Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry

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Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
RAPID RESEARCH PROJECT FINAL REPORT

    Road to recovery:
    Assessing job risk
    and the impact on
  the most vulnerable in
Indonesia’s pandemic-hit
     tourism industry
Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
PAIR:
                                                                The Partnership for Australia-Indonesia Research (PAIR),
                                                                an initiative of The Australia-Indonesia Centre, is supported
                                                                by the Australian Government and run in partnership with
                                                                the Indonesian Ministry of Research and Technology,
                                                                the Indonesian Ministry of Transport, the South Sulawesi
                                                                Provincial Government and many organisations and
                                                                individuals from communities and industry.
Authors:
Dr Ya-Yen Sun, The University of Queensland                     The Australia-Indonesia Centre:
Dr Ilmiawan Auwalin, Universitas Airlangga                      The Australia-Indonesia Centre is a bilateral research
Dr Jie Wang, The University of Queensland                       consortium supported by both governments, leading
Dr Lintje Sie, The University of Queensland                     universities and industry. Established in 2014, the Centre
Mr Andri Wijanarko, Universitas Airlangga                       works to advance the people-to-people and institutional
Dr Eugene Sebastian, Executive Director, AIC                    links between the two nations in the fields of science,
Helen Brown, Lead, Communications and Outreach, AIC             technology, education, innovation and culture. We do this
Mary Downes, Editor, Media Xpress                               through a research program that tackles shared challenges,
                                                                and through our outreach activities that promote greater
Report date:                                                    understanding of contemporary
September, 2021                                                 Indonesia and strengthen bilateral research linkages.
Disclaimer:                                                     To discover more about the Centre and its activities,
This report is the result of research funded by the             please visit: ausindcentre.org
Australian Government through the Australia-Indonesia
Centre under the PAIR program. The report was edited
by the Australia-Indonesia Centre (AIC). The report is not      To cite this report:
intended to provide exhaustive coverage of the topic. The       This report is the result of research funded by the
information is made available on the understanding that         Australian Government through the Australia-Indonesia
the AIC is not providing professional advice. While care        Centre under the PAIR program. Visit ausindcentre.org
has been taken to ensure the information in this report is
accurate, we do not accept any liability for any loss arising
from reliance on the information, or from any error or          Sun YY., Auwalin I., Wang J., Sie L., Wijanarko A., Sebastian
omission, in the report. We do not endorse any company          E., Brown H., D Mary. (2021), ‘Road to recovery: Assessing
or activity referred to in the report, and do not accept        job risk andthe impact on the most vulnerable in
responsibility for any losses suffered in connection with       Indonesia’s pandemic-hit tourism industry’, The Australia-
any company or its activities.                                  Indonesia Centre.
Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
THE PARTNERSHIP FOR AUSTRALIA-INDONESIA RESEARCH (PAIR)

                                                                                                                                                         I am delighted to share our
                                                                                                                                                         findings from the Partnership
                                                                                                                                                         for Australia-Indonesia
                                                                                                                                                         Research (PAIR) COVID-19 Rapid
                                                                                                                                                         Research Series.

i                                                                            3
                                                                                                                                                         As the COVID-19 pandemic
                                                                                                                                                         spreads, it continues to disrupt
                                                                                                                                                         economies, jobs, education
                                                                                                                                                         and health systems worldwide.
                                                                                                                                                         To address the pressing
Executive summary �����������������������������������P4                     Analysis and results �����������������������������������P9                 challenges in Indonesia,

1
                                                                             3.1.        Total impact �����������������������������������������P9       we have brought together teams
                                                                             3.2.        Impacts by sector                                               of interdisciplinary researchers
                                                                                         and province ���������������������������������������P11        from both countries to explore
                                                                                                                                                         COVID’s impact on people.
                                                                             3.3.        Impacts by gender,                                              We focus on three areas:
Introduction ����������������������������������������������������������P6               education, age                                                  health, connectivity and
                                                                                         and income ������������������������������������������P14

2
                                                                                                                                                         economic recovery.

                                                                             4
                                                                                                                                                         The report provides the policy
                                                                                                                                                         community with timely access
                                                                                                                                                         to the best available evidence.
                                                                                                                                                         It also responds to the Australian
Methodology ������������������������������������������������������P8                                                                                    Government’s Partnership for
                                                                             Conclusion
                                                                                                                                                         Recovery strategy. The strategy
                                                                             and recommendations ������������������������P17                            aims to understand and
                                                                             4.1.        Recommendations ���������������������P18                       support Indonesia as it deals
                                                                             4.2.        Focusing policymaking on                                        with and recovers from the
                                                                                         the regional level ��������������������������P18               COVID-19 pandemic.

