura N.A. N.A. Very likely Very likely


Another indication related to community solidarity is the frequency of communal meetings and

activities in a community. According to community figures and informants, there have been communal meetings and activities in the past year in almost all communities, but the numbers of people who have participated have varied greatly. Table 6.1.8 shows variations in numbers and community participation and also the proportion of women and poor people taking part in these activities. The range in frequency of meetings or activities is from twice a year to twice a week. Information from community figures does not reveal the same pattern from one community to

another in both low and high conflict areas. For that reason generalization is not possible and an analysis has to be made for each community.

Table 6.1.8. Communal Meetings and Activities

Communal meetings and activities in the past year and 10 years ago

Number % of villagers % of women

Certain groups

% of poor people

Community

Now Then Now Then Now Then Now Then Now Then


Palengaan Daja 2 2 50 25 0 0 Yes Yes 100 100

Semampir 48 3 1 50 30 5 No No 30 5

Bulu 13 N.A. 30 N.A. 50 N.A. No N.A. 80 N.A.

Banyupelle 30 N.A. 20 N.A. 0 N.A. Yes No 90 N.A.

Branta Pesisir 12 12 65 80 45 55 Yes Yes 45 65


Soakonora 10 8 5 10 40 75 No No 40 15

Idamdehe Gamsungi 37 4 85 100 50 50 No No 35 12

Gorua 102 40 85 10 15 2 No No 60 30

Kampung Pisang 8 N.A. 70 N.A. 75 N.A. No N.A. 0 0

Gura 0 N.A. N.A. 20 0 5 No No N.A. 0.5

Source: Processed from the Household Questionnaire. N.A. = data not available.



Trust The perception of willingness to help others and of cooperation to solve community problems does not run parallel to the perceptions of trust and solidarity among village people. Most respondents (66%) said that most people in their village could not be trusted and for that reason one has to be cautious. In addition, 71% of respondents said that they agree that in their village a person must be on his guard because if he is negligent, other people will take advantage of him

and trick or cheat him. Half of the respondents (50%) in the Household Survey said that this low level of trust was the same ten years ago. There is no explanation of this inconsistency in the answers of respondents, beyond the likelihood that replies were based on the individual experiences of respondents in dealings with certain specific individuals. The Link between Social Stratification, Social Capital and Community Prosperity The above situation clearly shows that, although communities in high conflict areas are more stratified than those in low conflict areas from the economic point of view, and although communities in areas of low conflict also have aspects other than economic considerations in social stratification, on the whole each community possesses good social capital. In connection with community prosperity and mobility, the question is now whether this has played a part in influencing community prosperity and mobility. During discussions with community figures, informants and community members in FGDs, not much mention was made of whether social capital in communities with a certain social stratification has influenced community prosperity and mobility (Chapter IV, Tables 4.2.2 to 4.2.4). Only three communities said directly that the element of social capital has played a part in influencing community prosperity, namely, FGDs in the communities of Banyupelle, Branta Pesisir (both in low conflict areas) and Soakonora (in a high conflict area). The women’s group in Banyupelle said that community prosperity has increased, one reason being that family relationships are close and there is security. The men’s group in Branta Pesisir said that good social relationships are the top positive factor that helps community prosperity. The men’s group in Soakonora said that “after return from evacuation, the level of religious of harmony became greater, although it is now becoming somewhat less close”. The communities that have a large number of organizations do not always have a high NPI and MOPI and the reverse. It is apparent that in areas of low conflict, the greater the participation of the community in organizations and groups, the higher the NPI and MOPI of that community. This tendency, however, does not always apply in areas of high conflict such as Soakonora. There are two cases where the activities of organizations and groups could possibly have influenced community mobility, namely, those of the finance group in Semampir and those of the economic group (farmers’ group) in Idamdehe Gamsungi. The religious groups that exist in almost all areas and are regarded as important may or may not have influenced community mobility. It is possible that they did so if their activities were able to tighten the community’s social capital or took the form of economic activities like arisan to the point where they ultimately influenced the opportunity structure and thus affected community mobility. Another matter that warrants investigation is the extent to which these groups and organizations are themselves active. In Bulu, although there are many religious groups and organizations, it seems that most of them are not active. Fourthly, although willingness to help others and to cooperate

with other groups is very good in all areas, a large proportion of community members do not readily trust other people.



B. EXTENT TO WHICH LOCAL DEMOCRACY FUNCTIONS

Democracy is … a lot of demonstrations (women’s group, Soakonora), freedom in

discussing things together (men’s group, Palengaan Daja, being free to choose anything (women’s group, Bulu),

the free rights of someone (women’s group, Idamdehe Gamsungi), government of the people by the people and for the people (the young)

The characteristics of democracy are …freedom,

honesty, fairness, safety, justice ...

Local politicians can achieve positions if … they are wise, honest, have leadership ability ... have the ability to lobby ... and have money for campaigns

The aim of this subsection is to see whether a well-functioning local democracy leads to greater prosperity. Local democracy may have a direct impact on mobility outcomes, along with independent effects on respect, dignity and individual or collective agency. In theory, local democracy that functions well is more important for movement out of poverty in communities with less social stratification than in communities with greater social stratification. According to Diamond (2004: 7), in principle, democracy should provide a corrective to the powerlessness of the poor in the following ways. First, when competitive elections are truly free and fair they provide an instrument to remove bad, corrupt, unresponsive, or merely ineffective leaders; second, democracy provides non-electoral means for citizens to articulate and defend their interests, and to participate in the making of public policy via NGOs, informal associations, community based organizations, interest groups, social movement, and mass media; and third, democracy enables all these actors in civil society to monitor the conduct of public officials and to seek redress in the courts and administrative processes. However, some studies found a negative relationship between democracy and growth (Inkeles and Sirowy, 1991 and Przeworski and Limongi, 1993 in Diamond 2004: 8). There are several reasons why democracy often fails to do much to improve the lot of the poor. These derive not from the intrinsic limitations of democracy as a political system, but rather from the fact that democracy function in a limited, shallow, illiberal fashion (Diamond 2004: 9).

In this subsection the analysis of local democracy refers to the existence and fairness of elections at the lowest levels of government (the village and district levels) and to the voice and participation of the community. The situation surrounding election campaigns and the selection of political leaders is also relevant. Before an examination is made of the conditions under which local democracy functions, the community’s understanding of democracy and its characteristics

as well as the connection with community prosperity will be described.

Box 6.2.1. Definition of Democracy

According to the women’s groups, democracy is the situation of being free from everything and free

to do anything, that is, freedom to choose, to work, to protest against corruption, to express aspirations, to hold community consultations (musyawarah), to begin a new political era, to be active in politics, to hold direct elections based on a majority of votes and to make decisions through

consensus. Democracy involves the freedom to undertake reformation, demonstrations and renewal as well as a move forward from the past period to a new period. The most important characteristics of democracy are security, that is, freedom from theft and gambling, freedom to go anywhere and

freedom from intervention, together with openness, honesty, fairness, human rights, the provision of a community consultative forum and dialogue, a lot of demonstrations, a common objective to reach

agreement and successful businesses (Table 6.2.1).



According to the men’s groups, democracy is meeting together, doing things together, being a group and making all decisions and interests with the community as well as freedom to vote, to convey aspirations, to make decisions by majority vote, to reach consensus through community consultations

and to choose without pressure or compulsion. Freedom also means freedom of speech, freedom of

choice, freedom of justice and safety and of change, freedom to place power in the hands of the people, to ensure justice and the rights of everyone, and to be involved in politics. The most

important characteristics of democracy, which enable it to function well, are freedom and openness, freedom in discussing things together, freedom in making decisions, freedom for a certain purpose, freedom to express one’s opinions, to put forward the aspirations of the people, to make

representations, to have equal rights, justice, safety, order, directness, responsibility, transparency, cleanliness and respectability (see also Annex 4 about the concept of democracy expressed by the women’s and men’s groups in each community).

Youth groups interpreted democracy as freedom of expression, freedom to hold demonstrations, to

work, to choose, to vote in elections, to establish government of the people by the people and for the

people, the ability to carry the mandate of the people, aspirations, politics, consensus, sovereignty of the people, elections, demands, open discussions, law enforcement, rights and obligations, reformation, justice, change and recognition of cultural diversity.

Table 6.2.1. The Most Important Features of Democracy

The three most important features of a working democracy

Men’s groups Women’s groups

Community

1 2 3 1 2 3


Palengaan Daja 1 2 3 N.A. N.A. N.A.

Semampir 9 3 N.A. 13 13 11

Bulu 6 3 9 7 3 N.A.

Banyupelle 6 7 8 7 3 N.A.

Branta Pesisir 11 4 5 11 2 6 High Conflict (North Maluku)

Soakonora 2 4 10 3 11 5

Idamdehe Gamsungi 5 6 3 11 3 12

Gorua 3 1 12 1 11 N.A.

Kampung Pisang 2 3 4 3 3 2

Gura 4 12 3 14 11 15 Source: FGD LFPD. Note: 1= freedom to discuss 9= confidentiality/secrecy in elections 2= freedom to choose/make decisions 10= directness

3= freedom to speak 11= community consultation

4= decision by majority vote 12= equal rights 5= for all people 13= existence of groups/meetings

6= honesty and fairness 14= working together 7= no fighting 15= tolerance/respect

In the opinion of the women’s groups, if democracy is to function, people have to get together or form a group so that problems can be resolved by the mutual exchange of opinions and mutual questioning. People can hold meetings, use healthy reasoning, work cooperatively, avoid pressure and reach agreement, with one group supporting other groups and ensuring that the situation is safe for people to go anywhere. Young people believe that for democracy to function, it is



necessary to have honesty, fairness and appreciation of the opinions of others, to hold open discussions to reach common agreement, to undertake reciprocal assistance and to show appreciation of one another.

Most FGD participants, both men and women, said that a positive change has occurred in the

way that democracy has been working in the past 10 years in their village, the reason being that the community had become increasingly daring and critical and there are several mechanisms available for open discussion and representation. In judging this growth in democracy, the household survey indicated that the majority of respondents (82%) are satisfied (extremely satisfied and quite satisfied) with the implementation of democracy at the local government (district) level.

Discussions with women’s and men’s groups revealed that the majority of the people feel, from their own experiences, that the changes have affected the community positively. According to community members in Palengaan Daja, these changes have had a positive influence on community prosperity because the community is involved in the decision-making process and the interests of the people receive more attention. In the past decision-making depended on

community figures but now it depends on the community. According to community members in Semampir, democracy will probably lead to prosperity if they receive assistance in a democratic way. If the government makes mistakes, the community will immediately admonish it. Based on the experiences of community members in Bulu, the more democratic the process, the more prosperous the community becomes. People in Banyupelle believe that democracy that works well produces prosperity and that people now have influence over the decision-making process

at village level. People in Idamdehe Gamsungi feel that if democracy works, all will become prosperous because all are involved in making decisions on community and village issues. The democratic events that have had the greatest positive impact (+5) on the prosperity of Semampir include the provision of an artesian well because the planning process was undertaken through a consultative forum that involved the community.

The events that have had the greatest positive impact (+5) include the election of Gus Dur

3

because, starting from Gus Dur’s presidency, the community could express opinions as the result of more freedom being given to the people in such things as the election of the village head and the BPD (Badan Permusyaratan Desa or Village Consultative Body). In Bulu, the 1999 General Election (when Gus Dur was elected) had a positive impact on the community, just as it did in Semampir. The majority of people in both Semampir and Bulu are fanatical supporters of Gus Dur and the election had a very large psychological impact on the communities in both villages. The subsequent increase in their freedom and self-confidence had an impact in the form of an enhanced feeling of community prosperity. In Branta Pesisir, people submit their aspirations to the BPD, for example, the wish to receive rice through the Raskin program of rice for the poor and to hold football matches. These requests previously went to the village clerk. There is also a consultative process for development planning (musrenbang = musyawarah perencanaan pembangunan), which is attended by the BPD and where priority issues raised by the community are discussed. People in Gura say that if there is a bad decision or action by the government, the community can immediately protest against it. In only one village in a high conflict area did people say that there has not been much change in democracy because the interests of community members very rarely influence the decision-making process. Hence decisions do not affect the welfare of the community very greatly. There is no openness between the village head and the community. If there has been any change in

3Gus Dur (or Abdurahman Wahid) was the fourth President of Indonesia and the first President elected

after the reformation era.



democracy, that change has had a differential impact, which may well have had a negative effect because the people demand whatever they can get and in the end they fight over it. The people in an urban community located in a high conflict area feel that the various instances of democracy have not had a direct impact of their lives or welfare, the reason perhaps being that

democracy has only just begun to function. 1. Elections Through Statute No. 22/1999 concerning Regional Government (which was later altered and amended through Statute No. 32/2004) and Statute No. 25/1999 concerning Financial Balance between Central and Regional Governments (altered and amended through Statute No. 33/2004), Indonesia decided to change its system of government from a centralistic to a decentralized system by transferring to the regions (districts and administrative cities) all central government authority with the exception of five competencies, namely, religion, monetary affairs, law, defense and security, and foreign affairs, Statute No. 32/2004 concerning Regional Government regulates, among other things, Regional Government (Articles 24-30), that is, at the provincial and district/city level, as well as Village Government (Chapter XI Article 200) and the DPRD (Dewan Perwakilan Rakyat Daerah or Regional House of Representatives. Under this Statute the head of a district (the bupati or district head) and of an administrative city (the walikota or mayor) and their deputies are directly chosen as a pair by the people (Article 24). Earlier they were chosen by the regional house of representative. As for the village heads have for many years (Law No.5/1979 about Village Government) been chosen directly by and from villagers who are Indonesian citizens. The changes in the new law is regarding the term of a village head is now six years where previously 10 years; the person concerned can be re-elected for one subsequent term (Article 204).

Community figures and informants said that elections for village head have been held in all sample communities in rural areas

4 during the past 10 years. For example, elections were held in

Banyupelle in 1995 and 2003, in Branta Pesisir in 1998, in Kampung Pisang in 1999 and 2003 and in Gorua in 2004. These elections are considered to have been run in a fair manner. In Gorua, for example, the women’s group not only confirmed that elections had been held for village head but also stated that they were certain that they had taken place democratically.

Many people supported the person who won the election, many were very happy with the candidate, and there was no compulsion; from the beginning there was no pressure and people were given freedom to vote as they wished, with each person voting individually. People in Bulu considered the election for the village head to have been conducted directly, honestly and openly; furthermore, it was witnessed by the whole community and the new village head was elected in accordance with the people’s hearts and wishes. This also applied in the election of

the village head in Banyupelle in 2003 and in Gura in 1999, where there was no manipulation. Concerning the election of district heads and mayors, it is only in high conflict areas that elections have taken place for district heads during the past 10 years; there have been none in low conflict areas. This is because the incumbent district head is still in their task period when the new law stipulated. For example, in North Halmahera an election was held in June 2005.

But not long after fieldwork finished (September 2005), a number of regions held elections known as Pilkada for district heads and mayors. The Pilkada in high conflict areas are also believed to have been conducted in a fair manner. For example, the women’s group in Gorua and Soakonora judged that the elections for district heads in the Districts of North Halmahera and West Halmahera had taken place democratically. In West Halmahera, there were five candidates for the position of bupati. The winner was a person who had a vision and mission,

which was written on paper like an invitation, to develop the district.

4In Indonesia it is only in rural areas that the village head is chosen directly by the people. In kelurahan

(villages in urban areas), which in this study means Semampir and Kampung Pisang, the head of

administration is a public servant and is appointed by a higher-level administration.



Box 6.2.2. How a Person Becomes a Politician and Wins Elections:

The Opinion of Men’s and Women’s Groups. To become a politician at the village level, a person has to nominate him/herself, then enter the election through registration and verification, and sometimes approach people who hold official

positions. Candidates sometimes also show their ability and capacities to the people in such things as being able to motivate and lead the community. The situation at other levels differs somewhat from

that at village level, to become politician at higher levels (national and regional), a person has to be

active in a political party and must be loyal to that party. The community usually obtains information about candidates and prospective politicians from a

number of sources, namely, word of mouth, brochures, stickers and banners, face-to-face meetings with the community, the BPD, the success team, the political parties, and the candidate him/herself through campaigns and the local media, or from public servants in the district head’s office.

How can a person win an election? Two factors are involved, namely, the character and capabilities of

the individual candidate and the methods or strategies that he adopts. In the case of the first factor, at

community level the person concerned usually has a good personality and a good character and is able to display a good attitude as well as honesty rather than arrogance, good ethics and friendliness with the community. He/she has to have a lot of friends or supporters, to be able to speak well, to help people

frequently, to be able to listen to people’s aspirations, to be wise, to be able to lead the community, to work hard, to be able to motivate the community, to be capable of being a role model or example for the community and to make correct decisions on all occasions. In some cases the person may also have

vision and mission, an adequate education, experience, a broad outlook and influence within his neighborhood. Furthermore, he/she should possess a sense of responsibility for his/her work, have rendered services and be well known in the village. In some communities the person needs to have the

prestige of being a leader in the economic sphere and in religion. In addition, a candidate in

communities located in high conflict areas has to be indigenous to the area and to follow village rules. This is in contradiction to the view of other communities in the same area that candidates should not

use ethnicity as an issue but must be suited to the wishes of the people. A candidate undertakes certain activities to win votes, such as a campaign, obtaining support from

the community and displaying ability, seeking attention from and giving attention to the community, lobbying the community and helping community members close to an office-bearer in one of the local organizations, for example, a youth organization. He/she has to be able to mix with everyone in

the community and not pick and choose his/her friends. Also, he/she might have a campaign team that works hard.

At the time of the elections for a village head, not all candidates conducted a campaign. In Bulu and Banyupelle, for example, there was no campaign because the community already knew the candidates and could assess them directly from their everyday behavior. Also, campaigns were not conducted because funds were not available. Any campaigning was unofficial, for example,

through prayer groups. The approach taken by candidates to the community sometimes involved taking part in a religious event, attending a football match, giving attention to the community, inviting people to their homes and providing food. During the election period, the villagers almost never ate dinner at home because they could be fed at the houses of the candidates. In reality, however, the elements of the candidate’s character and ability and the formal ways

involved in elections often represented superficial factors. The community was aware that the winners were always those who possessed another important asset, namely, money or funds. For example, in three communities in low conflict areas, to win the election a person had to provide money for the community, including the purchase of cigarettes, apart from having a certain character and being nominated. Also, campaigns were usually conducted in a secretive manner,



for example, via individual friendships with villagers. One community in a high conflict area was also of the opinion that a person could win because of family connections. When campaigns were conducted, the matters on which the prospective candidates for the

position of village head campaigned sometimes concerned issues that were important to the village community like school fees, the construction of a road and mosque, development, economic affairs, health, transportation, union and unity. Even so, according to the community, the way in which a member of the community can get into the administration or become a community figures is by offering empty promises.

According to the women’s group, some candidates had never helped the community even though they had often made lots of promises. The women’s group called these ‘rubber’ promises or ‘promises for heaven’. Women in one community said that so far only around half of the candidates have helped the community and some of them are not on the side of the community. The women felt certain that their interests would be helped if there were women representatives. There is in fact a quota system for women members of the DPRDs, the aim being to encourage these organizations to become pro-women. The same situation was also described by young women, who said that the programs that the candidates have carried out so far have not been of benefit to the community. It turned out that there was bribery and corruption in the village but, although the accusations continue to exist among the village staff, it cannot be proven. So far there is no evidence (see the discussion of extent to which local governance functions). In mid 2004 communities throughout Indonesia had their first opportunity to choose the sixth president and vice-president in a direct way. It should be borne in mind that the previous five presidential elections had been conducted through the people’s representatives. The household survey revealed that almost all members of the community (98%) had taken part in this new President and Vice-president election. Almost all respondents (96%) also believed that those elections had been conducted with freedom and justice. 2. People’s Voice and Participation

The extent of the people’s voice and participation in a community indicates the level at which local democracy is functioning in that community. These elements are in themselves influenced or revealed by the presence or absence of freedom, in particular freedom to express opinions and hold discussions, and freedom in decision-making, which is revealed in attendance at meetings where decisions are made in the interests of the community. It includes freedom to voice those interests through a number of channels such as the BPD, village meetings, demonstrations and protests, and to contact the government or the people’s representatives. The voicing of interests cannot be separated from the degree of community power or control over decisions relevant to people’s lives. For that reason the discussion of the people’s voice and participation will begin with the concept and existence of freedom within the community, and in particular freedom of speech, freedom of the media, and religious freedom. This will be followed by a discussion of community participation in the making of decisions that are important for the community and the capacity of the community to control decisions. Freedom in relation to voice The concept of freedom most closely linked to voice and participation is freedom of speech. The majority of respondents in both low and high conflict areas reveal the same pattern, that is, most believe that at the present time there is freedom of speech in Indonesia and that people now feel that they have freedom to speak and express opinions about various problems as they wish. They also said that 10 years ago this freedom did not exist (Table 6.2.2). This runs parallel with changes in the Indonesian political arena since the Soeharto government came to an end in 1998. With the appearance of a wave of political reformations and political dynamics since that time, it would



seem that today people feel able to express their opinions more freely. This indicates that all members of the community have scope to express their opinions and to participate in activities or to make decisions in the interests of the community and its members. The women in Bulu said clearly that “the situation now is different from what it was in the past. Now people are free to talk

about political parties and about the President.” Community respondents mentioned that the rich were the largest group to feel that they have freedom of speech at the present time.

Box 6.2.3. Definition of Freedom

There were no substantial differences in the interpretation of freedom between men and women (see Annex 5 for variations in views of the concept of freedom). In general they said that freedom is a

situation of ‘not being bound’ or ‘without any hindrances’ and one in which a person ‘can do anything, provided that it is within certain boundaries (of religion, responsibility and so on)’.

However, the women often gave a formulation that was closely connected with daily household life; for example, they linked freedom with family relationships (husband-wife, child-parents). The community members also mentioned various kinds of freedom that are relatively the same, such as

freedom of worship, freedom of speech, freedom to have opinions, freedom in economic matters and political freedom. Economic freedom was interpreted as freedom to do business, to work and to obtain returns. The way to increase economic freedom is to have a lot of money.

In the specific case of women’s freedom, which is relevant to the women’s voice and participation, almost all FGDs, both men’s and women’s, in all areas said that men are freer than women, the reasons

being that regulations and norms of behavior place more restrictions on the movements of women, women have a greater work load, and men have a role as head of the household and, from the religious point of view, women cannot be the imam or leader of communal prayers. It is interesting to

note a woman from Bulu said that the most important kind of freedom is freedom from one’s husband. However a very small number took the view that women are freer than men because women hold the money and can arrange payments (of electricity, water, schooling and the like) and because

women do not have to do heavy jobs. In two communities, Branta Pesisir (Male) and Idamdehe Gamsungi (Female) they said that men and women have the same freedom because they have the

opportunity to undertake business. Moreover, with a high level of education women can have

freedom that is equal to or even greater than that of men.

Table 6.2.2. Freedom of Speech

Freedom of speech (% of respondents)

Community

Social stratification/ social capital

Now Then Change

Low Conflict Med / good 59 17 32

Palengaan Daja Less / good 63 29

Semampir High / good 95 5

Bulu Med / good 76 0

Banyupelle Med / good 59 23

Branta Pesisir Med / good 74 26

High Conflict High / good 99 11 88

Soakonora High / good 100 17

Idamdehe Gamsungi High / good 100 0

Gorua Med / good 95 14

Kampung Pisang High / good 100 3

Gura Less / good 100 0

All areas 86 14 72




How about religious freedom? It is suspected that the extent of religious freedom in a community can also influence the people’s voice and participation. Those who live in a community where there is religious freedom tend to express their opinions freely and are able to participate in community activities. The household survey indicated that almost all respondents (99%) in both

low and high conflict areas reveal the same pattern, that is, most respondents believe that both at the present moment and 10 years ago there is religious freedom in Indonesia. This shows that all communities have the opportunity to voice their interests and to participate in community activities and decision-making in the interests of the community and the people without being burdened by religious restrictions.

Still in connection with the element of freedom, which plays a part in influencing the people’s voice and participation, freedom of the press means that the press can freely express the real aspirations of the people and the conditions that really occur in the community in the media. The majority of respondents (89%), with 79% in areas of low conflict and 98% in areas of high conflict most believe that at the present moment there is freedom of the press in Indonesia. This is very different from the situation 10 years ago, when only 20% of all respondents (24% in low

conflict and 16% in high conflict areas) felt that there was freedom of the press. This means that a large part of the community has scope for voicing its interests through the media. The process of making important community decisions Parallel with the increase in freedom and democracy, where the interests of the community are concerned, the decision-making process should increasingly involve the community. Most FGD participants in the villages believe that political access in their village is steadily improving because the making of important decisions increasingly involves the community either directly or through representatives. For example, in Bulu, the community possesses greater access to decision-making at the local level at the present time because, if there are any problems, the BPD holds a musyawarah (community consultation) with the people. Linked to the question of community participation in meetings that are initiated by people to discuss community matters, data from the household survey supports this phenomena, with 64% of respondents in all areas

participating in meetings. In low conflict areas the figure is 58% of respondents, while in high conflict areas it is 70% (see Table 6.2.3 below).

Table 6.2.3. Community Voice and Participation in Decision-making

Community voice and participation (% of respondents) Community

Social stratification/ social capital

Community meetings

BPD meetings

Protests Campaigns Contact with the

DPRD

Low Conflict Med / good 58 24 1 42 5

Palengaan Daja Less / good 50 26 0 53 5

Semampir High / good 57 16 0 24 5

Bulu Med / good 68 41 3 43 11

Banyupelle Med / good 69 33 0 49 0

Branta Pesisir Med / good 47 5 0 39 3

High Conflict High / good 70 50 8 48 10

Soakonora High / good 53 67 19 28 6

Idamdehe Gamsungi High / good 96 62 0 62 16

Gorua Med / good 68 46 11 70 14

Kampung Pisang High / good 83 39 6 44 14

Gura Less / good 51 38 5 35 3

All Areas 64 37 4 45 8




In all areas most of the respondents feel that community influence on decision-making by the district government has been the same during the past ten-year period (Table 6.2.4). Parallel with this opinion, two women’s FGDs (in Palengaan Daja and Banyupelle) said that political access in their respective villages is limited. Discussions of village interests involve only village

officials, community figures (especially religious figures) and male members of the community. Women and young people are not involved (‘we are not invited to meetings’). This is related to the paternalism that is very dominant in these two particular villages.

Table. 6.2.4. Trends in Community Influence on Decision-making

by the District Governments

Community Involvement in the Decision-Making Process Community

Greater (%) The same (%) Less (%) Do not know (%)

Low Conflict

Palengaan Daja 5 47 21 26

Semampir 24 68 0 8

Bulu 49 46 5 0

Banyupelle 13 82 5 0

Branta Pesisir 8 58 11 24

High Conflict

Soakonora 14 50 22 14


Gorua 22 51 19 8

Kampung Pisang 3 81 8 8

Gura 11 59 30 0

Source: Processed from the household survey.

In addition to holding meetings with the people of the village, the BPD is the formal channel for the expression of community aspirations at the village level. According to community figures and informants, election for the BPD was held recently in all communities in both regions, with the exception of Kampung Pisang, which is an urban community. Nevertheless, data from the household survey indicate that the participation of respondents in gatherings, meetings or discussions with the BPD is still low, namely, 37% of respondents in all areas. The figure is 24% in low conflict areas and 50% in high conflict areas (Table 6.2.4). As shown in Table 6.1.3 in an earlier subsection, the number of political groups has increased in both low and high conflict areas, and is now two or three times greater than the number of political parties that existed 10 years ago. This is in accordance with the expansion that has occurred in national politics, where 10 years ago only three political parties were permitted to exist and to take part in national elections. With the reformation that began in 1998/1999, political organizations in Indonesia have flourished and a peak has was reached in 2004 when 24 political parties were eligible to participate in the general elections. Even so, according to both women’s and men’s groups, political organizations are not important in their communities by comparison with other organizations and groups. For the majority of the people, religious and economic groups and organizations are more important than those of a political nature. This is reflected in community membership in organizations and groups as described above (see the discussion in the subsection concerning social capital). The household survey reveals that only 3% of respondents are members of a political group. Most members of the community belong to an organization, which in many cases is an economic group. Although political groups are not important for the community, almost half of the people in the two regions took part in the campaign for the recent general elections.



The community has no emotional ties with the representatives whom they have elected and who are representatives of certain political parties. This is apparent from the fact that in the past 10 years, members of the community have had almost no contact (through telephoning, meeting or corresponding) with their representatives at the district level (that is, the DPRD), let alone at

the central or national level (the DPR). Even so, people in areas of high conflict have more contact with their representatives at district level than do people living in low conflict areas. Communities in high conflict areas also voice their concerns through protests more frequently than those in low conflict areas. Inclusion and Participation

The inclusion of poor people and other traditionally excluded groups in the setting of priorities and decision-making is critical to ensure that the use of limited public resources reflects local

knowledge and priorities and to build commitment to change. Ideally, the BPD as the community’s official, formal, representative institution should represent all elements in the community, including women and the poor, so that the interests of these groups can also be channeled. Nevertheless, not all BPDs in the sample communities include members from all elements in the community, including women and the poor. For example, all members of the BPD in all communities in Pamekasan District, which is located on the island of Madura, are men. The BPDs

in other communities, however, in low conflict and high conflict areas alike have women members, although their numbers are limited; the proportion ranges between 10% and 30%. Regarding the representation of the poor, BPD in Banyupelle and Palengaan Daja has its members from the poorer groups, but not all BPDs have members from the poorer groups, for example, Bulu, Idamdehe Gamsungi and Gura. Currently, the representation of women and the poor has been improved compared to the situation of 10 years ago. For example, in the past only Semampir involved women in its LKMD, and membership from the poorer groups was not more than 50%.

Table 6.2.5. Control Over Personal Decisions

Control over personal decisions (% of respondents)

Now Trend

Community

All Most Part Better Same Worse

Low Conflict 52 12 12 21 72 7

Palengaan Daja 50 3 37 13 76 11

Semampir 59 14 22 38 54 8

Bulu 62 22 16 35 60 5

Banyupelle 54 5 28 10 82 8

Branta Pesisir 37 18 32 8 89 3 High Conflict 36 37 17 14 83 3

Soakonora 22 33 19 19 78 5


Gorua 41 22 27 22 70 8


Gura 57 22 11 14 81 5 All Areas 44 24 22 17 78 5 Source: Household survey.

Control over personal decisions The better a person’s control is over personal decisions, the better he/she will be in voicing

his/her interests. In general, respondents have a positive view of their ability to control personal decisions. Less than half of the respondents, however, believe that they are able to control all their personal decisions and only a few can control most of their personal decisions. Most also said that their ability to control personal decisions has been the same (no better and no worse)



over the past 10 years (Table 6.2.5). In low conflict areas more respondents are able to control all their personal decisions and the trend has improved over the past 10 years. This suggests that for some reason the community is not fully able to voice its interests because some personal decisions are still influenced by other persons or parties.

3. The link between the local democracy function and community prosperity

C. EXTENT TO WHICH LOCAL GOVERNANCE FUNCTIONS

Good governance consists of several dimensions (Diamond 2004: 2). One is the capacity of state to function in public service. The second dimension is a commitment to the public good, while the third dimension is transparency, related to accountability. The fourth and fifth dimensions are the rule of law and participation and dialogue mechanisms that enable the public to provide input to the policy process, to correct mistakes in policy design and implementation, and to promote social inclusion. The functioning of local governance is related to the two levels of local government, the village level, where communities mostly engage and communicate closely, and the district level. As mentioned earlier, at the village level there are the pemerintah desa (village government), which is headed by a village head, and the BPD, which represents community members. At the district level there is the pemerintah daerah (district government), known as the kabupaten or district in rural areas and the kota or city/town in urban areas. These are headed by a bupati (district head) and a walikota (city mayor) respectively. In addition, there is the DPRD (the local House of Representatives). In seeking to obtain a wider understanding of the functioning of governance, the household survey also asked about governance at a higher level, that is, national governance. The discussion will focus on a number of issues that include service delivery (which will look again at matters already presented in Chapter V), the extent to which local government takes into account the concerns voiced by the people, the proportion of officials and public servants who are corrupt and take bribes, and trust of government officials.

Before these matters are discussed, a picture is presented of the state of village level government in each community, which might influence the state of governance. The descriptions indicate

that there are great variations in the condition of village governments. There are two types of village government, those that are well established and those that are weak. In areas of high growth, village governments are generally well established, irrespective of whether the area has experienced a high or low level of conflict. For example, two high conflict areas have well established village governments that are meaningful for the villagers, while one area has an extremely weak village government. In some communities in low conflict areas, the role of the

kyai (religious leader) is very strong, to the point where he virtually runs the village (see also section 6.2 of this chapter).

Palengaan Daja (NPI = 0.82; MOPI = 0.00) The village of Palengaan Daja consists of nine hamlets. It is headed by a klebun (village head). Besides the klebun, there is also a kyai (religious leader) whose role is very dominant and sometimes exceeds that of the village government. Both occupy the highest social level in non-economic affairs. In addition, there are thugs or bajing who also have positions at the highest level because they are regarded as being able to protect the village from external threats to security. According to community members, the government does not help much;

each person acts by himself.



Semampir (NPI= 0.66; MOPI= 0.42) Semampir consists of five hamlets. Based on the population size and infrastructure required for classification as an urban village, Semampir has changed in administrative status from a rural village to an urban or kelurahan (the Kelurahan of Semampir). As a consequence, the

village head of Semampir is no longer elected directly by the villagers but is appointed by the kabupaten administration. Hence the village government does not have much direct influence on the lives of the villagers. The relationship of the community with the village government is more formal in nature and concerns administrative matters.

Bulu (NPI= 0.50; MOPI= 0.17) The village government is considered to be important for the community as it is very helpful in dealing with situations where people face problems that have to be solved. These situations include arranging business permits, overcoming sicknesses and teaching good cultivation methods. The village has already formed a BPD whose task is to represent the

people in putting forward their aspirations and supervising the running of their government. Banyupelle (NPI= 0.48; MOPI= 0.05) The village of Banyupelle consists of seven hamlets. The village is run by a village head with the help of the hamlet heads. The present village head was chosen through a direct election in 2003. The village has also formed a BPD. Apart from the village head, the kyai and the

teacher of religion (ustadz) also guide the people and play a major role in the daily life of the community. Branta Pesisir (NPI = 0.04; MOPI = 0.19) The village consists of eleven hamlets. The people rarely have any contact with the village government unless there is a dispute or if they need a written statement in order to obtain credit. Since the hijacking incidents in 2003, however, communications with the village administration have been more intensive because of the need to settle this matter. Members of the community say that now they are more involved in decision-making. Soakonora (NPI = 0.40; MOPI = 0.43) The village, which consists of three hamlets, is under the leadership of a village head who was chosen by members of the community after they returned from evacuation at the end of 2002. The head is assisted by a village secretary, three hamlet heads and neighborhood heads. The village government appears to be still underdeveloped, however; for example, the village head is not yet completely familiar with his area and a BPD has not yet been formed.

Idamdehe Gamsungi (NPI = 0.38; MOPI = 0.68) The village government is extremely important for the community. The village head, who was elected by the people honestly and fairly, has both power and charisma. The people are very close to him and they always listen to and follow his instructions. The heads of the RTs and other village officials also perform their functions well.

Gorua (NPI = 0.33; MOPI = 0.16) The village, which consists of six hamlets, is run by a village head who was chosen by members of the community after they returned from evacuation at the end of 2002. A village secretary, four section heads, six hamlet heads and a number of neighborhood chairmen, assists him. In this village a BPD has not yet been formed. At the time of field research, it was obvious that the village government and administration were not

functioning as fully as they should have been.



Kampung Pisang (NPI = 0.29; MOPI = 0.42) Kampung Pisang consists of four hamlets or communities. Because it is an urban area, the head of the kelurahan (urban village) is a civil servant (lurah) who is appointed by the kabupaten administration. To run the administrative affairs of the village, the lurah is assisted by a staff of seven persons. The kelurahan has a Village Community Resilience Institution (LKMD), which is the old form of the BPD. Gura (NPI = 0.06; MOPI = 0.20)

A village head who was directly chosen by the community leads the village administration of Gura. The current head was elected in 1999. He is assisted by the village secretary, section heads, the head of security, and the head of social matters. In 2001 the village formed a BPD, which functions as the legislative institution at village level.

Service delivery In relation to the first two dimensions of good governance, which are the capacity of the state to function in the service of public good and commitment to the public good, the local governance performance at the district level will be examined from their performance after 1999 when regional autonomy was launched. Before regional autonomy, the local governments usually depended on the central government to developing infrastructures, both physical and social. Assistance takes the form of initiatives and the provision of funds. From 2001 to 2005, limited infrastructure projects have been implemented, which indicates that local governance is not functioning well. In low conflict areas, there were few public good projects in the form of road sealing and the installation of clean water channels. In the high conflict areas, there were several projects, which are mostly related to the post conflict restoration programs. Only in Idamdehe Gamsungi, where many projects were implemented and initiated by the village apparatus, it can be seen that local (village) governance is functioning. However, the local governance in low conflict areas is better functioning compared to those in high conflict areas. This is indicated by most of the project designs were discussed with and involved the community. In addition, most projects included the community in their implementation and management. In rural areas, where the majority of people depend on the agricultural sector, it would appear that government agricultural programs do not always exist. If they exist, most take the form of nothing more than credit or revolving fund schemes of limited value. In the case of credit for business or consumption purposes, more sources are available for communities in low than in high conflict areas. Apart from relatives, friends, traders, stores and banks, both commercial and government, low conflict areas also have money-lenders and community credit groups, which are rarely found in high conflict areas. Nevertheless, community figures in low conflict areas regard the most important sources of credit at the present time as those that are informal in nature, that is, relatives, friends and money-lenders. Meanwhile, in two communities in high conflict areas, the credit sources regarded as important today are commercial and government banks. Chapter V (Tables 5.1.1 and 5.1.2) explained that people in all communities in both low and high conflict areas are currently enjoying electricity and clean water. Although electricity has been available in these villages for at least 10 years, the capacity of electricity in Idamdehe Gamsungi, which is in a remote location, is at present not sufficient and so blackouts are frequent.

5 With regard to sources of clean water (in the form of artesian wells, clean water

channels and drinking water projects), some communities (Bulu, Branta Pesisir and Idamdehe Gamsungi) have developed facilities only in the last 10 years. All communities are very pleased with these installations and some (Semampir, Bulu, Branta Pesisir and Soakonora) mentioned

5The researchers experienced this when conducting fieldwork in the village. In one discussion they had to

use candles.



that clean water (and electricity in Bulu) is a positive factor that has helped community prosperity (Chapter IV: Table 4.2.3). In relation to the quality of social infrastructures, especially health facilities, even though a

public clinic or medical doctor are not available in all communities, the people in most villages have enjoyed a good quality of health care for the past 10 years. If a doctor is not present in the community, nurses or midwives provide health treatment and if a clinic is not available, people usually go to one in a nearby village. Poor members of the community also participate in the kartu sehat program (health cards for the poor, known as green cards). One community (Palengaan Daja) mentioned this program as a positive factor that has encouraged community prosperity (see Chapter IV: Table 4.2.3). Unlike the situation with health care, the people in certain communities (Palengaan Daja, Bulu and Gorua) have enjoyed good quality education only recently. However, these facilities are provided mostly by the central government, which again indicates that local governance is not functioning. Even now, the local governments usually still depend on the central government to developing infrastructures, both physical and social. In most regions medical doctors, nurses and midwives are available only if the central government recruits and sends them there, the reason being that the cost of medical staff salaries is usually borne by the central government. This also applies to the provision of free medical treatment for the poor through the kartu sehat program and the Askes program (health insurance for the poor), which is a government program where initiatives and funding come from the central government. Apart from the infrastructure development projects (roads, electricity, water, housing and wharves) that are described in Chapter V (Table 5.1.2), there were other government

development projects during the 1995-2005 period (Table 6.3.1). Most of the project designs in low conflict areas were discussed with and involved the community. In addition, most projects also included the community in their implementation and management. It was only in Banyupelle and Palengaan Daja that almost all projects excluded the community. In high conflict areas, Idamdehe Gamsungi and Gorua were the only villages where project designs and implementation were discussed with and involved the community. In the case of public telephone services (Table 5.1.7), two communities - one in a low conflict area (Bulu) and one in a high conflict area (Gorua) - do not have a public telephone even now. Only two communities, both of them located in urban areas, had a public telephone 10 years ago, namely, Semampir in a low conflict area and Kampung Pisang in a high conflict area. The other communities obtained a public telephone only during the past 10 years. The lowest administrative level at which Post Offices are provided in Indonesia is the subdistrict (kecamatan) level. Even so, the postal system, which is a state-owned enterprise, also serves communities at village level through a postman who delivers letters by motorcycle. He normally leaves letters with the village head or village administration, which forwards them on to the RT head, who then takes them to the addressee. In the case of money remitted through the postal service, the postman goes direct to the recipient’s house because the money has to be given to the addressee him/herself. This explains why none of the communities has a Post Office. If village residents need to use postal services, they can entrust the task to the postal officer who comes to the village or else go themselves to the subdistrict Post Office.



Table 6.3.1. Development Projects and Community Involvement

Project Year Was the community

consulted/involved

in project design?

To what extent was the

community included in

project implementation and

management?

Low Conflict Areas (East Java)

Road 2001 No Not at all Palengaan Daja

School 2004 No A little

Agriculture 1995 Yes To a great extent

Road 1996 Yes Not at all

Finance 2001 Yes To a great extent

School 2003 Yes To a great extent

Semampir

Health 2004 Yes To a great extent

Road 1995 Yes To some extent

Finance 2002 Yes To some extent

Bulu

School 2004 No A little

School 2003 Yes A little

Health 2004 Yes A little

Road 2005 Yes A little

Banyupelle

Agriculture 2005 Yes A little

Road 1997 Yes To a great extent

Health 2001 Yes To a great extent

Branta Pesisir

School 2002 Yes To some extent

High Conflict Areas (North Maluku)

Health 2002 No A little

Agriculture 2004 Yes To some extent

Road 2005 No A little

Soakonora

School 2005 No To some extent

School 2002 Yes To a great extent Idamdehe

Gamsungi Health 2004 Yes To a great extent

Health 2001 Yes To a great extent Gorua

School 2004 Yes To a great extent

Kampung Pisang Road 2003 Yes To some extent

Gura Road 2002 No Not at all


Local government concerns about community interests According to community figures and informants, local government attention to the interests of village people in most communities is greater today than it was 10 years ago (Tables 6.3.2 and 6.3.3). Only two communities, one in a low conflict area (Branta Pesisir) and one in a high conflict area (Soakonora), said that the attention of the local government to the interests of the village community is less than it used to be. The views of community leaders and informants are supported by FGD participants in all communities, most of whom suggested that local government attention to the interests of the village community is now greater. This greater attention is related to (1) the existence of a growing number of programs that are intended to improve welfare, particularly the welfare of the poor, such as Cheap Rice (Raskin), the Social Safety Net (JPS), assistance with business capital, immunization, etc; and (2) better services (help if there is a problem, the provision of necessary statements, for example, those needed to obtain a marriage certificate, etc).



Table 6.3.2. Local Government Attention to Community Interests in Low Conflict Areas

Degree of local government attention to community interests

Community

Source of information

A lot/ greater

A little/ same

None/ less

Do not know/ Do not know

Informants Currently: a little. Trend: more

FGD-M The same; no improvement

FGD-F N.A.

Palengaan Daja

Households 34%

8%

21%

74%

34%

5%

11%

13%

Informants Currently: a lot. Trend: more

FGD-M More responsive; the community feels more able to influence government decisions

FGD-F The community has more influence on decisions

Semampir

Households 32% 32%

46% 57%

22% 11%

0 0


FGD-M Greater: ‘every year I receive a sarong’, ‘many people have

finalized payment of taxes’, ‘there are many social activities’

FGD-F The same/still good: Always helps if there is a problem

Bulu

Households 65% 32%

22% 65%

14% 3%

0


FGD-M Greater: Issues statements when asked (marriage certificates)

FGD-F Greater attention

Banyupelle

Households 62% 36%

31% 59%

8% 5%

0 0

Informants Currently: a lot. Trend: less

FGD-M Greater: there is now the Cheap Rice program (Raskin)

FGD-F Greater: existence of a BPD, progress in technology, culture,

newspapers, Cheap Rice program assistance, JPS program in

health, immunization every month

Branta Pesisir

Households 39% 16%

29% 63%

13% 3%

18% 18%

Source: Community Synthesis Reports (CSRs) and household survey.

It is interesting to consider the opinions of the men’s FGD in Gura, which is in a high conflict

area. The men said that local government attention to the community’s interests has indeed increased but that this is not based on an improvement in the government’s performance; rather, the government gives greater attention because it is afraid of demonstrations against it. It turns out that the positive view taken by FGD participants is not supported by the results of the household survey in the same communities (Tables 6.3.4). The Survey found that only 43%

of respondents believe that the local government the local government listen to the community aspirations in making decisions. More than half (54%) feel that the interests of the people receive only a little and in some cases no attention from the local government. In low conflict areas 47% of respondents say that the local government listen to the community aspirations in making decisions, while in high conflict areas the comparable figure is 39%.

In Bulu and Banyupelle, which are both in low conflict areas, most respondents (around 60%) believe that the local government listens to community aspirations prior to making decisions and that the extent of attention is the same as it was 10 years ago. Meanwhile, only in Idamdehe Gamsungi does the majority of respondents (70%) believe that there is a lot of attention on the



part of the local government to the community’s interests at the present time. This differs from opinions in Soakonara, which is likewise in a high conflict area with relatively low growth. Half of the respondents in this community said that at the present time the attention of the local government to the community’s interests is less than it used to be. In the introduction to this

section it was explained that these two villages tend to take opposite views in many matters, including management by the village government. The people of Idamdehe Gamsungi are apparently far more satisfied with the performance of their village government than are the people of Soakonora.

Table 6.3.3. Local Government Attention to Community Interests in High Conflict Areas

Degree of local government attention to community interests

Community Source of information A lot/

greater A little/

same None/ less

Do not know/ Do not know

Informants Currently: a little. Trend: less

FGD-M The same: the present village head is no better than the previous one

FGD-F Better: there is assistance with business capital

Soakonora

Households 19% 11%

50% 61%

31% 28%

0 0


FGD-M Greater: there are many meetings together

FGD-F Greater attention

Idamdehe Gamsungi

Households 70%

17%

27%

78%

3%

5%

0

0


FGD-M N.A.

FGD-F Pays more attention since this is a new region; previously the government never gave attention as there were many regions

to be considered

Gorua

Households 41%

27%

43%

65%

16%

8%

0

0

Informants Currently: not at all. Trend: less

FGD-M Increasing

FGD-F Declining, because the government feels that it is clever

Kampung Pisang

Households 31% 11%

56% 72%

11% 11%

3% 6%


FGD-M Greater; however, this change is not due to awareness on the part of the government itself but because the government is

‘afraid of demonstrations’

FGD-F Worse than in the past: in the past they made and widened roads, provided lighting and telecommunications and

cleaned the market. But now the road are jammed and dirty

Gura

Households 35%

24%

30%

68%

35%

8%

0

0

Source: CSRs and household survey.



Table 6.3.4. Local Government Concern about Community Interests

Extent to which local government listens to community aspirations in

making decisions

Trends in local government attention to community aspirations

in making decisions

Community

1 2 4 5 6 7 8 9

Low Conflict 47 30 18 6 25 63 5 6

Palengaan Daja 34 21 34 11 8 74 5 13

Semampir 32 46 22 0 32 57 11 0

Bulu 65 22 14 0 32 65 3 0

Banyupelle 62 31 8 0 36 59 5 0

Branta Pesisir 39 29 13 18 16 63 3 18

High Conflict 39 41 19 1 18 69 12 1

Soakonora 19 50 31 0 11 61 28 0

Idamdehe Gamsungi 70 27 3 0 16 78 5 0

Gorua 41 43 16 0 27 65 8 0

Kampung Pisang 31 56 11 3 11 72 11 6

Gura 35 30 35 0 24 68 8 0

All areas 43 35 18 4 22 66 9 4


Note: 1= very great attention 2= a little attention 3= absolutely no attention 4= do not know 5= more attention 6= the same amount of attention

7= less attention 8= do not know 9= no answer

Corruption and bribery

The third dimension of good governance is transparency, which is closely related to accountability and often indicated by the extent of corruption and bribery. The greater the number of cases of corruption and bribery and the number of government employees who are involved, the weaker the function of governance becomes. According to community figures and informants most government officials are currently engaged in bribe taking and corruption (Table 6.3.7), which indeed shows weak governance performance. This information from

community leaders and informants is supported by the household survey (Table 6.3.8), which suggests that most government employees are involved in corruption and bribe taking.

Table 6.3.5. Informants’ views on the Involvement of Local Government Officials

in Bribe-taking and Corruption

Views about Involvement of Village-level Officials

in bribe-taking in corruption

Community

Informants F M Informants F M


Palengaan Daja 2 N.A. 2 3 N.A. 2

Semampir 1 3 1 3 3 1

Bulu 1 2 2 4 2 2

Banyupelle 2 2 2 3 2 2

Branta Pesisir 1 3 3t 4 3 3


Soakonora 1 4 4 3 4 4


Gorua 2 3 3 4 3 3


Gura 1 N.A. N.A. 2 2 1

Source: Community Profile and CSRs.

