Results of the Rural Investment Climate Assessment (RICA) in Indonesia : Final Report
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Washington, DC
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The Rural Investment Climate Survey
(RICS) carried out in 2006 sampled more than 2,500
predominantly very small firms in six rural districts in
Indonesia [Labuhan Batu (North Sumatra), Kutai (East
Kalimantan), Barru (South Sulawesi), Malang Java), Badung
(Bali), Sumbawa (NTB)]. It compiled information on labor
force, credit, infrastructure, marketing and competition,
the diffusion of technical knowledge, local governance and
the main obstacles that firms face. The Indonesian RICS is
an in-depth, quantitative survey of 2549 non-farm
enterprises, 2782 households and 149 communities in 6 rural
districts (Kabupaten). The survey was conducted in
January/February 2006 and comprised a linked survey of
non-farm enterprises and households. Non-farm enterprises
are defined as all enterprises except those undertaking
primary agriculture, forestry and fishery activities,
although firms which undertake the processing and trading of
primary commodities were included. The survey includes both
formal and informa businesses and examines both rural and
urban areas of rural districts to generate comparative data.
The key findings are: a) there is a strong rural-urban
divide in educational attainment of workers and huge
differences between districts with Malang being particularly
disadvantaged. Workers in household enterprises, the
production sector and part-time workers are significantly
undereducated; and b) tax payments are highly skewed: only
medium and large firms pay a large share of their taxes to
the central government, whereas for small and
micro-enterprises the motor vehicle tax and levies from
village and sub-district officials' playa large role.
All of the payments have a highly skewed distribution with
many firms (43 percent) paying no levies and fees at all.
Palabras clave
ACCESS TO CREDIT, ACCESS TO INFORMATION, ADMINISTRATIVE PROCEDURES, ASSETS, BANK LOAN, BANK LOANS, BRANCH, BUSINESS CENTER, BUSINESS CENTERS, CAPACITY BUILDING, CAPITAL REQUIREMENTS, CD, COLLATERAL, COMPETITORS, COOPERATIVES, CORRUPTION, CREDIT CONSTRAINTS, CREDIT INSTITUTIONS, CREDIT SYSTEM, CREDITS, CRIMINALITY, DEBT, ECONOMIC POLICIES, EMPLOYMENT, FINANCES, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL SERVICES, FIRM SIZE, FIXED INTEREST, FORMAL LOANS, HIGH TRANSPORTATION, INCOME TAX, INDIVIDUAL CREDITOR, INFORMAL LOAN, INFORMAL LOANS, INSTITUTIONAL DEVELOPMENT, INTEREST RATE, INTEREST RATES, INVENTORIES, INVESTMENT CLIMATE, JUDGMENT, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LARGE ENTERPRISES, LARGE FIRMS, LEVIES, LEVY, LOAN, LOAN APPLICATIONS, LOAN DATA, LOCAL ECONOMY, LOCAL INFRASTRUCTURE, MARKET CONDITIONS, MICRO ENTERPRISES, MICRO-ENTERPRISES, MOTOR VEHICLE, MULTINATIONAL, OWNERSHIP PATTERNS, PAYOFF, POLICY RESPONSE, PRIVATE WATER, QUALITY TRANSPORTATION, RECEIVABLE, RECEIVABLES, ROAD, ROAD INFRASTRUCTURE, ROAD QUALITY, ROADS, RURAL INVESTMENT, SAFETY, SIZE OF FIRM, SMALL ENTERPRISES, SMALL FIRMS, SOLE PROPRIETORSHIPS, STOCK EXCHANGE, SUPPLIERS, TAX, TAXATION, TECHNICAL SUPPORT, TRADE POLICY, TRADE SECTOR, TRADING, TRAFFIC, TRAFFIC CONGESTION, TRANSPORT, TRANSPORT INFRASTRUCTURE, TRANSPORTATION COST, TRANSPORTATION COSTS, TRUE, TRUST FUND, VEHICLE OWNERSHIP, WATER QUALITY