                                                                             5
                                                                                                                                                         Warm regards,

                                                                             References ����������������������������������������������������������P19
                                                                                                                                                         Dr Eugene Sebastian
                                                                                                                                                         PAIR Program Director
                                                                                                                                                         The Australia-Indonesia Centre
Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
RAPID RESEARCH     PROJECT FINAL REPORT

                                               EXECUTIVE SUMMARY

        The tourism sector is a significant driver of Indonesia’s
       economic growth – so important that the country has been
         trying to open the doors to international tourists in the
        midst of the coronavirus pandemic. But the latest deadly
        surge of COVID-19 cases and multiple outbreaks has put
         an abrupt halt to those plans. As this report finds, many
       vulnerable people who rely on tourism for their livelihoods
          are affected most by the ongoing, uncertain situation.
      Our research shows that women, young people and lower-educated workers have higher job insecurity in the
      tourism industry and therefore have become even more economically vulnerable in the pandemic. This report
      also found that while Bali is the country’s prime tourism destination and has been hardest hit by the loss of
      visitors, the impact of COVID-19 has been severe in four provinces, accounting for 62 percent of all job losses.

      To put the current situation in perspective, in 2019, the year before COVID-19 shut the world’s borders, more
      than 12 million Indonesians were employed in the travel and tourism sectors. This included workers directly
      employed and also those working in industry supply chains. The nation attracted 16.1 million international
      visitors who contributed US$15.8 billion (223 trillion rupiah) to the economy. The value of domestic and
      international tourism was 5.7 percent of national gross domestic product.

      The COVID-19 pandemic has brought unprecedented disruption. In the first nine months of 2020 it has been
      estimated that Indonesia’s tourism industries lost US$14 billion (Rp 202 trillion), leading to a 1.6 percent
      decline in GDP, a 1.7 percent shortfall in personal income and up to 3.4 million job losses.

      Many of those jobs in the tourism industry would have been filled by people from vulnerable and
      marginalised groups.

      Across the archipelago, the collapse of tourism has resulted in 3.1 percent of female workers, 2.7 percent of
      youth employees, 3.1 percent of lower-educated workers, and 2.3 percent of those in low-income positions
      facing high levels of job insecurity.

      This study provides policymakers with important evidence for making both immediate
      and long-term strategic decisions on the allocation of government stimulus packages.

      The road to recovery requires solidarity and collaboration across the industry and government. This Australia-
      Indonesia Centre study contributes to this goal by identifying marginalised and vulnerable communities who
      have been heavily impacted by the tourism decline, so that those who have endured the most economic
      hardship can be supported and given an opportunity to reclaim their livelihoods.

      Ultimately the report makes three key recommendations on government priorities to help policymakers with the
      recovery from COVID-19.

     • Focusing policymaking on the five most affected regions to assist with wage compensation, skills training
       or job relocation, which will provide much-needed support to ensure the livelihoods of those communities.
     • Promoting domestic tourism and community welfare with a national campaign for local travel that
       incorporates small-scale or niche tourism options.
     • Formulating a tourism recovery strategy that brings together all stakeholders that prioritise vulnerable
       people in their plans for retraining and/or skills building, particularly in the digital economy.
Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
Photo by Sarah Arista on Unsplash
Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
RAPID RESEARCH        PROJECT FINAL REPORT

                     Rp 200 Trillion             1.3% GDP                 2.6% Jobs                  1.7% Income

                    Tourism Spending
                                               GDP Reduction              Job at Risk              Income Reduction
                       Reduction
                     From Jan - Sept 2020,     Rp 208 trillion GDP   A total of 3.4 million jobs        Rp 88 trillion
                     tourism industry faces         is lost                  are at risk           personal income is lost
                    an unprecedented crisis

                                  Figure1: The impacts of COVID-19 on tourism jobs in Indonesia.

      1 .0 I N T R O D U C T I O N              visitors (WTTC, 2020), reporting               The same effects are expected in
                                                the highest growth rate among                  Indonesia. Of tourism-related jobs
      COVID-19 has severely disrupted           all Southeast Asian countries                  in Indonesia, 55 percent are held
      the world’s economy. The                  (Statistics Indonesia, 2020a). Since           by women and 17 percent
      International Monetary Fund (IMF)         the coronavirus was first reported             by youth (aged 15-24) (UNWTO,
      estimated the global economy              in Indonesia in March 2020, the                2019; WTTC, 2019). Women in
      shrank by 3.5 percent in 2020,            tourism sector has been heavily                developing countries have less
      with a disproportionate effect on         impacted (Ramadhian, 2020) by                  access to education and perform
      the poorest and most vulnerable.          large-scale social restrictions                extensive unpaid work in family
      Indonesia has not been exempt;            (Pembatasan Sosial Berskala                    tourism businesses (UNWTO,
      its economy contracted 5.32               Besar or PSBB), travel restrictions            2020b). Tourism can also help
      percent and 3.49 percent in the           and physical distancing. Domestic              poor women break the poverty
      second and third quarters of 2020         tourism has been negatively                    cycle through formal and informal
      respectively. By October 2020             affected, while international                  employment, entrepreneurship,
      Indonesia entered a deep recession        tourism remains suspended                      training and community
      (Maliszewska et al., 2020).               (Asmara, 2020; Klikwarta, 2020).               advancement (UNWTO, 2020b).