Note: 1= almost none 2= a few 3= most 4= almost all



Table 6.3.6. Household Survey results on the Involvement of Government Officials in Bribery and Corruption

Community Respondents’ perceptions about involvement of officials

in bribery and corruption (% of respondents)

1 2 3 4 5 Low Conflict 4 17 51 11 17

Palengaan Daja 5 13 32 18 32

Semampir 0 16 65 19 0

Bulu 5 14 76 5 0

Banyupelle 8 23 44 3 23

Branta Pesisir 0 18 39 11 32

High Conflict 4 43 37 11 3

Soakonora 3 39 36 8 14

Idamdehe Gamsungi 3 54 35 8 0

Gorua 8 49 19 19 5

Kampung Pisang 0 36 53 8 3

Gura 5 38 43 11 3

All areas 4 30 44 11 11 Source: Processed from the household survey Note: 1=almost no officials are involved 4=almost all officials are involved

2= a few officials are involved 5= do not know 3=most officials are involved

In most communities, the women’s and men’s groups focused on corruption at the national level as they believe that there is a high level of corruption in the central government. They said that

most officials are involved because it is part of Indonesian culture and is always mentioned in the television news every day. They also believe that corruption occurs in the provinces and districts where the majority of government officials are involved in the misuse of their position. Nevertheless, during the discussions the women’s and men’s groups expressed the opinion that most communities feel that there has been little or no corruption at the village level. If there is any corruption in the village administration, it is considered to be minor in scale and to involve

only small sums of money, ranging between Rp 10,000 and Rp 20,000, for things like birth certificates. In a few cases it has been related to the distribution of rice for the poor. The people also believe that the trend is decreasing. The scale or level of corruption is increasing with the level of government. Respondents felt that there is no corruption in the village government but that a small number of government officials at the district and city level and a large proportion in the provincial and central governments are involved.

The FGD participants in low conflict areas feel that corruption has reached a serious level and abuse of position is also serious since the majority of government employees are involved. Furthermore, the trend has increased. Bribe taking also occurs within the circles of the public service itself. For example, every time a public servant is promoted to the next rank, he always has to pay higher officials. The people understand that most government employees are involved but do not know which individuals are concerned The tendency in areas of high conflict is similar to what takes place in low conflict areas. At the village/kelurahan level there are only small instances, for example, in the case of assistance with rice for refugees. At the district/city level, almost all public servants have been involved, because, according to the people, the Province of North Maluku is one of the worst on the list of corrupt regional governments in Indonesia.



Trust of government officials Although most people believe that there has been corruption and bribe taking on the part of the majority of government employees, approximately 75% of respondents still have trust (and even great trust) in district-level government officials (Table 6.3.8). The situation is the same as it was 10 years ago.

Table 6.3.7. Level of Trust in District Government Officials

Level of trust in district government officials (% of respondents)

Great trust and trust Between trust and lack of trust

Do not trust and very much do not

trust

Community


Low Conflict 80 78 12 12 5 7


Semampir 84 76 16 16 0 8

Bulu 92 78 3 11 5 11



Soakonora 55 83 31 17 14 0


Gorua 73 81 19 11 5 5


Gura 68 73 27 22 6 6

All areas 75 78 16 15 6 5 Source: Household survey.

Note: Since some respondents responded ‘do not know’, the total for each village is not always 100%.

Table 6.3.8. Level of Trust in Central Government Officials

Level of Trust in Central Government Officials (% of Respondents)

Great Trust and Trust

Between Trust and Lack of Trust

Do not Trust and Very much do not

Trust

Community


Low Conflict 81 78 9 11 10 9


Semampir 86 67 14 19 0 13

Bulu 84 78 5 14 11 8



Soakonora 82 88 8 11 0 0


Gorua 79 76 16 16 3 5


Gura 70 72 24 22 6 6

All areas 81 77 11 13 6 7 Source: Household survey. Note: Since some respondents responded ‘do not know’, the total for each village is not always 100%.



Approximately 80% of respondents still have trust in central government officials (Table 6.3.9). It would seem that people do not care very much about the corruption and bribe taking that occurs at a higher level so long as they receive the services that they want. For example, people are still willing to pay to obtain birth or marriage certificates or to pay for a permit to establish a

kiosk or sell in the market (see Chapter V: Access to markets), although they know that payments of this kind indicate corruption.

D. SUMMARY OF LOCAL FACTORS AND COMMUNITY MOBILITY

After discussing in detail several local factors that may have influenced community prosperity during the last 10 years (1995-2005), this section encompasses the local factors that have possibly influenced community prosperity. Table 6.4.1, Table 6.4.2, and Table 6.4.3 present the summary of local factors in each community, in low conflict areas and high conflict areas, in connection with the prosperity of each community based on indexes and the men’s and women’s FGDs. Table 6.4.2 and Table 6.4.3 show that the main local factors, which are predicted as affecting community mobility in both areas in the past 10 years (shown by positive sign), are very good social capital, and good local democratic functions. These democratic functions include village elections that are conducted in fair manner, freedom of speech, more opportunity to attend community meetings, join a campaign, and having control over personal decision making. On the other hand, the local governance is not functioning in almost all communities, especially at the district level, and this has impeded community mobility. Only one community, Idamdehe Gamsungi, has functioning village governance, which has helped community mobility. In regards to the social stratification, because the social stratification based on economic aspects is more open and tends to be egalitarian, the higher social stratification in high conflict areas did not hinder community mobility.



Table 6.4.1. The Measurement of Local Factors

Indicators and Factors which Affect Community Mobility

Measurement

Explanation of the Measurement

Factors:

Social stratification

Less If ‘no distinctions’ was answered by >75% respondents

Med If ‘no distinctions’ was answered by 50-75% respondents

Social: Distinction due to

religion/ social status (10 years ago) High If ‘no distinctions’ was answered by < 50% respondents

Less 3 steps or less

Med 4-5 steps

Economic: Number of steps

of Ladder of Life)

High 6 steps or more

Social Capital

++ If > 75% respondents are willing to help others

+ If 50-75% respondents are willing to help others

- Willingness to help others

- If only < 50% respondents are willing to help others

3 If > 75% of poor people attended the communal meetings

0 If no poor people attended the communal meetings

+ If the change is up to 25%

- Involvement of poor people

in communal meetings (now

compared to 10 years ago)

++ If the change is >25%

The extent to which local democracy functions

Village Election + Run in a fair manner, honestly

0 No change (between 10 years ago and now)

+ Change of up to 25%

++ Change between 26% to 50%

Freedom of speech

+++ Change of > 50%

0 If ‘the same’ was answered by > 50% respondents

+ If ‘greater’ was answered by > 20%-40% respondents

++ If ‘greater’ was answered by > 40% respondents

- If ‘lesser’ was answered by > 20% -40% respondents

Trends in community

involvement in decision making

-- If ‘lesser’ was answered by > 40% respondents

+ Attended by 25-50% respondents

++ Attended by > 50% respondents

- Attended by only a few respondents

Meeting attendance/

Joint protest or campaign/ Contact with DPRD

0 None of the respondents attended the meetings

+ 25-50% respondents can control ‘all’ personal decisions Control over personal

decisions ++ > 50% respondents can control ‘all’ personal decisions

The extent to which local governance functions

++ If ‘greater’ was answered by > 75% respondents.

+ If ‘greater’ was answered by 50-75% respondents.

- If ‘greater’ was answered by 25-50% respondents

Local government attention to community interests

-- If ‘greater’ was answered by < 25% respondents

++ If ’more attention to the people’s benefit’ was answered by > 75% respondents.

+ If ‘….’ was answered by 50-75% respondents.

- If ‘….’ was answered by 25-50% respondents

Trends of the running of local government (looking out of themselves of for the

benefit of the community

-- If ‘…..’ was answered by < 25% respondents

---- If ‘most officials are involved’ was answered by > 75% respondents.

--- If ‘….’ was answered by 50-75% respondents.

-- If ‘….’ was answered by 25-50% respondents

- If ‘…..’ was answered by < 25% respondents

Involvement of officials in bribery and corruption

++++ If ‘almost no officials are involved’



Table 6.4.2. Summary of Community Prosperity and Local Factors in Low Conflict Areas


Palengaan Daja


East Java

Summary Indexes:

NPI 0.82 0.66 0.50 0.48 0.04

MOPI 0.00 0.42 0.17 0.05 0.19

NPP 0.87 0.77 0.64 0.48 0.49

NPR 0.00 -0.13 -0.45 0.29 -0.09

Factors: Social Stratification:

- Social Med Less Med Med Less Med

- Economic Less High Med Med Med Med

Social Capital:


++ ++ ++ ++ ++ ++

- Involvement of poor

people in the communal meetings

3 + 3 3 -

Local Democratic Functions:

- Village Election + + + + + +

- Freedom of speech ++ +++ +++ ++ ++ ++

- Trends in community involvement in decision making

- + ++ 0 0

- Attendance in community meetings

+ ++ ++ ++ + ++

- Attendance in BPD meetings

+ - + + - +

- Joined a protest 0 0 - 0 0 0

- Joined a campaign ++ + + + + +

- Contact with DPRD - - - 0 - -

- Control over personal decisions

+ ++ ++ ++ + ++

Local Governance Functions:

- Local govt. attention to community interests

-- - - - -- --

- Trends of the running of local government

-- + + -- -- -

- Involvement of officials in bribery and corruption

-- --- ---- -- -- -----



Table 6.4.3. Summary of Community Prosperity and Local Factors in High Conflict Areas




Gura North Maluku

Summary Indexes:

NPI 0.40 0.38 0.33 0.29 0.06

MOPI 0.43 0.68 0.16 0.42 0.20

NPP 0.43 0.85 0.37 0.46 0.20

NPR 0.40 0.05 0.00 0.11 -0.23

Factors: Social Stratification:

- Social Med Less High Med Less Med

- Economic High High Med High Less High Social Capital:


++ ++ ++ ++ ++ ++

- Involvement of poor

people in the communal meetings

+ + ++ 0 0 +

Local Democratic Functions

- Village Election + + + + + +

- Freedom of speech +++ +++ +++ +++ +++ +++

- Trends in community involvement in decision making

0 0 0 0 0

- Attendance in community meetings

++ ++ ++ ++ ++ ++

- Attendance in BPD meetings

++ ++ + + + +

- Joined a protest - 0 - - - -

- Joined a campaign + ++ ++ + + +

- Contact with DPRD - - - - - -

- Control over personal decisions

- + + + ++ +

Local Governance Functions:

- Local govt attention to community interests

-- -- - - -- --

- Trends of the running

of local government

-- - + - - -

- Involvement of officials in bribery and corruption

-- -- - --- -- --



VII. UNDERSTANDING INDIVIDUAL1 MOBILITY

Why and how do some poor people move out of poverty and stay out of poverty while others are able to maintain their wealth, some fall, and some remain trapped in chronic poverty? What are the factors that influence this issue so that someone moves out of poverty? The results of earlier studies and several references show that the factors that influence the mobility of a household/family’s prosperity are multidimensional in nature. This means that the factor is not a

single factor and does not stand alone, but is a relationship between several factors that are very complex. These factors are classified into two groups, namely (1) internal factors that are the factors closest to an individual and that arise from oneself, and (2) external factors that arise from outside, from the closest locale, in other words at the community level where s/he lives or factors from the broader area such as the district or state. These two factors are mutually interactive and the results of the interactions between a person and their environment will

eventually influence the mobility of a person’s prosperity. Based on the analysis framework that was introduced by Narayan and Petesch (2005) that was analyzed in Chapter I, the first factors can be classified in the agency of the poor that is then grouped into individual and collective assets and capabilities. These factors will be further analyzed in this chapter. The second factors that originate externally have already been analyzed

in the previous chapters, namely what has been described as the opportunity structure. The factors that possibly influence household mobility were determined from 372 randomly selected respondents who were interviewed using a household questionnaire, representing four transitional groups namely the ‘never poor’, ‘movers’, the ‘chronic poor’ and ‘fallers’. In addition, these factors were also ascertained from 156 respondent life stories that were part of the

questionnaire respondents2 who were previously interviewed. Based on the identification by the

Ladder of Life FGD, the total household sample of the survey consisted of 92 ‘never poor’, 151 ‘movers’, 94 ‘chronic poor and 35 ‘fallers’. A. THE TRANSITION GROUP AND CHARACTERISTICS

The main characteristics of the sample household in all districts according to mobility status is divided into three main groups, namely (1) those associated with the identification of household head: gender, age, marital status and education; (2) those associated with household members: number of household members, gender and education level of household members who are working; (3) household income source: main and additional livelihoods of both household/family head as well as household/family members. This information is presented in Annex 7.1 -7.4. Livelihoods

Given that the majority of sample areas are rural, the main livelihood of respondent household heads and members is farming (Annex 7.1). Other important livelihoods are in the sectors of trading, services and the civil service. If separated by mobility grouping and region, in low-conflict areas the main livelihoods of the ‘never poor’ are farming, fishing, trade, civil service and the service sector. For ‘movers’ they are farming and the trade sector while for the ‘chronic poor’ it is farming, fishing and laboring and, for the ‘fallers’, farming and farm laboring. For the latter two groups, there is no-one working as a civil servant. 1This report uses the term individual to refer to an individual household or family, and not the individual

person

2The life story respondent is the household questionnaire respondent or their partner (wife or husband).



In high-conflict areas, the main livelihoods of the ‘never poor’ and ‘movers’ are farming, civil service and the services sector, while for the ‘chronic poor’ it is farming, fishing and laboring and for ‘fallers’ farming and farm laboring. Unlike low-conflict areas, in high-conflict areas for the latter two groups there are still those working as civil servants. Age of the household head

Most male household heads in the ‘never poor’ group are in the 51-60 age group and this indicates that ‘never poor’ families tend to be older than other groups. In addition, the most common age group among ‘movers’ and the ‘chronic poor’ is 31-40 years, while for ‘fallers’ it is 41-50 years. Most female family heads are found in the age group 51-60 years.

Number of household members

The highest average number of household members is 3-5 people in all mobility groups, namely ‘never poor’ (53%), ‘movers’ (61%), ‘chronic poor’ (56%) and ‘fallers’ (49%). There is no indication that the ‘chronic poor’ have more family members than the ‘movers’ or ‘never poor’ Female Headed Household

Household data (Table 7.1.1) shows that proportion of female headed households in the ‘chronic poor’ and ‘faller’ categories is higher than those in the ‘mover’ and ‘never poor’ categories. The table also shows that there are more ‘faller’ female headed households in high conflict areas

(24%) compared to in low conflict areas (6%). It is not surprising that more households with a female head (mostly widows and between 51-60 years) are in the ‘faller’ or ‘chronic poor’ groups than households with a male head. The two factors which can account for the falling economic state of households where the husband has died are the high level of dependence that a wife has on her husband, combined with the lack of social security for widows in Indonesia.

“In 1994 my husband died. This shocked our economic life because previously we depended on my husband. The one who managed the money was also my husband. I did not work and had to spend extra money praying for my husband’s death. The pension fund and the help from my children were not enough. My economic life decreased” (Ms. A, Semampir, Chronic PoorI)

Table 7.1.1 Female Headed Household by Mobility Status

Never Poor Mover Chronic Poor Faller Community

N % N % N % N %

Low Conflict 37 10 72 9 44 14 17 6

High Conflict 46 10 67 7 37 14 13 24

Total 92 10 139 8 81 14 30 14

Source: Household Survey.

Although there are more female headed households in the ‘faller’ and ‘chronic poor’ categories, there are also female headed households that have obtained economic security (‘never poor’), and those who have moved out of poverty (‘movers’) over the last ten years. Why does this occur? Individual life stories show how households can obtain prosperity and move out of poverty mainly when a partner dies. Firstly, households can survive if the wife has an independent source of income and is not financially dependent on her husband. These women generally had been working since before they were married.

“I admit that my assets continued to increase. They never declined, even when my husband died, but remained the same and in good condition. I worked independently. At the time of my

husband’s death, my children were still at school.” (Soakonora, Never Poor6)



“When I was 18 I learned how to sew. There was a Chinese who opened sewing course. I did that for one year. At that time my parents told me to do the course, with the reason it was for my future, and I was willing”. (Soakonora, Never Poor6).

Secondly, apart from married women’s economic independence, a factor that makes them successful is their interaction with the community, both in group activities, and with the general community. Thirdly, to do this they must possess self-confidence. Indonesian culture generally follows a patriarchal system, which causes the general public arena to be dominated by men and the domestic arena to be dominated by women. Wives who usually access the public arena are generally better equipped to survive if widowed than those who do not.

“Another important relation that impacts life is with the people and community because I am

in trade, I have plantation, and for those to work I need the community. I know all the residents here. I am close to all of them, with the district and the village apparatus. I often come in and out and attend meetings. (Soakonora, Never Poor6) “Speaking about confidence, I think I am very confident because if I wasn’t, I would not be able to survive like now. Just think about it, I had to struggle to send my children to school

while my husband didn’t agree. Not to mention that when my husband still worked, I was not allowed to sell cookies although it was for extra income.”(Kampung Pisang, Mover6).

Joining local organizations also helps female heads of household to interact with the community. Table 7.1.2 shows that a large proportion (84%) of female-headed households in low conflict areas and all ‘chronic poor’ (100%), participate in activities connected to their religion. In high conflict areas, apart from following religious groups, many female heads of household also follow

economic/finance groups like savings and credit groups. An interesting phenomenon is the ‘faller’ in high conflict areas, where exactly 50% access these groups. Later, in a discussion about credit, it was clarified that ‘fallers’ access credit groups more often than ‘mover’ and ‘never poor’ groups, who more often access savings groups.

Table 7.1.2 The Most Important Groups/Associations for Female Heads of Household

The Most Important Groups/Associations Participated by Female Head (%)

Community

Finance/Credit/Saving Religious Not participated

Low Conflict 0 84 16

Never Poor 0 75 25

Mover 0 86 14

Chronic Poor 0 100 0

Faller 0 86 14

High Conflict 30 30 40

Never Poor 20 40 40

Mover 40 40 20


Faller 50 50 0

All areas 15 56 28

Source: Household Survey

A forth factor, although there is no special social security program for widows, there are special empowerment programs aimed at widows or women that help female heads succeed. These empowerment programs often improve the economic abilities of female headed households, and their social independence.



“The government’s programs that can help me are among others the loan for business capital and Pekka (Perempuan Kepala Keluarga, a government-World Bank program). Through those program, I got a loan for capital as much as Rp500,000 that I could run my cookies business.

Right now I can produce and sell cookies in a great amount because I have quite big capital.” (Kampung Pisang, Mover6) “The interest rate of the money we borrow from the widows’ association is very low. If we borrow Rp1,000,000 then we have to pay Rp103,000 per month for one year. The installment is not very burdening. So, in the beginning, the loan from Saronifero (a cooperative in Tobelo) was quite helpful” (Gorua, Mover5)

One program that has been uncovered is Pekka. This program was started in December 2001, with the vision to empower the women household heads to help create a structure of a prosperous, just society with human rights values. As of December 2005, there were 296 Pekka groups with 6,572 members, spread over 213 villages. Members work as farmers, breeders and fishers, are generally aged between 41 and 50 years. They support between one and six family members on approximately Rp7,000/day, or less than US$1 (Pekka, 2006). B. INDIVIDUAL ASSETS AND CAPABILITIES

According to Petesch (2005), assets refer to material assets, both physical and financial. Such assets— including land, housing, livestock, savings and jewelry—enable people to withstand shocks and expand their horizon of choices. The extreme limitation of poor people’s physical and financial assets severely constrains their capacity to negotiate fair deals for themselves and increases their vulnerability. Petesch (2005) also explains that capabilities are inherent in individuals and enable them to use their assets in different ways to increase their prosperity. Human capabilities include good health, education and productive or other life-enhancing skills. Social capabilities include social belonging, leadership, relations of trust, a sense of identity, values that give meaning to life and the capacity to organize. Psychological capabilities include self-esteem, self-confidence and an ability to imagine and aspire to a better future. Political capabilities include the capacity to represent one or others, access information, form associations and participate in the political life of a community or country.

As was analyzed in the conceptual/analysis framework, assets are classified as: (1) Material assets, both physical and financial enable people to withstand shocks and

expand their horizon of choices. These include land, housing, motor vehicles, boats, livestock, and electronic goods such as televisions, savings and jewelry.

(2) Human capabilities include good health, education, and productive or other life-enhancing skills.

(3) Social capabilities include social belonging, leadership, relations of trust, a sense of identity, values that give meaning to life, and the capacity to organize.

(4) Psychological capabilities include self-esteem, self-confidence, and an ability to imagine and aspire to a better future.

(5) Political capabilities include the capacity to represent one or others, access to information, form associations, and participate in the political life of a community or country.

Apart from these assets, in rural areas the presence of children is also considered an individual asset because they can assist the household/family work on the property without having to pay someone as a laborer. In fact, in several particular states/areas the presence of female children (or males) is a



clear asset because when they marry, their parents will receive a large amount of dowry so enhancing the economic prosperity of this household. In particular areas that, in general, need a lot of male labor to manage large farms, male children have a higher asset value. Certainly there is a contrary argument; because the number of household members is in a certain condition (for example, with a low level of education) they represent a negative asset (burdening the household). Other arguments also indicate this depends on the sex of the children, male or female. 1. Material assets

Material assets cover ownership of important/productive assets (such as land, houses, motorcycles, cattle), other assets like color televisions, and financial assets such as savings and capital (credit). According to FGD participants, especially in high-conflict districts, the ownership of productive assets is a factor that can have an impact on prosperity. In addition, in the discussion on determining the characteristics of each ladder, land and its area is a distinguishing factor. There are no surprises that material assets are related to an individual’s mobility, for example the fact that the ‘chronic poor’ and ‘fallers’ have fewer assets than ‘movers’ and ‘never poor’. Because of that reason, analysis of material assets will be limited to financial assets such as savings, inheritances and capital (credit). We will then give more attention to other types of assets such as human and social capabilities. Although according to individual life story, several material assets are the factors that helped people to maintain their wealth or to move out of poverty, based on the FGD results, not many of the material assets were mentioned by FGD participants as factors that helped people to maintain their wealth, to move out of poverty or as factors that hindered people to move out of poverty. Only in Soakonora in a high-conflict area did FGD participants mention material assets, namely ownership of productive assets (Soakonora), without detailing the type of asset meant. FGD participants in the two high conflict areas only mentioned one main factor in the group of financial assets, namely ‘capital’ as the factor that could enhance or diminish prosperity, although this was not supported by household survey data that did not mention ‘capital/modal’ as an important factor that had enhanced their prosperity or their move out of poverty (see the discussion in the last section of this chapter). According to FGD participants in low conflict areas, what is meant by capital includes: saving and/or savings in the bank (Semampir-M, Bulu-F), own capital (Semampir-F, BP-F), having inheritance (Bulu-F), having access to working capital (credit) that is adequate for the needs (BP-M). Similar to the opinion of the community in low-conflict areas, FGD participants in high-conflict areas also mentioned capital as the main factor, namely inheriting wealth, having a lot of/sufficient capital (Gura-F, KP-M), rich parents (KP-M), and loans from UEP and PPK (IG). The unavailability of capital also hindered people to move out poverty or caused people to move down in poverty in the two conflict areas. FGD participants mentioned lack of capital, very little capital (to start a new business in the trade sector or to migrate) (PD-F, BP), the absence of capital (Gura, M), shortage of capital (Gura-F), insufficient capital (Bulu-M, KP-M, Soakonora, Gorua), no access to formal credit (no collateral) (Semampir-F), debt entrapment (Semampir-M, Banyupelle-F, Gorua, IG), exhausted capital (Semampir-F), no collateral to seek additional credit (Semampir-F, BP-F), tied down by high-interest debts (PD), and the capital is exhausted for children school (IG).



i. The Ownership of Important Assets

Land Agricultural land, both its ownership and size, are important assets, especially for communities that depend on the agricultural sector for their livelihoods. The data presented in Annex 7.5 shows that not all respondents own land, either in high-conflict areas or low-conflict areas, at the present time or 10 years ago. In fact, in the low-conflict area, more than half (51%) of sample households at the present time do not own land. In areas with high conflict, there are still approximately 38% of households that do not own land. This condition is little changed from the condition 10 years ago where approximately 58% of the community in low-conflict areas at that time did not own land and neither did approximately 42% in high-conflict areas.

This data also shows that the size of owned land in high-conflict areas (North Maluku) and low-conflict (East Java) areas are different. This is believed to be closely associated with the availability of land and the population in each region. In East Java, there is a very dense population (774 people per km2) with limited land available, while in North Maluku the population is relatively spread out because land is also still extensive. Ten years ago, approximately 37% of respondents in high-conflict areas owned more than 1 hectare of land,

while in low-conflict areas only 6% did so. This composition has not changed much during the last 10 years. While land is the capital to enhance prosperity, it appears that approximately 36% of ‘movers’ in high-conflict areas and 54% in low-conflict areas did not own land 10 years ago. In fact, 39% of the ‘never poor’ in high-conflict areas and 61% in low-conflict areas also do not own land. Even

though they own land, in low-conflict areas, the size is less than 1 hectare, and for ‘movers’ it is less than 0.5 ha. In high-conflict areas that, by chance, have more extensive lands with less dense populations, the proportion that own more than 1 hectare of land is larger than those who own less than 1 hectare. This is the case with all mobility groups in high-conflict areas. However, if observed from each community’s local context, in high-conflict areas, there are more

rural communities that own land of more than 1 hectare in Gorua followed by Idamdehe Gamsungi, especially among the ‘movers’ and ‘never poor’. It appears that for these two communities, land still represents capital in improving prosperity. In low-conflict areas, ownership of land is an important factor that can influence household mobility. For the ‘never poor’ and ‘movers’ in rural areas, with the exception of Branta Pesisir

that is a fishing community, nearly all own land, although the size of most holdings is less than 1 ha. Nearly all the households in three out of five communities among the ‘chronic poor’ did not own land 10 years ago, with the exception of Palengaan Daja. On one hand, the ownership of land is an important variable of livelihoods in the agricultural sector. On the other hand, this data shows, in general, that there is no uniform pattern of

interaction between the ownership of land factor and the welfare status of the household. Based on these two phenomena, although the majority of the population have livelihoods in the agricultural sector, it does not appear to be a mainstay in enhancing prosperity. Housing Apart from being indicative of a change in prosperity, house ownership and type of house can also be an asset in the context of enhancing household prosperity in the future. Houses can be used as collateral to obtain credit, loans to overcome pressing needs, or to be pawned or sold for business capital. Irrespective of their mobility status and sample region, most households 10 years ago already owned their own house. In low-conflict areas, the proportion that owned houses 10 years ago was in the range of 50%-100% (Annex Table 7.6). Most of those who did not own



house were in Branta Pesisir, a fishing district, especially ‘movers’ (50%) and Bulu, especially among the ‘never poor’ (63%). During the last 10 years, house ownership has changed. Increasing numbers of the ‘never poor’ and ‘movers’ now own houses indicates enhanced prosperity. If houses are the capital that is capable of enhancing prosperity, for example as collateral to

obtain loans, it appears the majority of respondents in all mobility groups in the two conflict areas owned houses 10 years ago. A number of respondents were still found in these communities, however, who did not own houses 10 years ago that is not based on mobility group. Only in Branta Pesisir in a low-conflict area and Gorua and Kampung Pisang in a high-conflict area is the proportion of those among the ‘chronic poor’ who own houses low compared with other communities or mobility groups. This data provides an interim indication that houses are not the

main factor in enhancing prosperity because they are not a distinguishing factor between mobility groups. The building material utilized for the walls and roofs determines the value of house assets. Annex 7.8 shows that 10 years ago the walls of the houses of sample households - for all categories – those that were made of bricks (as the standard type of more suitable wall) was dominated by

never poor. Meanwhile, the chronic poor dominated the housing with bamboo walls. The type of house roof that is presented in Annex 7.8 shows that 10 years ago the majority (87%) of houses occupied by sample households already had suitable types of roofs, namely iron or tiles with a relatively more equal distribution between the four transitional groups. Land and house titles, apart from showing security, also show the availability of collateral as

means to apply for credit (especially from a bank) for working capital. It appears that more of the ‘never poor’ and ‘movers’ have a title to their house than ‘chronic poor’ and ‘fallers’ (Annex 7.6). It is probable that having title to their land and houses assists this group to protect their prosperity and/or to move out of poverty. Cattle

For the majority of farmers, ownership of large animals such as cattle is not just as a form of asset accumulation but also functions as savings because of its liquid nature or ease of sale. Cattle ownership 10 years ago shows the existence of assets that had the opportunity to enhance prosperity 10 years into the future. Based on data presented in Annex 7.10, it appears that there are not many large animals such as cattle owned by the community, both 10 years ago and now. Ten years ago, the proportion of households in high-conflict areas who owned cattle was

approximately 30%. The ‘never poor’ and ‘movers’ have a tendency to own more cattle than the ‘chronic poor’. Over the last 10 years, cattle ownership has tended to fall, with no exceptions between these two mobility groups. The conflict that occurred in 1999-2000 is the main causative factor because that conflict caused “the loss of hundreds of head of cattle and goats” (Institutional Map and Conflict, Gura). Meanwhile, in low-conflict areas, the total number of households who owned cattle 10 years ago was no more than 10%. The distribution of cattle ownership in this district is also no different between mobility groups. If we pay attention to cattle ownership 10 years ago, it appears that cattle ownership was not a distinguishing factor between mobility groups is suspected as not being a factor in maintaining prosperity of in moving out of poverty. Even though in high-conflict areas that according to the results of the FGDs and community explanations, there is a significant need for cattle to assist in their agricultural businesses, for example to transport coconuts. Even before the conflict much of the community did not own cattle, only a small number of the community from the ’never poor’ who before the conflict owned 20 and 48 head of cattle.



Motorcycle Motorcycles, because of their rather high price and perception of usefulness (for example, they can be a work tool or means of supporting employment) are often as an asset that can be a factor in enhancing prosperity. Nevertheless, Table 7.11 shows that 10 years ago the number of households that owned motorcycles was relatively small. In general, however, the proportion of households that own motorcycles is greater among the ‘never poor’ and ‘movers’, both in low-

conflict and high-conflict areas. Colored Television In addition to being the result of an increase in prosperity, color televisions can also be evaluated as a valuable asset that can be utilized as capital in spurring an enhancement in prosperity. Apart from being used as collateral, being pawned or sold to develop a business, televisions can also be a source of information for its owner in order to support an improvement in welfare. Nevertheless, the presence of color televisions in most areas is still a new commodity that was probably still scarce 10 years ago. Table 7.12 shows that the pattern of color television ownership among sample households is relatively the same as the pattern of ownership of motorcycles. The proportion of households that owned color televisions 10 years ago in high-conflict was greater than those in low-conflict areas (Table 7.13). In the two areas, more televisions are owned by the ‘never poor’ and ‘movers’ than by the ‘chronic poor’ and ‘fallers’. This indicates that color televisions can become a source of capital in enhancing prosperity. Not only because they can be the capital when it is needed (as collateral or to be sold as business capital) but also as a source of information. Other productive assets

Based on individual life stories, many respondents mentioned their other material assets, especially those associated with the employment that occupied them, such as the landuk (a hoe-like tool) to make harvesting easy, machine tools for carpenters that were not assessed as valuable by respondents but assisted them in their work. Other assets that also indirectly influenced their

prosperity were jet pumps installed in the house to make it easy to obtain clean water. Several ‘movers’ also purchased electronic goods but did not use them themselves but donated them to the community so they could not be classified as assets that could impact on economic prosperity. As an example, a ‘mover’ in Palengaan Daja purchased a tape and amplifier for the musholla (praying room) in the interests of the local community. Nevertheless, in an indirect way this was considered to have influenced their social welfare. ii. Savings

Savings, either in the form of cash that are kept in the home or bank, as well as in the form of jewelry, can be utilized as capital in conducting business and improving the business or funding pressing needs that eventually will impact on household prosperity. In this study, information on savings was not asked in the household survey but was ascertained from individual life stories. Information on savings was also sometimes expressed in several discussions that discussed household characteristics in the Ladder of life. Several respondents, especially the ‘never poor’ and ‘movers’, stated that at the current time they had savings, kept either in the bank, arisan, cooperative, as well as at home. The types of savings varied between high-conflict and low-conflict regions. In high-conflict areas, savings were often in the form of land, plantations and the ownership of livestock (cattle). In low-conflict areas, because the banking system is more developed, there are more respondents with savings in the form of cash in banks and with a greater value compared to high-conflict districts. For example, amongst ‘movers’ and the ‘never poor’, bank savings can reach Rp110 million. Respondents in low-conflict areas who do not save cash in the bank hold their savings are in the form of arisan



and gold jewelry. In Branta Pesisir, there are several weekly arisan that could reach contributions of Rp500,000 per week with a return of Rp20 million in 5 years.

There are individual reasons why respondents choose different means to save; those who save cash in the bank do so because they feel it is safer. Many respondents in high-conflict areas save cash in small amounts in the home, or entrust it to neighbors, for the reason that it is easier if it is needed from time to time, for example if their child is sick, for school needs or to purchase daily essentials because they don’t need to go to the bank. Meanwhile some save in cooperatives, arisan or foundations (Muslim women in low-conflict areas). Savings, especially those kept in a bank, arisan and cooperatives were mentioned by respondents as being used for business capital, a business transaction facility, child’s education, preparations for a child’s wedding or circumcision, to go on a hajj, as an endowment for the family in the event of dying, Eid festive/holiday. For example, a ‘mover’ in a conflict area once had savings of Rp15.5 million in a state-owned bank, then used it all to go on the hajj and now no longer has any savings. A ‘mover’ in a high-conflict

area has, until now, been saving half his income each day and eventually could buy an ice cart for his business from his savings. Several respondents also mentioned that at the present time they did not have cash savings, but did in the form of land for farming, kiosks or shops in the market for trading, houses, motor cycles, gold jewelry, plantations, livestock or other electronic goods such as a color television, VCD, water pump. In high-conflict areas, the purchase of jewelry in the form of necklaces, earrings or gold bracelets for wives or children are often aimed more at an expression of affection to make the wife or children happy or as a sign (token) of the success of a particular job. For that reason, their weight and value are not large, only around 10-20 grams. Nevertheless, respondents also mentioned that this jewelry could be used at the same time as a form of savings if they occasionally need cash. In low-conflict areas, the purchase of jewelry does, indeed, have the objective of savings so its gross weight can reach as much as 100 grams. When there are no pressing needs, these gold savings can be utilized as jewelry. Savings, apart from being capital, are also an accumulation of the achievements of one’s work. What is meant by the results of work include income/wages whilst working overseas as a migrant worker in Malaysia or Saudi Arabia, profits from the sale of harvests during good seasons (for example, when not affected by pests, drought or too much rain) or when the price of agricultural produce is high. For example, a ‘mover’, after working for some time in Malaysia, has savings of as much as Rp4 million to purchase a shop in the market. The purpose of respondents save is also an interesting study to examine whether savings are a factor that has assisted in improving prosperity or is an accumulation of one’s work that can be a continuing factor in maintaining prosperity. A ‘mover’ in a low-conflict area said that when he wants to build a house, he saves building material little by little. A ‘mover’ in the same area saves money with his wife every day, then bought a VCD. A ‘mover’ in a high-conflict area, saved money with his neighbor, this money was then used for pressing children’s school needs (for example to purchase shoes), to buy a veil or gold jewelry that can be pawned if necessary, if there are sick family members. Nevertheless, these savings are not only monopolized by the ‘never poor’ and ‘movers’, several respondents included in the ‘chronic poor’ and ‘fallers’ also have savings in very different amounts.

“Farmers like me have no savings. We have chickens, ducks or cows, if you need money we sell them”. (Banyupelle, Chronic Poor3).



“I don’t have saving in Bank, because I only have 60 grams of gold which I can sell anytime if need money.” (Branta, Faller2)

The ‘chronic poor’ also sometimes join arisan, for example joining an Rp2,000 arisan for a return of Rp.1.5 million after 5 years. In high-conflict areas, one ‘chronic poor’ person saved money in an arisan and when he obtained his money, bought cattle worth Rp.500, 000. iii. Inheritances

Information on inheritances was not specifically requested in the household survey. Information on the existence of inheritances was only obtained from the FGD and part of the life stories. Many FGD participants mentioned inheritance as a factor that impacted on the improvement of prosperity. Most life story respondents in low conflict areas mentioned that inheritance increased their material assets and improved their prosperity. For some ‘fallers’ and ‘chronic poor’ in low conflict areas, inheritance was considered as the only valuable asset they have.

“The 4 x 20 m2 land, inherited by parents in 2005, is the most precious thing for me. I live in that place since long time ago. But I really feel that it is mine since 2005. This inheritance is very useful for me because my house and my service station are on it. I feel relieve now”. (Semampir, Faller2) “Most of the precious good I have are gifts from my parent. One year after getting married in 1980 I was given a bamboo-walled house. My father gave me a house for me to be independent. What help me in improving prosperity was the inheritance from my parents and the help from my relative” (Semampir, Faller1) “First thing that I had was land inheritance from my parents. I’ve been cultivating it since I was 10 years old (year 1935) till now. The land wide is 0.50 hectares. From before until now the land doesn’t become larger or smaller. Because I was the only child, I also inherited this house.” (Palenggaan, Chronic Poor3) “I have never bought anything at all, my land and this house I inherited from my wife’s

grandmother. I don’t have any other possessions; the contents of the house were also inherited. In fact, I have never bought a bed, cupboards, cooking tools or plates. It’s all inherited.” (Banyupelle, Chronic Poor1)

One ‘never poor’ respondent in a low-conflict area stated that he obtained an inheritance of 3.5 ha of land in 1978 from his parents and then inherited a house from his parents-in-law in 1983.

A ‘mover’ in a low-conflict area obtained an inheritance of land 5x20meters in area that was used for a plantation. In addition to land and houses, inheritances can also be in the form of goods or money, as was experienced, for example, by a ‘never poor’ respondent in Branta Pesisir in a low-conflict area who obtained a small boat from his father. With this boat he was able to go to sea. It was not only the ‘never poor’ and ‘movers’ who mentioned obtaining inheritances. A faller respondent in a high-conflict area also reported on an inheritance received from his parent

in the form of a piece of land 4x20 meters that constituted a dowry. This land was then used to build a house. On the other hand, in high conflict areas, only few respondents (almost all ‘movers’) stated that inheritance is important. Inheritance is generally in the form of agricultural land, vacant land, or a house. In most cases parents or in-laws passed down inheritances, and a small proportion were

from siblings, grandparents or uncles.



Despite increasing prosperity, inheritances can also cause conflict among family members, mainly when heirs have already died. In order to avoid conflict, heirs usually share the inheritance if they are still living, so the concept is more like a gift from the parents to their children.

“But I have a bad relationship, namely with my younger brother-in-law (my husband’s younger brother). As a result, until now I never enjoy inheritance that is entitled to my husband. I myself never intend to have it because in my opinion, we can still fulfill our daily needs without that inheritance.” (Kampung Pisang, Mover6)

iii. Credit

In the manner expressed by the Ladder of Life FGD, enhancements in prosperity need the support of adequate capital. The community understands the general opinion of capital as it in

this regard is capital originates from loans, either from the bank, cooperative or other sources. In order to provide a picture of this issue, Table 7.2.1 presents the proportion of respondents who have accessed loans during the last 10 years for business, for essential household costs such as medical treatment, weddings, funerals, education and building a house, and loans for daily consumption. Table 7.2.1 shows that there is no proof that ‘movers’ and ‘never poor’ access more credit compared to ‘chronic poor’ households. In fact, ‘chronic poor’ households in low conflict areas access credit far more often than ‘movers’ and ‘never poor’. While in high conflict areas, access to credit is almost spread evenly across all mobility statuses. According to its allocation, more households access credit for business development than for daily consumption and essential needs. These data indicate that in both regions, ‘chronic poor’ households in particular, and other households in general, have actually not experienced meaningful obstacles in accessing the business capital or loans they need. Based on the area, more respondents in low conflict areas have accessed credit of any type than respondents in high conflict areas.

Table 7.2.1 Proportion of Respondents who have Accessed/Obtained Credit in the Last Year (%)

Usage of Loans Never Poor Mover Chronic Poor Faller

Essential Need 20 24 41 34

Low Conflict 29 38 63 50

High Conflict 12 8 16 18

Business Development 52 61 74 53



Daily Consumption 24 25 50 29




Respondents who had accessed loans for essential needs and consumption only accessed these loans to overcome immediate difficulties, unlike those who accessed loans for business development. However, this only added to the households’ burden at the time they have to repay the loan. This mainly occurred in ‘chronic poor’ and ‘faller’ households.

“In year 2004, I got Rp4,000,000 from a tobacco harvest, but got back home with nothing because it was used up for paying debts, until I got sick. So events come and go.” (Palengaan, Faller2)



“Yeah it could minimize the burden but it can’t make you rich or prosperous, the issue is that the financial help given should be returned, if you want to get rich then work hard.” (Bulu, Chronic Poor2)

Business Loans Around 60% of the total sample households have a business, either in the agricultural sector or

other sectors. Of this total, last year 61% of them obtained relatively large loans for their businesses. If they are sorted according to household mobility status, ‘chronic poor’ households represent the largest proportion (74%) that have accessed business loans, followed by ‘mover’ households (61%), ‘faller’ (53%), and ‘never poor’ (52%). It is interesting to look at the source of these business loans. In general, Table 7.2.2 shows the

source of loans that are accessed relatively often by sample households are state-owned banks (17%), shops/suppliers (17%), friends (16%) and family members (12%). If it is looked at from their mobility status, for never poor rather significant amounts of loans are sourced from state-owned banks (32%). For ‘movers’ the distribution of loans is from friends (20%), shops/suppliers (20%) and state-owned banks (18%). Shops/suppliers are also a very important source of loans for ‘chronic poor’ households (24%), followed by loans from friends (22%). The

‘chronic poor’ obtain only 2% of loans from state-owned banks. It is an interesting to note that state-owned banks are the largest source of loans for ‘fallers’ (25%). This data indicates that households can become ‘fallers’, because they did not repay the borrowings to the bank. As a result, the bank would seize the collateral for the loan, and the borrower would experience a fall in their prosperity.

Table 7.2.2 Main Source of Business Development Loans (% of respondents)

Credit Source Household Mobility Status 1 2 3 4 5 7 8 9 99 Total

Never Poor 13 3 3 6 3 0 3 32 35 100

Mover 7 20 2 20 0 9 4 18 20 100 Chronic Poor 17 22 7 24 0 5 0 2 20 100 Faller 13 13 13 0 0 13 0 25 25 100 Total 12 16 4 17 1 6 2 17 24 100 Source: Household survey Note:

1=family; 2=friends; 3=moneylender, 4=shop/supplier; 5=employer/boss; 6=landlord; 7=community group/association; 8=private bank; 9=state-owned bank; 10=NGO; 99=other.

Credit for Daily Consumption

Daily consumption needs are a main and routine need whose fulfillment cannot be delayed. In ideal conditions, this need should be capable of being filled from the household’s own sources of income.

In fact, 31% of all sample households experience difficulty in fulfilling the essential needs. What is surprising is that ‘never poor’ and ‘mover’ households also appear to access rather large amounts of credit, 24% and 25% respectively. A large proportion of credit consumption originates from private banks (18% and 14% respectively) mainly for luxury consumption, like to buy a car or motorcycle (Table 7.2.3).

The worst condition, as expected, is experienced by ‘chronic poor’ households. Almost half (49%) of ‘chronic poor’ households have to meet their consumption needs by credit, while 29% of ‘fallers’ access loans to meet their consumption needs. In low conflict areas, around 80% of ‘chronic poor’ households have to meet their consumption needs by credit. This fact indicates that respondents not only need business loans but also need consumption loans to maintain their prosperity or to



move out of poverty. On the other hand in high conflict areas, only 14% of ‘chronic poor household’ access these loans. The main sources of loans to fulfill these consumption needs are friends, family members and shops/suppliers in proportions of 28%, 22% and 15% respectively.

Table 7.2.3 Source of Credit for Consumption Needs (% of respondents)

Credit Source Household Mobility Status 1 2 3 4 5 6 7 8 9 10 Total

Never Poor 9 23 5 23 0 5 9 18 0 9 100

Mover 22 27 5 11 8 3 0 14 3 8 100

Chronic Poor 28 34 6 13 0 6 0 0 2 11 100

Faller 30 20 20 20 10 0 0 0 0 0 100

Total 22 28 7 15 3 4 2 8 2 9 100


Credit for Essential Needs To fulfill consumer needs alone, most sample households need credit, then it is not surprising that to fulfill essential household needs, households need credit. In the past ten years, as many as 28% of all sample households have accessed credit to fulfill their essential needs. The households that are most in need of these loans are ‘chronic poor’ (41%) (Table 7.2.4).

If we examine what household used with their essential loans, Table 7.2.4 shows that for these loans categories, most households use it for wedding ceremony activities (34%) and the cost of medical treatment/health (28%). There is a glaring difference in usage patterns between low conflict and high conflict areas. Respondents in low conflict areas more often access essential loans for ceremonial purposes like weddings, funerals, and new births. On the other hand, in high conflict areas, essential loans are more often used for long-term investment needs, like education,

health, or home improvement. This is connected with cultural roots, which differ between the two areas. In low conflict areas, the general community still holds to traditional customs and practices that give rise to ceremonies for certain events such as births or marriages, while in high conflict areas this is not something which is considered to be important. Another interesting point is that ‘chronic poor’ in low conflict areas mostly use credit for wedding necessities, or for their children’s or relatives’ weddings (45%), while ‘movers’ most often use credit for education

and health (29%).

“In 1995 my wife died. I was sad but visits from my son’s friends relieved me. There were hundreds of them. It cost me a lot for funeral and the 40th day commemoration. I had to take a loan from a shop owner.” (Branta, Chronic Poor2)

“In 1997 my father died, that was during the financial crisis, I owed 4 million in loans” (Banyupelle, Chronic Poor3)



Table 7.2.4 Use of Essential Loans by Household Mobility Status (% of respondents)

Use of Loans Household

Mobility Status Death Health Give Birth House

Improvem

ent

Education Marriage Total

Never Poor 6 28 11 22 11 22 100

Mover 11 29 3 3 29 26 100

Chronic Poor 13 24 13 0 5 45 100

Faller 0 42 0 0 17 42 100

Low Conflict 12 23 10 2 11 41 100

High Conflict 0 48 0 14 33 5 100

Total 10 28 8 5 15 34 100


Most loan sources for essential needs come from family members, friends and shops/suppliers in the proportions 30%, 23% and 18% respectively (Table 7.2.5). For ‘never poor’ households, public banks are also a rather important source of credit (18%).

Table 7.2.5 Credit Source for Essential Household Needs

by Household Mobility Status

Source of Credit Household Mobility Status 1 2 3 4 5 7 8 9 99 Total

Never Poor 39 6 6 17 0 0 0 28 6 100

Mover 29 29 0 6 6 3 3 11 14 100

Chronic Poor 31 28 3 21 0 3 0 5 10 100

Faller 17 17 8 50 0 0 0 8 0 100

Total 30 23 3 18 2 2 1 12 10 100 Note: 1=family; 2=friend; 3=moneylender; 4= shop/supplier; 5=employer/boss; 6=landlord; 7=community

group/association; 8=private bank; 9=state-owned bank; 10= NGO; 99= other.

2. Human capabilities

The meaning of human capabilities includes good health, education, and productive or other life-enhancing skills. FGD participants said that there are at least seven human capability factors that influence improvements in community welfare, namely, health, education, skills, undertaking work, livelihood and income opportunities, grasping economic opportunities, obtaining capital, and migration. These factors were explained in the following way: (1) Health: staying healthy (Semampir-M), not gambling (Semampir-M), and not getting drunk

(Semampir-M), and having access to health insurance (Banyupelle-M) (2) Education: vocational training (Bulu), enabling a person to understand more and to develop

greater skills, which makes it easier to find work, guidance and teaching from parents (3) Skills: having skills, being able to manage income well/good management of

wealth/handling finances properly (4) Undertaking work opportunities, type of work, jobs, livelihoods, income: working overseas

(PD- F-M, Banyupelle-F), finding work outside Madura (Banyupelle), stable and adequate income (PD, Banyupelle, BP), change of job (Bulu-M), extra work (Bulu-F), establishing a

business, trading (Banyupelle-M), owning livestock (Banyupelle-M), becoming a public servant (Gorua), becoming an employee in a company, having a permanent business (IG), additional undertakings (KP-M), income increases (KP-M), children already working (KP-M,F)



(5) Grasping economic opportunities: thinking hard while undertaking some sort of business and cultivating land (PD-F), ability to undertake economic diversification (possessing several sources of income) (PD), ability to utilize economic opportunities (PD, BP,

Soakonora), ability to make investments (to start a new business/expand an existing business) (PD, BP), better farming methods and better crop quality (Banyupelle), increased farm production (IG)

(6) Obtaining capital: obtaining a loan from a rich person (PD-F), obtaining a loan of capital

(PD-M), saving money from wages earned as an agricultural laborer (PD-F) (7) Migration: greater knowledge gained during journeys both in observations and in

communications with a wider group. There are also human capabilities that actually hinder people from moving out poverty or cause people to move down into poverty. According to FGD participants these are: (1) Health: poor health, deteriorating health or illness, physical handicaps (PD, BP), having

too many children (Semampir-M, Soakonora), advanced age (PD, BP-M, Soakonora) (2) Education: low educational levels (PD, BP-M), unable to go to school (Gura, F), gender

bias wherein men go to school and women do not need schooling (Gura, F), less than adequate education (Gura-M)

(3) Work, jobs, livelihoods, sources of income: small, irregular income (not sufficient to meet daily needs and to cover operational costs every planting season) (PD, BP), insufficient income (Banyupelle-M-F), difficulty in finding work (Semampir-M), unemployed (Bulu-M), bankruptcy (Bulu-F, Banyupelle-F, Gorua), business failure (Bulu), harvest failure (Banyupelle-F), declining purchasing power, not employed as a public servant (Soakonora, Gorua)

(4) Economic opportunities: wrong speculation (IG); good speculation can bring big profits but bad speculation causes a fall, mistakes in business management (KP-M).

