Welfare Regime, Clientelism, and Social Capital: Evidence from Indonesia.

This paper intends to elaborate about transformation of welfare regime and social conflict in Indonesia. The paper is a part of my PhD thesis on welfare regime and social capital in Indonesia. It analyzes panel dataset, i.e. Indonesia Family Life Survey 3 and 4 as well as Governance and Decentralization Survey 2. It also explores primary data resulted from focus group discussions and in-depth interviews with 92 key persons that spreads over within three levels of analysis, i.e. national, district, and community. They are government officers, parliament members, NGO activists, and social leaders. The main argument of this paper is that there has been a transformation of welfare regime in Indonesia from a regime that mainly relies on one pillar i.e. the role of community to two pillars, namely the role of community and the role of the state. The transformation has been taken place since 1998 when the government of Indonesia initiated social safety net (SSN) programs as part of structural adjustment programs controlled by World Bank. The SSN programs were replaced by poverty reduction programs in 2005 and they have been implemented until know. When the role of the state in providing welfare benefits through SSN and poverty reduction programs has been growing, the significance of community in giving livelihood for people is also thriving. The programs which provide means tested welfare benefits however generate complicated social conflict. The conflict threatened social capital as an important part of the first pillar within welfare regime in Indonesia. This happens due to low quality of population data, high policy discretion, and clientelism.

Full paper download: 4.2.1 Mulyadi Sumarto.pdf