                                                Tourism provides employment
      Tourism has been one of the                                                                 “Many women are
      worst affected industries, due to         for skilled and unskilled workers,
      worldwide restrictions on mobility        including groups who may have                  tourism entrepreneurs,
      (Lenzen et al., 2020). The United         difficulties finding other jobs.               especially in Indonesia.
      Nations World Tourism Organization        The pandemic has led to an
      (UNWTO) estimated there were              unprecedented increase in                       And there are growing
      one billion fewer international           unemployment. Australia, the                     numbers of women-
      tourist arrivals in 2020, a 74 percent    United Kingdom, Thailand and
                                                other countries have reported
                                                                                               owned businesses and
      decline that caused a US$2 trillion
      loss to world GDP and put 100-120         that women, youth and low-                      community initiatives
      million jobs at risk (UNWTO, 2020a).      income groups have been                           to provide training
                                                disproportionately affected,
      Tourism is an important sector of         enduring higher unemployment                     and jobs for women
      the Indonesian economy. In 2019,          rates and larger pay cuts than their            (for example, Women
      it contributed 5.7 percent of             less marginalised counterparts
      national GDP, and Indonesia               (ABC News, 2020; Henehan, 2020;
                                                                                                in Tourism Indonesia
      attracted 16.1 million international      Lekfuangfu et al., 2020).                      and Wise Step Travel).”

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Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
RAPID RESEARCH          PROJECT FINAL REPORT

       Box 1: Women in Tourism Indonesia             Box 2: Wise Step Travel

       Women in Tourism is an independent            The company offers thematic, customised
       organisation that works to support women in   and responsible journeys for groups or
       Indonesian tourism. It provides a knowledge   individual travellers within Indonesia. It
       and experience sharing platform for women     promotes educational activities and fosters
       in small, medium and large enterprises.       deeper appreciation for cultures and local
       The organisation promotes gender equality,    communities. It supports sustainable
       raises public awareness and assists women     tourism.
       through network activities.

      To mitigate the socioeconomic impacts of this crisis, significant and
      swift government measures are needed to support the tourism sector.
      The United Nations World Tourism Organization and the World Travel
      and Tourism Council have called for strong government support, and
      one priority is protecting the livelihoods of workers by offering financial
      assistance to protect workers in severe circumstances. The first step is to
                                                                                                   Photo by Luis espinoza via Unsplash
      “incentivise job retention, support the self-employed and protect the most
      vulnerable groups” (UNWTO, 2020c). These measures require identifying
      those who have been impacted most.

      This project identified the groups most vulnerable to tourism losses in
      Indonesia, providing the first-ever quantification of the economic impact
      of tourism losses. Specific aims are:

      • To evaluate how COVID-19 has economically impacted the Indonesian
        tourism industry and its suppliers
      • To identify the most-affected communities across 34 provinces
      • To evaluate the employment losses for women, youth, low-education
        and low-income groups.

                                                                                                   Photo by Farano Gunawan via Unsplash

      Photo by Visualsofdana via Unsplash                                                          Photo by Gede Adhiputra via Unsplash

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Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
RAPID RESEARCH        PROJECT FINAL REPORT

      2.0 M E T H O D O L O G Y                No official data on domestic tourism were available for our study period, so
                                               the classified hotel occupancy rate was used as a proxy for demand, assuming
      This study employed a multi-             hotel customers would represent the composition of international and domestic
      regional input-output (MRIO)             tourists before and during the pandemic. By combining information on hotel
      model, a valuable tool for analysing     occupancy and international visitor numbers, we derived approximate figures
      economic impact and supporting           for domestic tourist journeys. Reduced spending from domestic tourism was
      related policies. An MRIO model          then gauged by combining estimated reduced volume with the spending profile,
      uses a matrix to capture inter-          provided by the Indonesian Ministry of Tourism and Creative Economy.
      industry linkages across regions
      and sectors (Kitzes, 2013;
                                               The MRIO model
      Leontief, 1970), producing two           We estimated the impact on 34 Indonesian provinces using the MRIO framework,
      distinct benefits. First, it evaluates   allowing us to track connections between sectors and across regions, which is
      both direct and indirect effects         essential to assessing the spillover effects of reduced tourist spending. This study
      of tourism losses – for instance,        used 2019 provincial gross domestic product (GDP) data published by Statistics
      how a 2 million drop in Chinese          Indonesia (Statistics Indonesia, 2020b). The MRIO tables consisted of 17 sectors
      travellers in 2019 led to job losses     for 34 provinces for 2019, due to data availability. Table 1 shows the 17 sectors
      in the accommodation sector and          in the Indonesian economy and those that are directly affected by a fall in tourist
      related suppliers (Sun & Pratt,          volumes and spending.
      2014). Secondly, MRIO traces
      inter-regional transactions and
                                               Table 1: Indonesian MRIO sectors in relation to sectors with reduced tourism
      links labour inputs with socio-
                                               spending (items).
      demographic characteristics. The
      reduced spending from Australian            No.            Indonesian MRIO sectors
                                                                                                               Sectors with
                                                                                                         reduced tourism spending
      tourists, for example, can be
      seen in the job losses for female            1           Agriculture, forestry and fishing                       -