In this section a more detailed description is given of the community’s human capabilities that can influence welfare. These include education and skills and livelihoods. These data and other information were extracted mainly from the Household Survey and individual life stories. i. Education and Skills

As shown in Tables 7.2.6 household survey indicates that the majority of respondents (household heads) have completed elementary school. It is also suggested that formal education of the head of the household tends to correlate positively with the mobility status and appears to have made a contribution to improvements in community welfare. In the specific case of the ‘never poor’ and ‘mover’ groups, the educational level of the household head tends to be higher than that of household heads in the ‘chronic poor’ and ‘faller’ groups. Most (47%) of the household heads classed as ‘never poor’ have a senior high school education or higher. At this educational level, the proportion of household heads in the ‘chronic poor’ group is only 13%.

Table 7.2.6 Educational Level of Household Heads (% of respondents)


1 2 3 1 2 3 1 2 3 1 2 3

Low Conflict 12 49 39 23 52 25 41 51 8 54 36 11

High Conflict 0 24 76 0 37 63 0 58 42 0 30 71

Total 5 35 60 12 45 43 22 54 23 33 33 33

Source: Household survey Note: 1 =did not attend school/ did not complete primary school

2 = completed primary school/did not complete senior high school

3 =completed senior high school and higher



The data presented in Tables 7.2.6 and 7.2.7 show that on the whole the educational levels of communities in high conflict areas are better than the levels in low conflict areas for all mobility groups. This is very interesting in view of the fact that, from the point of view of educational infrastructure, low conflict areas tend to be better off than high conflict areas. Nevertheless, in areas that have experienced high or low conflicts, factors associated with the level of education have real influence on a household’s mobility status. This is supported by loans for essential needs data, which was outlined in the previous section, that educational borrowings are higher in high conflict areas (33%) than in low conflict areas (11%). There are two explanations related to the low rate of education in low conflict areas. First, some households in low conflict areas (in East Java) are still inclined to conduct their schooling in pesantren (Islamic Boarding Schools), and not in general school. The curriculum in pesantren is around 80% religious studies, and it is not yet categorized as formal education.

“After finishing the elementary school I was planned to go to take Islamic boarding school (pesantren), just like the tradition of my family, and all my brothers and sisters were there in the Islamic boarding school.” (Semampir Faller1) “In 1985 I studied in the Sumber Baru Pondok Pesantren (Islamic boarding school) in Pamekasan for 9 years. My family supported me to go there because they wanted me to be educated in religious studies, so that I could pray for my parents if they died.” (Banyupelle, Chronic Poor3)

Second, in low conflict areas (Probolinggo and Pamekasan) the locations are relatively close to other large cities, including the capital Jakarta, which leads them to have a higher level of

education, and to leave their area and look for better work in a larger city. Those who are permanently settled are those who are left behind, and who generally possess a lower level of education.

Table 7.2.7 Educational Levels of Employed Household Members


1 2 3 1 2 3 1 2 3 1 2 3

Low Conflict 14 29 57 17 57 25 34 55 10 20 44 36

High Conflict 0 24 76 0 33 67 4 34 63 4 25 71

Total 7 27 66 9 46 44 23 47 31 12 35 53


Apart from the phenomenon that educational levels in high conflict areas are better than those in low conflict areas, it is interesting to note that, among the ‘never poor’ and ‘mover’ groups in

low conflict areas, there are household heads who in fact have no formal education at all. The same is true of the ‘chronic poor’ and ‘faller’ groups in low and high conflict areas. Yet there are people among them who have a high level of education, sometimes even higher than senior high school. It would seem that, for these people, education has not been the main factor in improving and maintaining welfare over the past 10 years. There is a big possibility that other dominant factors have exerted influence.

In addition to household heads, there are other household members who also make a contribution to household income influence household welfare. It is worth investigating their level of education in terms of mobility group. Table 7.2.7, which show the educational levels of



household members who are employed, enable a more complete assessment to be made of the role of education in the household’s welfare mobility.

The educational levels of household members who are employed and who live in high conflict areas are higher than those in low conflict areas. In low conflict areas, however, it appears that the education of household members who are employed has made a significant contribution to improvement in welfare by comparison with individuals in high conflict areas. This is apparent in the ‘mover’ group, where the low educational level of household heads is compensated for by the contributions of household members with higher levels of education, which has led to increased welfare. Once again it is interesting to note that, especially in the ‘chronic poor’ and ‘faller’ groups in high conflict areas household members with a high education are to be found, which reflects the fact that the extent of education of household members who are employed does not always indicate a contribution to household welfare. Informal education and skills. Formal education is apparently not enough to raise individual economic prosperity. Aside from formal education, the factor of informal education and skills was suspected to influence prosperity, mainly for those who had an external source of income such as an office employee (civil servant or private employee). The informal education includes among other things vocational training, sewing courses, training for foremen for artisans or friends and relatives about ways to make medicines and cakes, to cultivate a new crop and so on. With regard to the individual skills, often a person’s skills are not regarded as the result or a part of education but more as a gift from God. But information that was obtained from the individual life stories shows that skills can be obtained through informal education or even through continuous training or on-the-job training. These skills can then influence a person’s efforts to improve his level of welfare. ii. Livelihoods

Given that the majority of sample areas are rural, at the present time and 10 years ago the communities in all areas depended more on agricultural undertakings for their livelihoods, including farming, farm laboring, and fishing. While the entire community relied on the agricultural sector

as their primary source livelihood and income, livelihoods outside the agricultural sector also have helped the community move out of poverty and attain their prosperity. As an example, the ‘mover’ and ‘never poor’ groups in high conflict areas more often come into contact with the trade and business sectors, and in both regions, the ‘chronic poor’ are very dependent on the agricultural sector for their livelihood. This reliance on the agricultural sector, however, is also high in the ‘mover’ and ‘never poor’ groups in low conflict areas.

Apart from the various sources of household livelihood, income from the salaries of permanent workers appear to be a differentiating factor that is important for the status of household economic mobility, both at the present time and also 10 years ago. Household survey indicated the proportion of ‘never poor’ households have permanent work with regular salary is far above the proportion of other mobility status households. The opposite occurs among households whose

source of income is the salary of non-permanent workers, that is, the proportion is greater among the ‘chronic poor’ and ‘faller’ groups, followed by the ‘mover’ and ‘never poor’ groups. Sources of income have not undergone much change over the past 10 years. According to opinions expressed in the Ladder of Life FGD households classed as being among the upper section of the groups have sources of income among others as public servant, policeman, law court officer, school principal, private-sector employee. By contrast, households at the lower level of welfare

status grouping obtain their income from non-permanent work. In addition, a number of household income sources (livelihoods) also influence their prosperity. Half of the sample households in both high conflict and low conflict areas, at present depend on more than one



livelihood. In all mobility groups almost a half depends on two livelihoods with the highest figure occurring in the ‘mover’ and the ‘never poor’ groups. In fact, in the ‘never poor’ group and in the ‘mover’ group there are numbers who have three sources of income at the same time. It turns out that most of the households classed in the ‘chronic poor’ and ‘faller’ groups 10 years ago have only one source of income. In addition to dependence on more than one source of income or livelihood, work experience, shifts in employment, the number of jobs ever held, the process of obtaining work, the age at which work was commenced, salary or income while working and other aspects connected with work experience are likely to have influenced the increase or decline in work. The agricultural system in Indonesia still utilizes limited technology, involves a large work force with a low level of education, and is influenced by the seasons. This generally causes low economic welfare conditions for farmers and fishers in Indonesia, and often pushes them below the poverty line. This is shown by household survey data, where more than half of the ‘chronic poor’ sample work in the agricultural sector. The younger generations who have a relatively higher level of education generally do not want to work in the agricultural sector, and instead

choose to work as both civil servants and private office employees. When they have financial capital, more choose to become traders or open their own business. If they are successful in the agricultural field, they have a role as a landlord who is helped by several agricultural laborers. Types of livelihood/employment Table 7.2.8 shows that in both regions, the ‘chronic poor’ heavily rely on the agricultural sector as their source of livelihood. Dependence on this sector is also high in the ‘mover’ and ‘never poor’ groups in low conflict areas, while in high conflict areas, ‘mover’ and ‘never poor’ groups more often

work in the trade and business sectors. “From long time ago until now I never change job from being a farmer. For me being a farmer is my life. If I want to do business there is no capital either”. “ If there is capital, I will also not change from farming”.” Even though there is capital, it’s impossible for me to do business. Because, I cannot think other than farming” (Palenggaan, Faller2)

Table 7.2.8 The Main Livelihoods of Household Heads (% of respondents)

Livelihood Never Poor Mover Chronic Poor Faller

Low Conflict

Agriculture Sector 44 57 75 28

Trade and Business Sector 31 33 14 57

Civil Servant 17 8 0 0

Others 7 4 6 17

High Conflict

Agriculture Sector 31 39 40 35

Trade and Business Sector 51 42 31 30

Civil Servant 16 18 16 18

Others 4 3 12 18 Source: Household survey

Of the various sources of household livelihood, income from the salaries of permanent and non-permanent workers would appear to be a differentiating factor that is important for the status of household economic mobility, both at the present time and also 10 years ago. The proportion of ‘never poor’ households have permanent work with regular salary is still far above the proportion of other mobility status households (Table 7.2.9). In high conflict areas specifically, the proportion of



those households who have permanent work is almost twice the proportion in low conflict areas. The opposite occurs among households whose source of income is the salary of non-permanent workers, that is, the proportion is greater among the ‘chronic poor’ and ‘faller’ groups, followed by the ‘mover’ and ‘never poor’ groups. Sources of income have not undergone much change over the past 10 years. On the whole, this change can be taken to mean that at the present time the opportunity to obtain employment as a permanent worker is increasingly difficult.

Table 7.2.9 Sources of Household Income

Current 10 years ago

(% of respondents)

Mobility Status

EJ (LC) NM (HC) EJ (LC) NM (HC) N 189 183 189 183

Agricultural undertakings

Never Poor 63 51 63 55

Mover 63 65 68 67

Chronic Poor 75 51 59 47

Faller 39 71 39 76

Non-agricultural undertakings


Mover 56 29 38 21


Faller 39 24 50 24

Salary as permanent worker


Mover 11 35 11 25


Faller 11 24 6 24

Salary as non-permanent worker


Mover 14 31 11 25


Faller 33 35 22 35

Source: Household survey Note: LC= Low conflict HC= High conflict EJ= East Java NM= North Maluku

The influence of an income source as a permanent worker on the mobility status of the household tends to run parallel with the opinions expressed in the Ladder of Life FGD. Households classed as being among the upper section of the groups have sources of income as ‘a public servant’ (Soakonora, Hc), ‘a policeman, public servant, law court officer, school principal’ (Idamdehe Gamsungi, Hc), ‘a public servant with grade III rank or a private-sector employee’ (Kampung Pisang, Hc). By contrast, households at the lower level of welfare status grouping on the whole obtain their income from non-permanent work. Households in this group generally earn their income as ‘agricultural laborers with work available on average three days a week’ (Bulu-F, Lc), ‘non-permanent workers’ (Kampung Pisang-M, Hc), ‘tobacco laborers at harvest time (dry season) and laborers in the wet season’ (Banyupele-F, Lc). Number of household income sources (livelihoods)

Half of the sample households in both high conflict and low conflict areas, at present depend on more than one livelihood. In all mobility groups almost a half depend on two livelihood sources (Table 7.2.10), with the highest figure occurring in the ‘mover’ group (47%), followed



by the ‘never poor’ (44%). In fact, in the ‘never poor’ group 24% have three sources of income at the same time and around 5% have four sources. In the ‘mover’ group 15% and 5% have three and four occupations at the same time. But in the ‘faller’ group, half (54%) depend on only one livelihood and an extremely small number have more than two occupations. Apart from the ‘faller’ group, some of those who also depend on only one income source are found among the ‘chronic poor’ (40%), the ‘mover’ group (32%), and the ‘never poor’ group (26%). In low conflict areas the highest proportion of households dependent on two livelihoods occurs in the ‘never poor’ group (53%), followed by the ‘mover’ group (52%), while in high conflict areas the greatest proportion is found in the ‘never poor’ group (46%), followed by the ‘mover’ group (42%). It turns out that most of the households classed in the ‘chronic poor’ and ‘faller’ groups 10 years ago have only one source of income. The figures reach 69% and 60%, which is higher than the figures for households classed as ‘never poor’ (37%) and ‘mover’ (59%). The figure for ‘never poor’ households that obtain income from two or three sources is 54% and for ‘mover’ households 40%, which are far higher than the figures for ‘chronic poor’ households (37%) and ‘faller’

households (29%). The same tendency occurs in both regions, indicating that at the beginning of the observation period diversification in income sources played an important role in influencing rises or falls in household income.

Table 7.2.10 Distribution of Households by Number of Income Sources

Household mobility status

10 years ago (%) At present (%)

Number of income sources

NP M CP F NP M CP F

East Java 41 79 51 18 41 79 51 18

0 5 1 2 0 0 0 0 0

1 39 59 65 78 34 34 39 72

2 51 33 27 22 41 52 53 28

3 0 6 4 0 22 13 8 0

4 2 0 2 0 2 1 2 0

5 2 0 0 0 0 0 0 0 North Maluku 52 72 42 17 52 72 42 17

0 0 1 0 0 0 0 0 0

1 35 58 55 59 19 31 40 35

2 40 31 38 18 46 42 29 47

3 16 10 7 18 25 18 17 12

4 8 0 0 6 8 8 14 0

5 2 0 0 0 2 1 0 0 Total 93 151 93 35 93 151 93 35

0 2 1 1 0 0 0 0 0

1 37 59 60 69 26 32 40 54

2 45 32 32 20 44 47 42 37

3 9 8 5 9 24 15 11 6

4 5 0 1 3 5 5 8 0

5 2 0 0 0 1 1 0 3 Source: Household survey.

Over the past 10 years the number of sources of household income for all mobility groups on the whole experienced a rather significant change. The number of households whose income is from only one source underwent a rather large drop. The greatest decrease occurred among the ‘chronic poor’ group, where the fall was from 60% to 40%, and among the ‘mover’ group, from



59% to 32%. At the same time this change shows that the number of households with two or three sources of income has risen. The greatest increase occurred among the ‘chronic poor’, namely, from 37% to 53% and among ‘mover’ households, where the increase was from 40% to 62%. In the case of households that obtain their income from four or five sources, a significant change occurred only among the ‘chronic poor’ group, namely, from 1% to 8%. This tendency was evident in the low conflict region, which indicates that increasingly high numbers of households need a larger source of income to succeed, or prevent them from falling further. Unlike the above pattern, the greatest drop among those households that depended on only one source of income in the high conflict region, occurred in the ‘mover’ group, namely, from 58% to 31%, followed by the ‘faller’ households, from 59% to 35%. Meanwhile, the greatest proportion of households with two or three sources of income occurred among the ‘faller’ households, that is, from 36% to 59% and among ‘mover’ households from 41% to 60%. Work experience

In addition to dependence on more than one source of income or livelihood, work experience, shifts in employment, the number of jobs ever held, the process of obtaining work, the age at which work was commenced, salary or income while working and other aspects connected with work experience are likely to have influenced the increase or decline in work. Information on this aspect

has been obtained from the individual life stories, which will be discussed in Chapter 8. 3. Social and Psychological Capabilities

Social capabilities include social belonging, leadership, relations of trust, a sense of identity, values that give meaning to life, and the capacity to organize. Psychological capabilities include self-esteem, self-confidence and an ability to imagine and aspire to a better future. Compared to material factors and financial assets as well as human capabilities, more FGD participants mentioned social and psychological factors as the ones that impact on improvements

in household prosperity. Factors that were mentioned include: o Having high motivation (IG), motivation to change one’s destiny (Soakonora, KP-M),

motivation to be active in business (Gura-M), wanting to work hard (Bulu), wanting to be successful and to learn from the success of others (Branta-M), motivation to join arisan even though scratching for food (Semampir-M), not allowed to give up (Semampir-F), strong will (Gorua, KP-M), enthusiasm (Gorua), desire (Gura-F);

o Working hard (Semampir-F, Bulu-F, Banyupelle-F, Soakonora, IG, KP-M); o Industriousness (Gorua, KP-M); o Work ethic, diligence (IG); o Persevering, can manage their finances and can save (Semampir-F, Bulu-F, Soakonora, KP-M); o Patience (Soakonora); o Determination (Soakonora); o Honesty (Bulu-F); o Marrying someone who is rich (Semampir-M); o Marriage (Bulu-M); o Wide social network (Soakonora, Gorua), having connections (KP-M), joining arisan

(Semampir-M):

o An advantageous social network (PD); o Utilize the freedom and power (Soakonora). Social and psychological factors also appear to have been mentioned frequently by FGD participants as factors that hindered people from moving out of poverty. These factors are: o Bad habits (KP-F), gambling (PD-F, Bulu-M, Banyupelle-F, BP-M, Soakonora, Gura-M),

drinking alcohol-getting drunk (Bulu-M, BP, Soakonora, Gorua, Gura-M), insulting people (BP-M);



o Unable to manage money (PD-F, Banyupelle-M, Soakonora, Gorua), poor management household finances (Gura-M);

o Unable to maintain their business (Banyupelle-M), children cannot manage a business left by their parents (IG);

o Not trusted (Branta-M), to borrow money or goods, such as fertilizer (Semampir-F); o Womanizing (Bulu-M, BP, Soakonora, Gura-F), more than one wife (Soakonora), husband

having affairs (Gura-F), the husband is dishonest with his wife (Gorua, Gura-F, Bulu-M); o Parent dies (Bulu-M, IG); o Being lazy (Bulu-M, BP, Soakonora, Gorua), relying only on inheritance and not working

(Bulu-M), only expecting assistance (Gura-F, KP-F), very stupid – pretending clever- lazy (Gura-F);

o Work ethic declined (Bulu-M)/ loss of enthusiasm and will power (Gorua), lack of self-confidence (Gura-F), too much sense of personal prestige (Soakonora);

o Having a perspective on life of a sufi (Bulu-M), low level of faith (Bulu-M); o Join the koleman (Bulu); o Carok (Banyupelle); o Wastefulness (Banyupelle-M, Gorua), extravagant lifestyle (Soakonora, Gura-M); o Lack of self confidence (BP-M); o Arrogance (BP-M, KP-M); o Making false promises (BP-M);

o The children get into mischief o Limited work contact (KP-M), and o Not being blessed by God with good fortune (Banyupelle-F). The following discussion will investigate social and physical capabilities based on household survey and life stories.

i. Social Belonging

Social belonging is defined as where people connect, by sharing snapshots of who they are. It

concerns relationships with intimate others, family, friends, co-workers, neighborhood and community (Kurtus, 2005). In the individual life stories, most respondents from all mobility groups felt they were part of the community where they lived. Apart from connection with the local community, until now the relationship that is considered important in being able to influence respondent welfare includes the relationship with one’s life partner (husband/wife), parents, child/ren and family (siblings or sister and brother-in-law), work community, with

organizations and relationships with religious figures and community figures as well as government authorities. The most important relationship that was most often mentioned by all mobility groups in the two conflict areas was the relationship with wife/husband, parents, family, work community and the community where one lives. Relationships within families

For never poor, mover, chronic poor and faller, the relationship with one’s husband/wife is very important and meaningful because spouse can provide suggestions, be a friend to tell stories, assist

and support the management of the business, manage the household economic affairs, be understanding in the ups and downs of life and protect the good name of the family.

“A good relationship with one’s wife is the strong foundation for a good life. The wife is also valued as a parallel partner who provides sincere loyalty in sailing through life that is full of challenges” (Never Poor) “Because you have a wife at home, I am calm at work and, in fact, left the city because there was someone to manage the house and children” (Never Poor)



“In relation to providing suggestions, my wife often reminded the respondent to be thrifty and not act irresponsibly” (Never Poor) “In the management of the business, my wife is looking after the shop when I was accompanying a customer out of town until late at night, giving suggestions on goods or commodities to buy and sell or assist in the purchase of livestock/cattle” (Palengaan Daja, Never Poor) “A wife is a confidant in discussing family and business problems, gives advice in order to work efficiently and does not rely on parents or other people, assists in looking for work and joining the civil service test” (Mover). “My husband always supports me to be able to save in order to accumulate assets, even though it is little by little” (Mover)

“Together with my wife, we took joint responsibility to develop the house and raise the children” (mover). The relationship with one’s wife appears to be considered very important by the ‘chronic poor’, especially in maintaining life by giving suggestions, being mutually supportive and giving support, understanding the respondent’s condition and always giving motivation to work

diligently, still being available to be a life partner even though their condition may be poor, and to assist in being thrifty so they can have a boat and house.

Other than the spouses, a number of respondents admitted that they still receive support, both moral and material, from their parents, even though they already have their own household. This makes them unafraid in facing the risks of life and has made them happier because they have full

support. More important is the fact that this indirectly plays a part in helping them to improve their welfare; for example, if they have to work, children can be left with the parents, or if they need something, for example ‘fish’ (food, supplementary dishes), or if they need money for the birth of a child or to raise children, parents are prepared to hold out a helping hand. At the time of the disturbances and afterwards, a number of members of the community received support from their family, including from siblings or other family members. Parents when deciding on

going to school, marrying, moving house and looking for, and changing, jobs, also gave support. The relationship with one’s parents is felt to be an important relationship by the ‘never poor’ and ‘mover’ that can have an influence on prosperity because, among other reasons, parents give their blessings, give advice and support, teach the management of businesses, provide capital and assist in managing the house and family (children). For ‘movers’ who still have children who have not

yet reached adulthood, children are a source of motivation to work hard to improve one’s prosperity. For the ‘chronic poor’, parents/parents-in-law assist in a material way with money and food for the family, as a place to express one’s emotions and to provide suggestions.

“The important relationship is with my father because he is the one who helped me survived until now. My father asks for prayers so that he would be protected. My father still helps us

until now. If my father goes to sea, we would be given fish. If my children go to school, he would give them pocket money” (Soakonora, Chronic Poor1)

For respondents who have children who are already adults or working, children are important when ‘never poor’ respondents are worried and they can be someone to talk to. For the ‘chronic poor’ and ‘faller’, children help with work in the fields and can assist when respondents are in

economic difficulties



“Since 1985 until now I live from doing ‘ blijjah’ which is about enough and from farming tobacco which has little income, so for daily need is still difficult because I still get help from my children and family. “ (Palenggaan, Faller1)

“When I have wedding party my neighbors help, but when I have problem with business capital, they do not help. When I need money, my children can start help me now”. (Semampir, Faller1).

Older brothers and sisters or in-laws are important for ‘never poor’ and ‘mover’ respondents

because they assist with capital and opening a business, help to provide sufficient monetary support and if there are unexpected expenses such as the cost of medical treatment. Older brothers and sisters or in-laws also helped ‘never poor’ and ‘mover’ respondents when they moved away from home to go to school and needed a place live. For the ‘chronic poor’, siblings assist with the provision of most family needs. Relationships with friends and workmates Relationships with friends are also considered important for respondents because friends can bring a positive change, for example to assist in looking for work, assist in providing work or when the respondent is in difficult circumstances of needs assistance. For example, during the disturbances, one ‘chronic poor’ respondents said he received a loan of a motorcycle from a friend so he could work as an ojek driver. For the ‘never poor’ and ‘mover’, work friends are usually mutually helpful. Business partners are mutually supportive, for example in the form of managing capital where the profits are shared or through the provision of goods. For traders in the market, they always maintain good

relationships with their fellow trading friends and support each other, for example by giving loans of goods if theirs are finished and exchanging information on the price of goods. In addition to relationships with fellow traders, the relationship with customers is also important in giving credit and bonuses of goods when there are celebratory events. The relationship with workmates can be formed through professional organizations, for example the Bicycle Trade Association that invests collectively and shares the profits with members.

For ‘movers’, the relationship with superiors/employers/bosses is important in exchanging information and experiences, assisting in loaning business capital (in the form of cash, shops/kiosks in the market, motor cycles, the purchase of goods for resale), providing work training, advising on saving and providing work. The relationship with patron is also important, for example relationship with truck owners who allow the respondent to take their truck, with the contractor because it provides building work, or land owners who allow the mover to borrow money and obtain work. Nevertheless, a ‘mover’ farmer and ojek driver felt the relationship with work colleagues was not important because of the nature of their work. For the ‘chronic poor’ the relationship with workmates is important, for example farm laborers or farmers in the fields because they also assist each other in the form of labor, usually in preparing the ground or fishermen in going to sea or carrying boats and nets. The relationship with fellow traders is also good, for example if there is a shortage of materials then one can take materials from other traders. The relationship with fellow laborers, farmers, tobacco cutters and tradesmen is also important and harmonious because together you can look for food and work. The relationship with bosses for the ‘chronic poor’ is very important because if there is a shortage of money of rice, they can get a loan or exchange ideas. Relationship with neighbors The relationship with neighbors is very important according to ‘movers’ because they assist each other if there are problems, including in the fulfillment of daily needs, for example when there



are shortages of vegetables, salt or chilies, they can ask the neighbors near their house, assist if one is ill in the middle of the night or if there are disasters (fires etc), safeguard the house so the respondent is not afraid to leave the house to go to work, assist in making houses and implementing a party and for the mutual exchange of ideas and consultation. Sometimes neighbors are also more important than families because they are immediately available to help (compared with family members who live far away).

“The important relationship outside the family is with neighbors, with neighbors you share the sad and the happy moments, for example, if there is a problem in the family, the first to come before the relatives are neighbors. This helps a lot, in difficult situations, we can ask for any help to neighbors, they will surely help”. (Gorua, Mover1)

For the ‘chronic poor’, relationships with neighbors are very important. Apart from providing work opportunities, they also assist in meeting one’s daily needs and when one is in difficulty, including work opportunities, looking after health and assistance with money, looking after children when respondents are working, giving advice and ideas and good suggestions. Neighbors also provide loans/credit. In fact, the ‘chronic poor’ say that if there were no neighbors they

would not eat. Unlike the two previous groups, the importance of the relationship with neighbors and other villagers for most of the ‘never poor’ is more business-related (market opportunity), that can quickly enhance their economic prosperity. This is expressed in the following way, among others: neighbors are considered very helpful in the facilitation and success of business, assist in the

security of the business and buy things from shops owned by respondents. They are sources of information, the market for the business mission of the respondent, arrange business connections and purchase their daily needs in the stalls owned by respondents.

“Member of this village helps my business both in transportation service or in trading they are buyers in my shop also use my service in sending for building material. But don’t forget that

they also often borrow money from me or credit basic foodstuff from my shop1. Yeah... if it wasn’t like this maybe not many people shop in my shop” (Palenggaan Daja, Never Poor5)

Relationship with religious/community figures Most respondents in low-conflict areas from all mobility groups stated that their relationship with kyai (Islamic religious leaders) had helped their prosperity over time. The ‘never poor’ admitted that the level of prosperity that they had achieved in this way (a high level of prosperity) was because of the prayers and blessings of the kyai. ‘Chronic poor’ respondents also often gathered with kyai and met with kyai to receive their blessings. For very religious communities who believed in prayers and blessings from religious leaders as the element that determines someone’s prosperity, other rational efforts that are undertaken, such as capital, education, employment, self-esteem, networking etc. are considered insufficient or not able to produce results if there are no prayers or blessings. For the ‘chronic poor’ and ‘movers’, prayers and blessings are needed to enhance their prosperity and for ‘movers’ and the ‘never poor’, prayers and blessings are needed to maintain their prosperity.

“I always pray to God and ask for Pak Kyai blessing to prevent me from catastrophe.” (Palenggaan Daja, Mover2) “Preventions against catastrophe are: be patient and determined; always pray to God and keep close contact with Kyai to ask for his blessing.”(Palenggaan Daja, Never Poor3)



“When my business lost and had debt amounting Rp 30,000,000 I kept working hard, always pray to God and visited Kyai to ask for his blessings so that I could pay my debts. And it worked.”(Palenggaan Daja, Never Poor3)

In high-conflict areas, there is no information on how the closeness of this community with religious/community figures can influence prosperity in the manner that occurs in low-conflict areas. Relationship with authority The closeness with authority at the village level is believed to be capable of influencing someone’s prosperity. This is not mentioned often by respondents in high conflict areas, however respondents in low conflict areas often mentioned that a close relationship with the village head

has various important upshots. These phenomena show that one’s closeness to officials can clearly impact on household prosperity, both directly and indirectly. Indications of this were ascertained from ‘never poor’ respondents in low conflict areas who are close to the village head. The help can materialize through the frequency of their involvement in village activities and by obtaining information on programs from the authorities.

“I also have good relation with Pak Klebun (village chief). Pak Klebun is important because he provides legal matters and help trading going smoother” (Branta Pesisir, Never Poor5) “Around here, it’s difficult to get help if we are not close to the official. Everything is based on personal connection; the one who get help is the one closer to the official. In short, to get help, must be close to the official” (Branta Pesisir, Never Poor6) “Another important relation that impacts life is with the people and community because I am in trade, I have plantation, and for those to work I need the community. I know all the residents here, also those. I am close to all of them, with the district and the village apparatus. I often come in and out and attend meetings.” (Soakonora, F, Never Poor6) “The most important relationship in my life that has helped achieve a better standard of living has been with: (1) group of religious scholars or Kyai who give blessings, so that my life with my family is peaceful and my work consistent; (2) village head because this village is very safe and there is no theft and the people don’t pay taxes.” (Banyupelle, Faller2)

The experience of having a relationship with officials expressed by ‘chronic poor’ respondents in low conflict appears not directly provide economic prosperity but rather social prosperity. The village head will resolve conflicts as well as lead the community.

“Yes, I am a part of this community. If I go home my main aim is to see my family and neighbors. And with the new Village Head, if there is something that the people cannot overcome, we go to him”. (Banyupelle, Chronic Poor3) "I feel like a part of this community, because we are equal as members of the Banyupelle community, neighbors always help, the village head is also good. Its always been safe here, I’m not afraid to work" (Banyupelle, Chronic Poor1)

"I feel like I am a part of the Cemkepak community, because I follow whatever the Village Head says. " (Banyupelle, Faller1)



ii. Trust

At the present time, the general level of trust in other people is relatively low in both high and low conflict areas, with less than 50% respondents saying they could trust others (Table 7.2.11). This level of trust is slightly higher in low-conflict areas than in high-conflict areas. This is probably closely connected with their experiences with conflict, which has destroyed their trust in other people. The level of trust is lowest among ‘faller’ and ‘chronic poor’ in high conflict areas, at 24% and 28% respectively. On the other hand, in low conflict areas, ‘chronic poor’ respondents have the highest level of trust at 41%, while ‘fallers’ have the lowest at 28%.

Table 7.2.11 Level of Trust in People in the Present Time

Low Conflict High Conflict

People can be trusted

Can be too careful

People can be trusted

Can be too careful


Mover 34 66 35 65


Faller 28 72 24 76

Total 36 64 31 69


“So in the discussion with the people I always reminded them to save things they could save and when the calamity comes, run immediately. Never trust others but believe in yourselves. Although trauma with the incident but, thanks God, there was no fatality”. (Idamdehe

Gamsungi, Chronic poor3) “We cannot go to work, hard to earn a living, feeling afraid, not trust even suspicion. Adversary, killing each other, the relationship was damaged and disappeared. What is left is only hatred. This is the most painful experience in my life. So, no more conflict because there is no winner or loser”. (Gorua, Mover1)

“Why the conflict had to happen, while we have trusted each other for very long time, moreover, we are brothers of the same blood?” (Gura, Mover5)

Nevertheless, almost half the communities in high-conflict areas consider the level of trust in other people to be improving (Table 7.2.12). It seems that after the conflict was over, the level

of trust in people improved. On the other side, although the level of trust in low-conflict areas is better, developments during the last 10 years show that most communities are of the same opinion.

Table 7.2.12 Level of Trust in People Over The Last 10 Years (%)


Better The same Worse Better The same Worse

Never Poor 29 63 7 51 37 12

Mover 39 51 10 43 49 8

Chronic Poor 41 51 8 51 42 7

Faller 17 72 11 35 53 12

Total 35 56 9 46 44 9



Unlike the low level of trust of respondents in other people, most communities (76%) in all sample areas and mobility groups have trust in government officials at the district level (Table 7.2.13). However respondents in high conflict areas have a lower level of trust in local government officials than respondents in low conflict areas, 81% and 70% respectively. ‘Never poor’ and ‘faller’ groups tend to have less trust compared to ‘mover’ and ‘chronic poor’ both in high and low conflict areas.

“With the district apparatus I am not well acquainted with them yet. After the riot I am less confident, I have to be more cautious.” (Soakonora, Never Poor6)

Table 7.2.13 Level of Trust in Local Government Officials

in the Present Time (% of respondents)

To a great

extent Neither great nor

small To a small extent Do not know



Mover 80 14 3 4


Faller 72 17 6 6



Mover 72 18 7 3


Faller 71 18 12 0

Total 76 16 6 2

In addition, 74% of ‘chronic poor’ respondents stated that the operations of local government were run in the interests of the people. Approximately 99% of the ‘chronic poor and 83% of ‘fallers’ also have confidence in central government officials. They said the affairs of the country were undertaken in their interests. This is probably associated with the government assistance that is aimed at the poor, especially the rice for the poor program and other programs. In regard to the possible cooperation of the community in helping those who have been affected by tragedy, in general, the ‘never poor’ have the highest level of confidence (73%) compared with ‘fallers’ (71%), the ‘chronic poor’ (66%) and ‘movers’ (62%). If we compare the high and low conflict areas, even though respondents in high conflict areas have lower levels of trust, they still believe the community will help if they experience calamity. As a comparative example, in low-conflict areas, the highest confidence is of the ‘never poor’ (68%), while in high-conflict areas it is in ‘fallers’ at 88%. iii. Social Cohesion

The degree of Social Cohesion in society determines society's response to fears and uncertainty in unstable economic and challenging social times. Cohesion between people is promoted by the existence of a goal or value that is common amongst them. Their common goal, which may be to uphold their common values, acts to motivate them to overcome obstacles and persevere during relatively unrewarding times within the relationship. (Wikipedia Foundation, 2006).

Common goals are generally set by people with the same characteristics such as religion, ethnicity and social status, however these characteristics often differ among people in the village/neighborhood. As mentioned earlier, there is a striking difference between areas of low



conflict and those of high conflict in the case of ethnic background and the religion. Almost all people in low conflict are Muslim and from the same ethnic Madurese background. While in high conflict areas communities are divided into two in term of religious belief, some villages are Moslem majority and the others are Christian. The household survey data (Table 7.2.14) shows, however, that more than half respondent said that these differences in their villages would bring no division among villagers, 69% in high conflict areas and 61% in low conflict areas.

Table 7.2.14 Extent Do Factors Like Religion, Social Status or Wealth Divide People in the Village/Neighborhood from One Another Today (%)

Now 10 Years a go No

Division Small Extent

Great Extent

No Division

Small Extent

Great Extent

Low Conflict 69 19 13 71 19 10

Never Poor 68 20 12 68 20 12

Mover 65 24 11 70 22 9

Chronic Poor 71 14 16 71 20 10

Faller 83 6 11 89 6 6

High Conflict 61 31 8 64 29 7

Never Poor 63 27 10 59 35 6

Mover 60 35 6 64 28 8

Chronic Poor 58 35 7 63 28 9

Faller 65 18 18 82 18 0

Total 65 25 10 68 24 8


Only 10% of respondents in low conflict areas (Table 7.2.15) said that differences in the village

have caused violence over the last ten years. This figure in high conflict areas is much higher, at 30%. What is interesting is that in high conflict areas, it is the ‘chronic poor’ respondents who most frequently attributed these differences to the violence (42%), while in high conflict areas only 2% of ‘chronic poor’ attributed differences to violence, the least frequent result. This indicates that in high conflict areas, the existence of differences has possibly prevented ‘chronic poor’ from raising their level of prosperity, via the occurrence of conflict.

Table 7.2.15 Differences in Villages/Neighborhoods that have Lead to Violence over the Last

10 years (%)


Ever lead to Violence

Never lead to violence

Ever lead to Violence

Never lead to violence


Mover 10 90 29 71


Faller 11 89 12 88 Total 10 90 30 70


Discrimination

Discrimination that denies someone’s identity is believed to be able to impede an improvement in that person’s prosperity. More than 90% of respondents, both in low and high conflict areas (Table 7.2.16), have not been discriminated against in their every day activates, and there is no



difference between low-conflict and high-conflict areas. This indicates that the majority of respondents, across all mobility groups, do not feel discriminated against by other communities. For that reason, discrimination is not believed to be a factor that is having an ongoing impact on prosperity.

”Yes, I feel I am a part of this village because I was born and grew up here. I have become an important villager, everyone gets equal treatment, and there is no discrimination in seeking a job for the household’s economic needs, children’s future, and the old age (Gura, Mover2).

Table 7.2.16 Have/Have Not Experienced Discrimination when Trying to Purchase Something, Enter a Place, Use a Service, or in Any other Circumstance (%)


Yes No Yes No


Mover 5 95 10 90


Faller 11 89 6 94

Total 7 93 8 92

This is also supported by the fact that almost all mobility groups feel that they have freedom of religion, both now and 10 years ago. Discrimination also is not present in schools, because 97% of respondents said that children are treated equally fairly in schools, and there are no significant differences between low and high conflicts areas, or between mobility statuses Table 7.2.17). In relation to having a school teacher who was fair, 50% of respondents in low conflicts stated that during the last 10 years the situation has improved, while in high conflict areas there has been less improvement.

Table 7.2.17 The Extent to Which School Teachers Treat all Children Equally Over 10 Years (%)

Improved Stayed about

the same Deteriorated

Low conflict 50 36 14

Never Poor 53 43 5

Mover 50 36 14


Faller 56 44 0

High conflict 30 54 16

Never Poor 30 51 19

Mover 30 58 12


Faller 25 56 19

Total 40 45 15


iv. Values that Motivate an Increase in Prosperity

Things that are considered to be very important and valuable can motivate people and cause them

to extend themselves and finally increase their prosperity. Marriage, children, baptisms, school, work promotions, owning property, going on the hajj, are all important events that were expressed as motivational forces to increase prosperity. The ‘never poor’ and ‘movers’ in low-conflict areas frequently mentioned going on the hajj to be a motivating factor for them in enhancing their economic and social prosperity, as the cost for going on the hajj is relatively high.



“I always have a dream to be a hajj. I even worked harder to go there so many times.” (Semampir, Mover6) “I hope my saving and goods that I have collected will increase so that I can do hajj again. If possible, I want to do hajj 7 times (laughing).” (Palenggan Daja, Mover7) “My hope in the future towards those things is that I could be rich, could do Hajj, and could put my nephew and niece in pesantren.” (Palenggan Daja, Mover4). “I hope I will have some capital in the future so that I don’t have to seek a loan as my capital in the coming year, sending my children to school and to make hajj as well.” (Palenggan Daja, Mover 5) “My expectations for my savings and investments in the future, I am going to buy land. I don’t want to re-marry. I really want to go on a pilgrimage.”(Branta Pesisir, Mover5)

If we traced the term of “motivation” from all life stories, it appears that only respondents in high conflict areas mention this. For example, because they have a strong desire to send children to school and to meet the children’s needs in the future, respondents have been motivated to earn more and increase their prosperity. In addition to this, a strong desire to own material assets, most of which were destroyed during the conflict, has also motivated people to increase their prosperity.

“I became a father so that I have to think far ahead, what I am supposed to do, motivated to earn money so that later my children can go to school, I can afford my life and have a well planned future” (Gorua, Mover1). “I am also happy about my relationship with my children because they are obedient and that

motivates me to keep working hard to finance their education.”(Kampung Pisang, Never Poor1). My wife gave birth to our third child. Since the birth I am happy and motivated to work harder to meet the needs” (Idamdehe Gamsungi, Chronic Poor2).

“The happiest moment was when I could build a house by myself. This made me even more motivated to work” (Gura, Mover2). “The government aid in the form of building construction materials became a very strong motivation for us to live this life normally like we used to until now.” (Kampung Pisang,

Faller1).

No one knew for sure where the motivation of respondents to change their destiny came from. Nevertheless, there are indications that this factor of motivation has succeeded in changing the community’s level of welfare.

v. Self-esteem

The definition of self-esteem developed by Nathaniel Branden (1969) is the experience of being

competent to cope with the basic challenges of life and being worthy of happiness. Self-esteem includes a basic human need -it makes an essential contribution to the life process-, indispensable to normal and healthy self-development, and has a value for survival. In this study, FGD participants mentioned several elements of self-esteem such as hard working, a good work ethos, and motivation/will power, industriousness, and the will to study from their early days.



In this discussion on self-esteem, several factors that were believed to be the opposite of self-esteem (negative self-esteem) were mentioned that, according to FGD participants, continued to impede an improvement in prosperity or, in fact, caused a fall in prosperity. These factors are laziness, drinking alcohol/getting drunk and gambling (both of which were mentioned by many communities in low and high–conflict areas), and being unable to manage the money/poor management of household finances. Hard work and industrious vs. laziness

The community frequently mentioned the factor of hard work and industriousness when they described the factors that encouraged them to improve their welfare. If people are industrious, nothing is difficult. Besides that, both the men and women’s group in high conflict areas mentioned determination and motivation as major factors that assist in raising community and

household welfare.

“I obtain all this by hard working, patient, efficiency and will of saving. I save at governmental bank.”(Gura, Never Poor4)

“Nevertheless, I always feel satisfied because I bought everything that I have now with our own money that we get through hard work” (Kampung Pisang, Mover7) “I also have confidence because I work hard now and people who have confidence and work hard will yield in the future” (Gorua, Mover6)

Hard work is also a factor that can increase prosperity in low conflict areas, but respondents also connect an increase in prosperity with another factor that they consider to be more important – praying to God.

“Things that I have done to avoid falling into poverty have been: hard work and willingness to work, effort, good relationships with others, many friends, and pray and seek good fortune from God” (Banyupelle, Never Poor3) “The ways people can avoid falling into poverty are hard work and never give up and always pray to God” (Banyupelle, Mover5)

Respondents also raised the issue of laziness as a factor that prevents the community and households from increasing their prosperity. Even if a person has capital, his/her business will not be able to expand if he/she is lazy. If they are not lazy, members of a household can diversify their undertakings when, for example, they are awaiting the harvest of coconuts, which cannot be picked at any arbitrary time.

“She also conveyed her opinion that many people here were lazy thus they were not successful” (Soakonora, Never Poor6) “Nothing makes difficult, just depends on us because if we are lazy to make effort we will have trouble”. (Idamdehe Gamsungi, Mover6)

A good work ethos

A good work ethos is believed to help improve people’s prosperity. For example, a ‘never poor’ respondent who work well and becomes trusted by his ‘boss’ and ‘business associates’ and those who market copra endeavor to meet orders punctually so that the purchaser will continue to place orders.



“Since then I was sure I would no longer be poor because I had gained the trust of my boss” (Banyupelle, Never Poor4). “Because I am honest, the rich people are fond of me” (Bulu, Mover4) “If my neighbors harvest tobacco, they will sell it to me but I don’t need to use cash. I use trust, and when I get money from my boss … then I pay my neighbors for the tobacco I bought. (Banyupelle, Never Poor3)

Consumption of alcohol and drunkenness A matter that was frequently mentioned and that has become a problem in almost all villages is the habit, common among young men and parents, of drinking alcohol and getting drunk. It was even said in one village in a high-conflict area that the village head is often drunk. This was

always a topic of conversation among the community. Although the habit in some villages has shown a tendency to decline over the past ten years, it is still considered to be the most frequently occurring form of criminal behavior. According to FGD participants, the habit of consuming alcohol, and drunkenness, has impeded improvements in prosperity or has, in fact, caused a decline in prosperity. One respondent in a high-conflict area said explicitly that his self-esteem improved because he stopped drinking. Nevertheless, there is still an argument that

consuming alcohol and drunkenness are sometimes a custom in social occasions. Those who work hard to produce a certain level of prosperity are not automatically free from the consumption of alcohol. In reality, this custom is considered by community members to be a negative thing that can impede prosperity or cause a fall in prosperity. Gambling In the same way as consuming alcohol and drunkenness, gambling was mentioned by FGD participants in almost all villages, both in low-conflict as well as high-conflict areas, as one problem or factor that has impeded an improvement in prosperity or caused a fall in prosperity. For lower class households, gambling can consume a rather large proportion of their income. As a consequence, poor households whose income is actually barely adequate are increasingly sinking into squalor.

“In 1991, my husband started to like gambling. It was midday time that a friend of my husband came and put off the TV antenna and brought my TV away. The TV was taken away because my husband lost the gambling. The children and I cried because we did not have TV anymore” (Semampir, Faller1). “My earning keeps on increasing because now, my average earning in a month is Rp3.000.000-. The increase is because I always cautious, never play around, never gamble, always pray and work hard, and never skip my ritual five times praying obligation” (Branta Pesisir, Never Poor3)

vi. Self-confidence

Self-confidence is an attitude, which allows individuals to have positive, yet realistic, views of

themselves and their situations. Self-confident people trust their own abilities, have a general sense of control in their lives, and believe that, within reason, they will be able to do what they wish, plan and expect. Having self-confidence does not mean that individuals will be able to do everything. Self-confident people have expectations that are realistic. Even when some of their expectations are not met, they continue to be positive and to accept themselves.



Many factors affect the development of self-confidence. Parents' attitudes are crucial to children's feelings about themselves, particularly in children's early years. When parents provide acceptance, children receive a solid foundation to feel good about themselves. If one or both parents are excessively critical or demanding, or if they are over-protective and discourage moves toward independence, children may come to believe they are incapable, inadequate, or inferior. However, if parents encourage children's moves toward self-reliance and accept and love their children when they make mistakes, children will learn to accept themselves and will be on their way to developing self-confidence. The factor that was mentioned, among others, that continues to support the strengthening of the self-confidence of individual life story respondents is responsibility in life, faith, position in society, position in organization and having wealth. The factor that was most often mentioned by ‘never poor’ respondents in the two conflict areas was life responsibility, faith and position at work. Meanwhile, for ‘mover’ respondents, the factors that could be identified were faith and position at work while for the ‘chronic poor and ‘fallers’ it was religion.

Other elements around self-confidence that were unearthed during this study were respect that was given by other people or the family to respondents that can also strengthen respondents’ self-confidence. Respect Usually, the better/higher the level of someone’s prosperity, the higher the level of respect they receive from other people and their family. This is supported by data from the individual life stories where the ‘never poor’ and ‘movers’ receive increasing respect along with an improvement

in their level of prosperity. Nevertheless, this is not a monopoly of these two groups alone. The ‘chronic poor’ and ‘fallers’ also receive a similar degree of respect, not only because of economic prosperity, but also because of their position as a more mature members of society. Respondents always safeguard their character in their daily lives, both with their family as well as with their neighbors as well as their high social welfare.

The ‘never poor’ are receiving an increasing amount of respect. This may be because respondents can provide for the needs of their wife and children and the results can be enjoyed by all family members, or because they have become a civil servant. The respect given to respondents is not only because of an increase in their economic prosperity but also because of other factors, including increasing age, respondents behaving wisely (being able to provide good suggestions), a respondent’s husband passing away, and the relationship between respondent and relatives

becoming more harmonious. Meanwhile, the respect given to ‘movers’ increases with age and wisdom they stop drinking, join an arisan and become independent. The economic factor that was mentioned as the factor that impacts on the respect given to ‘movers’ is by having one’s own house and having fixed employment. Nevertheless, one ‘mover’ respondent felt he did not receive more respect because his mother was passed away and he is still young and not economically successful.

“I feel that I’m part of this community, not only because I’m the member of the community but also because they respect me in terms of religion and behavior” (Gorua, Chronic Poor1). “What about respect from the community? This has increased since I went to Malang. They think I’m rich (laughs)” (Banyupelle, Never Poor3)



vii. Ability to Aspire to a Better Future.

Aspirations for the future are important determiners of whether or not someone will have the strength and motivation to move out of poverty. Because they have the ability to imagine and aspire to a better future, respondents usually pursue it with motivation, strong effort and work hard to achieve a better condition, and there is a strong possibility they will be able to move out of poverty. On the other hand, those who do not have high aspirations for the future are more

likely to continue being poor. The experience of poverty just continues and may cause them to become apathetic. The poor without hope can become trapped in the cycle of poverty, as there is nothing to motivate them to become better. In order two form aspirations, people must be influenced by two factors: their condition at the current time, and how open minded they are about the outside world, which they consider to be better. These external conditions then become a reference to compare their present conditionagainst.

In order to achieve a better future, a female ‘mover’ in a high-conflict area moved to Jayapura to join her uncle and work there. When she was unsuccessful, she made an effort to return to her place of origin and took the civil service test. When she failed, she joined her neighbor in order to obtain work. In another example, several respondents were prepared to study when their parents urged them to do so, and equipped them with knowledge about how they must seek a livelihood: they took them to the sea to look for fish or taught them how to make and market cakes. Nevertheless, many respondents, on their own initiative, approached friends, relatives, neighbors, or other people to learn how to climb coconut palms, look for fish or build a house. Another indicator to see if a person or household possesses aspirations for the future is by observing their outlook for their household’s financial situation 10 years from now. In general, 62% of respondents were convinced that their household’s financial situation 10 years from now would be better than it is today. More respondents in high conflict areas have aspirations for their financial condition in 10 years time, compared to those in low conflict areas, 79% and 46% respectively (Table 7.2.18). This data shows that conflict did not ruin people’s aspirations for their future, and may even have increased their motivation.

Table 7.2.18 Household Financial Situation 10 Years Ahead (%)

Better Off The Same Worse Off Don’t Know



Mover 56 30 8 6


Faller 39 33 22 6


Never Poor 88 4 8 0

Mover 79 15 6 0


Faller 39 33 22 6

It is proved that more ‘movers’ (67%) and ‘never poor’ (66%) predict that their condition will be better. In low conflict areas, ‘mover’ has the highest proportion (56%), while in high conflict areas, ‘never poor’ has the highest proportion (88%), followed by ‘mover’ (79%). The ‘faller’ has a very low proportion: only 39% of respondents have aspirations for a better financial condition 10 years into the future.



In addition to having far higher aspirations, respondents from ‘never poor’ and ‘mover’ groups feel more secure about their financial condition ten years ahead because most of them have savings, either in kind or cash, in both high conflict areas or in low conflict areas.

“Besides that, I also save some of my salary. So for the last ten years I feel that it’s enough and I feel secure that it will be useful for the future of my son incase he needs it to continue his education to a higher level, which is my hope in the future.” (Kampung Pisang, Never Poor4).

“My household’s well being is adequate and I satisfy our daily needs and the rest is saved to secure children’s future and other requirements.” (Gura, Never Poor1) “I save in the bank for my future and my family’s future and now I have savings of Rp25.000.000, - in Jatim Pamekasan Bank.” (Branta Pesisir, Never Poor2)

’Chronic poor’ respondents, especially in high conflict areas, also have aspirations for a better future. While currently they do not have any savings, they aspire to have savings in the future.

“Right now I don’t have any savings in any form because my income is only enough for our daily meal and my children’s education. Actually I want to save again for my children’s future needs but I still cannot do that because my income is still small” (Kampung Pisang, Never Poor1)

The optimism of people in high conflict areas is also supported by data from Table 7.2.19, where most respondents (83%) were sure that the life of the future generations would be better. In both areas, ‘chronic poor’ have the most optimism compared to other mobility groups, while ‘never poor’ have the lowest aspiration, especially in low conflict areas. This may be because youth from rich families sometimes spend their money on negative activities such as drinking,

drugs, car racing, and others.

“Don’t do gambling, don’t follow young people here, that was my mother told us. Because normally if their parents were rich, then young people usually get drunk and gambling” (Palenggaan Daja, Never Poor5)

Table 7.2.19 Aspirations for the Next Generation’s Future(%)

Better Off The Same Worse Off Don’t Know



Mover 80 13 6 1


Faller 78 17 6 0



Mover 82 13 4 1


Faller 76 18 6 0




4. Political capabilities

Political capabilities include the capacity to represent one or others, access to information, form associations, and participate in the political life of a community or country. Specifically FGD participants did not often mention the political capabilities factor as a factor that continued to influence prosperity. i. Access to information

Access to information is evident from the access to information on local government programs, the frequency of accessing information from newspapers, and the ease of obtaining information that has an impact on livelihoods. Information access to local government programs

Household survey shows that most ‘never poor’ respondents in both low and high conflict areas stated that it was easy to access information on local/national government programs. This shows that ‘never poor’ groups have better access to information about local government programs than other groups. In high conflict areas, ‘never poor’ and ‘movers’ appear to have more control over information than in low conflict areas, where access to local government programs is distributed more equally. Around 78% of ‘faller’ respondents in low conflict areas stated that it was easy to get information on local government programs compared to only 47% in high conflict areas (Table 7.2.20), whereas information on local government programs is really needed by ‘chronic poor’ and ‘faller’ groups in high conflict areas, as there are many government programs connected to post conflict recovery.

“I hope, if there is some support from the government, I would form a group of carpenters, but I don’t know how to get some money to buy tools. Up till now it is only a dream, to me, working as a carpenter is better than being a fisherman.” (Gorua, Chronic Poor1).

Table 7.2.20 Access to Information on Local Government Programs (%)

Easy Difficult

Low Conflict 74 24

Never Poor 90 7

Mover 68 29

Chronic Poor 67 33

Faller 78 17

High Conflict 70 30

Never Poor 84 16

Mover 69 31

Chronic Poor 65 35

Faller 47 53


Information about local government programs is needed, mainly in high conflict areas where increasing government assistance is an important factor in improving the post conflict economic conditions of the community.

“When we returned, at first we stayed in a tent, and then, together with my children, we built a house with some help from the government.”(Gorua, Mover3).



“It is impossible for me to build this house without the help from the government. Compared to my house before the conflict, this house is much better.” (Gorua, Chronic Poor3) “Finally, when we evacuated from one area to another as mentioned above, we only relied on the government’s aid, that is in a form of daily ration.” (Gorua, Mover5)

When compared to 10 years ago, a large proportion of respondents said that access to information on local government programs is almost the same or has improved. Only a small proportion of respondents (6% in both low and high conflict areas), mainly from the ‘faller’ group, said that access to this information has decreased. Access to newspaper

With regard to access to information from newspapers, most respondents in the last month did not read or have a newspaper read to them, meaning they did not access information from the newspaper (Table 7.2.21). The ‘chronic poor’ access newspapers least often. For all mobility groups, despite the greater availability of newspapers in low-conflict areas it appears that respondents in high-conflict areas (69%) more often read newspapers compared to those in low-conflict areas (48%).

“I never subscribe to a newspaper. In 2003, I bought a 21-inch TV and a CD player to know more information. Besides, I didn’t want my children watch TV in the neighbor’s house.” (Semampir, Mover2)

Table 7.2.21 Read or Having Been Read a Newspaper During the Last Month (%)

Reading Frequency (% respondent) Community

0 1-4 5-16 >16

Low Conflict 69 17 6 7 Never Poor 50 22 5 15

Mover 65 22 6 8


Faller 67 17 17 0

High Conflict 48 21 14 17 Never Poor 29 24 20 27

Mover 53 19 15 13


Faller 47 29 6 18

All areas 59 19 10 12


Ease of Obtaining Information that has an Influence on Livelihoods Table 7.2.22 shows that, in general, more respondents amongst the ‘never poor’ and ‘mover’ stated that it was easy to obtain information that impacted on their livelihoods. This is valid in both high-conflict as well as low-conflict areas. The proportion of ‘chronic poor’ and ‘faller’ respondents who stated that it was easy to obtain information that impacted on their livelihoods is only slightly less than the ‘never poor’ and ‘mover’ respondents, however this still indicates that ‘never poor’ and ‘mover’ respondents have better access to information.



Table 7.2.22 Ease of Obtaining Information That Influences Livelihoods

Very easy to obtain information

(% of respondents)

Easy to obtain information

(% Of respondents)

Trend: Improving (% of respondents)

Community

NP M CP F NP M CP F NP M CP F

Low conflict – N (41) (79) (51) (18) (41) (79) (51) (18) (41) (79) (51) (18)

% 29 20 35 39 68 66 55 56 59 59 51 61

High conflict – N (51) (72) (43) (17) (51) (72) (43) (17) (51) (72) (43) (17)

% 20 19 19 24 75 69 70 53 37 32 23 18

All areas (%) 24 20 28 31 72 68 62 54 47 46 38 40


If compared to 10 years ago, almost 50% of households for each mobility status in low conflict areas said that access to information connected to their livelihood rose. In high conflict areas, however, more households said that access became increasingly difficult or stayed the same. In

addition, the expansion of access to information in high conflict areas is not evenly spread. ‘Never poor’ and ‘mover’ groups felt that there was a better improvement to access than ‘chronic poor’ and ‘fallers’. This is perhaps caused by the main sources of information about livelihood are friends. In high conflict areas, conflict has caused friendships to disintegrate when trust is broken, hence access to up to date information also becomes difficult.

ii. Participation in the Political Life of a Community or Country

Communities do not consider political groups as the most important community group (Table 7.2.23). Very few household survey respondents from all mobility groups were members of political groups, either now or 10 years ago. At the present time, only 3% of the ‘never poor’ and of ‘movers’, 1% of the ‘chronic poor’ and none of the ‘fallers’ had joined such groups.

Table 7.2.23 Respondent who Claimed Political Group s

The Most Important Group (%)


The individual life stories indicate that respondents are more often voters rather than managers or active members of a political party. Households active in politics admit that there is no political party influence on their prosperity. In fact, they have been invited to join the political party because they are rich.

“Due to my ever improving work, in 2001 I was called by a politician, who happened to be the head of a political party to join the party to handle legal and human rights affairs of the party. Three month later, in a regional managing board meeting I was appointed as the secretary of PBB of North Maluku.” (Kampung Pisang, Mover3) “I am a member of the local group for the United Development Party. During the election I was a security worker. But there is no assistance from party members” (Banyupelle, Mover7) “In 1997, I changed my membership of political party, I became a member of PKB but it didn’t give any influence on my happiness and well-being.” (Bulu, Mover2)

Never Poor Mover Chronic Poor Faller Total

Low Conflict 2 0 0 0 1


All Areas 3 3 1 0 2



In high conflict areas, several respondents seem traumatized by the conflict, and they feel politics triggered the conflict. They are inclined to have negative views on political parties.

“That’s why I don’t want to become a member of any political party anymore. I am afraid of cases in 1950s. I neither have any close relation with politicians.” (Gorua, Never Poor3) “It was indeed a tragic situation. Only for the political interest of a number of people, many villagers had to be the victims. Is it right, just because you want to be a governor and to hold the power then you have to make other people as the victims? It’s crazy, isn’t it”? (Kampung Pisang, Faller1) “They are good only during the campaign but when they already have their desired position, they forget about all their promises.” (Kampung Pisang, Chronic Poor3) “Based on my observation on the recent situation, I never want to get involved in any political group or party because I think that politics is a dirty. I know this matter from friends and my

husband, who often talk about political matter.” (Kampung Pisang, Mover7)

In areas of low conflict the reason why respondents are not active in political parties is related to motivation. They feel too poor, stupid, or because they are too busy and do not have the time.

“I never had relationship with political party and asking for assistance. Because I am small people, know nothing,” Palenggaan, Faller2) “No ...I do not know, I am illiterate, I am afraid of sanctions" (when he was asked what he meant by sanction he answered “yeah” ...!!) .... better keep silent work ... pray ...do not know other things." (Bulu, Chronic Poor3)

“Never ma’am. I am poor, uneducated and illiterate so I don’t have political connections.” (Branta Pesisir, Chronic Poor1)

The level of participation in political parties is low, but 98% of respondents participated in the general elections and this proportion is valid for all mobility groups. Information on participation in general elections is only available for elections that occurred recently so they are not able to show the likelihood of this factor influencing prosperity. Participation in Campaigns Table 7.2.24 indicates that it seems that participation in political campaigns has an influence on the prosperity of ‘movers’ but not for the ‘chronic poor’. The data shows that most ‘movers’ participate in political campaigns. In general, the mobility group with the greatest rate of participation in political campaigns is ‘movers’ followed by the ‘chronic poor’, ‘never poor’ and ‘fallers’. This order is also valid in low-conflict areas, while in high-conflict areas the last place is the ‘never poor’, preceded by ‘fallers’. With the exception of the ‘never poor’, the participation of respondents in high-conflict areas is greater than in low-conflict areas.



Table 7.2.24 Participation in Campaigns

Participation in Campaigns (%) Community

NP M CP F

East Java – N (41) (79) (51) (18)

Total 37 47 43 28

Palenggan Daja 29 60 43 75

Semampir 40 30 0 20

Bulu 50 53 33 0

Banyupelle 25 30 63 0

Branta Pesisir 35 60 29 25

North Maluku - N (51) (72) (43) (17)

Total 35 56 53 41

Soakonora 15 38 38 0


Gorua 63 69 80 67

Kampung Pisang 40 55 45 25

Gura 30 38 29 50

All areas (%) 36 51 48 34 Source; Household survey

Nevertheless, many communities do not detect a relationship between joining the campaigns and their prosperity. Many who became involved in campaigns did not become party supporters - rather they joined in for the celebration.

"I follow the campaigns, I vote, but I don’t take any official positions". (Banyupelle, Faller1) "I don’t join the parties, I don’t understand, but I joined in the campaign, it was fun ". (Banyupelle, Never Poor 1)

C. COLLECTIVE ASSETS AND CAPABILITIES Poor people’s collective organizations are important in poverty reduction. Petesch (2005) stressed that given their lack of voice and power, and given the deeply entrenched social barriers that exist even in many formal democracies, poor people are often unable to take advantage of opportunities to effectively utilize or expand their assets or to exercise their individual rights. To overcome problems of marginalization in society, poor people critically depend on their collective capability to organize and mobilize so as to be recognized on their own terms, to be represented and to make their voices heard. These aspects of voice, representation, collective identity, solidarity and terms of recognition help overcome the deep external social and

psychological barriers that are usually internalized by poor people. Social capital, the norms and networks that enable collective action, allows poor people to increase their access to resources and economic opportunities. Poor people are often high in “bonding” social capital—close ties and high levels of trust with others like themselves. As was analyzed in the early part of this chapter, collective assets and capabilities cover, inter

alia, voice, power, representation, collective identity, solidarity, terms of recognition, collective action to organize and mobilize, participation and membership in organizations and social capital - the norms and networks that enable collective action- bonding and bridging social capital.



FGD participants in both low and high conflict areas highlighted the collective assets and capabilities that helped people to move out of poverty, namely; the help of more prosperous family/relatives (Soakonora-Semampir), encouragement from the wife and friends (IG), the availability of a ‘sponsor’ or someone who can give suggestions and urge the person to work (Soakonora), involvement in the decision making process (Soakonora), joining a working group or economic organization in the village (IG-Semampir), and the presence of assistance (IG). In addition, in this area, parents and family/relatives’ support is very helpful in maintaining the wealth and moving out of poverty. i. Participation and Membership in Organization

One factor that believed could support an improvement in household prosperity is by involving in organizations, social, economic as well as political ones. Table 7.3.1 shows that in general, almost all respondents in all mobility groups in low-conflict areas participate in such organizations, both at the present time as well as 10 years ago. Meanwhile, in high-conflict areas, the community participation rate in organizations is lower than in low-conflict areas. The lowest participation rate is that of the ‘chronic poor’ with 67% 10 years ago. The ‘never poor’ and ‘movers’ then to have large proportions involved in organizations. It is interesting to note that ‘fallers’ have a higher participation in organization compared to ‘chronic poor’. Furthermore in high conflict areas, the proportion of ‘fallers’ who participate in organizations (65%) is higher than ‘movers’ (57%).

Table 7.3.1 Participation and Membership in Organization (%)

Now 10 years ago

Never Poor

Mover Chronic Poor

Faller Never Poor

Mover Chronic Poor

Faller

Low Conflict 93 92 90 89 85 89 76 89

High Conflict 88 75 60 71 78 57 56 65

Total 90 84 77 80 82 74 67 77


In both high and low-conflict areas, religious groups are the type of organizations that are followed by the largest proportion of the community across all mobility groups (Table 7.3.2), with a tendency for a far greater proportion of membership in low conflict areas (92%) compared to high conflict areas (58%). Farmers, agricultural laborers and fishers also feel the importance of religious groups (Table 7.3.3). Not many respondents have stated that production/trade groups and associations and finance/credit/saving groups are rather important, however these groups are considered to be more important for high conflict areas than in low conflict areas. In high

conflict areas, production/trade groups are important for ‘mover’ households (11%) and ‘faller’ households (12%), while finance/credit/saving groups were considered to be important for ‘chronic poor’ households and ‘faller’ households.



Table 7.3.2 The Most Important Groups/Associations (% respondents)

Production/ Trade

Finance/ credit/ saving

Health/ Educati

on

Politi cal

Religious

Ethnic

Others None Total

Low Conflict 2 3 3 1 84 0 0 8 100

Never Poor 2 7 7 2 73 0 0 7 100

Mover 3 0 3 0 87 0 0 8 100

Chronic Poor 0 2 0 0 88 0 0 10 100

Faller 0 6 0 0 83 0 0 11 100

High Conflict 8 12 5 4 43 1 2 25 100

Never Poor 8 12 8 4 55 2 0 12 100

Mover 11 8 6 6 40 0 4 25 100

Chronic Poor 2 16 2 2 37 0 0 40 100

Faller 12 18 0 0 35 0 6 29 100


For farmers, farm laborers, and fishers, religious groups were considered to be very important for the ‘chronic poor’. Next to religious groups, in areas of high conflict farmers, farm laborers and fishers note finance/credit/saving and production/trade groups/association as being important. Household survey data shows that in high conflict areas, farmers and fishers who are in the ‘never poor’ and ‘mover’ groups are more active in production and trade groups (19% and 10%

respectively), and more ‘chronic poor’ (27%) and ‘faller’ (20%) farmers than those in ‘never poor’ and ‘mover’ groups do not follow group activities. In low conflict areas, farmers in all four mobility groups are not active in production/trade groups – almost all the farmers are concentrated in religious groups.

Table 7.3.3 The Most Important Groups/Associations for

Households in the Agricultural Sector(%)

Production or Trade

Finance/ credit/ saving

Politi cal

Religious

Others None Total

Low Conflict 1 3 1 88 0 7 100

Never Poor 0 12 6 76 0 6 100

Mover 0 3 0 87 0 11 100

Chronic Poor 2 0 0 93 0 5 100

Faller 0 0 0 100 0 0 100

High Conflict 10 15 3 52 6 13 100

Never Poor 19 19 0 44 6 13 100

Mover 10 10 6 58 10 6 100

Chronic Poor 7 20 0 47 0 27 100

Faller 0 20 0 60 0 20 100

According to the community, farmer’s groups are one of the important production/trade groups in high conflict areas. Membership in farmer’s groups has definitely helped farmers improve their household prosperity.



“Forimoy (farmer’s group), I guess, helps motivate people to improve agricultural produce (the income of the members) and also trains people on how to fertilize, prevent plant disease, and plant vegetables”. (Gorua, Farmer, Mover).

“As a family of farmers, it is impossible for me to grab economic opportunity alone myself. For example, by joining a farmers’ group (farmer group name: “Suka Damai”) we can buy farming equipment/tools (hand tractor and land mower). It’s impossible if I only work alone.” (Gorua, Farmer, Mover,). “In this 2005, I joined farmer group in Gorua village. This farmer group is quite helpful in providing the food for the family, because within this farmer group they plant short-term plants such as vegetables, tomatoes, and chilies on a 1ha piece of land. While for my own need I could get it from working in the farmer group and as a farm labor whenever somebody needs my help during the coconut harvest.” (Gorua, Farmer, Mover2) “Usually my friends and I work in-group and the revenue divided to all members with same share. This group has been established long time ago (1985). I joined the group in 1992 because I think this group is helpful. This group works every month until the harvesting time of coconut and clove such as weeding the land, picking coconut then make it into copra. Usually I get wage in every coconut harvesting time that is every three months and in the great harvesting time every 2-3 years. Actually clove is harvested every year but the yield is not so much as the local people calls it salata or small harvest” (Idamdehe Gamsungi, Mover) “Currently my main job is as village reservoir keeper and farmer, manage my own land. I am also a member of a farmer group. One of the activities is together with the group members to take job to work on somebody’s land who need workers. The wage is to share with the group members.” (Idamdehe Gamsungi, Mover).

On the other hand, stories about farmer’s groups were not often mentioned by ‘chronic poor’ farmer respondents. In fact one poor farmer stated he did not join the group, even though one existed in his village. One reason he gave for this was that they already have a lot of work and not enough spare time to follow the group.

“Up to now I never join any organization like what you mention, because my situation makes me impossible to join. My income is just barely enough for food, children school costs and other household necessities. If only I earn this income every month regularly surely I will join, but you see yourself like what I mentioned to you that my income is only seasonal. Indeed in this village there are several organizations like you mentioned such as mutual saving group and the credit fund from PPK (Sub-district Development Program) that is ready for giving loan to anybody who need it. I am afraid to participate in those all because I am worried that I will not be able to pay it back.” (Idamdehe Gamsungi, Chronic Poor2) “Actually a lot has been done, for example, after coming back from evacuation, there were farmers’ groups who got financial aid, but I didn’t join. There was also aid in a form of ‘ketinting’

(a small motorboat made of wood)” (Gorua, Chronic Poor3). “I do not join the organizations or groups and also political parties in this village, it is enough for me only to give my vote because we still have many work to be done.” (Soakonora, Chronic Poor3) “None. I don’t join the arisan. I don’t have the money”. (Banyupelle, Chronic Poor3)



Farmers groups can generally be divided into two types: well-established groups and new groups. Established farmers groups were generally established by the community together, with the aim to overcome problems that they experienced together. New farmer’s groups were generally formed as a result of a government program. These groups are generally less effective, and their activities may cease after the program finishes.

“The government suggested that fishermen and farmers in Gorua form groups because the aid will be given to groups. Based on the agreement of all the members of this group the fund coming from the empowerment program should be used to buy a hand tractor, land mower, and the rest was divided equally for the members, Rp10,000 for each for buying the seeds. Unfortunately, this group had no activities after the money meant for buying the seeds was given to the members. Each member worked on his own, never came to the group’s meetings, and the existence of the group was in question.” (Gorua, Mover3)

For ‘chronic poor’ and ‘faller’ respondents, finance/credit/saving groups are very important, especially in high conflict areas. Members rely on these groups if they experience financial

difficulties.

“To overcome financial problems, I usually use the money I get from ”arisan” or borrow some from the creditor. Once my child was sick. “(Semampir, Chronic Poor3) (About his financial preparation, he thought for a while and said) " I am not ready yet, at the

most I borrow money; if it could be overcome then I discuss with other family."(Bulu, Chronic Poor3) “I do join that kind of organization, namely a saving and loan cooperative. This cooperative helps me a lot with my gas retail business since it loans me capital. At first, it loaned me only Rp 500,000.00 but now it loans me Rp 2,000,000.00. The increase in the amount of the loan is

due to my punctual repayment, resulting in the trust of the cooperative.” (Kampung Pisang, Chronic Poor1) “I bought the boat from my wife’s 3 years of saving from arisan. I had better life then when I was a boat assistant Unfortunately, the diesel price was very high and I couldn’t afford 3 liters per day. So I sold the boat 2 months ago. And when I bought big boat with troll, it sank. I was

so sad, ma’am, the boat had not made anything. The loan is still load.”(Branta Pesisir, Chronic Poor1)

In one community in a high conflict area, a ‘mover’ also felt that the importance and benefit of following a finance/saving group was related to access to cash and help with building houses.

“Yes! I am a member of a mutual saving group in this village that is the house construction material saving group. In this saving group we collect every month consists of 1 sack of cement and money as much as Rp10,000. After a year we work together to construct the house and

now all runs well. The problem is that our income is not fixed.” (Idamdehe Gamsungi, Mover 6,)

Many religious groups undertake additional activities outside religious activities. These groups are considered to be important by the community because of these additional activities, such as in the area of education:

“As I said before, the activities of church organization and groups, are a linked to education in economic field. In case there is any follower who faces some problem, we will discuss how to

solve it. Church organization also gives scholarship for children who come from poor family but make good achievement.” (Gura, Mover3)



ii. Voice, Power, and Representation

The levels of power, voice, and representation, are believed to have a relationship with prosperity. Voice is reflected by the extent to which local leaders listen and pay attention to the voice and needs of certain groups of people. Power is indicated by how far one person can control his/her own decision, and representation is indicated by how actively respondents participate in general village meetings and in community representation at the village level (BPD) meetings. Voice that influence Local Leaders decision In general respondent in low conflict areas considered that local government more concern of their voice when they make decision compare to in high conflict areas, 47% and 39% (Table 7.3.4) respectively. In low conflict areas, almost all mobility groups have the same opinion about their local government concern, with just slightly higher for ‘never poor’, and slightly lower for ‘faller’. While in high conflict areas never poor and mover stated that government more concern compare to what stated by ‘chronic poor’ and ‘faller’. This shows that in high conflict areas the aspirations of the ‘never poor’ and ‘movers’ are more often listened to compared to other groups.

Table 7.3.4 To what Extent do Local Government and Local Leaders take into Account Concerns Voiced by People Like You when They Make Decisions that

Affect You? (% respondent)

A lot A little Not at All Don’t know



Mover 47 32 18 4


Faller 39 28 28 6



Mover 40 35 25 0


Faller 35 53 12 0

All areas 43 35 19 3

Source: Household survey The ability to control personal decisions The level of power can be reflected from the ability of the respondent to control personal decisions. In general, more respondents in high-conflict areas can control all/almost all personal decisions compared with low-conflict areas at 73% and 65% respectively (Table 7.3.5). Based on mobility status, in high conflict areas most respondents from all mobility status have control over their personal decisions (70%). Meanwhile, in low conflict areas, the ‘never poor’ have the highest control over their personal decisions (83%) and ‘fallers’ have the lowest control (45%).

Table 7.3.5 The Ability to Control Personal Decisions

at the Present Time (%)

Can control all/almost all decisions (% of respondents)

Total NP M CP F

Low Conflict 65 83 68 51 45


All areas (%) 69 78 72 60 54




Generally, conflict does not heavily influence a respondent’s ability to control their personal decisions. In the low conflict area 83% said that this ability has stayed the same over the last 10 years, while 14% stated that they have more control, and only 3% stated they had less control (Table 7.3.6). The link between prosperity and power is shown by ‘fallers’ in high and low conflict areas, because they have the strongest belief that they have less control over their personal decision making, 11% and 6% respectively. On the other hand, ‘never poor’ and ‘mover’ respondents more often stated that their ability to control personal decision making has increased.

Table 7.3.6 The Ability to Control Personal Decisions over the past 10 Years (%)

More The Same Less

Low Conflict 21 72 7

Never Poor 20 78 2

Mover 30 62 8


Faller 6 83 11

High Conflict 14 83 3

Never Poor 20 75 6

Mover 13 85 3

Chronic Poor 9 91 0

Faller 12 82 6

All areas 17 78 5


Discussing problems in the community In regard to participation in village meetings to discuss common problems during 10 years, the data shows that in low-conflict areas there is no strong pattern of the ’never poor’ and ‘mover’ participating more in village meetings compared with the chronic poor and fallers. The level of participation of all mobility groups is in the range between 57-61% (Table 7.3.7). Meanwhile, although the difference is not large, the never poor, movers, and fallers in high-conflict areas participate more often than the chronic poor, with proportions of 75%, 69%, 76% and 63% respectively.

Table 7.3.7 Level of Participation in Discussing Problem in the Community (% of respondents)

Never Poor Mover Chronic

Poor Faller



Total 67 63 61 69


Listening to opinions with the village council (BPD)

In general, community participation in high-conflict areas in BPD meetings is higher than in low-conflict areas, namely a rate of 42%-56% compared to 22%-34% (Table 7.3.8). In low-conflict areas, the ‘never poor’ participate more than other groups, while in high-conflict areas ‘movers’ participate more than other groups, follows by ‘never poor’, 56% and 51% respectively. The household data also shows that in high conflict areas, ‘chronic poor’ and ‘faller’ groups participate more in BPD meetings than in low conflict areas. A life story from low conflict area demonstrates the low level of participation of ‘chronic poor’ in the BPD meeting, the closeness with the BPD, and the impact to his prosperity.



“My family is considered poor. But rice distribution only arrived once. I didn’t get anymore because I was not close with BPD. Many poor people here don’t get it because BPD got the wrong group.” (Branta/low conflict, Chronic Poor1).

Table 7.3.8 Attendance at Village Council (BPD) Meetings (%)

Attend BPD Meetings (%) Community

Never Poor Mover Chronic Poor Faller Low Conflict 34 22 22 22


Total 43 38 31 34


Access to Local Government Access to local government during the last 10 years is, in general, the same, meaning that

between the present time and 10 years ago there has been no change in the level of access (Table 7.3.9). This was expressed by 61% of respondents. Although approximately 17% of respondents stated that there was greater access, 13% of respondents also stated that it had declined. If we compare high and low conflict areas, in high conflict areas more respondents stated access has improved (19%), than in low conflict areas (14%). On the other hand, in low conflict areas there are more respondents that said their access to local government improved than those who

said it has declined, at 20% and 8% respectively. ‘Never poor’ and ‘mover’ respondents in low conflict areas are the groups who most often said that their access has declined, while in high conflict areas this was experienced more strongly by ‘chronic poor’ and ‘faller’ respondents.

Table 7.3.9 Access to Local Government Over the Last 10 Years (%)

Increased The same Decreased Don’t know



Mover 20 57 11 11


Faller 17 67 6 11



Mover 11 63 17 10


Faller 12 65 24 0

All areas 17 61 13 9


Freedom to set up a business Freedom to set up a business is one factor that is reflected by the respondents’ perceptions of how easy it is to conform to government regulations when opening a business. In general, the proportion of respondents that said it was easy to set up a business was higher in low conflict than

in high conflict areas, at 76% and 62%, (see Table 7.3.10). Based on mobility groups, in low conflict areas more ‘never poor’ and ‘faller’ respondents state it is easy than ‘mover’ and ‘chronic poor’ respondents. In high conflict areas, the ease of setting up a business is in line with mobility status: ‘never poor’ consider it to be easiest, followed by ‘mover’, ‘chronic poor’ and then ‘faller’.

"There are no government regulations that make it difficult for tobacco farmers, it doesn’t have an influence, the warehouse people set the prices.”



Table 7.3.10 Easy/Difficult Do the Rules and Regulations of the Government Make it to set up a Business (%)

Easy Difficult

Low Conflict 76 22

Never Poor 85 15

Mover 77 19

Chronic Poor 63 35

Faller 83 17

High Conflict 62 37

Never Poor 69 29

Mover 67 33

Chronic Poor 56 42

Faller 41 59

All areas 69 29


iii. Solidarity and Collective Action to Organize/Mobilize

The respondents admitted that it is easier to undertake activities through groups, especially in connection with collective welfare that can eventually impact on household prosperity. This is evident from the desire of the community to work cooperatively in community activities, and undertaking protests and demonstrations. Most communities in all areas and mobility groups are optimistic about the possibility of community cooperation, including helping villagers who have

been affected by misfortune or who are in need of assistance. In regard to community activities such as gotong royong (mutual self-help), the number of activities, in general, is between 0-5 each year (Table 7.3.11). The intensity of these community activities is higher in high conflict areas than in low conflict. Faller in high conflict is the most active, while in low conflict faller is the least active.

“I fell that it is important to be a part of this community and I always get involved in any community activity in this village. I even always receive government’s aid through its programs implemented in this village” (Kampung Pisang, Mover7) “During my life in this village, I think belonging to the village community is important. The people are united. Should something happen to the village, gotong royong (work it together). For example, when constructing the alleyway in front of my house, they work together to make it.” (Branta, Never Poor8).

Table 7.3.11 Number of Community Activities in the Past Year (%)

0-5 6-10 10-20 >20



Mover 71 15 8 6


Faller 83 6 11 0



Mover 44 8 17 31


Faller 18 18 29 35




VIII. LOCAL CONTEXT, PEOPLE’S PROSPERITY, AND FACTORS AFFECTING MOBILITY

Poverty used to be understood only within the parameters of economic ability. Now, however, the ability to have one’s basic rights fulfilled and the ability to pursue a decent quality of life are also taken into consideration. In this context, the National Strategy on Poverty Reduction (SNPK), for example, defines poverty as the condition of someone or a group of people, men and

women, who have not fulfilled their basic rights to maintain and develop a life of value. This definition of poverty arises from the approach based on the right that recognizes that the poor, both men and women, have the same basic rights as other members of society. For that reason, poverty is a rejection and non-fulfillment of rights that results in the poor being forced to endure poverty and often experience abuse of rights that lessens their value as humans (SNPK, 2004). One implication of an understanding of poverty as a multi-dimensional issue is that the cause of

poverty or the factors that can assist one to move out of poverty are also multidimensional in nature. Each of these factors is mutually inter-connected and, in fact, represents a series of cause and effect relationships. After the previous chapters discussed in detail the factors that have possibly impacted on household and community prosperity during the last 10 years (1995-2005), this chapter will

synthesize the interaction among the factors that may impact on household prosperity. This synthesis will answer the main questions of this research; namely how some people have successfully moved out of poverty or maintained their wealth while some people have been trapped or fell down into poverty. What are the factors that influence this situation? These factors can be divided into 2 categories, opportunity structure and agency of the poor. This discussion is divided into 4 parts, firstly into those who successfully moved out of poverty (‘movers’), secondly those who successfully maintain their wealth (‘never poor’), thirdly those who are trapped in poverty (‘chronic poor’) and lastly, those who have fallen down into poverty (‘fallers’). In contrast to the discussion in previous chapters that only presented low-conflict and high-conflict areas with supplementation from information and data on the respective communities, the discussion of this chapter will highlight growth that is represented by growth at the district level where the sample communities are located. If we re-examine Chapter I, Section C, the research areas were divided as appeared in Table 8.1.1 below.

Table 8.1.1 Sample Community Based on Growth and Conflict Experience

The Level of Conflict (c) Community

District

Growth (g) at the district

level Low (L) High (H)


Palengaan Daja Pamekasan Low LcLg

Semampir Probolinggo High LcHg

Bulu Probolinggo High LcHg

Banyupelle Pamekasan Low LcLg

Branta Pesisir Pamekasan Low LcLg


Soakonora West Halmahera Low HcLg

Idamdehe Gamsungi West Halmahera Low HcLg

Gorua North Halmahera High HcHg

Kampung Pisang Ternate High HcHg

Gura North Halmahera High HcHg



The first and second discussions (‘movers’ and ‘never poor’) are specially set aside for those who live in relatively poor opportunity structures, that is in high conflict areas, especially in low growth districts (HcLg), namely Soakonora and Idamdehe Gamsungi, and high growth district (HcHg), namely Gorua and Gura, and in low growth districts in low conflict areas

(LcLg), namely Palengaan Daja, Banyupelle, and Branta Pesisir. The third and fourth discussions are reserved for those who live in relatively better opportunity structures, namely in low conflict areas, especially in high growth districts (LcHg), namely Semampir and Bulu, and in high conflict areas, especially in high growth districts (HcHg), namely Kampung Pisang. Data and information from these 2 discussions was ascertained mainly from respondents’ individual life stories.

Prior to these discussions a quantitative analysis will be presented in the first section of this chapter. The quantitative analysis specially aims to find the correlates of moving out poverty. Every variable included in the analysis is taken from the household questionnaire.

A. QUANTITATIVE ANALYSIS OF THE CORRELATES OF MOVEMENT OUT OF POVERTY

1

The quantitative analysis acts as the complement to the qualitative analysis presented in previous sections of the report. Given the purpose of the report, in this section we specifically aim to find the correlates of moving out of poverty. This implies that we limit our dataset into households that either have moved out of poverty or remain poor. In addition, special attention is given to community variables that proxy for social capital, democracy, and governance. Every

variable included in analysis is taken from the household questionnaire.

Basically, the model that we use is as follows:

Sij = α + β ∆ Xij + η Pi + γCi + λZj + ε

where S

ij is the mobility status of household i living in community j, where 1 means the

household is successful in moving out of poverty, while 0 means that the household remains poor. Meanwhile, ∆ X

ij consists of our variables of interest; the change of the conditions between

1995 and 2005 in the opinion of the respondent households and the actual occurrence of conflict in that community. In addition, P

i is a group of variables that indicate the household's

participation. Finally, the next two groups of variables are control variables at the household and community levels respectively, while ε is the error term. The complete variables' description, their mean, and their standard deviation are in Table 8.1.2. Probit GLS is used in the estimation since the dependent variable is a binary variable. Furthermore, we adjusted the standard errors for heteroskedasticity. The estimation result is in Table 8.3.2. From the first groups of variables, three are significant negative correlates: local government increasingly taking the residents' concerns into account, easier access to information regarding government programs, and conflict. Explaining the first two results is not easy, since better response to concerns and easier information in a community are thought to help movement out of poverty. However, the third is evidence that it is harder to increase welfare in conflict-ridden communities. Finally, living in a more peaceful community is proven to support movement out of poverty.

2

1 The analysis is done and written by Daniel Suryadarma, a SMERU researcher in the quantitative unit

2The peace variable is not necessarily correlated with the occurrence of conflict variable because the

former is the opinion of respondents while the latter is whether there had been an actual conflict

occurring in the past decade.



Table 8.1.2. The Variables and their Mean and Standard Deviation

Variable Mean Standard Deviation

Dummy

Moved out of poverty between 1995 and 2005 0.62 0.49 Yes

Changes in Community Conditions 1995 – 2005

Traders and farmers receive fairer price 0.21 0.41 Yes

It is easier to find work 0.12 0.32 Yes

People can be trusted more 0.42 0.50 Yes

There is now better social cohesion 0.02 0.13 Yes

Have more control in making personal decisions 0.17 0.38 Yes

Local government take concerns into account more extensively 0.22 0.42 Yes

Local government is run more for the benefit of all people 0.35 0.48 Yes

There is now easier access to information on government programs 0.42 0.49 Yes

It is now easier to set up business 0.21 0.41 Yes

It is now more peaceful 0.85 0.36 Yes

Experienced major conflict between 1995-2005 0.47 0.50 Yes

Household Participation

Have attended an organized meeting 0.62 0.49 Yes

Have attended a neighborhood council meeting 0.35 0.48 Yes

Have met with local politician 0.05 0.23 Yes

Have signed a petition 0.05 0.21 Yes

Have participated in a protest 0.04 0.20 Yes

Have notified police 0.03 0.17 Yes

Have participated in an information or election campaign 0.50 0.50 Yes

Household Control Variables

Household size in 1995 3.84 1.87 No

Household is headed by a female 0.10 0.30 Yes

Household head education

- No education/not finished primary 0.35 0.48 Yes

- Finished primary education 0.44 0.50 Yes

- Finished secondary education 0.13 0.34 Yes

- Finished tertiary education 0.08 0.28 Yes

Household is a Muslim household 0.76 0.43 Yes

Experienced major health shock 0.51 0.50 Yes

Asset index in 1995 0.59 0.92 No

Own the house in 1995 0.79 0.41 Yes

Land holding in 1995 0.28 0.45 No

The household belonged to at least a group in 1995 0.71 0.45 Yes

Community Control Variable

Urban 0.29 0.45 Yes

Notes: Asset index measures ownership of cattle, motorcycle, DVD, and refrigerator. Hence, the total is 4.

In the education variable, the excluded variable is no education/not finished primary.



Table 8.1.3 Correlates of Moving Out of Poverty

Variable Coefficient Standard

Error

Changes in Community Conditions 1995 – 2005

Traders and farmers receive fairer price 0.212 0.245

It is easier to find work 0.250 0.365

People can be trusted more -0.180 0.198

There is now better social cohesion -0.432 0.642

Have more control in making personal decisions 0.480 0.293

Local government take concerns into account more extensively -0.596 ** 0.255

Local government is run more for the benefit of all people 0.035 0.228

There is now easier access to information on government programs -0.486 * 0.214

It is now easier to set up business 0.195 0.261

It is now more peaceful 0.738 * 0.315

Experienced major conflict between 1995-2005 -0.778 * 0.357

Household Participation

Have attended an organized meeting 0.181 0.231

Have attended a neighborhood council meeting 0.173 0.240

Have met with local politician -0.377 0.542

Have signed a petition 1.754 0.576

Have participated in a protest -0.859 ** 0.446

Have notified police -0.023 0.501

Have participated in an information or election campaign 0.478 * 0.226

Household Control Variables

Household size in 1995 0.018 0.052

Household is headed by a female -0.274 0.334

Household head education

- Finished primary education 0.174 0.249

- Finished secondary education 0.389 0.404

- Finished tertiary education 0.821 0.473

Household is a Muslim household -0.262 0.372

Experienced major health shock -0.199 0.195

Asset index in 1995 0.651 ** 0.146

Own the house in 1995 0.261 0.248

Land holding in 1995 0.617 * 0.277

The household belonged to at least a group in 1995 -0.064 0.254

Community Control Variable

Urban 0.076 0.278

Constant -0.703 0.668

Observation 243

Pseudo R-squared 0.227 Notes: Standard errors are robust to heteroskedasticity.

** = significant at 1%; * = significant at 5%



Meanwhile, the other variables in the community conditions are also interesting to discuss. Fairer prices, increasing ease to find work and set up business, and having more control in one's life help movement out of poverty, while increased social cohesion and trust hinder it.

In terms of household participation, meanwhile, participation in a protest is negatively correlated with movement out of poverty, while participation in a campaign is positively correlated with it. There are also two significant household control variables: asset and land ownership in 1995, which are positively correlated with moving out of poverty. This shows that ownership variables are important ways to enable the poor increase their welfare.

B. MOVING OUT OF POVERTY AND MAINTAINING WEALTH IN AREAS WITH RELATIVELY POOR OPPORTUNITY STRUCTURE

1. High Conflict and Low Growth Areas (HcLg)

In January 2000 both Soakonora and Idamdehe Gamsungi villages experienced disturbances that caused almost all of the houses and even schools and places of worship to be destroyed or burned down and a large-scale exodus of people from the village to take place. In Soakonora, most people only returned to the village from places of refugee after the government in 2002 officially took them home again. The villagers of Idamdehe Gamsungi who are all Christian did not experience a long period in places of refuge as happened in Soakonora, only a matter of weeks.

Even though the villages experienced high level conflict and experienced low economic growth, during the last 10 years there has been a positive change that has resulted in an improvement in community prosperity and half of household have moved out of poverty. The net prosperous index (NPI) in this area is positive and quite significant, which are 0.40 in Soakonora and 0.38 in Idamdehe Gamsungi. The moving out of poverty indices (MOPI) are also positive and quite

high, 0.43 in Soakonora and 0.68 in Idamdehe. In this area, farmers feel that their prosperity increases when the harvest is good, the market price is stable and farmers can sell their harvest yields to the market or to buyers easily. Both men’s and women’s groups who live in these two communities feel that the community is more prosperous now than 10 years ago. They also believe that it is now easier to make a living

and that there are more economic opportunities. The men’s group in Soakonora said that there is now a mobile market with motorcycles that bring vegetables and goods to peoples’ houses, young men now work as ojek drivers, the social capital especially after the return from evacuation is also now good. One positive factor, which has also helped community prosperity, is due to the position of Soakonora, which is located close to Kota Jailolo, which became the capital of the new Kabupaten West Halmahera in 2003. The transfer of the capital to this area has just begun and the atmosphere can still be described as quiet, but the regional government has commenced the development of office facilities, which creates work opportunities and more people have come into the area so many commercial goods are in demand. In regard to the community livelihoods as farmers, community members acknowledge that more people now always receive fair prices. The post-conflict assistance programs in the form of the distribution of cheap rice and house re-building assistance (BBR) that were accompanied by cash grants for building and living costs were very helpful to the community. The women’s group in Idamdehe Gamsungi said that houses are better, people have TV, many people have completed senior high school, and there is now transport to Jailolo even though it is still limited. Positive factors mentioned by FGD participants, which has helped community prosperity in the last 10 years are government



programs in the form of revolving funds (IDT and KDP3), security, and post-conflict programs

which provide housing materials and cash to build houses and assist with daily expenses. In Soakonora infrastructure was considered to be good although unsophisticated. The

community has had electricity and access to clean water for ten years. There is also a simple asphalted road that can be used in all seasons, but ojek are the only means of public transport in the village. As a result of development in the past 10 years, today there is a public telephone and people can access national television and newspapers, and many more houses now have electricity. In Idamdehe Gamsungi the development of infrastructure facilities in the village such as the building of the road to the village, providing drinking water and electricity has made a positive impact on the community’s welfare in the village. The development of the road was carried out in stages by the people in the village themselves, while the development of electricity was done in 1991 and drinking water in 1997. On the other hand, when the road to the village was damaged in 2004, the community’s welfare got worse. Due to the damaged road, people had difficulty in accessing transportation facilities from the village to the market situated in the sub-district. As a result, people had difficulty in going to the city to sell their agricultural produce and the buyers were reluctant to come to the village. This condition caused a drop in the price of agricultural produce like cloves, nutmegs and copra. The people are hoping that the damaged road can be repaired soon so that the people’s mobility from the village to the city (sub-district) and vice-versa can return to normal. Basic social infrastructure in Idamdehe Gamsungi, such as school facilities are limited only to primary schools and secondary school students have to undertake long trips to other villages using limited transport. The presence of Polindes makes things easier for the community to handle their health problems. Many people, however, still expect to have a doctor coming to their village. As result of developments over the past 10 years, today there is a telephone, public clinic, and better access to clean water.

Idamdehe Gamsungi is surrounded by plantations and sea, and produces agricultural commodities like cloves, coconuts, and nutmeg. This farming produces periodic yields if there is no failure in harvest. Almost all the population of Idamdehe Gamsungi village are farmers who own land. Besides farmers, a small number of people are entrepreneurs selling and buying cloves and groceries. People who work as government officials, including as village officials, generally, also work as farmers. Because Idamdehe Gamsungi is a small village with a hilly geographical condition far from the hectic city, available work/job opportunities are very much limited to working in plantations. The community members who want to work outside the agricultural sector, for example as drivers or construction workers, have to leave the village. For that reason, many people leave the village to seek other work and their fortune for a defined period. In most cases, after they have left to seek their fortune and have changed to a different job elsewhere, they will return to farming and plantation work. Through government programs that especially give aid to Idamdehe Gamsungi villagers in the form of financial capital, people can now have additional income or improve their agricultural yield. Two of the government programs that have been carried out in the village have had an important role in promoting the welfare of the community. The first program is IDT (development program for under-developed villages), which started in 1995 and continued until before the conflict happened and KDP, which started in 2004 and is still continuing. These two programs give aid in the form of accumulating financial capital given to people in turn. The amount given to the village community through the IDT program was Rp20 million from 1994 – 1995. The positive impact of this program is that people can improve their welfare by changing their planting pattern from annually yielded plantation to monthly yielded plantation. The

project has also improved the people’s welfare through the drinking water project. The village was given an honor by the provincial administration in 1996 as the village that best manages aid

3KDP- Kecamatan Development Program.



through the IDT program. The aid given through KDP in the village was Rp37.5 million in 2004. Some of the activities undertaken included building tourist sites, building the road to the tourist site, and changing the water pump generator for drinking water. The benefit enjoyed by the community is that the project created job opportunities and at the same time it also added to the village’s income. Despite the positive developments, private employers also do not presence in Soakonora. Access to capital in the form of agricultural credit, inputs, and technical support as well as the establishment of a business are still obstacles. With the exception of cake making, not many home industries have evolved in this community. In regard to village health facilities, there is only a midwife; there is no doctor, no community health center (puskesmas) and no private clinic. If local people are sick, they usually go to the puskesmas in the sub-district capital Jailolo or else to the hospital in Ternate, the provincial capital. In addition, a matter that was frequently mentioned and that has become a problem in Soakonora village is the habit, common

among young men and parents, of drinking alcohol and getting drunk. It was even said that the village head is often drunk. This was always a topic of conversation among the community. Although the habit has shown a tendency to decline over the past ten years, it is still considered to have the highest frequency among several things that are of a criminal nature. On the governance issue, the village head of Idamdehe Gamsungi, especially, has power and is

highly respected by the community because he is directly chosen through a local election. He also has the capacity and commitment to deliver services for the public good, is transparent, obeys the rule of law, and conducts participatory dialogue with the community. Besides, this small number of people live in harmony and they all obey whatever the village head says. The same respect also goes to neighborhood heads. On the other hand, it was obvious that the village government and administration in Soakonora were not yet functioning, as they should have

been. Local governance is also not functioning. Management of the village government was linked to the bribery and corruption that has occurred. Almost all members of the community, both men and women, admitted that corruption and the misuse of official positions are at a very ‘serious’ level, with the majority of public servants involved. Although they did not give a direct, frank answer, the young men and women indicated that there was corruption at the village level at the time when aid was distributed. Only a few elements of local democratic practices are working; these are freedom of speech, fair village elections, attendance at community meetings and participation in political campaigns. Other elements have not been effective. The fact that, after the disturbances, the community became increasingly courageous in expressing its opinions openly, sometimes with the accompaniment of protests, indicates that the democratic climate in the village is improving, although its influence on members of the community varies, depending on individual livelihoods. Respondents also stated that so far, even though the community has expressed protests, this change in democracy has clearly not yet altered community life for the better. It was difficult for the community, both men and women, to link freedom and power with welfare and poverty. In Soakonora, they even believed that there was no connection between freedom and becoming poor. Nor could they reach a conclusion on whether the two have influenced their welfare up to the present time. From individual stories and the results of observations, the community obviously had complete freedom to undertake business activities without any feeling of anxiety, especially before the disturbances. As a result of the disturbances, there is still an impression that their freedom has been disturbed, especially when this is linked to the inter-group issue. Meanwhile, the young men and women were extremely positive in viewing the power of the poor, whom they say could be powerful, depending on the business concerned. In keeping with the general view, the young men and women agreed that in Soakonora there are no rich people who do not possess power.