      employees in West Java, Jakarta              2                Mining and quarrying                               -
      or East Kalimantan. This allows              3                   Manufacturing                                   -
      identification of regions and groups         4                 Electricity and gas                               -
      most vulnerable to tourism losses.           5        Water supply and waste management                          -
                                                   6                    Construction                                   -
      The first step was estimating the
                                                   7                        Trade                            Shopping, souvenirs
      decline of tourism expenditure,
                                                                                                      Transportation, local air transport,
      using 2019 as a baseline and                 8             Transportation and storage
                                                                                                            other local transport
      assuming demand would have
                                                                    Accommodation and                 Accommodation, food, beverage,
      been unchanged without the                   9
                                                                   food service activities                   and tobacco
      pandemic. We compared domestic               10          Information and communication                           -
      and international tourism volume             11         Financial and insurance activities                       -
      in the January to September 2020
                                                   12               Real estate activities                             -
      period with the same period in
                                                   13                Business activities                               -
      2019 to estimate the effect of
                                                   14               Public administration                              -
      the COVID-19 pandemic. The time
                                                   15                     Education                                    -
      frame was determined based on
                                                   16         Health and social work activities                        -
      data availability.
                                                                                                   Recreational and cultural services, other
                                                   17             Other services activities
      Arrivals records showed the                                                                          tourism services, others

      decline in international visitors,
      with drops in revenue derived by         To estimate the impact of COVID-19 on employment in the tourism sector, we
      multiplying average visitor spending     used the National Labour Survey (Sakernas) of February 2020, the most recent
      (sourced from the Indonesian             available at the time of this study. This survey covered about 75,000 households,
      Ministry of Tourism and Creative         and the data were used to construct an employment satellite account for the MRIO,
      Economy) by reduced visitor              allowing us to examine the effects of COVID-19 on the tourism industry in the
      volume. Across Indonesia’s 34            following categories:
      provinces, reduced tourism receipts
      were estimated across eight              • economic sector
      categories: accommodation, food          • gender, with particular emphasis on women
      and beverage, local air transport,       • age, with particular emphasis on the youngest quintile
      other local transport, shopping,         • level of education, with particular emphasis on those who attained elementary
      souvenirs, recreational services,          school or less
      and others.                              • level of income, with particular focus on the lowest income quintile.

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Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
RAPID RESEARCH        PROJECT FINAL REPORT

      3.0 A N A L Y S I S                    international tourists visited Bali   (Rp 22 trillion, 31 percent), and
      A N D R E S U LT S                     and Jakarta, respectively. When       shopping/souvenirs (Rp 16 trillion,
                                             inbound tourism collapsed, these      22 percent).
                                             provinces experienced the greatest
                                             economic shock. Table 3 shows         The distribution of domestic trips
      3.1 T O T A L I M P A C T
                                             about 40 percent of international     differed from inbound tourism,
                                             tourism revenue losses occurred       with a relatively even distribution
      International tourism.
                                             in Bali, followed by Jakarta          across 34 provinces. East Java,
      In 2019, there were 14.92 million
                                             (22 percent) and Kepulauan            Jakarta, West Java, Central Java,
      international visitors to Indonesia,
                                             Riau (7 percent). The economies       Bali and Yogyakarta led the way.
      with 12.1 million arrivals from
                                             of West Nusa Tenggara, Bali,          These provinces experienced
      January to September. While
                                             Kepulauan Riau, East Kalimantan       higher losses from the domestic
      numbers were strong at the
                                             and West Kalimantan were              market’s contraction.
      beginning of 2020, arrivals
      dropped drastically after March as     found to be most dependent
                                                                                   Total tourism losses. Compared
      COVID-19 related restrictions were     on the international market,
                                                                                   with January-September 2019,
      imposed. Indonesia hosted fewer        which accounted for more than
                                                                                   the tourism industry experienced
      than 200,000 inbound visitors          75 percent of their tourism
                                                                                   an estimated total loss of
      from May to September, and total       losses. These destinations
                                                                                   201.85 trillion rupiah
      international visitors from January    have been much more
                                                                                   (US$14 billion). The collapse
      to September 2020 were about           economically vulnerable to
                                                                                   of international travel accounted
      3.56 million, 70.57 percent below      the COVID-19 pandemic.
                                                                                   for two-thirds of the losses.
      the baseline (2019).                                                         Overall, the accommodation
                                             Domestic tourism. To estimate
                                             the reduction in domestic tourism     sector was most affected (down
      This reduction of 8.54 million
                                             demand, we used the classified        61 trillion rupiah or US$4.4 billion),
      international travellers resulted
                                             hotel occupancy rate as a proxy       accounting for 30 percent of the
      in a total loss of international
                                             for changes. The occupancy rate       spending shortage, followed by
      tourism revenue of Rp 129.45
                                             was 52.3 percent from January         food and beverage (24 percent,
      trillion (US$9.25 billion,
                                             to September 2019, but dropped        48 trillion rupiah or US$3.4 billion),
      Table 2). The accommodation
                                             to 30.1 percent during the same       and transport (18 percent,
      sector experienced the largest
                                             period in 2020. Using international   37 trillion rupiah or US$2.6 billion).
      losses, with an estimated revenue
                                             arrival data, domestic volume         Regionally, Bali experienced the
      reduction of Rp 56 trillion
                                             required to maintain a 30.1           biggest loss ( 55 trillion rupiah),
      (43 percent, US$4 billion), followed
                                             percent occupancy was calculated.     followed by Jakarta (40 trillion
      by the food and beverage sector,
                                                                                   rupiah), East Java (19 trillion
      Rp 25.5 trillion (20 percent,
                                             We estimated domestic tourism         rupiah), West Java (18 trillion
      US$1.82 billion) and shopping/
                                             in January to September 2020          rupiah) and Central Java (12 trillion
      souvenirs, Rp 18.8 trillion
      (15 percent, US$1.34 billion).         was reduced by 100 million trips      rupiah). Bali alone accounts for
                                             from the 2019 baseline of             27 percent of the national total
      The distribution of inbound            212 million, representing             tourism losses. Because tourism
      travellers across the 34 provinces     a 47 percent decline. Estimated       contributes 46 percent of Bali’s
      was found to be uneven. Foreign        reduced domestic tourism              GDP and the province has seen
      travellers strongly favoured           receipts were Rp 72.4 trillion        a rapid expansion of inbound
      destinations in six provinces: Bali,   (US$5.17 billion, Table 3). Most      tourism demand over the years
      Jakarta, Kepulauan Riau, West          losses were in the areas of           (Law et al., 2016), Bali has been
      Java, Yogyakarta and East Java;        transport (Rp 23 trillion,            the epicentre of the tourism crisis
      33 percent and 22 percent of           32 percent), food and beverage        during the COVID-19 pandemic.