One positive factor that certainly also helped communities in this area is good social capital and social cohesion especially after the return from evacuation, which assisted the community to recover from the trauma. This is evidenced from the willingness shown by the entire community to help others so they could enjoy their lives together and undertake appropriate social and

economic activities. Another factor that also had an impact on improving prosperity was the monetary crisis in 1998. Economic crisis has a negative impact on the majority of people throughout Indonesia, but that is not the case with people in high conflict areas, including those of low growth. Economic crisis has brought about advantages to them. Unlike other areas that were badly affected by the

monetary crisis, the monetary crisis definitely increased the prices of export agricultural products produced by the community in this area because of the difference in the export price. Although the prices of nine kinds of basic commodities (sembako) were increasing, the people in these areas did not feel the impact because at the same time, the price of copra was also increasing, and in fact their life became better. This trend could be seen where people could build houses, bought motorcycles, and other consumer goods. In addition to their experience of high-level conflict, both Soakonora and Idamdehe Gamsungi are located in low growth areas that, until the onset of the monetary crisis and the conflict, did not experience any meaningful change in economic growth. The administrative separation of the area with Jailolo as the capital of West Halmahera is believed to have enhanced the development of this area. Because the separation of the new district occurred in 2003, the mobility of community prosperity is estimated to have occurred during the last 2 years. With the condition 10 years ago and developments like those analyzed above, one reason why some people have moved up and moved out of poverty is because they have been able to benefit from improvements in community prosperity over the last 10 years with individual assets and capabilities as well as collective assets that are owned by the movers and the never poor. According to the results of the household questionnaire, the main factors that raise the welfare of households

4 in this area are all associated with employment and livelihoods. These are (1) the

same work but greater returns, and (2) finding work, better work or greater employment opportunities; and (3) new/better business. Unlike the household questionnaire, which focused more on employment and income causes, the Ladder of Life FGDs also looked at other factors

5,

which later are grouped into individual and collective assets and capabilities. This includes availability of capital (Soakonora), ownership of productive assets (Soakonora), vocational education/training (Soakonora), having skills (Soakonora), guidance and teaching from parents (Soakonora), ability to utilize economic opportunities (Soakonora), having high motivation to change one’s destiny (Soakonora), working hard (Soakonora), willingness to make efforts

(Soakonora), patience (Soakonora), determination (Soakonora), wide social network (Soakonora), and utilize the freedom and power (Soakonora). Among the factors mentioned by FGD participants, the participants also concerned the opportunity structure factors or community level factors that helped people to move out of poverty. This includes the move of the Kabupaten’s Capital City (Soakonora), freedom and power

(Soakonora), economic organization and support (Soakonora), and assistance (Soakonora).

4The questionnaire provided a choice of responses (up to 37 responses) and when conducting the

interviews, researchers were asked not to mention these answers one by one to respondents. Respondents

gave answers independently and, based on these answers, the researcher then selected an answer that was consistent with the choice of responses in the questionnaire.

5In the Ladder of Life (LoL), all participants were asked to discuss the factors that caused the community

to move from below the poverty line to above the poverty line.



The factors of individual and collective assets and capabilities for moving out of poverty

The results of the FGDs and individual life stories shows that individual assets and capabilities are prominent factors that have assisted the never poor and movers in maintaining or improving their prosperity. These factors are increasingly seen in areas with poor opportunity structure. The first factor is the ownership of material and financial assets such as land. For movers and the never poor in Idamdehe Gamsungi, who almost all rely on the agricultural sector, land is still considered to represent the capital that can improve their prosperity, where more people own land of more than 1 hectare. This is unlike the situation with movers and the never poor in Soakonora who consider land less important because some of them are not farmers, but the second biggest proportion that do not own land are the never poor.



i. Material assets

Capital (savings, credit, inheritance) Those who have been able to maintain their welfare at a high level and who have succeeded in moving out of poverty usually did so when they already owned productive assets like land, crops such as coconuts/copra-cloves-nutmeg, working tools and savings. Several ‘movers’ and ‘never poor’ obtained capital by inheriting land and crops. This is usually from their parents, parents-in-law or uncles. For example, in Idamdehe Gamsungi, a mover received an inheritance from his

father of 1.5 ha of land with 120 coconut trees. Another mover in the same community obtained an inheritance of 1 hectare of land with 90 young coconut trees from his uncle because his father had died. The savings that they are able to make from their work are kept in the form of jewelry, land and plantations, cattle, tools such as sewing machines, carpentry tools and carts. After they have succeeded in improving their prosperity, they put savings aside in the bank for capital or other urgent needs that arise or to buy more cattle or land and motorcycles. Several respondents also keep their savings in the form of electronic goods such as tape recorders, color TVs or VCDs. The household survey indicates that movers and the never poor 10 years ago more often owned cattle, motorcycles and color TVs. Few respondents reported receiving capital in the form of cash from commercial providers such as banks in order to start a business. Others obtained from relatives, parents, and business partners or as government assistance. In general, until now the never poor have obtained business credit from state-owned banks while movers have obtained their credit from friends, shops/suppliers and state-owned banks. After the disturbances and conflict, the women’s group felt that they were helped by the availability of credit provided by the UEP program (Productive Economic Undertakings) of KDP. The credit was used by the women’s group to produce cakes and as capital for other business ventures. The community felt that after the disturbance it was easy to get business credit and working capital. One source was the motorcycle dealers, who made credit available for the purchase of a motorcycle. Members of the community used this opportunity to buy motorcycles for the ojek business. ii. Human capabilities Non- formal education and skills

Many of movers did not have a high level of formal education, most going only as far as junior high school (SMP) and in some cases to the end of elementary school (SD). They did not continue in school because of their parent’s limited capacity to pay and also because of the large number of siblings. The limitation on job opportunities is also considered an impediment to

continuing on to higher levels of school. Respondents in Idamdehe Gamsungi, although educated to senior high school level, after leaving the village to find their fortune will eventually return to the village after a long time working elsewhere in order to become farmers. Even so, they have succeeded in achieving prosperity. The schooling that had an influence on their welfare was non-formal education, which they did not receive while sitting at a school desk. They obtained knowledge from parents, relatives, the social network such as friends, neighbors, or supervisors and a few took a course in the early years. This includes typing and sewing courses, learning how to make cakes and jamu (a traditional herbal medicine), fishing, trading, and working in the construction industry or on a fishing vessel. This does not mean that formal schooling is unimportant. The evidence shows that several respondents who had a high level of education were also able to improve their welfare when they became civil servants or traders. Before being appointed as a civil servant, one respondent used his mathematical skills that he had gained at secondary school to work as a trader. One mover with a senior high school education used his education and knowledge in strategy to seek work and save money. At the



same time, one respondent expressed his regret that he dropped out of school in class 5 and now does not feel himself to be well-off. For those employed in the informal sector, like farmers, artisans and businessmen, formal schooling is less important than non-formal education. By contrast, for those employed in the formal sector (usually civil servants), formal education at the

very least to senior high school (SMA) is extremely important. Guidance and teaching from parents Although not all respondents said so explicitly, from the stories that they told it appeared that

guidance and teaching from parents has had an influence on their welfare in such matters as knowledge about farming, catching fish, house-building, making and selling cakes, trading and developing networks as well as knowledge about education, health and so on. Parents did this in a number of ways, including by frequently taking the respondent with them when they were working so that he or she could observe and learn on the job. Having jobs, stable income, various sources of income, and additional non agricultural income

In Idamdehe Gamsungi, all of the ‘never poor’ and ‘movers’ are farmers and traders who are very reliant on the produce of broad-acre plantations of more than 1 hectare that produce cloves, nutmeg and coconuts/copra. Due to limited work opportunities other than farming, quite a few of the movers and never poor decide to seek other work because they do not have land or

because their crops have not yet been harvested. They look for work as far away as Sorong (Papua Island), on fishing vessels or construction work in Manado, Ambon or Ternate. For those who do not yet own land, they work outside the city and their savings are used to buy land. For those who own land and crops, because crops are seasonal and not always available for harvesting, they seek work while waiting for the harvest time in order to fulfill their daily needs. Several also return to the village because they have inherited land from their parents. In general,

they have been working since they were young after graduating from junior or senior high school and have changed jobs several times. A ‘mover’ who is a senior high school graduate sought work in Ambon and became a beach gatekeeper. Someone who worked on a road project then offered him work and taught him to work on an asphalting project. After 2 months he received information that there were many job

opportunities in Sorong, so he finally moved there to work on a fishing boat for one and a half years. He ceased work because his sibling in Ambon was ill and he returned to Ternate to work as a shopkeeper and to weigh copra. Finally he inherited one and a half hectares of land from his parents. At the present time he works as a farmer and as a facilitator for KDP. Another ‘mover’ initially worked for a timber company in Central Halmahera but had to quit because the company stopped operating. He then went to Sorong and worked on a fishing boat for one year.

He again had to stop because after his leave the boat left him behind, so he then worked in Ternate as a driver. Currently he is working as a farmer, and while he waits for the cloves harvest he also works as a driver. Yet another ‘mover’ started work in a timber company removing the bark from logs before he received an inheritance of one hectare of land from his uncle and became a farmer. But he also worked as a construction worker, and worked his sibling’s plantation, receiving half the harvest. A ‘never poor’ respondent commenced work as a shop

security guard and then became a worker on a motor boat. He finally became a farmer after a friend offered him work, as he had become unemployed as a result of fleeing the conflict. In Soakonora all of the ‘never poor’ and ‘movers’ are employed as traders, farmers on large holdings and civil servants. Several have employment and income sourced from a mixture of all three. In general, they commenced working when they were young by taking in sewing, selling cakes to assist their parents, and farming. One widow, one of the richest people in the village, started work when she took in tailoring while still learning, selling cakes to assist her parents, and together with her husband then sold plantation products and opened a kiosk. When the conflict destroyed all their wealth including kiosks and their stock, she traded things to fulfill the



daily needs of refugees and sold cakes in their temporary refuge. Since the conflict she trades in furniture. Several ‘never poor’ respondents commenced work in line fishing for cakalang fish with their father-in-law, becoming a dibo-dibo (middleman), an ojek driver and a civil servant. One never poor respondent is currently working as a public school teacher (civil servant), has a large plantation, and also trades in plantation produce. Stable income is important because as farmers, they are very much dependent on the harvest and the market price that often fluctuates and results in an uncertain income. There are also odd jobs

that give farmers additional income and result in the improvement of their prosperity. The ability to reach out for economic opportunities Several of the life stories reveal the existence of an ability to reach out for economic opportunities, for example by opening a kiosk trading, or obtaining work. It is impossible to know where this ability comes from. It is very likely that education by parents, supervisors (ex-employers) and also their general environment has exerted a great influence. Many life stories stated that they had also obtained information from friends or relatives about job opportunities where they work. Migration

Not all ‘never poor’ and ‘mover’ respondents have been migrants. Several of them only migrated because they married and moved house to join their partner, or because they fled during the evacuation period. A number of respondents who have made frequent journeys and migrations have succeeded in improving and maintaining their welfare level. Some have followed their parents and moved to another city or even to another island as far as Ambon, Sorong and Manado to look for work, or moved to Java to participate in training. Respondents did not say

directly what the influence had been on their prosperity, however, from the life stories it is evident that migration has given them a greater degree of knowledge that they obtained during their journeys, both in observations and in communications with wider groups, and work experiences. The knowledge and work experience thus obtained encouraged them to undertake something better and to work hard, gave them a good work ethos, encouraged them to establish work relationships, invest, etc.

iii. Social and Psychological Capabilities The will to study from early days

Several respondents were prepared to study at the time their parents urged or equipped them with knowledge about how they must seek a livelihood. For example, the parents took their children to sea to look for fish or taught them how to make and market cakes. Nevertheless, many respondents learned on their own initiative or sourced information from friends, relatives,

neighbors or other people about how to climb coconut palms, look for fish, or build a house.. Hard work

The community frequently mentioned hard work when they described the factors that encouraged them to improve their welfare. This factor also emerged in the Ladder of Life FGD. This, it turned out, can be confirmed and proven by reading the life stories of the sample respondents. Although not a lot of respondents said directly that they worked hard, they found economic opportunities by looking, indicating that hard work became the main capital in enhancing their prosperity. Again, it is impossible to know where this ability comes from. It is very likely that education by parents and also the poor environment have exerted a great influence. A never poor respondent said ‘don’t be shy’ as one factor that would help improve and maintain prosperity. Several examples that follow can describe this hard work. Respondents in Idamdehe Gamsungi had to travel a long way to attend secondary school via a steep path that could only be traveled by foot. Several respondents had to undertake long journeys to Sorong



(Papua), Ambon, Manado and Ternate, just to obtain employment. They also had to learn about the employment area that they had committed to, such as those working on a fishing vessel or construction workers. A good work ethos A person who works well and becomes trusted by his ‘boss’ and ‘business associates’ displays a

good work ethos. As an example, those who market copra endeavor to meet orders punctually so that the purchaser will continue to place orders. Another example is to work very hard to meet the buyer’s order or to build a well for a house. Usually orders to build a house for someone are based on the prestige that was once achieved by an artisan or foreman as a result of building a previous house. Motivation/will power to change one’s destiny No one knew with certainty where respondents’ motivation and will power to change their destiny came from. Nevertheless, there are indications that the factor of motivation is important to change the people’s level of prosperity. Several respondents were motivated by their parents to study or to seek work, but others were self-motivated, and did this of their own accord. Life’s difficulties and limited funds from parents may have made it difficult for them to continue their education or else they decided to drop out of school. This does not always have negative consequences and can sometimes even have a positive effect. It can become the trigger for the respondent to work harder and can create the motivation for him/her to change his/her situation. A large number of children can also influence the respondent to work even harder. A respondent was motivated to work hard after her mother refused to give her permission to marry because she was not yet working. Sad events such as deaths can often give rise to a motivation to work harder, such as the dead of the husband, a child who died during the disturbances, or losing a mother when her guidance still needed. iv. Collective assets and capabilities Having a wide social network and social relationship The existence of a wide social network has helped the community to improve its welfare. Through this network people have obtained jobs, obtained knowledge, for example, about house building, and about business opportunities. Through the social network, the community can also save, for example, a person can leave money with a trustworthy neighbor and when he needs money, he can easily access it at any time. Many respondents have succeeded in achieving prosperity because they possess a strong social network. For example senior artisans who invite others to work, shop owners and traders who purchase agricultural products such as coconuts (copra) and cloves or place orders for sewing, kiosks that sell cakes, people who buy and sell land, ‘bosses’ who employ drivers for cars and public minibuses, people who order furniture, schools that offer places for teachers, and many others. For example, one mover was asked by his brother who worked in Sorong to join him in working in a construction project as a helper and later obtained work as a reservoir keeper because the team who were responsible for conducting a survey to install clean water plumbing stayed in his house. Another respondent obtained work on a fishing boat, as a driver, or with a timber company because a friend invited him. There are many similar stories that describe networks as having a significant influence on prosperity. These social networks and ties do not differentiate between groups (Christians and Muslims); for example, the traders who buy copra from the Muslim group come from the Christian group. Although these social networks and ties were disturbed, they are now beginning to be restored. In most cases they got the jobs from friends, relatives such as uncles or siblings or friends of

relatives.



In general, the never poor and movers feel that they are part of the village and that it is important to be part of the village community. Although they have experienced conflict, they still wanted to return to the village because they had built houses and had plantations there that needed to be managed. Family relationships are also very important because the family assists

people to improve their welfare. After the conflict, in Idamdehe Gamsungi there were housing arisan where the member who will own the houses provides the materials while group members undertake the house construction. Help and support from parents and relatives A number of respondents admitted that they still receive support, both moral and material, from their parents, even though they already have their own household. This makes them confident to face the risks of life and has made them happier because they have full support. More important is the fact that this indirectly plays a part in helping them to improve their welfare; for example, if they have to work, children can be left with their grandparents, or if they need something, for example fish, or if they need money for the birth of a child or to raise children, parents are prepared to extend a helping hand. At the time of the disturbances and afterwards, a number of community members received support from their family, including from siblings or other family members. Several respondents also received a land inheritance from parents, parents-in law or relatives. Respondents also obtained work from relatives. Community participation

The activities and decisions that involve the community concern only voluntary work and the construction of a mosque or church. Apart from that, village governments have undertaken no efforts that could be considered likely to raise community welfare. Even though many respondents said that part of the decision-making process already involves the community, they also agreed that the interests of community members almost never influence the decisions that are made. For that reason those decisions have very little effect on the prosperity of the

community. At the same time the women’s group felt that constraints connected with distance and transportation costs hinder their involvement in village meetings. Although they are invited, they choose not to attend meetings because of these constraints. The young men and women agreed that so far all important village decisions have been made by all the people of the village,

although when they said this they seemed to be somewhat uncertain. The reason for the uncertainty could be that some of them were in fact not involved. In regard to the role of politicians, it was admitted that so far politicians have not given any assistance to the community because they pay no heed to their promises after they have obtained a position and money. Economic organizations and support The women’s group felt that they were helped by the availability of credit provided by UEP (Productive Economic Undertakings) and from the KDP. The credit was used by the women’s group to produce cakes and as capital for other business ventures.



Box 1. The Story of ‘the Driver of the Year’ from Jailolo (HcLg)

I was born in 1955 in Sarani village, which is now referred to as Soakonora. I went to school here and worked for the first time in this village. I never moved away until the catastrophe of 1999. I

started work after I graduated from Junior High School (SMP). My first job was in a store that sold the nine staple necessities at a salary of Rp 7,500 per month. At that time this amount of money was enough to live on. I worked for six years and I did so at my own initiative. My father

approved of my decision and did not try to prevent me. Then the boss entrusted me with the task of depositing money in the Bank, quite a large amount, around Rp20,000,000 every two months. A year later my salary was increased to approximately Rp10,000 per month.

I then quit my job and went to work for a man of Chinese ethnicity as an angkot driver

6. I was

gradually learning how to drive from my boss when he asked me to pick up items from the harbour. I was able to manage the task and my boss had to teach me only once because I had been learning how to drive since Junior High School. My knowledge was obtained through

observation and immediate practice. I decided to quit the job, however, because my wages were too low. I was now married and had to provide daily household necessities. It is true that my boss tried to prevent me from leaving because he already trusted me, but I insisted because I had

to change my position, which was not the same as it had been previously when I was single. So the Chinese man offered to let me drive his ‘angkot’ at a wage of 15% of the total earnings of

approximately Rp 300,000 a month, which was quite enough to meet household needs. This went

on for seven years. I gave a part of the income I received to my parents to help them meet their daily needs.

But no one was taking care of my parents’ agricultural land and it was harvest time. My father was no longer able to look after it and it so happened that I was the only son and [everyone] had put their hopes in me. So I began working as a farmer. The income from agriculture was good because

1 ton of copra (dried coconut) was around Rp1,500,000 while cloves were Rp 3,000,000. Our level of welfare really increased up to the point where I could educate my five children until they graduated from high school. That is my goal for the future. Even though I have nothing, it is

alright so long as the children can go to school.

For the three years during which we were refugees, my wife and I borrowed someone else’s land in another village to cultivate spinach, corn, tomatoes, bananas and cassava (kasbi). We sold the

vegetables in the village and in Akediri. The income we earned was only Rp 40,000, which was just enough to buy fish, salt, soap, tea, coffee and sugar, while in the case of rice we received some assistance from people in the village. The land that we borrowed was actually rented for Rp

10,000 a month.

In 2002 my family and I returned to Soakonora, Jailolo, and worked again as farmers but our lives became worse. When we returned there was nothing, not even the house I had built out of bulu

and katu (from the sago palm). That went on for one year but afterwards we received aid in the

form of food, medicine and construction materials for houses. I started building a new house

gradually and [the result] is what you can see here. In early 2005 I was offered the opportunity to drive a car on the Jailolo-Sidangoli, Malifut and

Tobelo routes. The monthly wage was Rp 300,000. For me, that was [sufficient] to cover daily necessities. If we had to wait for the coconut harvest, what would we eat for the three months’ waiting period? So although the wage offered was small, I accepted the job rather than remain

unemployed. Our income has never gone up, even today, although in the past the income from land cultivation used to be good. The demand for copra was high then, but now the price has gone down because of the past conflict.

6 An angkot is a mini bus used for public transport.



In May 2005 I was offered a job as an angkot driver with the same wage that I had received before. I gave the land to my children, who have grown up and are able to work. I took the job of my own accord, with the support of my wife and family. They never prevented me and now we

can see the advantage from my level of welfare. Although the increase was small, I feel that it is

quite alright and the situation is not as bad as when we were refugees.

The asset that I consider to be valuable is the agricultural land. I paid around Rp 800,000 for the

land certificate. This brought a change because from then on it became an asset with my name as the owner. If someone tries to challenge me and claim the land, we just show the certificate, which was made and legalized by the government. If any claim were to be brought to the court,

we would win because we have the original certificate. So that frees our life from worry because we can use the land at any time. It has been a [source]

of income [that has been] consumed for years, and it is there also for our children and

descendants. The capital I used to pay for the certificate was from my earnings as a driver and the farm income that we had saved bit by bit. No one assisted except my wife and family.

When we were seeking refuge, we did not take any assets with us, only our clothes and tears. I have not yet been able to amass possessions other than chairs, mattresses, pillows and kitchen

equipment because we had to start from zero and had to work hard to increase our assets. This is because of the conflict. My current savings are only around Rp 200,000. I am saving for pressing needs only.

The government’s policy is merely to implement the regulations about paying property tax. At the time of the conflict we could not save our assets, only our lives. When we returned home,

not one asset was left in the house; only the land remained, although half [of the vegetation] had been cut and burned. If something happened suddenly, we could assist only our family.

Source: Rahayu, Sri Kusumastuti. Community Synthesis Report: Soakonora, West Halmahera, North Maluku 2006 (has not been published)

Box 2. A 47 years old male-farmer

I was born in Idamdehe Gamsungi village on July 28, 1958. Ternate is one of several places that I

have ever lived in from 1984 – 1986. The reason to move to Ternate was to look for a job and to have a better life. No one asked me to move there, instead, I went there on my free will. There my life was better because I worked for “Bimoli”, a cooking oil company located in Toboko near Ternate beach. From 1997 – 1998, I lived in Manado. I went to Manado on a friend’s (Bice)

request. There I worked for a bakery for 1 year. I felt I was less prosperous because my salary was not sufficient. I went back to Ternate and stayed there from 1998 – 1999.

From Manado, I went straight to Ternate to look for another job. I applied for a job at a grocery. I was accepted to work there without any help from anyone. I worked there for one year. My life was quite satisfactory there, but because I heard that there was a conflict I decided to come back to this

village. In 2000, I lived in Sahu for three months because of the conflict and there I didn’t have any job, I only expected aid from the government. Life there was very hard.

I first worked in this village together with my parents planting cloves and coconut in 1973 and always harvested cloves together with my friends. We worked in groups and take turns. It was easy to get this job because we set up groups among friends and then we made schedules before we

started working. We all helped each other to make thing work. We cannot tell about our income because we work on helping-each-other basis “barbari”(gotong-royong).



In 1984, I worked for Bimoli, in Ternate. I went to Ternate on my free will. My nephew named

Andrias was in Ternate and worked for Bimoli, too. I worked for Bimoli on a daily basis, with the salary of Rp. 80,000 – Rp 100,000/month. This job didn’t need special skill, but relied only on strength. By working at Bimoli I could improve my family’s welfare. In 1986, my son/daughter got

sick and I decided to go home leaving my job behind and never came back again.

From 1997 – 1998, I worked for a bakery in Manado. I was offered this job by a friend called Bice

who had worked there before I did. I was interested in the job and decided to leave for Manado by ship. My trip was on Bice’s expense. Upon my arrival in Manado, I started to work for the bakery with the salary of Rp. 75,000/month. After working there for a year, I found out that my salary was a

bit small; I asked for a rise but refused, so I decided to go back to Ternate. From 1998 – 1999 I was in Ternate. I applied for a job at a grocery and I was accepted, I worked

there for six months with salary of Rp. 25,000/day. I was happy with the salary compared to my salary in Manado previously. I left this job because I heard an issue that there would be unrest in

Ternate and its surrounding area including this village, so, I decided to go back to Idamdehe

Gamsungi village. My family income is from agricultural produce, cloves, and copra. Ten years ago, the income was

the same except a little bit more when I worked at a bakery. Before the conflict in 2000, that was in 1999, I was still in Ternate, and I heard that there would be

a conflict. At that time, I decided to go back to Idamdehe Gamsungi early in December 1999. I didn’t expect that such a conflict that I heard a few months earlier would happen here because the

people here used to live harmoniously. I will tell a story to proof that people here live harmoniously.

That is the history about how people here believe in their own religion. In the 60th, the community

here have no religion, and at that time we decided to choose the religion democratically just like the election of a governor. During the process, people were given the chance to choose their own

religion among Christian, Islam, Buddha, and Hinduism. At that time, there were people choosing Christian, and there were also people choosing Islam. There was one family in which the wife chose Christian whereas the husband chose Islam.

On January 9, 2000, a conflict happened in this village. All the people from this village went into the forest to seek refuge. A week later, we were evacuated to Sahu. While we were in the forest, we

lived a hard life, no jobs; we ate whatever we had in the forest. During the night we were not

allowed to lit fire because we were afraid that we might be detected. We were cold whenever it rained. When we were in Sahu, we were expecting aid to come.

Talking about organization, I was a member of Kaum Bapa in the Church. This group really helped us because once we become the members of this group and whenever we have a problem, the group

will help us.

Source: Akhmadi, Community Synthesis Report: Idamdeha Gamsungi, West Halmahera, North Maluku 2005

The factors of individual and collective assets and capabilities for maintaining wealth

The household surveys did not specifically ascertain the process and relevant factors as to how households can maintain their prosperity and not fall into poverty, Information on those issues

was only unearthed from the Ladder of Life (LoL) FGDs and analysis of the individual life stories. Only few participants of the LoL FGDs expressed their opinion on what factors can maintain household welfare and prevent a fall into poverty. The factors mentioned are dominated by economic aspects: the ability to handle finances properly; to live life economically; and by being thrifty with the using of water and electricity. FGD participants in this area did not



identify the opportunity structure factors or community level factors that helped people to maintain their wealth.

Box 3. Arising from Destruction

I was born in Sorong (Papua) in 1948 and attended Elementary School (SD) in that town up to

Class 3. I then moved to Gamlamo village, where I attended school up to Class 2 of SMP. Finally I moved here to Kusumadehe hamlet in Soakonora village. I moved around because I had to move with my parents. My father, who worked in the Agricultural Service, was frequently transferred

because of his work. I completed SMP in this village but did not go on to SMA. I was the eldest of

10 children. I am now a widow and have 6 children. When my husband died in 1990, my eldest child was in Class 3 of SMA and my youngest was still in Class 1 of SD.

Employment History

When I was not at school, I helped my mother and father to sew clothes. At the age of 18 (in 1966) I learned to sew. There was a person of Chinese ethnic origin who had opened a course. The fee was Rp100 per month. I attended the course for a year. At that time my parents told me to do the

course, their reason being in the interests of my future and also because I wanted to. I went by bicycle or else walked to the place where the course was held about 2 km from here.

After learning to sew, I immediately received an order from a shop called ‘Thomas” to make some short trousers. I was paid Rp 1,000 for one pair. By working till evening I could do five pairs in one day, but I could do only three if I did not work until nightfall. Each week I was given four rolls of

cloth to make trousers. I received the cloth once a week. I felt very happy and saved money to buy a sewing-machine of my own (the purchase of a sewing-machine eventuated only after I was married and

had a kiosk). At the age of 20 I made and sold cakes. Since SMP I had been learning how to make cakes from my

mother and I sold them to help my mother. I took the cakes to the Agricultural Service office

(where my father worked) and to other offices. At that time I received no money of my own but just helped my parents with the schooling of my younger brothers and sisters.

In 1970 at the age of 23 I got married. After marriage, I took in sewing, the sewing of clothes. Every day I made one piece of clothing. In the time before Lebaran I was able to make two pieces. Besides

sewing, I also sold cakes every day. I gave up sewing after my third child was born because the doctor forbade me to sew. After that I continued to sell cakes and finally built a kiosk in the house where I lived before this one. My husband and I got the idea of establishing a kiosk because there

were none here. I learned from my parents how to set one up. At that time (1973-1974) my capital was only Rp 10,000, which I used to shop at ‘Thomas’ and ‘Gufasa Jaya’ (the names of shops). I was

the one who managed the kiosk, which grew larger as time passed. My husband also used to

purchase coconuts from farmers, ‘giving’ money to people to cut them down and then selling them after ashar (around 3 o’clock in the afternoon).

My husband and I began to buy land in 1975. We had a kiosk first and then obtained land. We purchased a little at a time, one hectare, two hectares, for at that time land was cheap, only Rp 350,000 per ha. By comparison, in those times the price of copra was Rp 10,000 per 100 kg

(quintal). It was my husband who decided to buy land. I continued with the kiosk until the conflict destroyed everything.

During the period of evacuation in Ternate in 2000-2003, I continued to make cakes and sell them there. If I had not made cakes, we would not have eaten. At that time one sack of flour (worth around Rp 100,000) was enough for two days. I made cakes (called kue putar) and took them to the various

markets. The money I earned was for daily living. During that two-year period we obtained no products from our land because everyone had fled.



After returning from Ternate, we lived in barracks and I continued to sell. I bought things in

Ternate and sold them through kiosks. Whatever was not available here, I purchased in Ternate. If the people living in barracks wanted to order something, I would look for it in Ternate, for example, eggs and other commodities. My method was to sell something that I had paid Rp 10,000

for in Ternate at Rp 15,000. In this way I could make Rp 20,000 in one day. At that time our land

was beginning to yield products.

Nowadays I am in the furniture business. (At the time of the interview the researcher noticed a number of clothes cupboards, TV shelves and similar things in her house. Previously the researcher had assumed that these things were her personal property. It was only after she gave this explanation that they realized that the items were commercial goods). For more than one year I have been obtaining Rp300,000 to

Rp400,000 per month. At first I was just trying out the business but now I have already sold more than ten cupboards. (She explained that she herself purchased them in Ternate and arranged to get them brought here with the help of freight carriers. The cupboards were still in a knocked-down condition and had to be assembled here). I also sell mattresses made from foam rubber. Economic History

The first thing of value that I bought was a sewing machine. The price was Rp200,000. Before I had

a sewing machine of my own, I used my mother’s. Although I now had a machine, my income remained the same. The difference was that I now owned one myself. After that, I bought a

refrigerator so that I could sell ice-blocks in the house.

I bought land for the first time in 1975. It was only three-quarters of a hectare and the price was Rp 350,000. When harvest arrived three months later, my income was somewhat better. In 1973-1974

the daily turn-over in the kiosk was Rp 100,000. I made a profit of around 10% or Rp 10,000 every day. From the profits of the kiosk and the land I was able to buy a car, which I used for business purposes or for other needs. Then in 1978 my husband and I built a house. Our capital depended on

the trust of other people. The Chinese trader gave us building materials and in return I delivered copra to him. Labour was hired. Next I was able to purchase a TV. I bought one in Surabaya. Then I bought a motor-cycle,

also in the year 1978. Next in 1979 I bought another piece of land, this time measuring 2 ha in the

‘local transmigration’ site. Then there was a person who planned to hold a wedding for one of his children and wanted to sell some land for Rp 600,000. So during the 1979-2000 period I owned

three pieces of land, which were planted with cloves and coconuts. After I had built the house in 1978, I started purchasing cattle. I bought the land first and then two cows. Within five years they had produced five offspring each, so two produced 10 calves. By the time of the conflict the number

had increased to 48. I admit that my assets continued to increase. They never declined, even when my husband died,

but remained the same and in good condition. I worked independently. At the time of my husband’s death, my children were still at school. The first was in Class 3 of SMA, the second

attended the school for midwives, the third was in Class 2 of SMA, the fourth in Class 1 of SMP,

the fifth was also in SMP and the youngest was in Class 1 of SD. During this time I never sold any land, even for important purposes. I sold some cattle at the time of

my husband’s death and to pay for school necessities. At the time of my daughter’s marriage, I slaughtered a goat. I saved money in the bank and after the conflict I withdrew it in Ternate. Now I have not yet deposited money in the bank again.

With regard to the role of the government, all this time there have been permits that had to be

obtained from the government. But the government did not help, even though it did not create

obstacles. All of these results have come from my own efforts. Source: Rahayu, Sri Kusumastuti. Community Synthesis Report: Soakonora, West Halmahera, North Maluku.

2006 (has not been published)



2. Low Conflict and Low Growth Areas (LcLg)7

Three communities that were categorized in the preliminary research as being in low conflict and low growth districts, namely Palengaan Daja and Banyupelle, both of which are rural communities whose main livelihoods are tobacco farming, as well as Branta Pesisir that is a coastal community whose main livelihood is fishing. These three communities are located in the one kabupaten, namely Kabupaten Pamekasan that was classified as a low-growth area in 2002. Branta Pesisir was the only community where both the men’s and women’s groups agreed that the community is now more prosperous, with more economic opportunities than 10 years ago. In Palengaan Daja and Banyupelle both groups are of the opinion that today the community is less prosperous than 10 years ago and believe that economic opportunities remain the same or are fewer in number. Community members also mentioned that it is now harder to make a living. This is because water for rice is in short supply but rain falls when tobacco is planted. In Banyupelle, very few people are engaged in trade because they do not have capital, many in the community have debts, and agricultural products are sold at low prices that do not provide a return on capital. It is hard to find a job and overseas jobs need capital. Branta Pesisir is in better situation. Fishers now use motorized boats and go to sea with modern equipment, public health standards are better, delinquency among young men has fallen, there is now a junior high school, local incomes have risen, and many people own trucks, leading to jobs for drivers. There is also an increase in the number of unskilled jobs. These conditions have resulted in no or very few households successfully moving out of poverty during the last 10 years and this is evident from the moving out of poverty index (MOPI) in Palengaan Daja = 0 and in Banyupelle =0.05. Nevertheless, the net prosperity index (NPI) of Palenggan Daja is 0.82, which shows many more people moving up compared to those who have fallen during the last 10 years, but none have successfully crossed the poverty line. In Banyupelle, several poor households have improved their prosperity compared to those who have fallen, although only very few have passed the poverty line, as is evident from the NIP= 0.48. Although it was the opinion of the community that conditions of Branta Pesisir had improved, it appears that only a few households have successfully moved out of poverty as is evident from a MOPI= 0.19. There is little difference between the number of those whose prosperity has risen and those for whom it has fallen with a NIP= 0.04. In fact, more of the wealthy have had a fall in their level of prosperity during the last 10 years with an NPR=- 0.09.

The opportunity structure

All three communities are relatively easy to reach and there is a road that can be used by vehicles at all times of the year, so accessibility is not the main problem related to physical/geographical conditions in the village. Moreover, Branta Pesisir’s accessibility has improved with the development of the wharf at Branta port. The village can now be reached via the sea. The majority of village people use clean water from wells for their daily needs. In Branta Pesisir, the villagers also use potable water from public water facilities. Moreover, in 2003, a special channel was built from the water source to the village. Before the channel was built, like coastal regions in general, the village experienced difficulty in obtaining a reliable clean water supply. Villagers had to buy clean water in from Pamekasan. This problem was overcome after the direct water channel was constructed. All villages have markets, telephone kiosks (wartel/public phone) and an electricity network. With regard to social infrastructure, the village

has a primary school and a junior high school of reasonable quality. In the area of health facilities, Both Palengaan Daja and Banyupelle have a community health center (puskesmas),

7Mostly quoted from the researcher’s analyses on CSR of Palengaan Daja, Banyupelle, and Branta Pesisir

(see Marianti, 2005).



while Branta Pesisir a Puskesmas Pembantu (secondary public health clinic). In Palengaan Daja and Branta Pesisir a midwife staffs the clinics but without a doctor, while in Banyupelle a nurse staffs the clinic, and they now have a doctor. The information infrastructure is also adequate as people now have access to national radio, national TV and newspapers. In addition, other positive elements in the community are the presence of health cards, the cheap rice program (Raskin), aid programs providing seed and fertilizer, cultivation of other commodities, and excellent social capital where almost all people are willing to help others.

The real problem for the majority of the local community in Palengaan Daja and Banyupelle is their dependence on agriculture for their livelihoods and in particular on tobacco cultivation, which has been the major source of income for local people for several generations. Usually in the wet season they plant rice and afterwards they will plant dry season crops (peanuts, beans, corn), chili and other vegetables. The third crop is usually tobacco until the wet season returns once more. In the second crop season, they must be careful when determining the type of crops

that will achieve the best productivity. The problem that farmers have to face is the unreliability of harvests, because tobacco is a high-risk crop that can experience failure. At the same time the prices of other agricultural products (like chili) fluctuate greatly while the cost of inputs (such as fertilizer) constantly rise. Income from farming is only enough to cover daily necessities, and sometimes less because the sale price of crops is low. People hope to gain more income from tobacco even though over the last two years it has suffered losses because rain has caused the

harvest to fail. Tobacco farming is very dependent on rainfall and if the tobacco leaves get wet, the sale price is reduced. This condition has aggravated the farmers’ poor economic state that has been endured for two years prior to the failed harvest. There have been no efforts to replace the tobacco crop with another more productive and profitable crop. Only a small portion of the community work as traders, leave for other cities, or become overseas workers. Those who leave or become overseas workers all hope to achieve employment with a better income than farming

can provide. Several FGD participants in Palengaan Daja asked for help in finding alternative agricultural commodities that can be cultivated successfully in the community with less risk of crop failure and greater market price stability. So far no successful attempts have been made to find cash crops that could constitute an alternative to tobacco. Attempts have been made to cultivate other crops, but these have often failed. In 1995 the community was given seedlings of Java mandarins (jeruk Jawa) but at harvest time no one wanted to buy the fruit. The people did not know where to sell the mandarins. In 1998 the village head provided mango seedlings but the outcome was the same: there were no buyers at harvest time and the price of mango dropped significantly. As a coastal community, the majority of villagers in Branta Pesisir earn their living as fishers. The dependency of the villagers on this livelihood is declining however, and the village is undergoing a transition. Although the majority of villagers are fishers, increasing numbers of people are also ‘having a go’ in the trading sector or have completely moved into the trading profession. Those who have a lot of capital can open a shop, wartel, a ‘Playstation’ rental outlet as well as a gas station. Meanwhile, those with a limited amount of capital can work as a trader with a small stall (kaki lima) selling rujak (spiced fruit), bakso (meatball soup) etc. Villagers with

no capital for trading can have side jobs as laborers. Men, in general, become laborers loading and unloading boats and women become workers in the krupuk industry. More and more people are becoming home industry entrepreneurs. Some villagers also work as civil servants (teachers, or military or police officers). These various economic opportunities – although not all villagers can exploit them – make it possible to diversify livelihoods/ income sources to guarantee more stable incomes. The strategic location and adequate means of transportation make it easy for the community to undertake their daily activities, including operating and developing the various livelihoods.



Farmers in Palengaan Daja and Banyupelle frequently experience a deficit as a consequence of the fact that agricultural production costs are higher than the selling prices of products. The result is that they have to borrow at high interest rates. ‘Being in debt’ has become an important part of survival strategies in the village. For many people ‘owing money’ is something that

cannot be avoided even though it makes life difficult. It is interesting to note that the question of debt is also linked to a number of other issues. One meaning of freedom is obtaining a financial loan to overcome economic difficulties. For that reason the phenomenon of ‘debt’ in its various forms warrants special attention in efforts to understand the ups and downs in the villagers’ welfare, especially as the people of this village generally do not have access to credit at relatively low interest rates. Even when people are not tied up by debt, a small and irregular

income makes it difficult for farmers to save money and amass capital in order to start a business undertaking in another sector, for example, trade or services. Employment as an agricultural laborer is the main way to obtain an income for those people in both communities who have no land and possess no capital that they can use to begin a business outside agriculture.The majority of people therefore have no choice other than to work in the

agricultural sector. There are very few opportunities for them to work in a different field, and the chance of obtaining employment outside the community is limited because most people have a low level of education. Becoming an overseas/migrant worker (TKI/TKW) in Malaysia or the Middle East is one way to pay off debt, and has the promise of attaining prosperity. Usually employment information is obtained through friends who have previously left to find. Before gaining employment they are provided with accommodation and food from friends. But only

those who have at least an SMP certificate can take advantage of this solution. Like farmers in other two communities, loans and debt for both the development of businesses (buying bigger boats and better fishing equipment, obtaining working capital, covering operational costs) as well as to facilitate consumption (fulfilling daily needs, meeting school costs) are important for fishers in Branta Pesisir. The community can obtain loans from various sources, for

example from fisheries middlemen, from savings and loans enterprises managed by a group of villagers, or money lenders. In addition, a number of arisan whose turnover ranges from several hundred thousand to tens of millions of rupiah have been established. These credit, savings and loans and savings programs can work because in this village there is a relatively rapid circulation of money. As fishers, traders and entrepreneurs, many villagers obtain their income in a regularly (every day, several times per week, once a week, with each voyage to sea or each time they send produce and so forth). A fisher who has a small catch on one day, for example, can go to sea again in the next 2-3 days, while a tobacco farmer whose crop fails this year, has to wait until next year’s harvest to try again. It was mentioned that fishers have a smaller risk of not having an income in the long term whencompared with tobacco farmers, so they are relatively more able to make a regular deposit at the arisan or a loan repayment in the short-term, daily, weekly, or monthly. Impediments that are faced by the community in Branta Pesisir include a lack of fish in the dry season, the import of fish from outside the village causing local fish prices to fall, and the removal of fuel and electricity subsidies. The other matter that is also faced by the community is security in the village. For at least the last 10 years, there has been no serious conflict – for example carok

8 - between

villagers or with the people of other villages. In addition, criminal activities like theft also occur very rarely. People are, however, facing quarrels over fishing areas with outside fishers, the hijacking of boats, and entry of troublemakers from outside the village. Positive factors that have also enhanced community prosperity in Branta Pesisir, are construction of the dock in 2002 and the clean water channel in 2003, improvements in the quality of education, rising prices for export commodities,

financial aid programs for small traders, and good social relationships. Community members feel,

8A fight with sharp weapons, usually resulting in casualties. Often considered to be part of the culture to

defend the dignity of the people of Madura.



however, that it is now harder to make a living. It is hard to find formal jobs like civil service and those with tertiary degrees have difficulty finding jobs in the village. Two macro-level occurrences have had a negative affect on welfare in the three communities in

LcLg areas are: (1) the increase in the prices of basic necessities and inputs, which was triggered by the economic crisis that began in 1998, and (2) removal of the fuel (BBM) subsidy and the electricity (TDL) subsidy. People complained about the increasing difficulties they have faced in meeting their daily needs. It is difficult for farmers to cover production costs because prices have risen dramatically and income has declined because of crop failure or declining prices for agricultural commodities. Fishers complain about covering the operational costs of going to sea. The profits

from the sale of the fish catch were sometimes less than the cost of buying diesel. The economic burden caused by the rise in prices as a consequence of the 1998 economic crisis became heavier for tobacco farmers because it was accompanied by a bad tobacco harvest that year. An extremely lengthy wet season caused the quality and price of tobacco leaves to decline. On the other hand, the macro-level developments that were considered positive were the introduction of the Social Safety Net in the field of health, which gave free health services to the poor, the Cheap Rice

(Raskin) program, government policy on credit has helped to make it easy for people to get a loan from the banks and starting a new business is also not difficult. Even so, at no time did anyone say that these programs had helped local people to raise their level of prosperity substantially. In the case of those who received assistance, these programs were able to lighten the burden of daily life but were not sufficient to help them move out of poverty. On social conditions, the communities in Palengaan Daja and Banyupelle respect people of prominence. It was obvious that the klebun (village head) had great authority in both villages, the kyai (religious leader) and in Palengaan Daja the bajing (village thugs) are regarded as the most powerful person in the village. The village head and religious representatives are two key

figures who are relied upon to protect the continuity of community life. Both must be able to assist the community in overcoming problems that occur in the family, between community members, and even between villages. The kyai, for example, can mobilize villagers to work on his tobacco field through religious activities. The people lean toward the pesantren (Islamic boarding school) to educate their children rather than the state schools. This occurs because the community is so respectful of kyai and they strive for their blessings. The success of one’s life is always connected to the blessings of the kyai. Great effort is exerted to ensure that children will be able to study in the pesantren because it is believed that the children will receive blessings to enjoy life in this world and in heaven. After completing the pesantren education, the students ask the kyai who administers the pesantren to pray for them so that they may achieve their aspirations. Many of the students who are successful in achieving their aspirations visit the kyai occasionally to maintain good relations. They also communicate their problems and ask him to give his blessings to make it easier to overcome their problems. This also applies to Muslim students who have not yet been successful and wish to meet the kyai. They ask the kyai to provide his blessings so they can achieve success (Munawar, CSR, 2005). In actual practice many of the important decisions in matters that involve the interests of the people are made by the village head, the village officials, the kyai and a number of other community figures. It is interesting to note that there are no kyai in Branta Pesisir, although there are several ustadz (religious teachers). In general, in the rural communities of Madura, there are 3 categories of prominent figures who have great power, namely: klebun, kyai and bajing (village thugs). But this acknowledgement of power is not consistent with the character of the community of this village. For example, there were no bajing who had power in the village and, and the village head is

accepted as the most important leader in the village, his power is limited by the interests and wishes of the villagers.



In Palengaan Daja, the local (district) governance is poor since local government pays little attention to community interests and officials are involved in bribery and corruption. On the other hand, the leadership of the current village head of Banyupelle is considered effective because it has overcome problems that have become a source of insecurity, namely gambling and

theft. Sporting activities such as soccer that have long been prevented because of a ban by the former village head are now allowed. This action was implemented following the mutual blessing of the village head and religious representatives. At the current time freedom of speech is better and more community members are involved in village meetings. Good governance at the kabupaten level does not yet assist this. Local attention

to community interests is low and local government is more interested in looking out for itself rather than for the benefit of the community. Many officials are involved in bribery and corruption. According to the results of the household survey, the main factor that raises the welfare of households in this area is the same work for greater returns (51%). Only few mentioned finding work/better work or greater employment opportunities (8%), an increase in harvest due to the agricultural technology improvement/irrigation/better crop variety (5%), and new/better business (5%). In line with household questionnaire, the Ladder of Life FGDs also looked at factors that focused more on employment and income causes. Those are: working overseas (Palengaan Daja and Banyupelle), finding work outside Madura (Banyupelle), stable/adequate income (Palengaan Daja and Banyupelle), established business/trading (Banyupelle), thinking hard while undertaking some sort of business and cultivating land (Palengaan Daja), ability to undertake economic diversification/possessing several sources of income (Palengaan Daja), ability to make investments/to start new business/expand existing business (Palengaan Daja and Branta Pesisir), and better farming methods and quality of crops (Banyupelle). The participants also mentioned other factors, which are later grouped into individual and collective assets and capabilities. This includes availability of capital (Banyupelle), obtaining a loan from a rich person (Palengaan Daja), saving money from wages earned as an agricultural laborers (Palengaan Daja), access to health insurance (Banyupelle), an advantageous social network (Palengaan Daja), wanting to be successful (Branta Pesisir), and working hard (Banyupelle). Among the factors mentioned by FGD participants were the opportunity structure factors or community level factors that helped people to move out of poverty. This includes the availability of water (Banyupelle), employment opportunities (Banyupelle), lending money for the poor (Banyupelle), receiving information on overseas work opportunities from friends (Banyupelle), economic opportunities (Branta Pesisir), security (Branta Pesisir), openness (Branta Pesisir), tolerance (Branta Pesisir), and assistance programs (Branta Pesisir). The factors of individual and collective assets and capabilities for moving out of poverty i. Material assets

Capital Capital was often mentioned as a factor that assisted the improvement of one’s prosperity by providing the means to start a business, develop the business or to diversify one’s employment. The amount of available capital determines the choice of business and may or may not be able to

enhance the business. Capital can be in the form of cash or business equipment. Two ‘never poor’ respondents, for example, own a sewing machine as their capital so they take sewing orders at home in addition to working in a tailor shop. One ‘never poor’ respondent bought a cow that bred and produced 6 cows, which then became the capital for a cattle trading enterprise as well as a financial service



provider for migrant workers. Another ‘mover’ bought a pick up truck on loan for a transport business. After his business became successful he bought a larger truck and sold the pick up. Once someone has capital for a business and their business succeeds they will be able to accumulate capital for the ongoing development of the business. Capital to develop a business

usually comes from the savings of one’s previous work and sometimes by going into debt. Capital comes from several sources in addition to savings from one’s past employment. In general, most comes from parents, relatives, siblings, friends and employers or work colleagues. Respondents rarely mentioned obtaining capital from a bank loan. Inheritance Not all of the ‘never poor’ and ‘mover’ respondents receive an inheritance of land or a business

from their parents. Of those who do, one ‘mover’ in Banyupelle received an inheritance of one hectare of land from his parents and planted rice, corn, onions, cassava, chili, and tobacco. The benefits of the harvest from this inheritance became the capital to improve his prosperity and increased along with his trading business. ii. Human capabilities

Skills Most ‘mover’ and ‘never poor’ respondents in this area have low levels of education and, in fact, the majority has a very poor education, at best completing only primary school. Only a few have been educated to junior and senior high school level. In Branta Pesisir, the proportion with a

senior high school education or higher, although small, is greater than the proportion in other communities. In addition to formal education, most respondents also attended madrasah (Islamic school) at the level of primary school. For that reason, it appears that in this area education has less of a role in enabling one to move out of poverty or maintain wealth. This cannot be isolated from community livelihoods – most work in the informal sector does not require a high standard of education. It is a different matter if one is working in the formal sector, such as a civil servant,

where a high level of education is needed.

In most cases, respondents have successfully moved out of poverty or maintained their wealth because they have skills, for example entrepreneurship, sewing, hoeing or driving. They were able to acquire the skills that they have by changing jobs and gaining a lot of experience, by observing and learning from their environment or by learning from someone else. For example, a ‘never poor’ respondent in Palengaan Daja who had not graduated from primary school changed jobs several times, going as far as Jakarta to gain the knowledge and skills as a trader and by

working in a krusuk (lowest grade of tobacco) warehouse which allowed him to become a krusuk seller. He moved from being a tobacco broker to a tobacco seller, and as a gaplek (dried cassava) seller to be crop seller. Now he is included among the very rich members of this community. Another ‘never poor’ respondent learned to drive from a friend so he could work. In Branta Pesisir, two ‘never poor’ respondents with high school educations (one of whom has also been educated as a religious teacher) are working as tailors although their skills in tailoring were not the product of a formal education. Non-agricultural livelihoods Because farmers are more vulnerable to harvest failure or falls in the price of agricultural products, those who have successfully moved out of poverty and maintained their wealth generally have their main or supplementary livelihoods outside the agriculture sector, for example as entrepreneurs/traders, driver/assistant drivers, migrant workers, tailors, civil servants

or by raising ducks. Most of them eventually acquire land that is managed by (and rented to) someone else, which gives them more than one source of income. In Palengaan Daja and Banyupelle farmers who have moved out of poverty are also traders in tobacco and agricultural



products. A ‘never poor’ respondent in Palengaan Daja who only had a primary school education from an Islamic school worked as a trader, starting with krusuk, chili, cows and palawija. He eventually opened a shop that sells all kinds of basic needs, fertilizer, and cement. Another ‘never poor’ respondent in Palengaan Daja established a transportation service for building materials. He sent building materials outside the city and as far as Java. In Branta Pesisir, villagers with no capital for trading have side jobs as laborers. Still in Branta Pesisir, there are ‘never poor’ respondents who work as a tailor, a driver’s assistant and a civil servant. A ‘never poor’ respondent in Banyupelle had worked for a long time as a farm laborer but his welfare level had not improved significantly from his farming activities. He eventually decided to open a small shop one year ago, using a loan from his brother as capital. His prosperity has now improved. A ‘mover’ in Banyupelle, in 1999-2001 received a high selling price for tobacco of up to Rp20,000 per kg and his prosperity rose. In 2002 and 2005, however, the price fell and he lost as much as Rp35million from farming and trading tobacco. For that reason, he and his uncle decided to raise ducks. He bought 200 ducks in order to produce eggs. But the business failed because the price of duck-feed rose. Feed proportions fell and egg production declined. Eventually he sold the ducks. At the present time he relies on farming and trading tobacco, and his wife trades chili and spices. In Banyupelle, besides trading, some of them endeavor to increase their family income by finding work outside Madura, or becoming a worker overseas. People resort to this if there is no potential to succeed in their family or community environment. Surabaya, Malang and Jakarta are the most popular destinations for those who leave their home village for work. Low skilled workers also travel overseas to Malaysia, and a small proportion to the Middle East. Usually, the younger members of the family become overseas workers and their income is used to pay off debts. Any excess income is used for farming capital, business capital or to build a house. For movers in Palengaan Daja and Banyupelle, working as a TKI (migrant workers) in Malaysia or Saudi Arabia also assists them to move out of poverty. A ‘mover’ in Banyupelle, after working for two years in Malaysia as a construction worker earned a lot of money and when he returned to Madura was able to go on the haj with his parents. This indicates that his prosperity had improved. It is not only those working as migrant workers who benefit, but the providers of financial services to the migrant workers also profit and include the never poor. A ‘never poor’ respondent provided the funds to pay for the departure costs of all the migrant workers and his money was repaid within 4 months from the wages of the migrant workers. He made a profit of Rp2million from each migrant worker who he sent to Saudi Arabia. Commencing work at a young age and continuing to learn

The majority of the ‘never poor’ in Palengaan Daja commenced preparation for, or started work at a young age. This experience supported the development of motivation and skills. For example, an entrepreneur who has a business transporting building materials commenced on-the-job training at the age of 7 when he helped to water tobacco. Another businessman is the son of a rich man, but he did not have the support of his parents to continue his education. He left for Jakarta to work at the age of 18 years. Since then he has continued to change jobs and

has become a wealthy entrepreneur. Another ‘never poor’ respondent started work at 16 years of age by renting a plot of land to plant tobacco, rice and palawija. He and then decided to become a tobacco trader because he saw that people who traded tobacco were successful and he wanted to give it a try. A ‘never poor’ respondent in Branta Pesisir started selling fish in a traditional market after dropping out of elementary school in 5

th grade.

Having access to the market: many buyers, good prices, and no competitors Entrepreneurs and traders have been able to maintain their wealth because they made

substantial profits as a consequence of receiving high prices, having many buyers and no competitors – in some instances having a monopoly business. For farmers, who are very



dependent on the harvest output and the price of agricultural products, the success of the harvest and receiving a good price is the determinant of whether they are able to move out of poverty or maintain their wealth. iii. Social and Psychological capabilities

Work hard The experience of their past poverty and the success of friends or neighbors will be the motivation for the ‘movers’ and ‘never poor’ of this district to live a better life by working hard. This hard work is evident, among other things, from their service to customers until late at night and because they think hard about ways to reduce costs. Always being careful and planning well when buying goods In most cases, traders are always careful and plan well when buying goods (such as tobacco or crop products) that will preclude them from the risk of losses that can eventually impact their

prosperity. This is also associated with the issue of customers’ trust. If they have quality products then they will be guaranteed good sales and prices. Parental (and school) teaching to live a thrifty life and not gamble

Several ‘movers’ and ‘never poor’ respondents were taught by their parents and Islamic boarding schools to live a thrifty life and not gamble. By applying this principle to their life, they can help themselves to move out of poverty or maintain their wealth.

Good relationship with kyai and asking for blessing from kyai In Palengaan Daja and Banyupelle, ‘never poor’ respondents are very confidant that their business will succeed and that they will be able to maintain their wealth because they have received a blessing from a kyai. For that reason, they always safeguard their good relationship with the kyai by routinely visiting him to receive blessings for their business to succeed. This also applies to ‘movers’. Having a wider network, more friends and business links

Having a wider network, more friends, and business links is very helpful for the ‘never poor’ and movers in enhancing their prosperity. For example, an entrepreneur who has a business transporting building materials started out on the suggestion of his brother-in-law, who introduced him to an owner of building materials. Then his school friends became his permanent

customers as well as middlemen in taking orders. This businessman then provided a tip of Rp25,000 to the intermediaries who provide information on his transport business.

Relationship with neighbors

For ‘never poor’ respondents, protecting the relationship with neighbors is very important. This is not only because neighbors are closest to their household and can be asked to help or to be helped at any time. They are also valued as more than an economic entity and, as neighbors they are customers of one’s business and can protect the security of their business. Trusted by others

Being trusted by others is important and was mentioned by several ‘never poor’ and ‘mover’ respondents, generally traders, as a factor has impacted their prosperity. The nature of their

work/business means they try to always earn the trust of their customers so they always order from them and continue as their trading partners. Relationships with government officials

Relationships with government officials were also mentioned by ‘never poor’ and ‘mover’ respondents as having an impact on their prosperity, as those relationships can enable traders to seek protection if something occurs.



Always pray to God Apart from all of the efforts listed above, these very religious communities also state that praying to God is a factor that can impact their prosperity. They believe that all their business activities will fail if they do not pray and receive the protection of God, and that their business will be destroyed and their prosperity will fall.

Box 4. A story of 35-years entrepreneur and farmer

This is a story of 35-years entrepreneur and farmer, who is an example of a person able to move out

of poverty over a long period of time and became one of the richest people in Angsoka Temor. Although he came from a poor farming family, he has succeeded in raising his level of prosperity and maintainging his wealth.

Haji Fauzan’s story reveals a number of factors that can support attempts to move out of poverty.

These factors include: (1) assistance from a relative, Haji Halimi, who introduced Fauzan to the owners of building materials shops in Pamekasan and who taught him to drive a vehicle, (2) a wide

social network, in this case friends from the Bettet Religious Boarding School (pesantren) who later became his customers, (3) the ability to see economic opportunities; at first Fauzan was the only person in Angsoka Temor to undertake the business of transporting building materials, and (4) the

ability to adapt to changes in the business sector, for example, after competition increased in the field of transportation services and costs for the dispatch of materials rose. He held down costs by using a vehicle that could carry a bigger load. Because his transportation business had grown, Fauzan

was able to obtain the capital to expand his business activities in other fields.

I was born in Angsoka Temor in 1970. Since I was born, up to 1983 I lived in this village with my

parents and my four brother. In 1983 I moved to Pondok Pesantren Bettet for study in Madrasah

Tsanawiyah. My going to boarding school was supproted by my mother and my brothers. They encouraged me to get knowledge in pesantren for my future. Mother gave me material support and spirit to me to move to Bettet eventhough my family’s economic at the time was down because my

father died in 1980, while my brothers already got married and had children. They lived in our parents’ house and became my mother’s responsibility. I had to study in a very limited economic condition,so that my life at the boarding school was very hard. Finally I could not finish my study.”

In 1985, Fauzan returned to his village of origin and lives there until now.

“My fisrt job was a farmer. I helped working on my family land. My whole family worked on the land

together. Since elementary, aged 7 years old (year 1976) I helped watering tobacco. Our life at the

time could be said sufficient. We only relied on agricultural produce and with five children who all worked on the land, our life Alhamdulillah was sufficient (had enough food to eat) altough couldn’t be said rich.”

Since married in year 1995 Fauzan was close with his brother in-law, H. Halimi who stayed in the neigbouring village. His brother in-law, advised him to try a new business namely the transportation service for building material. In 1995 I braved myself to try that new business.

With my brother in-law’s help, my business went well. He introduced me to the owners of building material shops in Pamekasan. I also learnt how to drive from him so that before I had pick-up I was already able to drive. Since then, with a pick-up T 120, I started this new business.

The income was very pleasing. From one delivery of the building material (stones, bricks, roof

tiles, sands, ceramics) I could get net profit of 300 thousand rupiah. Once, in one day, I did four deliveries that made me worked until late at night.

In the beginning, my clients were only from Pelengaan Daya village but later also from villages in Pamekasan up to Robatal (Sampang). At the time I often got profit up to 500 thousand rupiah per day for almost one month continuously. At that time in Angsoka Temor it was only me who had

this kind of business. I really got advantage from this situation. I was also lucky having many friends when I was boarding at Bettet pesantren. They bought building material from me and because of a



good relationship, they were never reluctant to use my service if their family or friends needed building material. I gave service money of Rp 25,000 to those who gave me information of people

who might need my service. Also because of their help my business could grow well. My family’s welfare was getting better. As illustration on how much profit that I got from this business, I could pay off my debt when I bought pick-up just in one year.

Fauzan continued his story with enthusiastically: In 2000, I sold my pick-up and bought a big truck

for transporting building material. As I have become more prosperous as a businessman in transportation services of building material, many people started to do the same business. As usual, if

there are too many sellers and number of buyers remain the same, the seller will compete to reduce the price. That happened to me at that time. Because I didn’t want to reduce the price, my clients became less. Since then I had thought to use truck with bigger loading capacity than pick-up. By

transporting building material in bigger volume, I could reduce the delivery cost. But the profit that I got became bigger because the amount of things were also plenty. From one truck full of building material such as sand, I got profit of 400 thousand rupiah. I gave twenty five thousand rupiah to

people who gave me the information (broker), 25 thousand rupiah for petrol and 25 thousand rupiah for coolies wages. So, my profit was 325 thousand rupiah.

Besides working as a farmer and businessman in building material transportation services, Fauzan was

also involved in trading tobacco. Since year 1999 I started selling tobacco. Actually this wasn’t someting new. In this village there are many people who work as tobacco seller. This job attracted my attention because tobacco was close to my life and my family. More than that, my parents and my

brother supported me a lot. We are all tobacco farmers and no one ever directly sell tobacco to store-house in Pamekasan. So finally I sell tobacco. It is tobacco from my land and my brothers’ land, that what I sell. Profit from this work was big enough. However Fauzan found it difficult to specify his

income as a tobacco seller. It’s difficult to count the income from this business because it depends on the season and tobacco price which is set up by store-house. Last year I had profit, I don’t know this

year.

Subsequently, Fauzan opened a shop of basic household necessities at his house: Year 2002 I opened a shop selling basic household necessities. My wife looks after that shop. The income was big enough because at the time there weren’t many shop like that here. In one year on average I could collect

profit of more than 3 million rupiah.

Source: Ruly Marianti and Wawan Munawar. Community Synthesis Report: Palengaan Daja, Pamekasan, East Java. 2005


As mentioned earlier, the household survey did not specifically ascertain the processes and factors regarding how households can maintain their prosperity and not fall into poverty. Information on those issues was only unearthed from the Ladder of Life (LoL) FGDs and analysis of individual life stories. Only a few participants of the LoL FGDs expressed the opinion of few factors that can maintain household welfare and prevent a fall into poverty. Those mentioned are dominant in economic aspects: the ability to manage income well (Branta Pesisir), receive adequate income (Palengaan Daja), owning a number of income sources (Palengaan Daja), and the ability to utilize economic opportunities to invest/to undertake economic diversification (Branta Pesisir). FGD participants in this area also name the opportunity structure factors, or community level factors that helped people to maintain their wealth, as receiving good prices for agricultural products (Palengaan Daja), security (Pelengaan Daja and Branta Pesisir), infrastructure (Branta Pesisir), and having many economic opportunities (Branta Pesisir).



Box 5. A story of 64-year ‘never poor ‘ trader in Branta Pesisir

I was born in Branta village in 1940s, up to now, I never moved from Branta to anywhere else. I am

happy in this village and I work here. That’s why I never move anywhere. All of my relatives support

me to stay here. No body opposes me on that.

“I worked for the first time in 1955. At that time I worked as fisherman. A friend asked me to work with him. My earning was Rp.50. In 1960, I worked in a sail boat. I worked in a boat that carried salt to

Surabaya, Pontianak, Banjarmasin, Semarang, Cirebon. When we got back from those places, we brought rice and wood from Kalimantan. That time, boats were not equipped with engine but sail. My earning was Rp.50.000 – Rp.100.000 every time we sailed. Economically, my earning was better compared to when I

was a fisherman.I was supported by my family. Every time I went sailing, it would be for 5 months. But if

we sailed to Java, I often visited Branta. I usually spent a week at home. Depend on the sail schedule too.

Then, In 1983, I started trading. First, I sold rice. I bought the rice in Java and sold it in Pamekasan. I bought the rice every two days. Sometimes once a week. Depend on the demand, my investment

was Rp.500.000, and my father in law lend me Rp.100.000. Fortunately, at that time, my benefit was Rp.100.000 for one truck. My investment had paid off within two months. My life was getting better then when I was sailing. But that time, I still rented the truck for Rp.150.000 for one trip.

After that, “In 1990, I sold salted fish. I dried salted fish from here and then took it to Solo and

Madiun. At that time, my investment was only Rp.1.000.000. It was my own money not from a loan. One delivery could load 2 – 4 tons. The profit could reach Rp.1.000.000/month. At first I sold the salted fish by coincidence. One time, my wife brought rice from Java and there was a man who found

salted fish and asked me to find him one ton of salted fish. From then on, I sold salted fish. But my wife runs the salted fish business. Mine was rice trading.

The business obviously made my life and my family to a better life. Alhamdulillah (thank the Lord), especially in 1995 since I didn’t have many competitors,” said Hasan. “Nowadays, this business has

many competitors so the profit is small. One shipment I can only gain profit Rp.600.000 from delivery cost. Once, when I sold fish I suffered loss because the fish was rotten. Finally, it was sold for duck’s woof. It was in 1997. But since then on to 2005, my business is fine,” he said.

For earnings, “Nowadays, I sell rice and salted fish,” said Hasan. Whereas ten years ago, “my earnings

were also from selling rice and salted fish,” he added. And, “I will probably keep doing this until I

can’t sell no more.”

Though there were conflicts, “I kept selling salted fish and rice,” said Hasan. “There was kar tokaran (dispute) once between Camplong and Branta fishermen. But it didn’t affect me. The crucial one was

in 1998 when fishermen protested me because I brought fish from Ketapang Sampang,” he added.

Moreover, “At that time, Branta fishermen complaint to me and other traders because the Ketapang

fish made the price for local fish fallen. I was summoned by Pak Klebun and sub district chief to the village hall. I told them, ‘I run my business legally. What is wrong with that? I want to gain much

fortune. That’s why I want cheaper fish. Whereas in Branta, the fish are expensive.’ There were many police officers came to secure the situation. But I kept telling them, ‘I will continue to sell. I don’t do anything wrong,’ said Hasan who was accompanied by his wife.

Finally, “At 12.00 PM the protest was still continued. It was on the fasting month. One of the

fishermen threatened to burn my house. I said, ‘Please do. I’ll give you the gasoline. But if you want

to do it, do it after terawih (praying at night in fasting month). So nobody can’t see you. Turned out they didn’t have the gut, the night of the incidence, my son who played soccer, brought along his

friends to guard, just in case somebody wanted to burn my house. But they didn’t,” he said. “It was only envy people who couldn’t stand to see someone else’s success. But eventually, it was resolved, in fact, nowadays all of them are nice to me. I could only laugh at them.” Source: Ruly Marianti and Wawan Munawar. Community Synthesis Report: Branta Pesisir, Pamekasan, East Java. The SMERU Research Institute. December 2006



3. High Conflict and High Growth Areas (HcHg)9

Gura and Gorua are the two communities were categorized as being in high conflict and high growth districts, with less opportunity structure. The rural community of Gorua and the semi-urban community of Gura both have farming (coconut, nutmeg, cloves, banana) and fishing as their main livelihoods. Both areas are located in Kabupaten Halmahera Utara. In January 2000 both communities experienced disturbances that caused almost all of the houses and even schools and places of worship to be destroyed or burned down. A large-scale exodus of people from the village took place. Around 175 houses in Gura and more than 600 houses in Gorua were destroyed. Many cattle were killed and lost. All the Muslim families of the community were forced to flee to Ternate, where they stayed for approximately 3 years. Most people only returned to the village from refugee settlements after the government officially took them home again in 2002. When they returned from exile, everyone had to start again from scratch. The communities were unable to return to their pre-conflict levels of prosperity in those 3 years. During the disturbances the communities were virtually empty, as no evacuees came into the village from outside. Prior to the conflict the villages were beautiful. The streets were lined with citrus trees and plantations of coconut palms, and nutmeg and cloves, but these were all destroyed during the conflict. Mosques, churches and schools were ransacked and burned. Locals’ houses had been destroyed but rebuilding had commenced before the study began. In 2002 Gorua again experienced disturbances that resulted in some of the houses being burned down.

The conflict has also affected social ties among the communities. The social relationship between the two communities was previously very close. To date, however, this relationship has

not yet been fully restored. If it is not managed wisely and tackled immediately this small this rift could become the trigger for the possible emergence of a greater social divergence.

For that reason the men’s group and women’s group in Gorua and Gura believed that prosperity now is less than 10 years ago. Moreover the women’s group in Gura said that it is now harder to make a living. Reasons for this include the poorer condition of houses, people having to start afresh in the search for a source of livelihood, the influx of newcomers and increased

competition for work, falling incomes and higher prices for basic necessities, including the cost of agricultural inputs. In addition, most people have lost their cattle. .This belief is supported by the mobility matrix which shows that the NPI in Gura =0.06 and NPR= - 0.23. The figures indicate that not many people have improved their welfare during the last 10 years and moreover, many rich people have suffered a decline in their level of prosperity. However, despite all the impacts of disturbances, the mobility matrix in Gorua shows that many more respondents

have improved their welfare than those who have moved down, with an NPI=0.33, but only a few have successfully moved out of poverty with MOPI=0.16. In Gura, both groups agreed that there are now more economic opportunities. This is evident from a MOPI=0.20 and NPP=0.20 which indicate that more poor people have moved up than have fallen and some have successfully moved out of poverty.

With the 2003 subdivision of the region into a number of administrative districts, Tobelo, the

second largest town in North Maluku, which had originally been the sub-district capital, became the capital of North Halmahera District. The transfer of the capital of North Halmahera to this area has been felt. Businesses have grown significantly and more people have moved to Tobelo and surrounding villages including Gura and Gorua. Gura is strategically located as the closest village to Tobelo on the coastline,, and Gorua is only five kilometers from the capital, and can be reached by motorcycle in just a few minutes via the asphalted road. The majority of

9 Mostly quoted from the researcher’s analyses on CSR of Gorua (see Rahayu, 2006) and Gura (see

Mawardi and Akhmadi, 2005).



roads in the area have been improved. Only a few of the district roads are still unsealed. The transport situation has improved since the conflict. Public transport is easily available, in the form of angkutan kota (‘angkot’ or city transport), ojek, and in Gura there are both motorized and non-motorized becak. Tobelo and Gura became the center for economic activity in the northern part of the Halmahera island. One of the adjustments that occurred as a result of this development is the transition from a rural community based on the traditional economic sector of agriculture, to an

urban community based on the modern economic sector of trading. In this transition process, several aspects of life have changed for the Gura villagers. For example, for hundreds of years, coconut plantations were the main livelihood for the people of Gura. Coconut crops do not need intensive management like seasonal crops, and the natural environment in Gura is very conducive for growing high quality coconuts. In addition, the coconuts are only harvested every three months, which means that the coconut farmers have a lot of free time. When the price of

copra was high, the output of the coconut harvest and the patterns of life were relaxed and could indeed support family life. However, coconut plantations can no longer be relied on as a main source of income for the family. The price of copra is continuing its downward trend, and has resulted in the neglect of many coconut plantations. In addition, the fact that young people now no longer like working in the coconut plantations shows that the coconut plantation sector is starting to be viewed as a secondary livelihood. Nevertheless, at the present time the majority of

the population still relies on farming for their livelihoods, mostly as coconut/copra farmers with approximately 70%-80% of households owning plantations. There is also a small number of fishers. The remainder work as civil servants, carpenters and bricklayers, and only a small number as traders. This confirms that the community is in transition towards a community with urban characteristics but has not left agriculture behind as a significant source of livelihood. Unfortunately, the majority of the population do not yet possess the necessary skills to make the

transition from the agricultural sector to the industrial, trades and services sectors that are prevalent in an urban community, and the number of non-agricultural work opportunities has still not recovered to pre conflict levels. In this transition period, while the characteristics of an urban community that relies on the industrial and service sector have not yet become evident, the excesses of city life have been developing quickly. The night entertainment sector, like discotheques, karaoke bars, cafes and pubs, is developing very quickly. One negative impact of the busy nightlife is the sudden increase in gambling and alcohol consumption. These unproductive activities are consuming the communities’ economic activities.

The population of Gura has increased in the last ten years. This is due to large numbers of arrivals from outside the region to look for work, to open businesses, and refugees who do not want to return to their old villages. Since the 1980s, a number of Bugis and Javanese migrants have been coming to Tobelo to open businesses such as restaurants, workshops, or to work for companies in the Tobelo area. During the conflict these newcomers joined the exodus, but they have now returned. The presence of refugees in Tobelo/Gura, some of who did not want to return to their home villages, led to a large increase in the number of people who were categorized as newcomers. All of these newcomers pursue livelihoods in the urban sector. This has created business competition, as well as stiff competition for other work opportunities between locals and newcomers. In this environment, the winners will be the community group that has a supply of skills, expertise and a work ethic consistent with the aspirations of the urban community, as well as the support of capital. These factors seem to be more evident among newcomers than the local population. Similar to what happened in Gura, during the past 10 years the population of Gorua has grown in size. People have moved to the village over the past ten years because they consider it to be safe there. A large part of the community is engaged in farming. People grow coconut/copra,



nutmeg, cloves, lemong, as well as banana and kasbi (cassava). A very small proportion of the local people are employed in the civil service.

One positive impact of the formation of Kabupaten Halmahera Utara has been the additional employment opportunities created in government administration. Many of the local people, including those of Gura, were appointed as civil servants. But unfortunately, those who obtained work in the government were already graduates and had connections, while those with no connections had difficulty in becoming civil servants. It is also necessary to pay a bribe in order to become a civil servant. As a result, only the middle class who can afford to pay the bribe have the opportunity to obtain such work. The number of civil servants, who generally have a better welfare status in society, has increased. This is as a direct consequence of the formation of the new district, the transfer of civil servants from other regions who then settled in the village, and the appointment of civil servants from the local community. Despite the formation of the new district, in Gorua, the community figures admit that currently the village economy is weak compared to ten years ago. Apart from their work as farmers, fishers, artisans, ojek drivers and public servants, only small numbers of the Gorua community have been employed in projects for the construction of public facilities in the village or surrounding areas. Other economic opportunities like factory employment do not exist in this region. Some years ago there was a large factory in a neighboring village. Owned by a big company, it produced baby

food made from bananas and employed a large number of Gorua people. The bananas grown by members of surrounding communities constituted the main input to the factory. Because of the disturbances in December 1999, the factory was closed and at the time of the field study the factory was still not operating. At the present time it is difficult to obtain work, just as it was ten years ago. The fact that many outsiders have come to the village to build houses indicates that the village is an attractive place for economic activities. Nowadays the status of land has

increased and prices have risen because of the influx of new people, many of them civil servants.

The basic public facilities provided in Gura and the surrounding areas are quite adequate. The majority of villagers’ houses have an electricity supply, and some villagers also have a telephone at home. The majority of villagers still source their clean water using a pump. Educational institutions available in Gura include an elementary school, junior high school and SMEA

10, as

well as a computer course institute. With the exception of the computer course institute, these educational institutions have been in Gura since the 1980s. In regards to health facilities, there is a church owned private hospital in Gura, and a regional public hospital located only about 1.5 kilometers away. In addition, some doctors and midwives have opened private practices. Communication facilities are available. There are wartel (telephone kiosks) and kiosk phones in adequate numbers. Public markets, a post office, bank offices, although not available in Gura, are easily accessed as they are located between 0.5 km-1 km from the administrative area of Gura. The people have had access to national TV, radio, and newspapers for more than ten years.

Gorua has had electricity and access to clean water for ten years. Nevertheless, even now the village does not have a daily or weekly market. If the local people want to shop for kitchen necessities, they have to go to the market located in Tobelo. With regard to social infrastructure, the children can access schools up to high school level in the village. However, village health facilities consist only of a midwife and nurse; there is no doctor, no community health center (puskesmas) and no private clinic. If people are sick, they usually go to the puskesmas in Tobelo or else to the hospital in Ternate, the provincial capital. With regard to the information infrastructure, people have had access to national Television and radio for ten years and have recently been able to access national newspapers. 10

SMEA: Sekolah Menengah Ekonomi Atas: Senior Economics High School.



Since 2001, as the result of the implementation of the regional autonomy law, Gura has formed a BPD

11 as the representative body for the community. It functions as the legislative institution at

the village level. Karang Taruna is an organization that provides a place for the activities of young men and women and also has a presence in Gura. This organization is especially active in football activities. For women’s circles, the PKK

12 provides a place for their activities. This

organization is structurally located under the village administration. Unlike Gura, in Gorua a BPD has not yet been formed. It was obvious that the village government and administration were not functioning fully, as they should have been. For example, it was apparent that the village head was not familiar with the condition of the village, while the village secretary and hamlet heads did not yet have population data and had to write down the names of residents one by one. Moreover, local governance is somewhat poor with officials involved in bribery and corruption and less attention given to the community interest now than ten years ago. The villages that are home to both Christian and Muslim communities had not been involved in conflict in the past. Moreover, even though Gura has Christian majority, the two communities can live together in harmony with a high degree of tolerance. This has been attributed to the fact that the two communities are descended from the one family. Until now, the differences in religion have not been a special or unique phenomenon. These two communities protected each other so they avoided the impact of the large conflict that happened outside the context of their social relationships.

Today the people are busy rebuilding their homes with materials (cement, sheets of iron and plywood) provided by the government assistance package. Even with this assistance, the housing conditions are far inferior to the pre-conflict conditions, with relation to size and quality of buildings, and adequacy of their furnishings. As a result, households with surplus income tend to use it for improving their living conditions rather than for the accumulation of business capital or savings.

There are still signs of reluctance on the part of people in each group to express their inner feelings, but the situation is now conducive to stability. The community is able to conduct its routine activities. Similarly, people from outside are free to travel into the village and communicate with the local people. The villages are now relatively safe and have very rarely suffered from any natural disasters or other calamities such as a shortage of food over the last 10 years. Some elements of local democratic practices are now functioning; these are freedom of speech and attendance at community meetings, which was indicated by most respondents in Gura attending BPD meetings or having joined a campaign. More than half of the respondents feel they have control over all personal decisions. Like other communities, however, governance at the district level is inadequate. Most officials are still involved in bribery and corruption and the attention of local government to the community interest is less than adequate.

The post-conflict assistance, revolving fund assistance, security, determination, education, and mutual assistance schemes are all positive factors that have resulted in improvements in Gorua. In addition, the local democratic functions have been improving over the last ten years with freedom of speech being much improved. More than half of the respondents have attended community meetings and joined campaigns, and up to half of the respondent have control of all personal decisions. The negative factors are the conflicts, declining prices for agricultural

products, delinquency and increased fuel prices. In addition, there has also been no improvement in the level of people’s involvement in the decision making process.

11

BPD: Badan Perwakilan Desa: Village Representative Council.

12PKK: Pembinaan Kesejahteraan Keluarga: Family Welfare Movement.



Despite the violence of the conflict, which started here in 1999 and continued until 2002, there are actually several factors at the community level that has supported the prosperity of the villagers. These factors include increased security, post-conflict assistance, and freedom to conduct a business and work, the availability of economic infrastructure, natural resources and

social cohesiveness. FGD participants mentioned the following factors: the move of the district’s capital city (Gorua, Gura), employment opportunities (Gura-F), security (Gura-M), business capital (Gura-F and M), business mechanics and guidance from government (Gura-M), and well-constructed information (Gura-M). Security

During the post-conflict period, the security situation has fully recovered. Fear, worry and feelings of insecurity that existed from the end of 1999 to 2003 have all ended. With an

increasingly conducive security situation, all households can now work in peace and security and on the issues of regional autonomy and poverty alleviation. Government assistance When the conflict ended and the villagers who had fled had returned to the village, one bitter reality that they faced was that their houses and other assets had been destroyed. Because of that, it can easily be understood why the people saw government assistance and assistance from other institutions, especially assistance in the form of house building materials (BBR), as an important factor for re-starting their life in their village. Given that the economic condition of most households hit by the impact of the conflict has still not fully recovered, they still want such assistance to be continued. Other government assistance that life stories showed had assisted in enhancing their prosperity was assistance in the agricultural sector in the form of farming equipment, seed, fertilizer, funds to cultivate the land, knowledge on fertilizing techniques and how to destroy pests. Nevertheless, one respondent said that government assistance and attention was only recent (2005). Freedom to conduct a business and work

In parallel with the improved security situation, the freedom to carry out business and engage in work is also better. There is no intimidation or discriminatory treatment or particular restrictions placed on activities by any parties. Villagers of any ethnic or religious background, native inhabitants, and newcomers all receive the same treatment and opportunities. In addition, in the era of democratization, the community now has the freedom to express its opinions and aspirations. With this freedom, the community has the opportunity to take a role in public decision-making, especially decisions at the level of the village administration. The availability of economic infrastructure In regard to the economic capital of Kabupaten Halmahera Utara, the village of Gura already has adequate economic infrastructure. An inter-city and intra-city transport network as well as an electricity and communication (telephone, postal) network are available and are functioning well. Financial institutions, both government and private banks and non-bank financial institutions are also available. In this regard, community access to loans from formal and non-

formal financial institutions is generally quite easy. Markets for daily requirements, local products and raw materials/inputs are also available. These are all important factors in the improvement of the local economic capacity. Natural resources

This area and the surrounding areas are blessed with fertile natural conditions, so high-value commercial crops such as cloves and nutmeg in addition to coconut can grow well. This potential, if utilized properly, can accelerate the improvement of household incomes. This area also has a maritime area with the potential to become an important economic factor for improvements in prosperity.



Social cohesiveness Another positive factor that could support improvements in prosperity would be a recovery in social relationships in this area. Although these social relationships are not as close as they were before the conflict, they have already started to be strong enough to broaden social networks. As was previously discussed, a broad social network is one important aspect that can make it possible for people to improve their economic mobility.

The factors of individual and collective assets and capabilities for moving out of poverty

According to the results of the household survey, the main factor that raises the welfare of the household in this area is the same work for greater returns (37%), finding work/better work or greater employment opportunities (19%), becoming a civil servant (13%), and new income

sources/multiple income sources (13%). The Ladder of Life FGDs generally did not mention the factors causing increases in prosperity. Only one factor of individual and collective assets and capabilities mentioned - being strongly motivated to be active in business (Gura-M) and a strong desire for success (Gura-F). i. Material assets Having access to capital and ownership of productive assets It cannot be denied that the need of poor households for capital is important. After the disturbances many poor households were forced to start their businesses again from scratch. In the post-conflict condition most households are still in the recovery phase, and it is difficult to

create an income surplus for capital accumulation. In conditions such as these, several ‘movers’ and ‘never poor’ respondents mentioned that capital had assisted in enhancing their prosperity, although they did not use the term ‘capital’. The types of capital that respondents most often mentioned were land and savings. For example a ‘mover’ put aside his savings in the bank for his future capital needs. Another ‘mover’ acknowledged that he could maintain his income with the assets he owned such as a motor vehicle and agricultural land. A never poor respondent started

in business after obtaining capital from his father and supplemented this with savings of Rp1.5million. Other forms of capital mentioned were business equipment, for example a motorcycle, a machine to grate coconut meat or a truck. Capital was obtained from various sources, including from savings from previous jobs, parents, relatives, siblings, friends and employers or work colleagues. Respondents rarely mentioned obtaining capital from bank loans. Inheritance Several never poor and mover respondents acknowledged that they received inheritances of land from their parents that formed the capital to enhance their welfare. Unlike the situation with

land in low conflict areas, the size of land inheritances in high conflict areas was very large, a minimum of 2 ha that was farmed with crops such as coconut and nutmeg. One mover received capital from his parents in the form of a 4ha plot of land. ii. Human capabilities Formal education and Skills The majority of ‘mover’ and ‘never poor’ respondents in this area have fairly high standards of

education. Mostly they have reached the senior high school level, however some respondents have only obtained a primary school level of education. In fact, all of the ‘never poor’ in Gura have been educated to senior high school level or above. Those with a high level of education are generally civil servants, so they are included amongst the ‘never poor’ due to their fixed salaries. It is interesting to note, however, that this phenomenon is present irrespective of whether they are civil servants or not, which indicates that a certain level of minimum formal education has a positive

correlation with the level of prosperity that can be obtained by a household.



At a glance it appears that in this area formal education has a role in determining whether one is able to move out of poverty or maintain one’s wealth. This does not always appear to be valid for workers in the informal sector who are more reliant on skills rather than formal education. In addition, upon investigation, a relatively high level of education did not appear to have an

impact on the type of employment in which they were engaged. For example, one ‘mover’ who is a senior high school graduate is working as a laborer carrying sand from the river up to the truck and from there to the customer’s house. He finally worked as a truck driver and since then his prosperity has constantly improved. So, apart from formal education, in most cases, respondent who have successfully moved out of

poverty or maintained their wealth are those with skills, for example skills in driving, being entrepreneurs, farming, climbing coconut trees, felling wood or as fishermen. This factor is needed to capture the economic opportunities in the framework of income source diversification, or to enhance the income of existing livelihoods. Without possessing such skills, poor households will experience stagnation. They will experience difficulties when faced with increasingly stiff business competition, uncertain market conditions, and in exploiting new economic opportunities that arise as the consequence of the transition to an urban community. The skills possessed by the respondents were not gained from formal education but usually from on-the-job training, from friends or relatives or via other training. For example, one ‘mover’ in Gorua, learnt how to drive from his brother and was eventually able to work as a reliable inter-city driver, until the conflict arose. Due to these skills, he obtained work as a public transport driver in his place of refuge. He also learned from friends the diverse skills of how to be a construction worker and cut down trees in the forest. Guidance and Teaching from Parents Although not all respondents said so explicitly, from the stories that they told it appeared that guidance and teaching from parents have had an influence on their welfare in such matters as farming knowledge, fishing skills, house-building, making and selling cakes, trading, and

developing networks as well as knowledge about the importance of education, health and so on. A common method parents used for this was to frequently take the respondent with them when they were working so that he or she could observe and learn on the job. Becoming a civil servant and a permanent employee In this area, being a civil servant is a guarantee to enhance and maintain prosperity. One ‘mover’ improved his prosperity when he was appointed as a civil servant. Based on the community’s experience that civil servants are economically better off than those whose livelihoods come from other sources, a regular income or salary was considered to be safer than an income from a business. It is also the same with the ‘never poor’ civil servants who can accumulate assets because they have assured incomes and can put money aside as savings or to buy land. When the conflict occurred, although their wages were as much as four months late, civil servants still received their wages so they were able to maintain their prosperity. It was different for those working in the informal sector because they lost their jobs and had to start from scratch. It is not only the household heads who are civil servants or are permanent employees with the ability to enhance or maintain their households’ prosperity but also their spouses or other household members. For example, a wife who became a civil servant or worked as a hospital official succeeded in improving her household’s prosperity. For that reason, one way to increase a person’s prosperity is the appointment of a son or daughter as a civil servant who can then support the parents. Based on the community experience, a child with a high formal education who then obtains work as civil servant can assist the economic condition of their family. For that reason, becoming a civil servant is the dream of most in the community. However, as also mentioned above, a lot of money is needed to enter the civil service, a fact acknowledged by the young men.



Income diversification Because the crops produced in high conflict areas are only harvested twice or three times per year, farmers in this area rely on other work to provide for their family while they are waiting for the harvest. Wives also work, for example by making and selling cookies and selling fuel or ice. This helps to improve the household’s welfare because the household income is then not dependent only on the respondent’s income. For that reason, income diversification, whatever

the form, became an important factor to improve household welfare. Always chasing work opportunities, continuing to work, not being unemployed and having an income Those working in the informal sector as drivers, foremen, security guards, ojek drivers, construction worker, and traders can improve their prosperity by chasing work opportunities. Although their work is not always constant, they can improve their prosperity if they are always in work, receiving an income and are not unemployed. This is very important because they do not have a fixed wage and, in fact, they are often dependent on a daily wage. With the exception of civil servants, many ‘movers’ and ‘never poor’ have to change jobs frequently and gain new skills as they are chasing work opportunities and want to remain in work. For example, a ‘mover’ firstly worked as a driver and then, when he was evacuated, he worked as a public transport driver. When he returned from exile he worked in the construction industry

because there was a large demand for house construction. He then followed his friend and became a lumberjack in the forest. Another ‘mover’ first worked as a freelance stevedore at the port and then became a contract-based worker with a copra shipment boat. He then worked on an irrigation project, and did voluntary work in a government office. During the conflict he became an ojek driver and then worked as a warehouse security guard. He also worked as a construction worker and a shoe repairer. Another ‘mover’ once worked in a banana company as

a foreman. He ceased working for that company because his bonus was cut. He decided to purchase ten hectares of land and open a kiosk at his house with his severance pay. He became a farmer, though now he is only cultivating part of his land. Continuing to work while in exile In conflict conditions, most of the never poor and movers continued to improve or maintain their prosperity because they continued to work and had networks while they were in exile. One mover became a driver of a mini-bus, another mover managed a coconut plantation owned by

his parents and made a profit because of the high price of copra at that time. The wife of another mover continued with her work baking cookies while in exile. iii. Social and Psychological Capabilities

Working hard and the work ethic

Life stories of the ‘movers’ and ‘never poor’ demonstrated their persistence and hard work. This persistence was shown, in the continuous improvement in skill levels, looking for work opportunities, or in the context of income diversification. Several ‘never poor’ and ‘movers’ acknowledge that they are always motivated to work and from time to time this results in their incomes rising. Networking

Many respondents have succeeded in achieving prosperity because they possess a strong social network, enabling them to obtain jobs through friends and their networks as construction workers, drivers of public transport vehicles and the like. They also help each other (gotong royong), not only in jojobo (arisan) but also with social activities and education. They admitted that it is easier to undertake activities through groups. Through these networks people have gained knowledge, for example, about house building, about obtaining employment and about



business opportunities. Although these social networks and ties were disrupted, they are now beginning to be restored. Relationship with neighbors

For ‘never poor’ respondents, protecting relationships with neighbors is very important. This is not only because neighbors are the closest element to their households who can assist or be

assisted at any time. These relationships also have an economic value, because neighbors are customers of their businesses, and can also help to safeguard the security of their businesses, for example by looking after each other’s shops. Relationship with government officials Relationships with government officials are considered important. This was mentioned by several ‘never poor’ respondents who obtain information from these officials, about developments occurring in their community and districts, including information on the prices of goods and harvest produce, and training opportunities. One ‘never poor’ respondent twice participated in training activities in Java. When he returned to the village he was able to develop his agricultural business in the direction of seasonal crops and he enhanced his prosperity. Being close to authority also meant he was trusted to be an electricity billing official and at the same time to provide a service to pay electricity bills on credit. The will to study from early days Several respondents advised that their parents urged and equipped them with knowledge about how to seek a livelihood. For example, parents took children to the sea to fish or taught them how to make and market cakes. Nevertheless, many respondents learned on their own initiative how to climb coconut palms, catch fish and build a house, or they acquired this knowledge from friends, relatives, neighbors or other people. Migration It was apparent from details of the life stories that those who have made frequent journeys and migrations (of a temporary nature but excluding the evacuation period) have succeeded in improving their welfare level. It is suspected that the reason lies in the greater knowledge that they obtained during their journeys, both in observations and in communications with wider groups. The knowledge thus obtained encouraged them to undertake something better such as

hard work, a good work ethos, and establishment of work relationships, investment and the like. A thrifty life

The never poor in this area suggested that living a thrifty life is a strategy for enhancing and/or maintaining one’s prosperity. In this way they can put aside some of their earnings as savings and eventually accumulate assets. iv. Collective Assets and Capabilities

Community participation As already described earlier, the community is not always involved in decision-making. But the people of the village are involved in voluntary activities, such as constructing a fence. They believe that they are involved so that no feelings of suspicion or unpleasantness can arise between groups. Apart from that, the village government has not undertaken any efforts that could be described as likely to improve the community’s welfare. It appears that the people included in the ‘mover’ and ‘never poor’ groups are in fact always involved in activities and in village decisions. It cannot yet be said whether this involvement has had an influence on their welfare level.



The young men and women agreed that they have been included in village decisions relevant to the youth. They agreed that they have influenced village decisions, and the young men said that they are generally invited to meetings that concern young people. Participants also admitted that so far politicians have not given any assistance to the community because they pay no heed to

their promises after they have obtained a position and money. Organizations and support Almost all members of the community take part in social organizations like religious prayer groups

(Muslims) and church groups (Christians). Most participants in the women’s group take part in a rotating credit group (arisan), while some of the men are members of a farmers’ group. Recently the women’s group in a hamlet has also formed a health group. A small number of the women living in this hamlet are members of the ‘Pekka’ group for widows. There is also a credit group called ‘Saronifero’. Several ‘never poor’ and ‘mover’ respondents acknowledged that because they became members of a farming group their prosperity improved because the group became the catalyst for an improvement in agricultural output. One mover joined a cooperative and farming group and that then provided him with some business capital.

Box 6. Able to Survive and Make a Living when were Refugees during the Conflict

I was born in Tobelo in 1969 but since my childhood I have been living in Gorua. My wife was

born in Gorua in 1971. From childhood to adulthood, up to the time before 1999, I had spent my

whole life in Gorua and had never moved either temporarily or for a long time.

1975-1982: I was in primary school from 1975 to 1980. In 1980 I entered junior high school but I dropped out in the second year in 1982 because I used to play truant and this was my own wish. In

the past, kita lebe suka pi kobong dari pada pi skolah, apa lagi su mulai basar kong balajar manakal, su

tara pi skolah (we preferred to hang around rather than go to school, and as we grew up, we became naughty and played truant). I had no interesting school experiences but I have to admit that I learned how to read, write and count in school.

1988: I got married and at first lived with my parents-in-law and helped my wife’s father as a

farmer. Almost every day I worked in the fields. As a farmer or labourer, I sometimes received a part

of the produce at harvest time and gave it to my wife to keep. 1990: My brother taught me how to drive. During that time, after learning how to drive well, I

often replaced him as a driver when he was taking a rest (in the local language: ’ba helper’). All the money that I obtained went to him. Sometimes I got Rp 10,000 to Rp 20,000 as a ’helper’, but I did that job only when there was nothing to do in the fields.

1995: I worked as a driver on the Sidangoli – Tobelo route. My older brother helped me to get the job, when he went to live in Galela. He told me that his boss needed a driver. When I asked my

wife’s opinion, she advised me to try the job. Then my brother and I contacted the car owner and I was accepted as a driver. The pay was quite good although the owner used a system of 15% of the monthly income. On average, I was able to give my boss between Rp 100,000 and Rp 150,000 every

day, so my monthly salary was around Rp 450,000 to Rp 675, 000. I stayed in this job until 1999. 1998: We were able to build a house as a result of my employment as a driver. Since getting

married (1988-1998), we had been living in my parents’ house. Feeling the need to be independent, every time I had extra income as a driver, we bought some building materials such as sheets of iron,

cement and timber. Bit by bit we collected materials and bit by bit we built the house. Finally in

1998 we were able to live in our own house. Owning a house brought changes, because we had our own kitchen and worked harder to make our children happy. The ones who helped us most in giving extra money to build the house were my parents.



1999 (December): At that time, when the situation was already serious, my wife, my children and I

took refuge together with other community members in Soasio village, Galela. We took nothing with us. I then returned to Gorua to get clothes and other things. Passing the villages, I saw that many people were already gathering and grouping. When I arrived at Popilo village, my family

asked me to stay there. They said that Gorua was already divided and they were surrounded. It was

impossible to go back to Galela because I had to go through Christian villages. Finally, I followed my relatives and other Popilo people and ran into the forest. For three days we ate whatever we

could get in the forest. Finally we arrived at Togawa village and went on to Soasio. A few days later most of the community who had taken refuge in Galela, including myself and my family, were taken by KM Lambelu (the name of a passenger ship) to Ternate. The conflict really affected my job as a

driver, because I had to take refuge in Ternate. My house was burned down and only the walls remained, as the sheets of iron and wooden panes had been burned. (When he returned in 2002, the windows and the doors were covered only with wooden boards and the roof with canvas donated by ACF.) I also lost my motor-cycle, the most expensive thing that I had ever bought. I had purchased this

RX King (the brand name of a motor-cycle) only two months earlier at a cost of Rp 9,000,000, which I had obtained from nutmeg and coconut harvests on my father’s land plus additional savings from

my work as a driver. I had bought the motor-cycle as a means of transportation to start a business buying and selling crops like chocolate and nutmeg. But in not even two months, the motor-cycle was burned and disappeared without a trace because of the conflict. With a great deal of reluctance

I had to abandon my RX King motor-cycle. 2000-2002: In Ternate we stayed in Santiong district with help and support from most of the

Ternate community, who helped us look for an empty house that was still habitable. Some young men who by chance came from Santiong took us to live in a house in Santiong district. At the

beginning of our life as refugees, we felt very miserable because we expected other people and the

local government to take pity on us. But in the end I got a job as a driver and felt that life was getting better. But all in all, living in one’s own land is better than living in a refugee camp.

With the help of other drivers formerly on the Tobelo-Galela route, who were already working in Ternate, I was able to work again as a public transport driver in Ternate. This job did not need any further skills since I was used to driving. As a driver in Ternate, my economic position improved a

great deal because vehicle owners used the system of a daily deposit, which amount more or less to Rp 70,000. Usually I could get Rp 110,000 to Rp 130,000 in a day. The net income I could take home was about Rp 40,000 to Rp 60,000 a day, depending on the number of passengers and my

efforts in looking for passengers. I felt that, although we were still in the refugee camp, life was better because I could save money for other needs.

From my income as a driver, we had the chance to buy a machine to grate coconut at a price of around Rp 2,000,000 in 2002. I planned to start a coconut-grating business because (in Gorua) at that time, whenever we wanted to grate coconut (to make coconut oil) or cassava (to make cassava

flour) we had to go to Tobelo. 2002: My family and I went back to Gorua with other refugees under the government’s

resettlement program. So I had to leave my job as a driver. Back in Gorua, living conditions were

still bad. We hoped for help from the government through a number of NGOs such as ACF to provide us with the cost of living and staple food because the situation was still too traumatic and

frightening to work or to go to the fields. But no matter how good the income, living in a refugee camp was not as good as living in one’s own village, which is why my family and I had decided to join the program for the return of refugees.

Practically, there was nothing to do. Work in the fields was still impossible. I could not get a job similar to my former work because there was a smaller number of vehicles while the number of drivers was the same or even greater. Using the machine that we had bought in Ternate, we started

a new business grating coconuts and cassava. This business ran quite smoothly. In a day we could

earn Rp 7,000 to Rp 10,000. But the business did not last long, because after running for just three months, the grating machine that we had hoped would bring changes to our life was stolen by a

thief. The reason was that at that time our house was still unfinished. The loss of the grating machine really affected our life.



Finally, a relative offered me a job as a construction worker. This job actually needed skills and a lot

of energy but, after some time observing how the job was done, I finally got used to doing it. As a

daily worker, my salary was based on the number of days I worked and was paid once a week. The

daily wage was Rp 15,000, so in a week I could earn Rp 105,000. The income from this job was

alright, although not as good as in Ternate, but it was enough to feed the family. But this kind of

employment depends on work orders. When one order was finished, I rested and waited for another

order. Sometimes work continued for several months, but at other times I could go for a week or

even a month without a job. I did this until 2005. 2003: The local government helped us with BBR help and the cost of construction workers to build

a permanent house again, like the one we had had before, although we had to add extra money from our own savings.

2005: In January I was asked by a friend to go to Wasileo (in Patani district) to work as a logging

labourer (’basensor kayu’). Actually, this job needed skill to hold the cutting machine, and knowledge of the way to chop and cut the trees. Besides, it needed a strong physical condition

because of life in a dense forest. My friend was very helpful in training me in how to cut lumber. Because I paid close attention to my friend’s instructions in how to do it, in a short time I was able to manage the work. My wife encouraged me to work. Life in Wasileo was a bit better. The

income was quite good, since the price per cubic meter of cut timber could reach Rp 50,000. In a day I could dispatch two cubic meters.