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Road to recovery: Assessing job risk and the impact on the most vulnerable in Indonesia's pandemic-hit tourism industry
RAPID RESEARCH             PROJECT FINAL REPORT

      Table 2: Reduced tourism spending by sectors, January to September 2020 (unit: billion Rupiah).
                                                                                                                            Total
                                             Food and                     Shopping/      Recreational                                      Pct by
         Sectors          Accommodation                    Transport                                         Others       reduced
                                             beverage                     souvenirs        services                                      segments
                                                                                                                          spending
       Domestic
                              4,755           22,342        22,825         15,796             1,971          4,709         72,397           36%
       tourism

       International
                             56,000           25,470        14,331         18,829             4,108          10,711       129,449           64%
       tourism

       Total                 60,755           47,812        37,156         34,625             6,079          15,420       201,846          100%
       Percentage
       of total               30%                24%         18%             17%               3%             8%            100%
       spend

      Table 3: Distribution of reduced international and domestic tourism spending across 34 provinces,
      January to September 2020 (unit: billion Rp).
                                                                                                                 Pct of losses         Ranking of
                                  Domestic          International
                                                                            Total           Ranking of          contributed by        international
               Province            tourism             tourism
                                                                       tourism losses     tourism losses*      the international         tourism
                               spending losses     spending losses
                                                                                                                    market           contribution**
       Aceh                                 919               280               1,198                   17                  23%                   21
       North Sumatra                       2,243            4,869               7,112                    8                  68%                       9
       West Sumatra                        1,287            3,337               4,624                   10                  72%                       7
       Riau                                 897               168               1,065                   19                  16%                   25
       Jambi                                189               109                  298                  29                  37%                   17
       South Sumatra                        906               185               1,091                   18                  17%                   24
       Bengkulu                             336                44                  380                  28                  11%                   30
       Lampung                              674               108                  782                  22                  14%                   26
       Bangka Belitung                      409               135                  543                  24                  25%                   20
       Kepulauan Riau                      2,023            9,005              11,027                    6                  82%                       3
       Jakarta                            11,984           28,135              40,119                    2                  70%                       8
       West Java                          10,667             7,107             17,774                    4                  40%                   15
       Central Java                       10,251            1,434              11,685                    5                  12%                   29
       Yogyakarta                          5,491            5,200              10,690                    7                  49%                   11
       East Java                          12,172             6,743             18,915                    3                  36%                   18
       Banten                              1,316              367               1,683                   15                  22%                   22
       Bali                                6,389           48,636              55,025                    1                  88%                       2
       West Nusa                            755             6,263               7,017                    9                  89%                       1
       Tenggara
       East Nusa Tenggara                   781               931               1,712                   14                  54%                   10
       West Kalimantan                      510              1,675              2,186                   12                  77%                       5
       Central Kalimantan                   597                95                  692                  23                  14%                   27
       South Kalimantan                     706               107                  813                  21                  13%                   28
       East Kalimantan                      426              1,755              2,181                   13                  80%                       4
       North Kalimantan                      68                61                  130                  33                  47%                   12
       North Sulawesi                       642               422               1,064                   20                  40%                   16
       Central Sulawesi                     421                99                  520                  25                  19%                   23
       South Sulawesi                      1,806             1,575              3,381                   11                  47%                   13
       Southeast Sulawesi                   278               231                  509                  26                  45%                   14
       Gorontalo                            228                21                  249                  30                   8%                   34
       West Sulawesi                        209                26                  235                  31                  11%                   31
       Maluku                                23                68                   91                  34                  74%                       6
       North Maluku                         139                16                  154                  32                  10%                   32
       West Papua                           285               111                  397                  27                  28%                   19
       Papua                               1,374              132               1,506                   16                   9%                   33
       Total                              72,397          129,449            201,846                                        64%
       Note: pct = percentages; * 1 = most heavily impacted; ** 1 = the highest percentages