Although the job could provide a good living, since it meant leaving my wife and children behind for a long time and since the location was deep in the forest, it took several weeks to find a buyer

and to bring the lumber out of the forest. Finally I returned to Gorua in May 2005.

In Wasileo, I had the chance to buy a 10-hectare piece of land from the community through an exchange system. At that time a certain land-owner wanted to have a good television set and a

VCD and asked me to buy them for him in exchange for a part of his uncultivated land. From my work cutting timber, I could buy the television set and the VCD and exchange them with the land-owner. Even now, however, at the time when we returned to Gorua, our piece of land has never

been cultivated and is still under dense forest.

Upon returning to Gorua, with some of the money earned in Wasileo, I bought 3 hectares of land

still covered with fully grown trees, located about 8 km from the village and owned by the family. The price was Rp 2,000,000 to be paid in installments but I have not finished paying the installments. In the meantime what I am doing is clearing the forest and planting the land with

nutmeg, coconut and chocolate. So far I have not yet obtained any produce since the trees are just being planted.

Now (2005): I am living in Gorua with my family. I work as a farmer and have made fields in Gorua. In the future I want to remain in Gorua because all my relatives and family members are in Gorua and I want to raise my children and spend the rest of my life in this village. Nowadays my

main job is farming and working as a farm labourer on my father’s piece of land, whereas ten years

ago my main job was driving a public transport vehicle.

This year, I joined a farmers’ group in Gorua village. This group is quite helpful in providing food for the family, because within the group the members plant short-term crops such as vegetables, tomatoes and chillies on a one-hectare piece of land. Although the group’s land is not very big (50

x 50 sq.m), it helps me because we can harvest the vegetables routinely. I can meet my own needs from working in the farmers’ group and as a farm labourer whenever somebody needs help during the coconut harvest.

From our experiences we should have been able to increase our wealth and assets but we have not been able to do so because of the conflict. We save money but only in piggy banks at home. When

we get a little income, we save it for urgent needs while thinking of what we can buy. I only hope

that from the piece of land that is now planted with nutmeg, coconut and chocolate, I can get extra



income for the children’s education and household needs.

I feel that I do not know whether or not my work and wealth so far have anything to do with the

government programs. We felt very happy with the BBR assistance program and with the living stipend that we received when we first returned from Ternate. The help was very useful in rebuilding the house, which had been ruined during the conflict, while the living stipend was

beneficial when we could not work full-time due to fear and a feeling of trauma. For me, my relationship with the family, including the family of my wife, is very important in terms

of communications and relationships. Whenever there is a problem, it is the family that helps. For example, when I had very little money and wanted to buy a motor-cycle, I told my parents about my

plan to buy a motorcycle to transport agricultural produce such as copra, nutmeg, and chocolate.

My parents then gave me some money so that I could buy a motor-cycle. I realise that there is a meaningful relationship with my family, especially my brother. He taught me how to drive and because I could drive, I got a job as a driver, which improved the economic position of my family.

Even now, I feel that appreciation from the family is getting greater. Even though my earnings are just sufficient, I never depend on others in my family.

My happiest moment was when I could build a house by myself. This made me even more motivated to work. It was the same experience I had when I was in the camp in Ternate. At first I felt life was very hard not only because there were so many people around but also because I had no

job. In a short time, however, I got a job as the driver of a passenger vehicle.

For me, relationships with neighbours and friends are very important in addition to those with my

family. They can immediately give help when we have a problem. For example, saat maitua mau memasak tapi garam abis ka…. Atau bawang tarada ka… maka torang bisa minta atau pinjam tetangga punya dulu (when my wife wants to cook and she runs out of salt or shallots, she can ask the

neighbours for some). Although this relationship doesn’t have a direct impact on improvements in well-being, the most important thing is ‘hubungan masong kaluar tara putus (that the family relationship remains). Besides, relationships with friends can help us in business. For example, a

friend was able to support me and help me to find a job as a driver in Ternate.

Honestly, the conflict and disturbances that had an impact on our relationships with the community

in the broadest sense caused me to lose my job and belongings, which meant that I had to rebuild our life from zero. I hope, however, that the relationships that have been affected can be mended again.

Source: Rahayu, Sri Kusumastuti. Community Synthesis Report: Soakonora, West Halmahera, North Maluku

2006 (has not been published)


FGD participants mentioned several factors for households maintaining their wealth in this area (HcHg). Those include inherited wealth (Gura-F), possessing sufficient capital (Gura-F), having business skills (Gura-F), marketing (Gura-M), having a successful business (Gura-F), the children become civil servants (Gura-F), other family members as a civil servant or running businesses (Gura-F), motivation and social consciousness (Gura-M), willingness to work (Gura-F), and having government permits (Gura-M). From the factors mentioned by the FGD participants, it is clear that becoming civil servant is a dominant factor considered to be important.



C. TRAPPED IN AND FALLING INTO POVERTY IN AREAS WITH RELATIVELY BETTER OPPORTUNITY STRUCTURE 1. Low Conflict and High Growth Areas (LcHg)

13

Two communities that were categorized as being in low conflict and high growth districts and considered to have better opportunity structure are Semampir and Bulu. Semampir is a semi urban community, and Bulu is a rural community whose main livelihood is tobacco and other seasonal crop farming. Both areas are located in the district of Probolinggo.

In Bulu, the men’s group and women’s group agreed that the village is currently more prosperous than ten years ago and that there are now more economic opportunities. They attributed the

new asphalt road and electricity, pesticide and the cigarette factory to this positive change. Meanwhile the men’s and women’s groups in Semampir have different views on community prosperity mobility during the past ten years. The men’s group believes that prosperity is now the same as it was ten years ago but that it is harder to make a living. They stated as reasons the monetary crisis caused an increase of the price of basic necessities, the increase of fuel prices, and that there is no creativity to develop business. On the other hand, the women’s group feels that there is now more prosperity than ten years ago and it is easier to make living. They said it is now easy to obtain clean water, the young children are now smarter, and there are no unemployed housewives.

Despite these differences in opinion, the mobility matrix shows that a lot more people have improved their welfare than have moved down, with an NPI in Semampir =0.66 and NPI in Bulu =0.50. In Semampir some respondents have successfully moved out of poverty with MOPI=0.42. Ownership of assets such as cattle, housing, motorcycles, and color Televisions and access to electricity have also increased, which indicates some improvements. Villagers in Bulu feel, however, that it is harder now to make a living because the steam-powered electricity generator was shut down and more people now unemployed. They also stated that housing construction uses labor from other villages and machinery is used to plow rice-fields so human labor is no longer needed. This increase in unemployment in Belu has led to only a few of the poor moving out of poverty with a MOPI of only 0.17. The 2003 move of Kabupaten Probolinggo’s capital city from Kota Probolinggo to Kecamatan Kraksaan (where Semampir is located) had an impact on the socio-economic condition of Semampir. Before the move, the village was approximately 25 kilometers from the district capital and now the distance is just 500 meters. Before the government administration offices officially moved, various infrastructure developments had been undertaken. Included among these was the development of a housing complex in 2001. Government officials and staff in private office make up the majority of residents in this housing complex. The development of the housing complex had several positive impacts on the villagers, including new work opportunities as construction workers or in “the yellow army” (rubbish collectors who wear a yellow uniform). It also led to a demand for the service of domestic workers, especially women. The move of the government offices and the development of the housing complex have resulted in a 50 per cent increase in the village’s population during the last 5 years. The construction of an artesian well, market access, the presence of cigarette factory and government assistance schemes are all positive factors that have helped to make the improvements in Semampir. In the past ten years a lot of roads have been constructed in the village so four wheeled vehicles can now access almost all areas of the village. The presence of these roads has also been very influential on the development of buying and selling activities in 13

Mostly quoted from the researcher’s analyses on CSR of Semampir (see Febriany, 2005) and Bulu (see

Febriany, 2006)



the Semampir market. The development of the artesian well in 1995 and 2004 impacted positively on the prosperity of the villagers. The existence of potable water infrastructure has led to significant savings for the villagers, as previously they had to spend quite a lot of money to obtain clean water. An electricity supply has been available in the village for quite a long time,

although not all households were connected. Over the last ten years the number of villagers with electricity connections has grown significantly. At the present time, 90 per cent of the village population drinks clean water, and almost 100 per cent of the villagers has their own electricity. Education infrastructure has improved over the last ten years, from kindergarten level through to higher education institutions. The current generation of children has a much better education than the previous generation. For the last ten years there has been a private clinic with doctor

and nurse, but there is no public clinic. The regional government built the Semampir market in 1980. Before the development of the market most villagers had the same livelihoods as those from surrounding villages, mainly as farmers and farm laborers as well as becak drivers. The market brought about great change to the lives of the villagers because as employment opportunities were created. The community that had previously needed to go by becak to do their shopping have now become traders. Native inhabitants established coffee stalls, and sold roasted corn. The market also became a magnet for people from outside Semampir. The population grew quickly as many newcomers arrived, particularly from Madura. They opened shops in the Semampir market and then settled and

became citizens of the village. While the market had a positive impact on the village economic condition, it had a negative impact on village social life, with the introduction of prostitution to the village. after Geographically, a rural area surrounds Semampir. The village has experienced a relatively rapid rural-urban transition compared with other villages in the vicinity. This has transition has been

led by the development of various infrastructures, the presence of the market, the move of the capital, and by the number of newcomers. This reality has had an impact on the economic and social life and the mobility dynamics of the community.The local population generally have livelihoods as farmers, farm laborers and becak drivers, while newcomers are generally civil servants, private employees and traders and entrepreneurs. Community members who work as employees and traders have more dynamic mobility than the community members who work as farm laborers and becak drivers. The urban culture has also had a negative impact on the village community, which is still rural in nature. There is quite a lot of gambling, drinking alcohol and prostitution occurring now in the village, especially in the area around the Semampir market. According to the community these negative habits are one reason for a decline in household prosperity even and can even cause people to fall into poverty.

The natural condition of Bulu has many more benefits for the prosperity of villagers compared with the negative factors. The village is located close to the capital of Kabupaten Probolinggo, making it easy for villagers to obtain raw materials as well as market their produce. The land is also relatively fertile for rice, tobacco and mangos. In addition, the land is also good for creating the raw materials used for making bricks and many villagers have a brick making business. On

the other hand, the easterly wind, known by the villagers as ‘angin temor’, hits between the months of June-August causing penyakit kuning (yellow disease) and crop failures for the villagers. As has happened in Semampir, the condition of infrastructure in Bulu has improved significantly during the past ten years. Asphalting the main road had a significant impact on the villagers’ livelihoods. It made the marketing of villagers’ produce easier and quicker. Apart from the road, the arrival of electricity in the village is also considered by the villagers to have been a helpful factor in enhancing their prosperity. With electricity, villagers would work at night, and could also depart for the market before sunrise. The bore well/clean water is also a factor that helped villagers to improve their prosperity. Villagers can now use funds that were previously allocated



to clean water can now be allocated for other needs. Infrastructure developments under the subdistrict development program (PPK), like asphalting of the road and the artesian well, are felt to have been very beneficial for the villagers. PPK is a community capacity building program run by the government with assistance from the World Bank. The community stated they were

involved in the infrastructure projects and the planning and implementation processes, which may be as a result of the PPK program. With regard to health infrastructure, there has been a private clinic with a doctor and nurse for the last ten years, but there is no public clinic. Education infrastructure is also still limited. There is only primary school available in the village. People have to go to other villages to access higher education.

National events, including the general elections of 1999 when Abdurrahman Wahid (Gus Dur) was elected as President had a positive impact on the villagers’ prosperity. Gus Dur is the founder of the PKB (Partai Kebangkitan Bangsa) and part of Nahdlatul Ulama (one of the largest Islamic organizations in Indonesia), an organization to which the majority of Muslim villagers in several regions in East Java also belong. The election of Gus Dur was the starting point for villagers tobecome more courageous in expressing their opinion. Their feeling of self-confidence increased because their greatest kyai became president. The villagers also feel that a more democratic environment and their feeling of self-confidence have had an influence on prosperity. The koleman tradition has had an influence on the mobility of the villagers in both Semampir

and Bulu. Koleman is a term used by the villagers of Kabupaten Probolinggo for marriage or circumcision celebrations. In contrast to the usual celebration, koleman is binding in nature. It is obligatory for someone who is invited to a koleman to come and if they’re prevented from coming they must give money. Although there are no direct sanctions for people who do not come or do

not give money, social sanctions, such as a feeling of embarrassment or being in debt, make koleman compulsory for the villagers. To attend a koleman villagers sometimes have to borrow money or pawn their belongings. The costs involved means most villagers are not able to save. As is the case with other ceremonial traditions, the koleman tradition is also difficult to leave behind, because although it has an influence on community economic mobility, the villagers feel that koleman is part of their reciprocal community obligations. Aside from the economic perspective, koleman actually represent social capital that can strengthen the familial relationship between villagers. The availability of capital is an important issue in both villages to improve prosperity, especially

in Semampir, as many villagers are entrepreneurs, especially as traders. This makes the availability of finance institutions as capital providers very important for the village. Banking facilities are available in the capital at the present time. There are several banks, both private as well as government. A private bank has opened a branch that can be accessed easily by all of the traders who can provide their kiosk ownership certificate as collateral in order to obtain loans of up to Rp10 million. Although some villagers have benefited from the bank, more villagers in Semampir borrow from moneylenders. This is because some of the community feel unfamiliar with banks, and still consider banks too formal for them. There are a lot of moneylenders and they are ready to loan money whenever the villagers need it. In Bulu, the major source of credit for villagers is still neighbors or relatives. There are also moneylenders called ‘mobile banks’. The pitfall of moneylenders is their high interest rate, which can result in the community falling into poverty rather than enhancing their prosperity. Community organizations, like Muslimat in Bulu are also the villagers’ center for obtaining credit. Although the banks are not too far from the village, only a minority of villagers have access to a bank, both for saving as well as borrowing money. A lot of villagers still think that doing business with banks is very complicated and too formal, so they more often choose non-formal finance organizations.



In Semampir the local democratic functions have been improving over the last ten years. Freedom of speech is much improved, with more than half of the respondents having attended a community meeting and having control over all personal decisions, and up to half having joined a campaign. However only a few people have attended BPD meetings and involvement in

decision meetings is less now than ten years ago. With regard to women, however, the community and families in Bulu still limit women’s freedom. Although a lot of women nowadays have started to work and this has had a significant impact on improving the prosperity of the villagers, the limitations range over several issues starting from social relationships, education, and even looking for work, as a lot of villagers consider a woman’s position to be in the kitchen.

Despite the fact that community prosperity has improved people’s welfare during the last ten years, the mobility matrix also shows that some people have remained trapped in poverty, and even if they moved up, they failed to move out of poverty. The monetary crisis (known as ‘krismon’ resulted in an increase in the price of basic commodities and was felt by all the villagers. As a result of the crisis many traders in the Semampir market went bankrupt. This was because the value of capital fell, while their income declined. Commodity price stability is necessary for the traders in the Semampir market. Villagers in Bulu who 10 years ago were generally farm laborers and becak drivers were very much affected by the monetary crisis. The rise in prices was not accompanied by a rise in laborers’ wages, and the income of becak drivers fell because of a drop in passenger numbers. In addition, from the year 2000 to 2005, the

government raised the price of fuel seven times causing rises in the price of essential commodities. The monetary crisis and the rise in the price of fuel have resulted in a decline in the welfare of the people. Other factors which hindered the movement of people in Semampir or caused falls has been the existence of red-light kiosks. Moreover, local governance functions are still poor with most officials involved in bribery and corruption and less attention directed to the community interest now compared with ten years ago.

FGD participants mentioned opportunity structure factors or community level factors that impeded people’s efforts to move out of poverty. This includes natural disasters (disease, rains) (Bulu), a fall in agricultural products (PD-F), rise in prices of basic necessities (Bulu-F), difficulty in finding work (Semampir-M), competition/no buyers (Bulu-M-F), koleman (Bulu), limited access to financial institutions (Bulu), and limitations on women’s freedom (Bulu)

This is evident from the negative value of the net prosperity of the rich index of NPR in Semampir = -0.13 and in Bulu = -0.45, which shows a decline in the prosperity of the rich where more rich people have fallen than have moved up.

Box 7. A story of 41 year faller from Semampir

When I was little I never worked, I just looked after my nieces and nephews. When my husband had

his chicken business I never assisted him, because at that time my children were also still young.

I started to acquire my own income in 1990, after I moved to a new house. At that time, I wanted to work, wanted to have my own income, then I was ordered by my siblings to wash their clothes because

they were busy selling in the market. My three children at that time were also quite big so when I was washing they slept or played. From washing, I earned an income of Rp1,000 - Rp1,500/day, but I did not wash every day, at most once every 2 days. Having my own income was nice, if I wanted to buy

something I didn’t bother asking my husband, if I wanted to go out I could. If I didn’t have work it wasn’t nice because I had to keep asking him. Umi gave a value of +1 for her work washing clothes because her income was still small.



In 1994, Umi started a new business renting out plates and other kitchen equipment. Early on my

neighbor and friends invited me to join an arisan at Rp1,000/day, from this arisan I could get 3 dozen plates and glasses as well as pots. Previously, I hadn’t thought about renting out my kitchen equipment. But then my younger sister who had a bridalwear business asked me to hire out those

things. Because, at that time, my husband’s chicken business was also running well, I could provide a

complete set of kitchen equipment to hire out. At the time, I had 600 plates and spoons, 400 glasses, 5 large pots, 3 rice-cookers, 1 large wok as well as 10 trays. With every loan I received Rp50,000-

Rp100,000. This business was uncertain, there weren’t people organizing hajatan every month. When I was renting out plates, I still washed clothes, so my income rose. Umi gave a value of +2 for her prosperity.

The presence of the Paiton power station in 1997 had a positive impact on Umi’s work. At that time, a lot of people working on the Paiton project rented rooms near my house and asked me to wash their

clothes. At the time, I had 4 people paying me Rp50,000/month/person, so my monthly income was Rp200,000. The money I received was net, I did not need to buy Rinso and I did not need to iron.

Although I already had a fixed income, my husband’s chicken business went bankrupt and my

husband was only working in the timber business of his parents. For these reasons, Umi felt that her prosperity had not changed and was still rated as +2.

In 1998, Umi’s parents divided an inheritance, each child was given a kiosk in the market. I got a kiosk valued at Rp3,000,000. With capital of Rp100,000 my husband and I, who at that time did not have any certain work, opened a business selling cooked rice in the kiosk. I learned cooking from my

mother, because my mother also had a similar stall. When I had that business, I left home at 4.00am, cooked in the market and came home at 1.00pm or 2.00pm. Those times were good, in one day I

could earn Rp150,000, all 6 members of my family ate at the warung. When I was selling rice, my

husband and children also helped, because at the time my husband did not have fixed employment. This rice stall sincerely helped my family’s economy because my husband no longer had the chicken business. Umi gave a value of +3 for the time her stall business was operating well.

Over 4 years, the rice stall business went well. In early 2002, my husband went to Malaysia to look for work as a building worker. For the cost of his fare I had to borrow Rp6,500,000 from relatives. After

my husband’s departure I managed the rice stall on my own, assisted by my children after they came home from school.

Two months after my husband left, the rice stall started to lose customers, because in the vicinity of

the stall there were now a lot of rice sellers. When I first started selling rice there were only 4 sellers in the market, but in 2002 there were more than 10. In the market, most people who sold rice used

“dukun” because my warung wasn’t given “penglaris” (the first sale of the day) so no-one bought anything. From a normal amount of 5 kg/day, the amount went down to 3 kg/day, then to 2 kg/day until the amount I was cooking I ate myself because there were no buyers, in one day I was only

earning Rp20,000. The fall in the number of buyers at my stall occurred suddenly, I also do not know why. Because sales were quiet in the stall, I started to sell the kitchen equipment that I had, once every two days I sold my things to buy rice. I sold as many as 5 dozen plates, I asked my ‘bule’ (aunt) to

sell them in the market because I was embarrassed. In the end, I closed the stall because it was continuing to lose money. The closure of the stall sincerely hit my family’s prosperity, added to by the

fact that my husband only survived 5 months in Malaysia because he also could not find work there

and returned at almost the same time that I closed the stall. Umi gave a value of -3 for her prosperity at that time.

After my stall business closed, I no longer conducted a business, only washing clothes that were given by my relatives. The plates and kitchen utensils could no longer be hired out because they had been sold for daily food needs and the cost of the children’s schooling. Each day I was given Rp3,000-

Rp5,000. At that time I was scratching and those years were the worst of my life. I had to pay school costs and eventually I sold the things I had one by one to the moneylender. Umi’s prosperity

condition during these 3 years stayed at di -3.



In 2003 I sold the kiosk for Rp6,500,000. Most of this money was used to pay off debts when my

husband left for Malaysia as well as for food and school costs. When my husband left for Malaysia in 2002 I had borrowed Rp 4 million from my relatives.

Early in 2005, when my economic condition was poor, my husband was asked by his friend to

sell‘togel’ (lottery tickets). Because it did not need capital, my husband and I became ‘togel’ retailers. Selling ‘togel’ was easy, you didn’t need a stall, buyers came to my house the means of filling in the

‘togel’ was also not difficult, you just wrote the number given by the buyer, I was taught by my husband to write ‘togel’. In the space of one month, I had five sellers, each day I earnt Rp600,000-Rp800,000. I paid the togel“juragan” (owner) 50:50. Togelwas open every day, and closed only on

Tuesday and Friday. Every day I was given Rp25,000 by the “juragan” while my husband received Rp50,000. I used the money I received for everyday needs while the money my husband received was saved. If there was a buyer who won I also received a portion, usually from someone who won I was

given Rp5,000 and there was a winner almost every day.

If there was no ‘togel’ I got increasingly squeezed, from the ‘togel’ profits I could help my father with

an eye operation by contributing Rp1million. If there was no ‘togel’ sometimes my children could not go to school. After just five months selling ‘togel’ my savings were almost Rp10,000,000. Umi gave a value of +3 for her prosperity when she was selling ‘togel’.

In order to protect my husband so he wasn’t arrested when selling ‘togel’, every day my husband or I paid the police at least Rp100,000. If the payment was late, 2-4 police officers came to my house to

ask for it, a lot of money was paid to the police. At the time I was scared that if we didn’t pay the police my husband would be arrested.

After the ‘togel’ had been running for five months, and exactly 15 days before the interview was undertaken, the ‘togel’ business had to be closed down. The boss ordered my husband to stop selling ‘togel’ temporarily because if we were arrested by the police they could not be redeemed. I heard that

in September ‘togel’ will be allowed again. At the moment I am not feeling the impact of the loss of the business. To meet my costs I am now using my savings of Rp10million. I also still wash clothes for my family, and my husband occasionally helps my parents carrying timber. I am optimistic that ‘togel’

will run again, they said in September. If there is no ‘togel’ I will try something else. (Umi’s face appeared calm without a hint of concern). Umi evaluated her prosperity as +2 at the present time. I am a member of the women’s arisan in this RW. The benefit of the arisan for me was being able to

see other people’s houses. Previously, I didn’t know what the inside of the RW women’s houses was

like, after joining the arisan I know. In the arisan there are also savings and loans activities but I never borrow money. I joined the arisan to make friends, and improve my luck. Source: Febriany, Vita. Community Synthesis Report: Semampir, Probolinggo, East Java. 2006

The factors of individual and collective assets and capabilities causing trapped in poverty and falling into poverty

According to the results of the household survey, the main factors that impeded or lowered the welfare of the household in this area are no rise in salary (31%), uncertain employment opportunities (23%), and ageing (15%). A few mentioned lack of education (8%), business competition (8%), and no additional income (8%). In line with the household questionnaire, the Ladder of Life FGDs also looked at factors that were more focused on employment and income causes. Those are: no access to formal credit/no collateral/no collateral to seek additional credit (Semampir-F), exhaustion of capital (Semampir-F)/ insufficient capital (Bulu-M), debt entrapment (Semampir-M), difficulty in finding work (Semampir-M), unemployment (Bulu-M), bankruptcy (Bulu-F), business failure (Bulu), and having too many children (Semampir-M). Other factors mentioned related to social and psychology capabilities: Gambling (Bulu-M), drinking alcohol-getting drunk (Bulu-M), not being trusted



(to borrow money or goods, such as fertilizer: Semampir-F), the children get into mischief: borrow motorcycle and crash it and the parents have to replace it (Semampir-M), womanizing (Bulu-M), not being honest with one’s wife (Bulu-M), parent dies (Bulu-M), being lazy (Bulu-M, BP-M), relying only on inheritance and not working (Bulu-M), decline in work ethic

(Bulu-M), embarrassment to work, having a perspective on life of a sufi (Bulu-M), low level of faith (Bulu-M), and joining the koleman (Bulu) i. Material assets Lack of ownership on land and housing In most cases, the ownership of land and housing is important for increasing the level of prosperity. Based on household survey, however, 10 years ago 57% of the ‘chronic poor ‘and 67% of ‘fallers’ in low conflict areas did not own land. For the ‘chronic poor’ and ‘fallers’ in LcHg areas, the lack of ownership of land results in them being more dependent on their livelihoods outside the agricultural sector. The main livelihoods of ‘fallers’ in low conflict areas until now have been in the service sectors as unskilled laborers and farm laborers. In contrast to the ownership of land, all of the ‘chronic poor’ and ‘fallers’ owned houses 10 years ago. Lack of inheritance or failure to manage inheritance

Inheritances are one important way for the villagers to enhance their economic status. Parents usually give inheritances to their children in the form of land, houses, animals or cash. These inheritances are not given only when parents die, but are also distributed when they are still alive. These inheritances are usually given when a child marries, is starting a new business or is in a difficult position, such as paying off debts. One villager of Bulu, for example, pawned his rice field inheritance to start a mobile optical business, and with this business he was able to move out of poverty. Nevertheless, not all households can improve their economic status when they get an inheritance; this is still dependent on how these households manage the inheritance. One ‘chronic poor’ respondent in Semampir, in fact, had to sell a land inheritance to pay for medical treatment for her chronically ill husband. Inheritances that should be assisting in the enhancement of prosperity can be lost. A ‘chronic poor’ respondent in Bulu received 0.2 hectares of land from his ill father, however he had to borrow money to manage his land because he had no capital of his own. Lack of savings Having savings is a factor that can assist villagers to maintain their economic status as well as to improve their status. This is because savings have two functions, firstly as emergency funds that are used if there is an urgent need, including illness or other natural occurrences. The second function of savings is for use as additional capital to start a new business or to develop an existing one. The function of savings here can raise the economic status of a household. ii. Human capabilities

Low level of education and skills In general, the ‘chronic poor’ and ‘fallers’ in this district have low levels of education. They either did not graduate from primary school or only graduated from primary or junior high school. They did not continue their education because their parents could not afford the costs of schooling. Nevertheless, several have graduated from senior high school. A ‘faller’ who did not finish primary school and has a disability has skills as an automotive technician. He obtained these skills whilst working in a service station for four years and was eventually able to set up his own workshop.



Illness and death

Several ‘chronic poor’ respondents have experienced long-term illnesses. In addition to not being able to work, any household income is used to pay for medical treatment. The husband of one respondent has been ill for many years since they were married. She was forced to sell her inheritance and sell rujak and foodstuffs. In most cases, illnesses suffered by the ‘chronic poor’

cannot be detected and the cause is unknown so their medical treatment is not known. One ill ‘chronic poor’ respondent was ill with a stomach complaint. Several life stories indicated that they had been diagnosed with a black magic-related illness. Another ‘chronic poor’ respondent was left by her husband. He had been a civil servant, and died in 1994. Eventually she became a domestic helper because she had no skills. Another ‘chronic poor’ respondent had to care for her sick parents and children. No permanent jobs and small income In most cases the ‘chronic poor’ do not have constant work and their incomes are low, even though they may have tried to change jobs several times outside the city. For example, a ‘chronic poor’ respondent in Bulu has changed jobs six times, from being a farmhand he changed to being

a servant. He then worked as a construction worker, a becak driver, sold rujak and eventually returned to working as a farmhand. Another ‘chronic poor’ respondent changed jobs several times. He was originally a duck breeder, then became a debt collector, a construction worker, a driver’s assistant for Paiton (electricity project), becak driver, and a bricklayer’s laborer. As another example, a ‘chronic poor’ respondent has been selling tempe for his entire life. Although he has an inheritance of kedokan (to rent land that will be planted with tobacco) from his ill father, he does not have his own capital and is forced to borrow. Many competitors and bankruptcy One factor that results in people remaining trapped in poverty the impact of a many competitors in a marginal business. For example a rujak (fruit spices) trader in Bulu had a lot of business competitors who also sold rujak in his area, with the result that his sales declined and he decided to close and go back to working as a farmhand. A ‘faller’ in Semampir, because he had many competitors, the automotive service station that he owned did not have many visitors. This caused a drop in his prosperity. Another ‘faller’ in Semampir suffered a decline in her prosperity because her husband’s poultry business went bankrupt. A ‘faller’ who was a rice trader also went bankrupt because she had many competitors. At the time she started there were only two traders while in 2002 there were ten traders. He believed that the other traders used penglaris (black

magic) so that buyers decided to buy their rice from these other traders. Loss of jobs The loss of work is a factor that results in one being a ‘faller’ or ‘chronic poor’. This has the same effect as bankruptcy for businesspeople. One chronic poor respondent lost his job because his work place closed and he had to look for a new job. He lost the opportunity to improve his prosperity. A ‘faller’ lost his job because someone else replaced him. He assumed this was because it was known that he had re-married. 2. High Conflict and High Growth Areas (HcHg)

14

Kampung Pisang is a community that was categorized as being in high conflict and high growth districts with better opportunity structure. Kampung Pisang is located in the middle of the City of Ternate. Before the capital of Kabupaten West Halmahera was moved to Jailolo in 2004, Ternate was the centre of three administrations. It was the administrative centre of the City of Ternate, the capital of the Province of North Maluku, and the capital of the District of West

14

Mostly quoted from the researcher’s analysis on CSR of Kampung Pisang (see Mawardi, 2006).



Halmahera.15 It is not surprising that some people called it the “city of bureaucracy”. For that

reason the Ternate economy is characterized by an extremely large public sector. Besides being a city of bureaucracy, Ternate is also the centre of economic activities in North Maluku. In Kampung Pisang itself, approximately one third of all household heads are employed as civil

servants or workers in the private sector. Others seek their livelihood as traders, laborers, farmers and workers in the informal sector. With the economic crisis, followed by a conflict that caused many evacuees to move to Ternate, various new fields of employment appeared. These included jobs as ojek drivers and small traders, running food stalls, or selling basic household necessities like fuel and snack foods . Hence the dynamics of economic life in Kampung Pisang cannot be separated from the dynamics of public life in Ternate. Along certain stretches of the road, the economic activities of the formal and informal sectors are also to be found, like photocopy kiosks, shops selling basic necessities and food stalls as well as retail sellers of fuel and petrol and the like. Clean water for the community’s daily needs is also available and it comes from dug wells and from PAM (State Drinking Water Company). Electricity has also been available for the last 10 years. On the social infrastructure side, however, only junior high school is now available, there is no elementary or senior high school. Because access to other parts of the city with school facilities is very easy, people are able to find excellent schools in surrounding areas. In regard to the health facilities, there is no puskesmas, but the Ternate public hospital is located

only 300 meters from the boundary of the community and the people therefore have easy access to health services. In addition there is a village midwife and two doctors in private practice. The national television and radio stations have been accessible to the people in the community for the last ten years. There is no large industry in Ternate. The industrial sector consists only of small-scale industries,

such as the making of foodstuffs (cakes), clothing and metal handicrafts. Nevertheless, the city is the centre of trade for the Province of North Maluku. Most of the commodities produced by North Maluku (plantation crops, fish and forest products) are traded or exported through Ternate. This city is also the distribution centre for goods that come from outside the region, especially from Surabaya and Manado, and are intended for the whole of the North Maluku region. For that reason the trade sector makes the largest contribution to the Gross Domestic Regional Product (GDRP) of the City of Ternate. In 2001, one third of GDRP came from the wholesale and retail trade sector. With the 1999/2000 conflicts, the GDRP for 2000 experienced negative growth, but in 2001 the economic situation began to improve. The FGD’s results clarifiedthat the economic crisis (1997/1998), the series of conflicts (especially the White-Yellow and the White-Red in 1999/2000) and the increase in fuel (BBM) prices in March and October 2005 have had a strong negative impact on prosperity levels. All of these external occurrences have been outside the control of the people, who have been the victims of events and policies of a much wider scale. The economic crisis and the rise in fuel prices, which caused the prices of daily necessities to soar meant that community welfare declined in the short term, at least until a new balance was reached. At the present time, now that a new economic balance has been achieved, the effects of the economic crisis on community welfare mobility are minimal. The rise in fuel prices however was the economic policy with the most widespread negative impact, especially among poor groups.

16

15

Although the capital of the District of West Halmahera has already been moved to Jailolo, almost all of its civil servants still reside in Ternate.

16To overcome the effects, the government has given compensation in the form of direct cash transfer to

the poor since the end of 2005. In view of the fact that MOP research activities in Kampung Pisang took place in August 2005, this report cannot make any comment on the impact of the new policy on the level

of welfare of the poor in Kampung Pisang.



With regard to the conflicts, the direct impacts experienced by the people of Kampung Pisang were the burning of hundreds of houses and other assets and the killing of a number of persons. In the case of the White-Yellow conflict, most of the people of Kampung Pisang (Moslems), especially women and children, were forced to evacuate the area for between one week and one

month. At that time all economic activities came to a halt for about one month, while in the case of the White-Red conflict, the Christian Kampung Pisang residents were forced to flee to outside areas. Many of them have not yet returned to Kampung Pisang. Quite apart from the evacuation of these two communities, the City of Ternate itself, including Kampung Pisang, became a refugee town for thousands of Muslims from Tobelo and other conflict areas. They remained in Ternate as evacuees until 2003.

In the economic sphere, these consecutive events have had an indirect impact that was experienced for a very long time. In general, the 1999/2000 conflicts in North Maluku had a strong negative effect on the economic welfare of local communities. The main economic players in Ternate evacuated, specifically the ethnic Chinese large-scale traders and other traders who are Christians. As a consequence, farmers could not sell their products and the prices for

high-quality commodities fell drastically. For three to six months, copra, cloves and nutmeg could not be sold or shipped anywhere because the situation was not safe and people were scared. Small and medium-sized businesses also stopped their activities for several months. These circumstances paralyzed the economic activities of Ternate, a city that is reliant on its position as a trading centre. Community activities ceased and people faced total stagnation in their jobs. The supply of goods from Surabaya and Manado, especially foodstuffs, was interrupted for around

five months with the result that the prices of everyday necessities increased significantly. Given this picture of the impact of the conflict, it is not surprising that its influence on the labor market was felt very sharply. At that time unemployment in Ternate soared and was above the average rate for the province of North Maluku and for the nation as a whole. Approximately six years have passed since the conflict but the negative impact on the welfare of the community is

still being felt. The women’s group said that, on the whole, community prosperity is now lower than it was ten years ago. One factor responsible for this situation is the increasingly narrow employment field. There are lots of people of working age who are not working because their education levels are insufficient. The difficulty of obtaining work appears to also be linked to lack of capital, because large capital is needed to obtain employment. As previously mentioned, one reason for this is that money is required to successfully pass the civil service test. Capital is also required to establish a business and this often cannot be sourced from one’s own business, instead one may have to await help from others. On the other hand, the men’s group believes that community prosperity is now better than ten years ago because the houses are better. At the present time (2005), the effects of the conflict on the livelihoods of people in Kampung Pisang are no longer immediately evident. The security situation and daily life have fully returned to normal. The houses that were destroyed have been rebuilt. Even though their condition is not of the original standard, houses are generally fit to live in. In fact, some houses that were once run-down have now been improved because of the government BBR program. In the case of economic activities, all livelihood activities have returned to normal. The PPK program was also mentioned as a positive factor that aided recovery. With all these developments in the community, however, the mobility matrix shows that the majority of the people of Kampung Pisang have experienced an increase in welfare, which is indicated by NPI=0.29, MOPI=0.42, NPP=0.46, and NPR=0.11. Even so, the mobility matrix also shows that there are still some people who have remained poor or who have actually experienced a decline in their prosperity.



Despite a good opportunity structure in Kampung Pisang, there are those who are trapped in poverty or have fallen into poverty. Conflict was repeatedly mentioned by life story respondents as the factor that kept them in poverty or resulted in them falling into poverty. For example, one ‘chronic poor’ respondent lost his job as a laborer loading and unloading boats at the dock

because cargo ships no longer arrived at the port. Another ‘chronic poor’ respondent had to leave her cake business behind due to the conflict. The conflict also resulted in their houses being burnt down and destroyed. Although there is a relatively good opportunity structure in this district, it appears that life stories respondents considered work opportunities to be limited. This situation was exacerbated

by the large number of refugees who came to this area after the conflict who added to the competition for existing work opportunities. In addition, respondents also acknowledged that apart from post-conflict programs, when they have been in difficulties in the past there was no government assistance and they had to resolve their problems by themselves. FGD participants in Kampung Pisang did not mention opportunity structure factors or

community level factors that impeded people to move out of poverty. Apart from these conditions at the community level, there are also the factors of individual and collective assets and capabilities that continue to impact mobility. The factors of individual and collective assets and capabilities that cause people to become trapped in poverty and fall into poverty

According to the results of the household survey, the main factors that impeded or reduced the welfare of the households in high conflict and high growth areas are uncertain employment

(44%) and unemployment (26%). Some respondents also mentioned other factors like no salary increase (11%) and ageing (7%). These factors have been grouped into individual and collective assets and capabilities. FGD participants in Kampung Pisang only mentioned several factors, including insufficient capital and not possessing a strong will to succeed. i. Material assets Lack of ownership of land and housing

Ownership of land and housing ten years ago is estimated to have provided the capital for households to improve their prosperity. Based on the household survey, however, ten years ago 56 per cent of the ‘chronic poor’ and 35 per cent of ‘fallers’ in high conflict areas and high growth areas (HcHg) did not own land. In addition, half of the ‘chronic poor’ did not own houses. For the ‘chronic poor’ and fallers in HcHg areas, especially in urban areas, land is considered to be less important as they do not depend on the agricultural sector for their livelihoods. As a comparison, all ‘fallers’ in HcHg areas owned houses ten years ago. This indicates that poor households that do not own land and housing will find it difficult to improve their prosperity. In addition, because all ‘fallers’ already owned houses, the ownership of land and housing does not affect their fall in prosperity. Limited capital The business activities of poor households in general, both agricultural and non-agricultural, are still subsistent and marginal in nature, so it is not possible to raise capital from internal business activities. It must be obtained from external sources. Without the existence of external sources of capital, business owners will not be able to boost their business activities. . In the past households had their own capital to run their business undertakings but now they have to wait for external assistance before initiating a new business undertaking. This indicates that access to capital is a serious problem for the lower groups in the community of Ternate in general and of

Kampung Pisang in particular.



In fact, the City of Ternate has many financial institutions, both banks and non-banks, that should be able to overcome this problem. However, the presence of financial institutions in the areas where the poor live does not always guarantee access to capital for the poor who wish to expand their business. In most cases, the poor cannot access credit because they cannot meet the

lending requirements and network connections (having an acquaintance in the bank) to obtain credit. Within certain limits, the small scale of their economic activities represents the factor that makes it difficult for poor households to move out of poverty. One respondent said that the process of obtaining credit from government programs was too involved and he had to go through a process that was rather lengthy. ii. Human Capabilities Low levels of education and skills

Most ‘chronic poor’ respondents had gone on from junior high school to complete senior high school. Those with a senior high school education or higher usually expected to obtain employment in the formal sector, but this has become increasingly difficult with the influx of newcomers. In order to become a civil servant, one needs capital as an informal but compulsory

requisite. For that reason, those who did not have such capital went into the informal sector. Those with a junior high school education need adequate skills to take advantage of opportunities in the informal sector. Furthermore, the large number of senior high school graduates entering the informal sector has led to limited work opportunities. Adequate education and skills are necessary, especially in areas with good opportunity structures and tight competition because there are a lot of people with higher levels of education. Low income, income not fixed, work without variations

The main forms of employment for ‘chronic poor’ respondents are casual construction work, as dockworkers, or small-scale vegetable farming. On the other hand, the main livelihoods of ‘fallers’ in high conflict areas are as farmers, and unskilled laborers and traders in the service sector. This work provides low incomes and is often uncertain. These workers are unable to accumulate assets and remain trapped in poverty. iii. Social and Psychological Capabilities

The death of the breadwinner One ‘chronic poor’ respondent in this district mentioned the death of her second husband, who was the main breadwinner and was killed in the conflict, as the reason for the fall in her

prosperity. Moreover, this event came after he had been laid off from the timber company, and after her first husband left her. Unfortunate events

Life story respondents also mentioned unfortunate events, such as conflict and employment termination as factors that did not allow them to improve their prosperity or that resulted in it falling. Womanizing One chronic poor respondent has three wives simultaneously; two of them are not living with

him. He has 16 children between the three wives and all of them are still dependents. He married his second wife when he was working in Ambon and his first wife stayed in Ternate. He married the third wife when he was working in a different district. Although the respondent did not indicate that this was the reason why he was trapped in debt, the state of his welfare level is still of concern. He has reasonable work as a stevedore at the port and also as a scrap metal trader, but because he has so many dependants his economic prosperity has not risen. Another



‘chronic poor' respondent related how she divorced her first husband because he married again. This resulted in her prosperity falling. Poor household financial management

In the midst of urban life, which tends to be consumptive, the factor of bad management of household finances can cause a household’s prosperity to decline, if the household is unable to adjust expenditure to income. Households of this kind cannot arrange their needs according to a scale of priorities. They cannot differentiate between needs that must be met immediately and

needs whose fulfillment can be postponed. Gambling and alcohol

As the transition towards urbanization proceeds, it is accompanied by the negative factors of an explosion in illicit gambling practices and alcohol consumption. For lower class households, the existence of these factors can consume a rather large proportion of their income. As a consequence, poor households with a barely adequate income can fall even further into severe poverty.



IX. CONCLUSION AND POLICY IMPLICATIONS

A. CONCLUSION North Maluku (high conflict areas) and East Java (low conflict areas) were selected because both have experienced conflicts. However, there are some striking differences between these regions that contributes to the variations in prosperity and mobility. This is important to understand the change in community and individual prosperity in both areas in the last ten years. The sources of income and the commodities grown by the people in rural areas. The

majority of the people in low conflict areas rely on seasonal crops such as tobacco, rice and various secondary food crops, which they plant in rotation, while in high conflict areas, primary crops and secondary food crops are grown. Farmers frequently experience a deficit as a consequence of agricultural production costs being higher than the selling prices. The result is that they have to borrow at high interest rates. ‘Being in debt’ has become an important survival strategy in these villages. The majority of villagers in one community earn their

living as fishers. Fishers must face a lack of fish in the dry season and the import of fish from outside the village, which causes local fish prices to fall. In addition to that, even though the majority of community members in both areas are farmers, there are more civil servants in high-conflict areas than in low-conflict areas. This indicates more people receive a fixed income in high-conflict areas. Both areas also have different ethnic

backgrounds and religions: almost all of the people in the communities in low conflict areas belong to the Madurese

1 ethnic group and almost all are Muslims, with Christians

successfully integrated. Communities in the high conflict areas have either a Christian or Muslim majority, and are from local ethnic groups in the areas of Tobelo, Tidore and Sahu. In the areas of high conflict, Muslims and Chrisians live in seperate RTs or hamlets. In addition, the community in low conflict areas is extremely respectful of kyai (Islamic spiritual

leaders) and people strive to obtain their blessings. Success in life is always connected with the blessings of the kyai, and so parents usually send their children to pesantren (Islamic boarding schools) rather than public school. In regard to population, all sample communities in low conflict areas have experienced a population increase over the past ten years. In the high conflict area, three communities experienced a population decline and two experienced an increase. The population changes in the high conflict area are a result of the conflict that occurred at the end of 1999 and the beginning of 2000. Apart from the factors of safety or conflict trauma, mainly economic factors encourage people from the villages in both regions to migrate out. Because of the conflict, many more people in high conflict areas migrated to other areas for more than 2 years. The last difference betweem the two areas is related to regional development. The low conflict area is located in Java, which is considered to be more developed and close to the capital and central government attention, while the high conflict area is located off Java in a remote location, and was neglected by the central government before the disturbance occurred. Several new administrative districts have been created in the high conlict area, which has provided more economic and employment opportunites, but has also caused competition due to the large numbers of newcomers.

1Madura, (where the village of Bulu is located), is a small island located off the north coast of Java. It is

part of the Province of East Java.



There are several differences in relation to conflict typology and trajectory. The conflict variations in these two regions reflect the level of conflict variation throughout Indonesia. This ranges from very mild conflict only involving small numbers of people to highly violent conflict that involves large numbers of people, and causes great losses to property, and

injuries and deaths, which receives national attention. In high conflict areas the first and the only large scale, high intensity conflict (scale 6)

2 occurred in 1999/2000, and was

experienced by the people in all communities. This was not an internal conflict, but rather was a widespread socio-political conflict that finally became a religious conflict between Christians and Muslims. The conflict began from an issue comprised of diverse elements, specifically the existence of a group that wished to control the region. The communities

living in the villages mentioned above, both Christian and Muslim, attempted to avoid the conflict by evacuating to safer areas. The villages became an arena for fighting between Christian and Muslim groups originating from outside the villages. Before this conflict Christian and Muslim groups within the research villages had lived peacefully side-by-side. The fighting in these villages lasted for only a few days, although the conflict as a whole went on for three years. The villagers continued to reside in places of evacuation during that

period. The Muslim community had evacuated to Ternate and was unable to protect their assets back in the village. They lost all of their sources of livelihood; the coconut, cloves, nutmeg and cocoa gardens that had hitherto been the community’s main source of income were neglected, destroyed or burned, or else their produce was stolen. Farmers suffered the greatest losses in this conflict. Their farming equipment was taken and during the tensions they were unable to go to their field, as they were afraid of being killed. Traders had to start

from scratch, as their business premises and commercial commodities were burned and their copra destroyed. Fishers were in the same position, as their boats were destroyed. Tradespeople’s tools had been damaged. Public servants had their livelihoods protected as they continued to receive their salaries even while they were evacuated. According to the community, the members of the army who rose greatly in status and entrepreneurs who were able to increase their business activities gained the most from the conflict. When army

members accompanied farmers to the fields to collect their agricultural products in safety the farmers had to share the produce with the army escorts. Members of the army and the police, as well as village officials also profited when they bought cattle in the village at low prices and then sold them in Ternate for a high return. When the conflict ended and the villagers returned, they faced the bitter reality that their houses and other assets had been destroyed. It is clear why the people saw post-conflict assistance programs, especially the government’s housing materials assistance scheme (BBR), as being central factors that enabled them to re-start their lives. the experience in East Java is less associated with communal conflict and more with a recurrent high level of crime, this includes the killing of black magic practitioners (dukun santet), the fighting over management of an organization, the hijacking of fishermen’s vessels and nets, and fighting in soccer games.

The negative impacts of conflict in North Maluku, however, disappeared when the mobility of community and individual prosperity was analyzed. One reason is because the analysis compares the prosperity of only 1995 and 2005, and does not take the years between into account. The study was not conducted immediately after the conflicts ended but after resolutions were made and after the government provided post-conflict programs. These

programs helped the communities recover, which was recorded by respondents and informants in. The community timelines and individual life stories recorded all the important events and factors, and the level of prosperity experienced by the household, however the analysis focused on 1995-2005. The events and levels of prosperity in the intervening years were only used for explanation if necessary. Moreover, during the FGDs

2 Scale 6 = the occurrence of fighting, community protests or demonstrations that involve very large

numbers of people and cause great losses of property as well as injuries and victims.



with both men’s and women’s group, the study only asked for a comparison of prosperity and other developments (among others power, freedom, democracy, governance) between now (2005) and then (1995).

When discussing community and individual prosperity, FGD participants, household survey and individual life story respondents and informants always refer to economic aspects like physical infrastructure, employment, and assets. They almost never mention local social factors like social capital, freedom, power, democracy, and governance. During the discussion, FGD participants often cannot find a link between those factors and moving out of poverty and prosperity. Men’s and women’s groups who participated in FGDs made

different assessments of the changes in the level of community welfare, and of changes in the difficulty or ease of making a living. In general, the women’s groups in low conflict areas were optimistic in their view that their communities have experienced an increase in welfare over the past ten years, while members of the men’s group mostly believed that community prosperity is the same or lower. Areas of high conflict as a whole they have experienced improved prosperity, even though they experienced heavy conflict. Moreover, all household

data related to the ownership of assets like land, houses, motorcycles, colored television sets and the availability of electricity in houses indicate that the economic welfare of the community in all areas has risen. Unlike the community view that is based on economic conditions like income and employment, and the availability of electricity in houses indicates that the economic welfare of the community in all areas has risen.

The summary statistics using the mobility indices support the women’s judgment that generally all communities have experienced enhanced prosperity. This is shown by several positive indices (NPI, MOPI, MPI, MRI, NPP, and NPR). However, there is a counter intuitive finding that Net Prosperity Index (NPI) and Moving Out of Poverty Index (MOPI) suggested opposite movements between low conflict and high conflict areas. Both regions have a positive Net Prosperity Index (NPI), which shows the net upward mobility, but the

NPI in low-conflict districts is higher than the NPI in high-conflict districts. However, high-conflict districts have a far higher MOPI, which captures only upward movement across the poverty line. This phenomenon shows that more poor community members have successfully moved out of poverty in high-conflict areas compared to low-conflict areas. In low conflict areas there was upward movement, but this did not successfully push the poor above the poverty line. The Net Prosperity of the Poor (NPP) and the Net Prosperity of the Rich (NPR) indexes confirms this, where NPP in low conflict areas is high but the NPR is negative, and in high conflict areas the NPP is also high and NPR is positive. These findings can be explained by the presence of post conflict restoration programs and the regional subdivision in high-conflict areas, which create economic opportunities, while the low conflict areas are heavily reliant on community initiatives and lack both government and non-government programs.

During the last ten years the communities in low conflict areas have enjoyed infrastructure developments, such as road improvements, village electrification, provision of clean water,

the construction of wharves, and the building of an agricultural produce market. Improvements in the agricultural sector have led to better harvests. For example, there is an adjustment of planting seasons so that the rice and tobacco harvests did not fail and the introduction of new crops in the areas, like chili. For years farmers heavily depend on tobacco. They have been experiencing the crop failures caused by irregular seasons and drought. However farmers have also experienced falls in prices for agricultural products and unstable

prices for major inputs. In addition, productive farmland has been appropriated for housing and office developments. While this construction has created jobs for some members of the communities, it has created problems for farmers. Fishers still face the long present obstacles



such as irregular seasons, quarrels over fishing areas, the import of cheaper fish from Java, criminal activities like the entry of trouble-makers from outside the village and sea pirates. Like communities throughout Indonesia, community members in low conflict areas experienced the impacts of the monetary crisis and removal of fuel and electricity subsidies,

both of which led to a rise in the price of basic necessities. While community members mentioned the presence of a cigarette factory and a new housing complex have created employment opportunities for women. However, there has been an overall reduction of job opportunities due to the closure of infrastructure projects, an influx of workers from other villages for construction jobs, an increased population competing for fewer available opportunities, now it is increasingly difficult to obtain work overseas, and the introduction of

machinery which has reduced the need for agricultural laborers, limited work as civil servant or other fixed salary jobs. Before the conflict occurred, high conflict areas benefited from infrastructure development such village electrification, the provision of clean water, and better access to schooling, however the improvements have been slower than in low conflict areas. Since returning to

their villages, communities have been assisted by post conflict restoration programs concentrated around the reestablishment of housing, road improvements, and increasing access to business capital. In addition, the regional subdivision and the formation of new districts in 2003 had a positive impact on the village by providing job opportunities. These positive forces appear to have reduced the impact of the high-intensity conflict Security conditions are now conducive to progress. The monetary crisis in 1997/1998 raised the value

of agricultural export commodities, which led to an increase in income for farmers in the high conflict areas. However, it is now more difficult to obtain jobs due to the stiff competition for work. Many companies were closed down because of the disturbances, and newcomer numbers are continually increasing. While people in the low conflict areas have enjoyed the existence of private employers for the last ten years, there has been a lack of private employers in high conflict areas. In these areas, obtaining work with a private

employer is almost impossible, unless job seekers migrate to other areas. In addition, many people do not have sufficient education as a consequence of the high cost of education, and those who passed senior high school and vocational schools find it difficult to find work. Today there is more collusion, corruption, and nepotism so it is difficult to become a public servant – there are lots of young men and women with no backing. Both government and private circles do not give very much attention to the problem of unemployment. The community members in high conflict areas also experienced the impact of removal of fuel and electricity subsidies, which caused the prices of basic necessities to rise. In both areas the traditional livelihoods such agricultural labor are no longer of interest to most villagers. In low conflict areas the people who used to work as farm laborers are now old and the young people in the village do want to do the work, they prefer other jobs like washing clothes. As a consequence, if landowners need to employ laborers for rice cultivation, they have to look to other districts. On the whole the young people, both male and female, want to have work of a fixed nature. The majority of those who answered said that they would like to be a public servant. This was followed by a job in a private company or as a private businessperson. By “fixed” they mean work that is undertaken in a regular manner and with a fixed salary or wage as well as continuity. The social stratification in this study is mainly based on economic aspects, which is slightly more stratified in areas of high conflict than in areas of low conflict. The study found that this higher social stratification did not hinder community prosperity mobility. In areas of low conflict, especially those of low growth, existing social stratification is a combination of open economic stratification, and closed religious-political power stratification.



Although communities in high conflict areas are more stratified than those in low conflict areas from the economic point of view, many communities possess good social capital. Only a few community members said directly that the social capital elements of security and social relationships have played a part in influencing community prosperity. In low conflict, high

growth areas, social ties, called koleman, tighten social capital but also burden community members with an obligation to contribute cash for special occasions. The majority of respondents are members of at least one organization in the village, with religious organizations as the type most frequently joined. The number of local organizations in areas of low conflict is greatest in two high growth communities, where religious associations are dominant. It is apparent that in areas of low conflict, the greater the participation of the community in organizations and groups, the higher the NPI and MOPI of that community. This tendency, however, does not always apply in areas of high conflict. The religious groups that exist in almost all areas and are regarded as important may or may not have influenced community mobility. It is possible that they did so if their activities were able to tighten the community’s social capital, or economic activities like arisan (rotation savings groups) were undertaken to the point where they ultimately influenced the opportunity structure and thus affected community mobility. Another matter that warrants investigation is the extent to which these groups and organizations are themselves active. Not many economic organizations have developed in the two areas. In low conflict areas, the initial capital used for farming activities was predominately acquired through loans from friends or relatives. People

have thought about establishing a tobacco cooperative but it is hard to find trustworthy managers. In relation to the local democracy, it is improving at the village level but not fully functioning at the district levels. The majority of respondents in both areas said they now feel that they have freedom to speak and express opinions about various problems as they

wish, which they could not have done ten years ago. The community had become increasingly daring and critical and there were several mechanisms available for open discussion and representation. The changes have affected their prosperity. The communities consider that the elections for village head that were held in all sample communities in rural areas

3 during the past ten years were run in a fair manner. The election of district heads and

mayors (Pilkada) in high conflict areas are also believed to have been conducted in a fair manner. In spite of this, the respondents commented that candidates often misrepresented themselves, after being elected, some successful candidates did not help the community even though they had made lots of promises. The villagers believe that political access in their village, but not at the district level, is steadily improving because important decisions are increasingly made after community consultation, either directly or through representatives. However not all village representative bodies (BPDs) include members from all elements of the community, such as women and the poor. Less than half of the respondents believe that they are able to control all their personal decisions. In regard to the local governance, it is not functioning well, especially at the district level and in fact this has impeded community mobility. For example, in both areas, infrastructure projects that were implemented between 2001 and 2005 were limited. In low conflict areas, most of the project designs, and implementation and management of the projects involved the community. The projects in high conflict areas tended to be programs initiated and implemented by the central government. Only one community had projects that were implemented and initiated by the village apparatus. However despite these functional

3In Indonesia it is only in rural areas that the village head is chosen directly by the people. In kelurahan

(villages in urban areas), which in this study means Semampir and Kampung Pisang, the head of administration is a public servant who is appointed by a higher-level administration.



limitations, respondents in most communities feel that the local government attention to the interests of community members is greater today than it was ten years ago. In the household survey, in-depth interviews, and FGDs, respondents said that most

government officials at the district, provincial, and the national level are currently engaged in bribe taking and corruption . Nevertheless, most communities feel that there has been little or no corruption at the village level. If there is any corruption in the village administration, it is considered to be on a minor scale involving only small sums of money, and a decreasing trend. There is almost no corruption in the village government but a small number of government officials at the district and city level and a large proportion in the

provincial and central governments are involved. Although most people believe that there has been corruption and bribe taking on the part of the majority of government employees, most respondents still have trust in district-level government officials and in central government officials. It would seem that people do not care very much about the corruption and bribe taking that occurs so long as they receive the services that they want.

The estimation result from the quantitative analysis suggested that from the changes in community conditions between 1995 and 2005, three variables are significant negative correlates: local government increasingly taking the residents' concerns into account, easier access to information regarding government programs, and conflict. Explaining the first two results is not easy, since better responses to community concerns and access to information in a community are thought to aid movement out of poverty. However, the third is evidence

that it is harder to increase prosperity in conflict-ridden communities. The results also show that living in a more peaceful community supports movement out of poverty.

In regard to the agency of the poor, given that the majority of sample areas are rural, the main livelihood of respondent households is farming. A position in the civil service brings in a fixed income and can lead to better prosperity. In low-conflict areas, there are no civil servants among ‘chronic poor’ and ‘faller’ households, while there are in high-conflict areas. Most male household heads in the ‘never poor’ group are aged between 51 and 60 years, which indicates that ‘never poor’ families tend to be older than other groups. The most

common age group among ‘movers’ is 31 to 40 years. Most female household heads are aged between 51 and 60 years. The proportion of ‘chronic poor’ and ‘faller’ female-headed households is higher than those who are ‘mover’ and ‘never poor’. Female household heads are generally widows. The two factors which can account for the falling economic state of households where the husband has died are the high level of dependence that a wife usually has on her husband, combined with the lack of social security for widows in Indonesia.

Nevertheless, some female-headed households have maintained their wealth (‘never poor’), or have become ‘movers’. Several factors have helped them achieve this. Households can survive financially if the woman has an independent source of income and was not financially dependent on her husband. These women generally had been working since before they were married. Interaction with the community, both in group activities and general community involvement can also help, however, or with the general community, can

help them succeed. However as there is generally a culture of patriarchy in the community, in order to be involved in their community, women must also possess self-confidence. In addition, although there is no special social security program for widows, there are empowerment programs aimed at widows or women in general. These empowerment programs can also help female heads succeed.

The estimation result from the quantitative analysis suggested that there are two significant household control variables: ownership of assets and ownership of land in 1995, which are positively correlated with moving out of poverty. This shows that ownership variables are important ways to enable the poor increase their welfare. Qualitative analysis shows capital is



often mentioned as a factor, which helped people mobility. Capital includes saving, inheritance, and credit. Saving is a factor that has assisted in improving prosperity, and is a result of the accumulation of one’s work. It is a continuing factor for maintaining prosperity. The types of savings varied between high-conflict and low-conflict regions. In high-conflict

areas, savings were often in the form of land, plantations and the ownership of livestock (cattle). In low-conflict areas, because the banking system is more developed, there are more respondents with savings in the form of cash in banks and with a greater value than found in high-conflict districts. Many FGD participants mentioned inheritance as a factor that impacted on the improvement of prosperity. Most life story respondents in low conflict areas mentioned that inheritance increased their material assets and improve their prosperity.

On the other hand, in high conflict areas, only few respondents (almost all are ‘movers’) stated that inheritance is important. Inheritance is generally in the form of agricultural land, vacant land, or a house. In regard to credit, chronic poor’ households in low conflict areas access the credit far more often than ‘mover’ and ‘never poor’ participants. In high conflict areas, however, access to credit is almost evenly spread across all mobility groups. According

to allocation of credit, more households access credit for business development needs than for daily consumption or essential needs. Most ‘chronic poor’ households in low conflict areas, however, have to meet their consumption needs by credit. Meanwhile in high conflict areas only small portions of ‘chronic poor household’ access these loans. Unlike loans for business development, respondents who borrow for essential needs and

consumption only do so to overcome their immediate problems; however this only leads to problems further down the track when the loan must be repaid. This mainly occurs in ‘chronic poor’ and ‘faller’ households. In low conflict areas essential loans were more taken out for ceremonial needs in line with koleman, such as for weddings, funerals, or for celebrating a birth. In high conflict areas, essential loans are more often used for long-term investment purposes, such as for education, medical expenses, and home improvement. Another interesting comparison is that in low conflict areas, the ‘chronic poor’ most often use credit for family weddings while ‘movers’ most often use credit for educational fees or for medical purposes.

The level of formal education obtained by household members positively correlates with mobility status and appears to have made a contribution to improvements in community welfare. In the specific case of the ‘never poor’ and ‘mover’ groups, the educational level of the household head tends to be higher than that of household heads in the ‘chronic poor’ and ‘faller’ groups. The level of education for communities in high conflict areas is better across all mobility groups than in low conflict areas. This is very interesting in view of the fact that low conflict areas tend to have better educational infrastructure than high conflict areas. There are several explanations for this observation. First, some households in low conflict areas (in East Java) are still prefer pesantren (Islamic Boarding Schools) to schools

that follow national curriculum guidelines. Second, in low conflict areas, those with higher levels of education tend to leave their village and look for work in a larger city. Those who are permanently settled are those who generally possess a lower level of education.

Formal education is not considered to be enough to raise an individual’s economic prosperity, however informal education and skills were suspected to influence prosperity, mainly for those who have an outside source of income such as civil servants or private office employees.

While all communities relied on the agricultural sector as for their primary livelihood and source of income, livelihoods outside the agricultural sector have helped the community move out of poverty and attain their prosperity. As an example, the ‘mover’ and ‘never poor’ groups in high conflict areas more often come into contact with the trade and business sectors, and in both regions, while the ‘chronic poor’ are very dependent on the agricultural sector. Besides the various sources of household livelihood, income from permanent workers’ salaries



appear to be a differentiating factor that is important for the status of household economic mobility. The household survey indicated that the proportion of ‘never poor’ households who have permanent work with regular salary is far above the proportion of other mobility status households, while the greater proportion of ‘chronic poor’ and ‘faller’ groups rely on the

salary of non-permanent workers. Almost half of the sample households in both high conflict and low conflict areas depend on two or more livelihoods, with the highest figures occurring in the ‘mover’ and the ‘never poor’ groups. Most of the households who were classed in the ‘chronic poor’ and ‘faller’ groups only had one source of income ten years ago. In addition to dependence on more than

one source of income or livelihood, work experience, changes in employment, the number of jobs ever held, the process of obtaining work, the age at which work was commenced, salary or income while working and other aspects connected with work experience are likely to have influenced the increase or decline in prosperity.

FGD participants mentioned that social and psychological factors influence improvements in

household prosperity more than economic factors. Social and psychological factors mentioned include: being highly motivated and industrious, possessing a strong work ethic, perseverance, ability to manage their finances and save, patience, determination, honesty, marrying someone who is rich, wide social network, having connections, joining arisan, and utilizing freedom and power.

Several social and psychological factors were identified as having the ability to hamper efforts to move out of poverty. These factors are bad habits, poor management of household

finances, inability to maintain their business, children who cannot manage a business left to them by their parents, not being trusted to borrow money or goods, womanizing, the death of a parent, laziness, being very stupid, decline in work ethic, vanity and feeling too self-important, having the life perspective of a sufi (low level of faith, join the koleman, carok, wastefulness), an extravagant lifestyle, arrogance, making false promises, children getting into mischief, limited network-work contact, and not being blessed by God with good fortune. Relationships within the family could support the maintenance or improvement of the household’s prosperity. The ‘never poor’ and ‘mover’ respondents felt the relationship with one’s parents and other relatives can influence prosperity because they provide financial

support, give advice and pass on business skills, and help manage household matters. Relationships with friends can bring about a positive change. For the ‘never poor’ and ‘mover’ respondents, business partners can help manage capital where profits are shared or through the provision and loan of goods, and exchanging business information. For ‘movers’, a good relationship with one’s superiors can lead to financial support, the exchange of

information, experiences, skills, and further work opportunities. The relationship with important religious and community figures is also an important factor that can affect people’s prosperity over time. This is especially so for most respondents in low-conflict areas who have an important relationship with kyai (Islamic religious leaders). The ‘never poor’ said that the level of prosperity that they had achieved was because of the

prayers and blessings of the kyai. For the ‘chronic poor’ and ‘movers’, prayers and blessings are needed to enhance their prosperity. In high-conflict areas, however, a relationship with religious or community figures was not mentioned as a factor that can influence prosperity. A good relationship with village authorities is believed to be capable of influencing someone’s prosperity. While respondents in high conflict areas did not often mention this, it



was common for respondents in low conflict areas to mention that a close relationship with the village head has the ability to effect prosperity. Household surveys indicate that ‘never poor’ have better access to information on

government programs and other information that has helped them with their livelihoods. The ‘never poor’ and ‘mover’ respondents in high conflict areas have better access to information on government programs than those in low conflict areas. The study indicates that some collective assets and capabilities have helped people to move out of poverty. FGD participants mentioned that joining a working group or economic

organization in the village has helped them. The farmers believe that participating in farmer’s groups has helped them to improve their prosperity. Household survey data indicates that in general, almost all respondents across all mobility groups in low-conflict areas participate in such organizations now, and also did ten years ago. The community participation rate in community organizations in high conflict areas is low. The ‘chronic poor’ have the lowest participation rate, while a high proportion of the ‘never poor’ and

‘movers’ get involved in such organizations. In high conflict areas, the aspirations of the ‘never poor’ and ‘movers’ are more often listened to than those of other groups. In high conflict areas most respondents from all mobility statuses have control over their personal decisions. In low conflict areas, the ‘never poor’ have the highest control over their personal decisions and ‘fallers’ have the lowest control.

According to the results of the household survey, the main factors that raise household prosperity are associated with employment, livelihoods, and income. The dominant factors often mentioned are: (1) doing the same work for greater returns; (2) finding employment, or finding better or more work; and (3) the addition of new income sources. In high conflict and high growth areas, the importance of becoming a civil servant was specifically

mentioned.

Despite striking difference in conditions among areas, it can be concluded that agency factors (individual and collective assets and capabilities) are more dominant than opportunity structure factors in helping people to move out of poverty and maintain their wealth. The individual assets and capabilities factors which are common include having access to capital, receiving an inheritance, gaining non-formal education and skills, receiving guidance from parents, possessing additional non-agricultural sources of income, commencing work at a young age and continuing to learn, working hard, possessing willpower and being motivated. The collective assets and capabilities that helped the ‘mover’ and ‘never poor’ are having a wide social network and social relationship. The agency factors only mentioned by respondents and discussants in low conflict areas are having a good relationship with kyai, asking for blessing from kyai, and always praying to God. An important agency factor for moving out of poverty that was only mentioned in high conflict areas is migration. While respondents in high conflict areas consider community participation and economic organization and support as important, the respondents in low conflict and low growth areas have never mentioned those factors as being important.

The study found that to be able people to move out of poverty, farmers, fishers and other informal non-permanent workers in both low and high conflict areas, must have: (1) skills; (2) motivation and will power to increase prosperity; (3) commence work at a young age; (4) work hard; (5) have working capital: land and tools for farmers, net or boat for fishermen, tools for carpenter and bricklayers, and cash for cake makers and small traders; (7) the desire to learn new things; (7) additional non agricultural income; and (8) a wide social network and social relationship.



In addition, there are agency factors which dominant mostly in low conflict areas; those are good relationship with kyai and asking for blessing from kyai and always praying to God. To be come a permanent employee, one must have (1) good formal education (minimum a high school graduate); followed by (2) connections/networking; (3 cash to smooth the process; and for them to be able to maintain their wealth they must have (4) additional income from agriculture and/or supported by family business; (5) possess hard work; and (6) sending the children to high school or tertiary institutions so that the children became their social security for the future. The community members are very vulnerable to various disturbances that can make them fall into poverty or trapped in poverty. Things like conflicts, natural disasters, monetary crisis, the reduction of subsidies can make the household reduce or lose their income. Apart from vulnerability to economic disturbances, they are also easily temped to the illness, which required high cost and for the informal sectors (farmers, fishers, carpenter, bricklayers, traders, and others) usually not covered by insurance.

B. POLICY IMPLICATIONS

On the basis of those findings mentioned above, the policies needed to raise the prosperity of the community and of the wider society include the following:

The Macro-National Level

1 Policies that offer security and certainty that there will not be a repeat of the disturbances. The central government has the lead role in providing such security, in view of the belief commonly held by community members that outside parties, right up to the national level, played a role in the disturbances. Programs developed by the government of non-government bodies should anticipate that local conflict may arise as an impact of the programs, and plan ways to avoid conflict or to overcome such problems should they arise.

2 Policies that guarantee the implementation of good and transparent central and local

government. The new district, with its new government, has provided the community with hope that good governance can be achieved, although they are still doubtful due to their past experiences. One effective way to achieve the implementation of good governance is by promoting community and individual participation in decision-making processes at the village and district levels, ensuring that both women and the poor are involved.

3 Creating employment opportunities for both men and women. In high conflict areas,

special efforts are needed to attract investors who left when the conflict occurred and to attract new investors. In all areas, employment opportunities can be created by empowering communities to develop home industries and small-scale business that hire local people. New opportunities for women in rural areas need to be created, given that the women were far more responsive than the men.

4 The need for spreading of growth centers, so regions far from the city centers can also feel

the effects of the development of new growth centers. These growth centers can be in the form of government offices, universities, commercial centers and industrial centers. The type of growth center is very much dependent on the conditions and potential of the relevant district, and should be developed in consultation with the community.



5 Developing and maintaining infrastructure, including physical, social, and information infrastructures. The presence of basic infrastructure such as roads and electricity has already enhanced the mobility. The government is encouraged to cooperate with the community in all stages of the development and maintenance of infrastructure.

6 Supporting farming enterprises, those who want to work overseas, and micro-small-

medium enterprises. Support for farming enterprises should be in the form of providing information and facilities for farmers. For example, farmers need information on alternative crops and markets, and support to increase their bargaining power. The farmers in low conflict areas have been highly dependent on tobacco which is a high-risk

crop. The farmers are mostly price takers as traders or factories determine prices. Those who want to work overseas need support and facilitation regarding information and procedures, the actual costs involved, the culture of their destination country, and details surrounding the work itself so that they are not exploited by employment agencies and employers. Support for micro, small, and medium enterprises should include the provision of information on products and demand, and how to process the products,

better use the natural resources, develop existing food enterprises, and products prices. 7 The government needs to re-think a modern system of credit which is appropriate for

rural communities. Many community members, especially farmers, were unable to repay their credit to the bank because of failed harvests. To overcome the classic problem of the availability of capital, it is necessary to improve the availability of funding facilities

like banks with easy access for the poor, or microfinance institutions with a more proactive approach to the community that provide low-interest micro loans.

8 Providing a social security system to protect people from falling into poverty and to

protect poor people from falling into greater poverty. Poor or almost poor villagers are very vulnerable to various disturbances, such as illness, natural disasters, and conflict,

which cause them to lose their source of income. They do not have savings or reserve funds to allocate to emergency needs given that they only look for enough money to eat for one day. The current social security provided by the government is of a project nature and is not flexible and accessible by poor families.

9 Special efforts are needed to overcome problems of alcoholism and gambling that occur

in almost all communities, and which prevent people from moving out of poverty and can even cause some to fall into poverty. The government and security authorities should force the law to ban the circulation of alcohol and gambling because in addition to the damage to the economy, the health and morals of the villagers are also damaged.

10 Women must be included in the design, implementation, and evaluation of programs

developed to combat poverty and other community projects. This will enhance women’s feeling of self-confidence, and on the other hand will open the community’s eyes that women in their village indeed have potential and can have a role in increasing household prosperity.

Community Level

1. Safeguarding and continuing to enhance the community’s feeling of security. The local apparatus and community need to anticipate the potential local conflicts caused by disputes over the implementation of programs and mild fights and crimes among the community members. This includes a heightening of community security in the face of threats from outside the village, including security of assets like agricultural land and housing.



2. Implementation of good and transparent local apparatus. This can be improved through the involvement of the community in decisions that are connected with community welfare, strengthening the BPD’s functions, and conducting training for village officials, including the village head, on how to activate the functions and tasks of the village

government (administratively) and how to manage and implement good governance.

3. Promoting community participation, from both women and the poor, in development activities, decision-making processes, and controls on local government. This is an effective way to ensure the implementation of good local governance. At the same time this will improve social ties and self-confidence.

4. Improving local apparatus and people’s understanding on simple inter-connected factors

(between opportunity structures and agency of the poor) that may help them to improve their prosperity. This includes non-economic factors like the importance of collective assets and capabilities, the implementation of democracy, the function of governance, and the important of control over decisions.

5. Creating employment opportunities at the community level so that the local people

could have income or multiple income sources, which will guarantee them a total income that is adequate. Many villagers are quite enthusiastic to try a variety of new businesses. This can also be done by improving the knowledge and motivation of village officials, community figures and members of the community, including young people and

women’s groups, on how to identify and utilize local potential resources. An alternative is to empower communities to develop micro, small, or medium business or home industries that hire locals.

6. Increasing access to education for the children of poor households. While education cannot immediately enhance the economic capacity of currently poor households to

move out of poverty, if the children are given a better education, then there is a good chance that the vicious cycle of inter-generational poverty can be broken.

7. Education, training and support for young people groups so that they will become more productive (for the high conflict area will not just rely on the public service for their future livelihoods), and will give up the habit of consuming alcohol and getting drunk. In fisheries area, skills training needed to establish a variety of cottage industries that can provide work opportunities for women and old people. For those who have started and tried new business needs facilitation to improve their business skills. Many of them start businesses without having the skills, so these businesses end in failure.

8. Promoting economically productive activities in women’s groups given that the women are responsive and have great potential. Besides being aimed at helping to improve community and individual (family) welfare, this would also increase social communications and ties.

9. Create or revive youth organizations, for example, by introducing sports and cultural competitions that involve young people in order to strengthen solidarity and social ties, and at the same time encourage the youth to be more productive and give up the habit of consuming alcohol and getting drunk. These activities can also be supported by providing books through the village or via groups that are active in the village or through mobile libraries. These books can also be utilized by the young generation to motivate them and provide them with the information and skills that will help them start a business.



10. Support the formation of new and strengthen existing economic organizations for farmers, fishers, women, and other livelihood groups, cooperatives and other organizations that can help the people to improve their welfare.

11. Support the expansion of small business among the poor. This does not require new kinds of programs, however existing programs need to be adjusted to suit to local dynamics, which will require local monitoring to ensure this initiative is implemented and followed-through.

12. Establishment and development of market. The market became the center of growth for

most economic activities. In fisheries area, support the establishment and managing a more professional public fish auction site (TPI) . At the TPI, fishers can market their catch for a better price.

13. Assist a joint effort between local apparatus and communities to identify suitable alternative crops for specific areas to reduce seasonable vulnerabilities. This would

require training programs to educate farmers on how to cultivate the new crops and how to market them.

14. To support the development of microfinance institutions with low-interest micro loans with more modern system. Given past experience that many community members do not repay their credit, such a system needs to include close and transparent monitoring of the

micro-finance institutions to ensure their sustainability.

15. Specific to the fisheries sector, technical and financial assistance is required to establish and manage the Fishers’ Cooperative so fishers can obtain low cost loans for their various needs, for example buying or improving their boats, buying motors for their boats, or buying fishing equipment. In addition, well-manged, low cost loans can prevent

fishermen from falling into debt with moneylenders or intermediate traders who force fishermen to sell fish at a low prices.

Individual Level:

1 Improving the understanding of parents and youth, both male and female, of the importance of education, and motivating them to improve their education and skills.

2 Improving people’s understanding on simple inter-connected factors (between

opportunity structures and agency of the poor) that influence their prosperity. 3 Encouraging farmers, young men and women, and others to attend training (for example,

in agriculture, industry, trades, youth affairs, and sport) for a fairly long period (three months) in a place that is more advanced than this community so that participants can acquire knowledge and a wider outlook. It has been proven that those people who have

spent time outside the village (temporary migration) have broader perspectives, can work hard, have strong motivation and are more prosperous than those who have not.

4 Encourage motivation and desire to have a better future. This can be done through

supporting migration initiatives to have a broader perspective, experiences, have strong motivation.

5 Improving skills for catching he economic opportunities and at the same time developing

motivations, especially for the youth. Encourage people to read books.



6 Encouraging women to participate in formal and non-formal education, community organizations, community meetings, village representatives, and businesses. The women were far more responsive in FGDs compared to the men. Rural women have great potential to develop. The creation of government programs that involve women can

enhance their feeling of self-confidence, and open the community’s eyes that women in their village indeed have potential, and can have a role in increasing household and community prosperity.



LIST OF REFERENCES …(2005) Strategi Nasional Penanggulangan Kemiskinan [National Strategy for Poverty Reduction]

Jakarta: Republik Indonesia, Komite Penanggulangan Kemiskinan [The National Poverty Reduction Committee]

Barron, Patrick, Kai Kaiser, and Menno Pradhan (2004) ‘Local Conflict in Indonesia: Measuring

Incidence and Identifying Patterns.’ A Paper presented at the Cornell Conference 75 Years of Development Research, May 7-9

2004

Barron, Patrick, et.al. (2004) Do Participatory Development Projects Help Villagers Manage Local

Conflict? A Mixed Methods-Approach to Assessing the Kecamatan Development Project, Indonesia. CPR Working Papers No.9 (Revised version)

Barron, Patrick, Claire Q.Smith, and Michael Woolcock (2004) ‘Understanding Local Level

Conflict in Developing Countries: Theory, Evidence and Implications from Indonesia.’ Social Development Papers: Conflict Prevention and Reconstruction No.19, December, The World Bank

Barron, Patrick and Joanne Sharpe (2005) ‘Using Newspaper Reports to Understand Violence

in Indonesia.’ Indonesia Social Development Paper No.7, (Pre-publication version) Blazall, John (2000) ‘Governance and Poverty’, Paper presented to the Joint Workshop on

Poverty Reduction Strategies in Mongolia, The World Bank, Held October 4 - 6 2000, Ulan Bator, Mongolia [online] Available from

<http://www.worldbank.org/poverty/strategies/events/mongolia/gove.pdf> Colleta, Nat J. and Michelle L. Cullen. (2000) The Nexus Between Violent Conflict, Social

Capital and Social Cohesion: Case Studies from Cambodia and Rwanda. Social Capital Initiative Working Paper No. 23, World Bank

Diamond, Larry (2007) ‘Moving Out of Poverty: What Does Democracy Have to Do With It?’

Working Papers. Center on Democracy, Development, and the Rule of Law (CDDRL). Stanford Institute for International Studies. No. 4. 11 August 2004 [online] available from <http://cddrl.stanford.edu> [January 8, 2007]

Fitriyah, Laila (2006) Social Stratification and Fishermen Work Relations: A Thesis. Bogor

Agriculture Institute[online] available from <http://Culis.web.ugm.ac.id/laila/intisari.htm> [2006] Kothari, Uma (2002) Migration and Chronic Poverty. Working Paper No.16. Institute for

Development Policy Management, University of Manchester Kurtus, Ron (2005) Quality of Life Model. University of Toronto [online] Available at <http://

www.school-for-champions.com/life/toronto_univ_quality_life.htm.> [date accessed] Lin, Nan (2001) Social Capital: A Theory of Social Structure and Action Where: Cambridge

University Press Mukherjee, Nilanjana (1999) ‘Indonesia Consultations with The Poor.’ A study to inform the

World Development Report 2000/2001 on Poverty and Development, prepared for Global Synthesis Workshop, Poverty Group, PREM World Bank



Narayan, Deepa and Patti Petesch (2005) Moving Out of Poverty: Understanding Freedom,

Democracy and Growth from the Bottom-up, a Methodology Guide (Draft in progress- not for circulation) Washington DC: Poverty Reduction and Economic Management, The World Bank

Narayan, Deepa (2002) ‘Conceptual Framework and Methodological Challenges: A Chapter’

The World Bank’s Empowerment and Poverty

Mawardi, Sulton (2004)‘Kajian Lingkungan Dunia Usaha di Daerah Pasca Konflik: Kasus

Provinsi Maluku Utara.’ [Extended Study of the Business World in Post-Conflict Regions: The Case of North Maluku] Jakarta: The SMERU Research Institute

Mawdsley, Nick, et.al. (2002) Report of the EC Conflict Prevention Assessment Mission: Indonesia.

Where: European Commission Conflict Prevention and Crisis Management Unit Pekka [2005] ‘Female Heads of Household Empowerment Program.’ in End of Year Report

[online] Available at <http://www.pekka.or.id> [25 February 2007] Pradhan, Menno, et.al (2000) (Social and Monitoring and Early Response Unit) Is this who held

the conference or is the author from there?. ‘Measurement of Poverty in Indonesia: 1996, 1999, and Beyond.’ A paper presented at the International Conference on Poverty Measurement in Indonesia, 1999, Jakarta

Ray, Debraj (2003) Aspiration, Poverty, and Economic Change. New York University and Instituto de Analisis Economico (CSIC)

Rummel, R.J. (1976) Understanding Conflict and War: Vol 3: The Conflcit Helix. Simon, Harold (1999) ‘Moving Out of Poverty.’ (Editor’s Note) Shelterforce Online (107)

September/October [online] Available at <http://www.nhi.org/online/issues/107/ednote.html>

Suharyo, Widjayanti I and The SMERU Research Team (2003) A Consolidation of Participatory

Poverty Assessment in Indonesia. Research Report. Jakarta: The SMERU Research Institute Suryahadi, Asep, Daniel Suryadarma, and Sudarno Sumarto (2006) ‘Economic Growth and

Poverty Reduction in Indonesia: The Effects of Location and Sectoral Components of Growth.’ SMERU Working Paper, Jakarta:The SMERU Research Institute, Jakarta

Suryahadi, Asep, Sudarno Sumarto, and Lant Pritchett (2003) The Evolution of Poverty during the

Crisis in Indonesia (Revised version), Jakarta: The SMERU Research Institute Strauss, John, et.al. (2002) Indonesian Living Standards Three Years After The Crisis: Evidence From

The Indonesia Family Life Survey. Where: Published by?? Uphoff, Norman (YEAR?) Poverty and Inequality: A Life Changes Perspective. Where: Cornell

University

Varshney, Ashutosh, Rizal Panggabean, and Mohammad Zulfan Tadjoddin (2004) Patterns of Collective Violence in Indonesia (1990-2003). UNSFIR Working Paper-04/03. Jakarta: UNSFIR



Wikipedia Foundation (2007) Social Cohesion [online] Available at http://en.wikipedia.org/wiki/social_cohesion [25 February 2007]

Wikipedia Foundation [online] Available at <http://en.wikipedia.org/wiki/self-esteem/major_definition_of_self_esteem>

Yanuarti, Sri, et.al. (2004) Konflik Maluku Utara: Penyebab, Karakteristik, dan Penyelesaian Jangka Panjang [Conflict in North Maluku: Causes, Characteristics, and Long-Term Solutions] Jakarta: LIPI (Lembaga Ilmu Pengetahuan Indonesia)

Community Synthesis Reports: Akhmadi and Sulton Mawardi (2005) Community Synthesis Report: Idamdehe Gamsungi, West

Halmahera, North Maluku, Indonesia. Jakarta: The SMERU Research Institute Febriany, Vita (2005) Community Synthesis Report: Bulu, Probolinggo, East Java, Indonesia.

Jakarta: The SMERU Research Institute Febriany, Vita (2006) Community Synthesis Report: Semampir, Probolinggo, East Java,

Indonesia. Jakarta: The SMERU Research Institute Mawardi, Sulton and Akhmadi (2005) Community Synthesis Report: Gura, North Halmahera,

North Maluku, Indonesia. Jakarta: The SMERU Research Institute Mawardi, Sulton (2006) Community Synthesis Report: Kampung Pisang, Ternate, North

Maluku, Indonesia. Jakarta: The SMERU Research Institute Munawar, Wawan and Akhmadi (2005) Community Synthesis Report: Banyupelle, Pamekasan,

East Java, Indonesia. Jakarta: The SMERU Research Institute Rahayu, Sri Kusumastuti (2005) Community Synthesis Report: Soakonora, West Halmahera,

North Maluku, Indonesia. Jakarta: The SMERU Research Institute Rahayu, Sri Kusumastuti (2006) Community Synthesis Report: Gorua, North Halmahera, North

Maluku, Indonesia. Jakarta: The SMERU Research Institute

Ruly, Marianti and Wawan Munawar (2005) Community Synthesis Report: Palengaan Daja,

Pamekasan, East Java, Indonesia. Jakarta: The SMERU Research Institute Ruly, Marianti and Wawan Munawar (2005) Community Synthesis Report: Branta Pesisir

Pamekasan, East Java, Indonesia. Jakarta: The SMERU Research Institute

SMERU Newsletters: SMERU Newsletter No.12: Oct-Dec/2004, The Problem of Governance in Indonesia, The

SMERU Research Institute, Jakarta, December 2004

SMERU Newsletter No.16: Oct-Dec/2005, Inequality: An Old Issue of New Relevance, The

SMERU Research Institute, Jakarta, December 2005 Akhmadi (2005) ‘Disparity of Access to Basic Education.’ In SMERU Newsletter No.16, Oct-

Dec, Jakarta: The SMERU Research Institute



Alisyahbana, Armida (2005) ‘Regional Inequality in Indonesia.’ In SMERU Newsletter No.16,

Oct-Dec, Jakarta: The SMERU Research Institute Budiyati, Sri (2005) ‘The Low Utilization of Health Services for the Poor through Health

Financing (JPK-Gakin).’ SMERU Newsletter No.16: Oct-Dec, Jakarta: The SMERU Research Institute

Mawardi, Sulton (2005) ‘Disparity in Access to Economic Opportunities.’ In SMERU Newsletter No.16, Oct-Dec, Jakarta: The SMERU Research Institute

Rahayu, Sri Kusumastuti (2004) ‘Puskesmas in Indonesia.’ In SMERU Newsletter No.9: Jan-Mar,

Jakarta: The SMERU Research Institute

Suryadarma, Daniel (2005) ‘Assessing the Role of Inequality in Poverty Reduction.’ In SMERU Newsletter No.16, Oct-Dec, Jakarta: The SMERU Research Institute

Suryahadi, Asep (2005) ‘Inequality: An Old Issue of New Relevance.’ In SMERU Newsletter

No.16, Oct-Dec, Jakarta: The SMERU Research Institute



ANNEXES



Annex 7.1 Main and Supplementary Livelihoods of Household Members At the Present Time Based on Mobility Status

Main and Supplementary Livelihoods of Household Members

Characteristics

Rich Mover Poor Faller

N=

Main Employment E J NM E J NM E J NM E J NM

N 65 63 126 106 89 59 25 24

Farmer 22 19 68 41 57 23 14 11

Fisherman 12 0 2 0 3 0 2 0

Home Industry 0 1 10 3 4 0 0 0

Manufacturing Industry 0 7 0 3 0 0 0 0

Trader 12 3 29 11 8 7 2 1

Services sector (private), unskilled labour 2 9 7 13 11 6 4 1

Services sector (private), skilled labour 9 6 4 14 0 3 0 2

Civil service (unskilled labour) 6 7 0 3 0 5 0 6

Civil service (skilled labour) 2 10 2 16 0 14 0 2

Farm Labourer 0 0 1 0 3 1 0 1

Non-farm labourer 0 1 2 1 3 0 2 0

Other 0 0 1 1 0 0 1 0

Supplementary Employment E J NM E J NM E J NM E J NM

Farmer 4 1 2 7 3 3 0 0

Fisherman 0 0 0 0 0 2 0 0



Trader 3 3 6 4 6 3 0 1

Services sector (private), unskilled labour

0 2 0 2 0 1 0 0

Services sector (private), skilled labour

1 0 0 1 1 0 1 0





Other 1 0 5 1 0 0 0 0 Source: Household Survey



Annex 7.2 Characteristics of Sample Household Heads at the Present Time Based on Mobility Status

Number according to status of household mobility Characteristic

Never poor Mover Chronic Poor

Faller

N=372 92 (100) 151 (100) 94 (100) 35 (100)

Sex of Household Head (H102) M F M F M F M F



All areas (Total) 83 9 139 12 81 13 30 5

Age of Household Head (H104) L P L P L P L P


< 30 1 0 4 0 5 0 0 0

31-40 12 1 21 1 17 1 3 0

41-50 9 2 23 1 9 2 8 0

51-60 12 0 16 2 9 3 3 1

> 60 3 1 8 3 4 1 3 0


< 30 1 0 3 0 2 0 0 0

31-40 11 0 32 1 15 0 3 1

41-50 12 1 19 2 5 1 4 1

51-60 18 4 10 2 10 4 5 2

> 60 4 0 3 0 5 1 1 0

All areas (Total) 85 9 139 12 81 13 30 5

< 30 2 0 7 0 7 0 0 0

31-40 23 1 53 2 32 1 6 1

41-50 21 3 42 3 14 3 12 1

51-60 30 4 26 4 19 7 9 3

> 60 7 1 11 3 9 2 4 0

Marital Status of Household Head E J NM E J NM E J NM E J NM

Married 37 47 72 67 43 33 13 14

Living together 0 1 0 0 0 0 0 0

Divorced 0 0 0 0 0 2 0 0

Separated (in the process of divorcing) 0 0 0 0 0 0 0 1

Widow/widower 3 4 7 5 8 7 5 2

Never married 1 0 0 0 0 0 0 0

Education Level of Household Head E J NM E J NM E J NM E J NM

Did not attend school/illiterate 2 3 9 9 5 16 2 1

Did not attend school/literate 0 0 0 0 0 0 0 1

Did not graduate from primary school 3 9 8 14 4 16 1 3

Primary school graduate 11 7 31 15 20 11 7 4

Graduate of junior high school/ Did not graduate from senior high school

7 4 7 12 5 5 4 4

Graduate of senior high school 11 13 10 14 3 5 4 2

Higher qualification 10 11 11 7 3 1 0 1

Source: Household Survey Note: F= female; M= male; EJ= East Java (low conflict); NM= North Maluku (high conflict)



Annex 7.3 Main and Supplementary Livelihoods of Household Heads At the Present Time Based on Mobility Status

Main and Supplementary Livelihood of Household Head (%respondent )

Characteristic

Never poor Mover Chronic Poor

Faller

N=372 92 151 94 35

Main Employment E J NM E J NM E J NM E J NM

N 41 51 79 72 51 43 18 17

Farmer 22 31 46 36 59 38 22 35

Fisherman 22 0 5 3 10 0 0 0



Trader 17 10 22 6 6 2 6 18


7 23 5 13 6 17 39 25






Other 2 4 3 3 2 2 6 25

Supplementary Employment

E J

NM

E J

NM

E J

NM

E J

NM

Farmer 10 13 6 17 2 17 17 6

Fisherman 0 2 0 4 0 14 0 18

Home industry 0 0 3 0 4 0 0 0


Trader 15 8 10 6 8 2 6 0


10 6 6 8 4 7 0 0






Other 2 6 1 1 4 2 0 0 Source: Household Survey Note: EJ= East Java; NM= North Maluku



Annex 7.4 The Proportions of Land Ownership Areas By Mobility Group

Now (%) 10 Years Ago (%) Mobility Group

0 ha 0<x≤≤≤≤1ha > 1 ha 0 ha 0<x≤≤≤≤1ha > 1 ha

Low Conflict (East Java); N =189 Never Poor 23 (56) 13 (31) 5 (12) 25 (60) 12 (30) 4(10)

Mover 36 (46) 37 (46) 6 (8) 43 (54) 30 (38) 6 (8)

Chronic Poor 25 (49) 26 (51) 0 (0) 29 (57) 22 (43) 0 (0)

Faller 12 (67) 6 (33) 0 (0) 12 (67) 5 (28) 1 (5)

Total 96 (51) 82 (43) 11 (6) 109 (58) 69 (37) 11 (5)

High Conflict (North Maluku); N =183 Never Poor 20 (39) 9 (18) 22 (43) 20 (39) 10 (20) 21 (41)

Mover 25 (35) 19 (26) 28 (39) 26 (36) 17 (24) 29 (40)

Chronic Poor 18 (42) 13 (30) 12 (28) 24 (56) 9 (21) 10 (23)

Faller 6 (35) 4 (24) 7 (41) 6 (35) 4 (24) 7 (41)

Total 69 (38) 45 (24) 69 (38) 76 (42) 40 (21) 67 (37)




Annex 7.5a. Land Ownership of the ‘Never Poor’ and ‘Movers’ Ten Years Ago

Never Poor (% respondents) Mover (% respondents) Mobility Group

0 ha 0<x≤≤≤≤1ha > 1 ha 0 ha 0<x≤≤≤≤1ha > 1 ha

Low Conflict (189)

Palenggan Daja 0 71 29 30 60 10

Semampir 40 60 0 80 15 5

Bulu 50 25 25 53 42 5

Banyupelle 50 50 0 10 70 20

Branta Pesisir 100 0 0 100 0 0

High Conflict (183)

Soakonora 38 23 38 31 38 31


Gorua 25 13 63 0 31 69


Gura 60 10 30 69 13 19

All areas


Annex 7.5b Land Ownership of the ‘Chronic Poor’ and ‘Fallers’ Ten Years Ago

Chronic Poor (% respondents) Faller (% respondents) Mobility Group

0 ha 0<x≤≤≤≤1ha > 1 ha 0 ha 0<x≤≤≤≤1ha > 1 ha

Low Conflict (189)

Palenggan Daja 29 71 0 0 75 25

Semampir 100 0 0 80 20 0

Bulu 100 0 0 75 25 0

Banyupelle 29 71 0 100 0 0

Branta Pesisir 100 0 0 100 0 0

High Conflict (183)

Soakonora 50 25 25 0 50 50


Gorua 40 20 40 67 0 33


Gura 57 14 29 50 0 50




Annex 7.6 House Ownership By Mobility Group

Respondents Who Own a House (% respondents)

Never Poor Mover Chronic Poor Faller

Transition Group Community


Low Conflict (189)

Palenggan Daja 86 86 90 85 100 86 100 100

Semampir 100 100 100 100 100 86 100 100

Bulu 88 63 95 74 67 83 100 100

Banyupelle 100 100 100 100 100 100 100 100

Branta Pesisir 88 65 70 50 57 57 75 75 High Conflict (183)

Soakonora 100 85 100 77 75 100 50 50


Gorua 88 75 88 69 80 50 100 100

Kampung Pisang 100 100 100 82 82 55 100 100

Gura 80 90 100 69 86 100 100 100 All areas Source: Household Survey

Annex 7.7 Type of House Wall By Mobility Group

Type of Wall of House (% respondent)

Now 10 years ago

Status of Household Mobility Brick Clay Bamboo Wood/iron Brick Clay Bamboo Wood/iron

East Java (LC)

Never Poor 85 0 7 8 78 0 15 7

Mover 84 0 11 5 53 0 42 5

Chronic Poor 33 0 32 35 16 0 57 27

Faller 78 0 6 16 50 0 33 17

Total 70 0 15 15 48 0 39 13

North Maluku (HC)

Never Poor 96 0 0 4 88 0 10 2

Mover 93 0 3 4 63 0 26 11

Chronic Poor 81 0 5 14 63 0 28 9

Faller 88 0 6 6 71 0 18 11

Total 91 0 3 6 70 0 22 8




Annex 7.8 Type of House Roof By Mobility Group

Now (%) 10 Years ago (%) Mobility Group

Iron Tiles Bamboo/katu1/

wood/rumbia2/other

Iron Tiles Bamboo/katu/

wood/rumbia/other

East Java (LC)

Never Poor 0 100 0 2 98 0

Mover 0 98 2 0 99 1

Chronic Poor 0 94 6 0 94 6

Faller 0 100 0 0 100 0

Total 0 97 3 1 97 2

North Maluku (HC)

Never Poor 100 0 0 80 4 16

Mover 93 1 6 75 1 24

Chronic Poor 95 0 5 70 2 28

Faller 82 0 18 71 0 29

Total 95 1 4 75 2 23


Annex 7.9. Home Ownership Title

Low Conflict High Conflict Mobility Group

Own House Have title Own House Have title

Never poor 37 22 47 32

Mover 73 32 69 36

Chronic poor 46 17 34 13

Faller 17 9 13 7

Total 173 80 163 88 Source: Household Survey

1 Katu: A kind of bush yielding edible leaves and berries.

2 Rumbia: Sago palm.



Annex 7.10 Cattle Ownership By Mobility Group

Cattle Ownership

Now 10 years ago

Mobility Group

0 1-5 6-10 >10 0 1-5 6-10 >10

East Java (LC); N= 189

Never poor 38 2 1 0 35 5 1 0

Mover 72 7 0 0 72 7 0 0

Chronic poor 49 2 0 0 50 1 0 0

Faller 18 0 0 0 16 2 0 0

Total 177 11 1 0 173 5 1 0

North Maluku (HC); N=183

Never poor 46 6 0 0 66 6 4 3

Mover 69 2 0 1 47 18 0 4

Chronic poor 37 5 0 0 33 5 3 1

Faller 15 2 0 0 13 0 1 3

Total 167 15 0 1 159 29 8 11 Source: Household Survey

Table 7.11 Motorcycle Ownership By Mobility Group

Proportion of Respondents Who Own Motorcycles (%) Mobility Group Now 10 Years ago

EJ (LC) NM (HC) EJ (LC) NM (HC)

N 189 183 189 183

Never poor 28 24 18 10

Mover 29 27 15 12


Faller 3 2 4 1

Total 62 65 38 28 Source: Household Survey

Annex 7.12 Colour Television Ownership By Mobility Group

Respondents Who Own Colour Television

Now 10 Years ago Mobility Group

EJ (LC) NM (HC) EJ (LC) NM (HC)

N 189 183 189 183


Mover 59 40 15 24


Faller 12 8 5 7

Total 115 112 37 63




Annex 7.13 Colour Television Ownership by Community

Respondents Who Own Colour Television (% respondents)

Never Poor Mover Chronic Poor Faller

Community


Low Conflict (189) 74.4 35.6 70.8 17.0 24.8 5.6 70.0 23.0

Palenggan Daja 71 0 60 5 14 0 25 0

Semampir 100 80 95 55 43 14 100 40

Bulu 100 63 89 5 17 0 25 25

Banyupelle 25 0 20 0 21 0 100 0

Branta Pesisir 76 35 90 20 29 14 100 50 High Conflict (183) 89.4 48.0 58.4 34.6 38.6 16.0 41.6 40.0

Soakonora 92 62 54 15 25 0 0 50


Gorua 75 38 44 31 20 10 33 0

Kampung Pisang 100 80 100 64 91 27 75 100

Gura 100 50 81 50 57 43 50 25 Source: Household Survey

Documents

Country Synthesis Report Moving Out of Poverty: Understanding