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RAPID RESEARCH      PROJECT FINAL REPORT

      3.2. I M P A C T S B Y S E C T O R   So there is the first direct impact which is typically measured by GDP,
      AND PROVINCE                         employment and personal income. The secondary impact results in
                                           suppliers facing the same process of reduced jobs, fewer payments to
      Total impact. Reduced tourism        employees, lower business profits and less tax paid. This flows on to the
      spending adversely affects the       suppliers of suppliers. This loss in the supply chain is referred to as the
      economy in two ways.                 indirect effect. The sum of the direct and indirect effects gives a complete
                                           picture of the impact of reduced tourism demand.
         “Fewer customers                  Given an estimated 202 trillion rupiah reduction in visitor spending during
          means fewer job                  January-September 2020, the direct economic impact included 100 trillion
       opportunities, lower                rupiah (US$71 billion) reduction in GDP, 1.8 million jobs at risk and a
                                           47.5 trillion rupiah (US$3.4 billion) cutback in salary among tourism
       wages to the existing               employees (Table 4). The impact on the supply chain of decreased tourism
      employees, decreased                 activity led to a 1.3 percent fall in GDP, 2.6 percent drop in nationwide
                                           employment, and a 1.7 percent loss in personal income.
       business profits and
      fewer tax dollars paid
                                           Table 4: Economic impacts of reduced tourism to the Indonesian economy,
        to the government.                 January to September 2020.
      And then the reduction
                                                                                                   Pct of
        in tourism revenue                  Indicators
                                                          Reduced
                                                             GDP
                                                                         Pct of
                                                                        national
                                                                                    Affected
                                                                                   employment
                                                                                                 national
                                                                                                             Affected
                                                                                                             personal
                                                                                                                         Pct of
                                                                                                                        national
                                                                                                employment
          then impacts the                               (billion Rp)     GDP        (000's)
                                                                                                  (2019)
                                                                                                              income    income

       supply chain – a hotel               Direct
                                                          100,481        0.60%       1,799        1.40%      47,529      0.90%
                                            effect
        with low occupancy                  Total
                                                          208,248        1.30%       3,384        2.60%      88,655      1.70%
              will reduce,                  effect
                                            Note: pct = percentages
             for example,
      orders for vegetables
            and fruits for                 It is important to note that the MRIO model assumes a linear relationship
                                           between reduced tourism spending and unemployment. If one billion rupiah
         breakfast, laundry                in tourism spending supports 15 jobs, a reduction of 10 billion rupiah
            services and                   spending in the model will be expected to lead to 150 job losses. Tourism
                                           businesses may not, in reality, lay off people in direct proportion to their
           the purchase of
                                           business losses, but it is very likely these positions are at high risk of
        cleaning products.”                being laid off, converted to part-time or being rotated to different business
                                           entities. In this report, these job estimates provide a proxy for the likely
                                           impact on employment.

                                           Across the economy, accommodation and food services suffered the
                                           biggest losses, accounting for 36 percent and 31 percent of total GDP
                                           and employment reduction respectively, followed by trade, other services,
                                           and transport sectors (Figure 2). With a strong connection to the tourism
                                           industry, the agriculture and manufacturing sectors have also been
                                           affected, with a GDP drop of 7 percent and 10 percent, respectively.

                                           Since accommodation and food services have been heavily affected, we
                                           examined the influence of the pandemic within the sector. During the study
                                           period, it has been estimated that one million workers in this sector were
                                           at risk, with an estimated loss of Rp 24.7 trillion rupiah of personal income.
                                           This translated to a staggering 11.5 percent of total hotel and food service
                                           employees at risk, with 13.6 percent of their income reduced.

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                             GDP reduction                                                       Employment reduction
                         Other sectors         Accomodation and          Transportation           Manufacturing
                             10%             food service activities      and storage                 5%                        Other sectors
                                                     36%                      9%                                                     0%
                                                                                                                                          Accomodation and
       Manufacturing
                                                                                                                                        food service activities
           12%
                                                                                                                                                 31%

 Transportation
  and storage
      12%                                                         Agriculture,
                                                                   forestry
                                                                  and fishing
                                                                     11%

         Agriculture,                                                  Other services
          forestry                                                       activities
         and fishing                                                       17%
             7%          Other services               Trade                                                                               Trade
                           activities                  15%                                                                                 27%
                              8%

                  Figure 2: Economic impact of tourism losses (%) on GDP and employment by major sectors.

       Regional impact. Since tourism
       demand is highly concentrated
       in specific provinces, a regional
       analysis of economic impact was
       necessary. As expected, impacts
       were heavily felt by regions with
       a high level of tourism. Five
       provinces experienced GDP losses           > -2%
       of more than 2 percent, and four           -1.2% ~ -2%

       provinces reported a reduction of          -0.8% ~ -1.2%
                                                  -0.5% ~ -0.8%
       1.2-2 percent (Figure 3). The most
                                                  < -0.5%
       affected region, Bali, experienced
       51 trillion rupiah GDP losses,          Figure 3: GDP losses (percentages) across 34 Indonesian provinces.
       accounting for 22.5 percent of
       GDP (total wages, profits, tax
       and depreciation) in the province        Tourism-related losses (Rp trillion)                                            Percentage losses
       (Figure 4). The second most-             -51                                                Bali                                                  22.5
       affected region was Jakarta, with              -40.3                                      Jakarta              1.7
       an estimated GDP loss of                                    -19.6                        East Java            1
                                                                   -19.4                        West Java            1.1
       40.3 trillion rupiah. However,
                                                                        -12.4                  Central Java          1
       due to its capital status and                                         -9.2             Kepulauan Riau             3.5
       complex and large economic                                            -9.1               Yogyakarta                       7
       system, this tourism crisis                                             -7.5           North Sumatra          1.1
                                                                                -5.9        West Nusa Tenggara              5.1
       accounted for only a 1.7 percent
                                                                                 -4.3         West Sumatra            2.1
       GDP reduction in Jakarta, allowing
                                                   -50    -40   -30    -20       -10    0                        0          5        10     15      20
       the destination to better absorb
       the economic shock.                     Figure 4: GDP losses and percentage losses for the top 10 provinces (%).

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      The regions most impacted by
      employment losses rank slightly
      differently (Figure 4). Most tourism-
      related job losses were reported
      in Bali (819,621), West Java
      (454,148), East Java (287,633),
      Central Java (286,953), Yogyakarta
      (241,847), Jakarta (241,488) and
      West Nusa Tenggara (204,201).              > 200,000

      These seven provinces comprised            35,000 ~ 200,000
                                                 25,000 ~ 35,000
      75 percent of total tourism-related
                                                 10,000 ~ 25,000
      unemployment. Bali faced extreme
                                                 < 10,000
      difficulties in retaining tourism-
      related positions, with one in          Figure 5: Employment losses (numbers) across 34 Indonesian provinces.
      every three threatened by reduced
      demand. While several provinces
      had more than 10 percent of local
      employment at risk, including
      Yogyakarta (11.3 percent) and
      Kepulauan Riau (11.3 percent).

        “Bali faced extreme
       difficulties in retaining
           tourism-related
            positions, with
          one in every three
      threatened by reduced
      demand. While several
        provinces had more
      than 10 percent of local
       employment at risk...”
                                              Photo by Oliver Sjöström via Unsplash
      Figures 4 and 5 demonstrate the
      impact of the tourism crisis on GDP
      and employment. We were able to
      conclude that Bali, Yogyakarta and
      Kepulauan Riau have been much
      more economically vulnerable to
      falling tourism demand.

                                              Photo by Surya Prakosa via Unsplash

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      3.3. I M P A C T S B Y                   3.4 million jobs at risk,             by reduced tourism) with total
      G E N D E R , E D U C AT I O N ,         representing 2.6 percent of           employees in the same group
      AGE AND INCOME                           national total employment. ‘Jobs      (eg, all female workers).
                                               at risk’ implies these positions
      One important objective of this          were much more likely to be laid      Gender. Globally, women have
      study is to analyse job losses           off or converted from full-time       been found to be more affected
      across demographic groups to             to part-time. Of these 3.4 million    by the tourism crisis than men.
      better understand the impact             jobs, 1.63 million were held by       This is also the case in Indonesia,
      of the tourism crisis. We feel           women; 755,000 by youth (15-27        where 16 out of 34 provinces
      employment data represent the            years old); 1.12 million by lower-    reported a higher number of jobs
      best proxy, as they capture effects      educated workers; and 541,000         held by women were at risk than
      on job security, which has a             jobs were in low-wage occupations.    jobs held by men. The highest
      profound influence on individual,        On a percentage basis, the            number of women’s jobs at risk
      family and ultimately societal           collapse of tourism has placed        were reported in Bali, West Java,
      welfare. COVID-19’s impact has           3.1 percent of female workers,        Central Java and East Java.
      rendered several groups much             2.7 percent of youth employees,       In terms of vulnerability, Bali,
      more economically vulnerable,            3.1 percent of lower-educated staff   Kepulauan Riau, Yogyakarta
      including women, youth (15-27            and 2.3 percent of low-income         and West Nusa Tenggara were
      years old), lower-educated workers       workers in a situation where their    found to be the key spots, with
      (whose highest level of education        job risk is extremely high.           more than 10 percent of total
      is elementary school) and the                                                  women-held positions under
      lower-paid (monthly income up to         The following four figures provide    threat. In Bali, a staggering
      one million rupiah).                     a more detailed look. The absolute    one-in-three female workers
                                               number is the number of positions     and entrepreneurs were highly
      Nationally, the 202 trillion rupiah      affected, while the percentage        impacted, creating both
      (US$14 billion) reduction in             compares affected positions           financial and social problems
      tourism spending has put                 (eg, female workers affected          for the community.

      Photo by Anggit Rizkianto via Unsplash

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      Youth. The influence on youth            Tourism-related losses (thousand)                                                  Percentage of province jobs
      employment has also been found        -416.4                                                      Bali                                                              34.9
      to be significant. Nationally,                              -195.4                             West Java                2.4
      22 percent of the affected                                       -132.1                       Central Java             1.7
                                                                        -125.6                       East Java               1.4
      workforce was 15-27 years old.
                                                                         -123.5                      Yogyakarta                               12.7
      This ratio was much higher in                                       -113.7                 West Nusa Tenggara                         10.5
      21 provinces, indicating that                                          -86.4                    Jakarta                  4.4
      youth workers in these areas                                              -78                North Sumatra             2.6
                                                                              -69.5                West Sumatra                  6
      were more prone to job losses.
                                                                               -60.2               Kepulauan Riau                                    16.5
      In terms of absolute numbers,
                                                 -400       -300      -200       -100        0                          0        5     10       15 20         25 30     35
      most youth-filled positions at
      risk were reported in Bali, West       Figure 6: Female employment losses and percentages for the top 10 provinces.
      Java, Central Java and East
      Java. In percentage terms, Bali,
      Yogyakarta, Kepulauan Riau and           Tourism-related losses (thousand)                                              Percentage of province jobs

      West Nusa Tenggara Barat were         -201.3                                                     Bali                                                             38.2
      found to be most vulnerable,                                -93.6                             West Java               2
                                                                          -59.7                    Central Java             1.7
      with more than 9 percent of                                          -54.2                    East Java               1.4
      total youth-held positions under                                      -50.4            West Nusa Tenggara                        9.2
      threat. Retaining youth workers                                       -49.3                    Jakarta                  4.7
      is especially important for Bali,                                      -43.1                 Yogyakarta                               12.7
                                                                              -37.7               North Sumatra             2.1
      as about 40 percent of young                                             -30.8              West Sumatra                 5.2
      people have been on the brink                                              -18.3           Kepulauan Riau                        9.5
      of losing employment.                     -200       -150     -100        -50      0                          0        5         10         20          30        40

      Low education. Workers with an         Figure 7: Youth employment losses and percentages for the top 10 provinces.
      education level of elementary
      school or lower, without exception,
      have been more affected in this          Tourism-related losses (thousand)                                              Percentage of province jobs
      tourism crisis. Nationally,           -234.2                                                     Bali                                                             28
      24 percent of the impacted                     -177.9                                         West Java            2
                                                              -120.2                                East Java           1.2
      workforce was lower-educated
                                                               -119.7                              Central Java         1.5
      workers. This ratio was found to                                  -78.8                West Nusa Tenggara                        7.9
      be much higher across                                               -65.1                    Yogyakarta                                10.4
      25 provinces, indicating that                                          -44.6                North Sumatra             2.1
                                                                              -42.6                  Jakarta                         5.4
      low-education staff, mostly in
                                                                               -35.7             Kepulauan Riau                                      14.1
      basic and front-line positions,                                            -35              West Sumatra                3.8
      were prone to job losses. Most
                                                       -200 -150        -100     -50     0                          0            5         10               20     25    30
      low-education positions under
      threat were reported in Bali, West     Figure 8: Low-education employment losses and percentages for the
      Java, East Java and Central Java.      top 10 provinces.
      In terms of the unemployment
      ratio, Bali, Kepulauan Riau and
      Yogyakarta have been found to            Tourism-related losses (thousand)                                              Percentage of province jobs

      be most vulnerable, with more          -90.4                                                     Bali                                                             32.3
      than 10 percent of lower-educated              -71.7                                          West Java               1.9
                                                         -61.1                                      East Java               1.4
      workers under threat.
                                                         -60.9                                     Central Java             1.7
                                                           -53.6                                   Yogyakarta                                   12.7
                                                                    -38.5                    West Nusa Tenggara                      6.7
                                                                      -31.9                       North Sumatra              2.5
                                                                                 -15             Kepulauan Riau                                        17.3
                                                                               -15.6                 Jakarta                   4.7
                                                                                  -14             West Sumatra               3.2

                                             -100    -80      -60       -40      -20     0                          0         5        10       15     20     25      30 35

                                             Figure 9: Low-income employment losses and percentages for the top
                                             10 provinces.

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      Low income. Low-income workers,          The above discussions are based on two sets of results – the potential
      surprisingly, have been found to be      unemployment total and the possible unemployment rate. The first result draws
      less affected by the tourism crisis      attention to provinces with a large loss in tourism revenue. The second indicates
      than other studies reported. This        the vulnerability of particular groups, sometimes from small regions. A high
      was evident by contrasting national      unemployment ratio implies strong tourism dependence. This has important
      total affected jobs                      implications for those at risk because the COVID-19 situation will make it much more
      (2.6 percent) with affected              difficult for them to find alternative employment in either the tourism industry, which
      positions held by those with             has contracted significantly, or other sectors where their skill set may not satisfy job
      monthly income up to 1 million           requirements. Groups with a high estimated unemployment rate have been identified
      rupiah (2.3 percent). A possible         below (Figure 10).
      explanation is that before
      COVID-19, those who worked in            • Bali – 820,000 possible job losses, and the unemployment rate for youth, women,
      tourism, both directly and indirectly,     lower-educated and low-income workers exceeding 30 percent in the region
      had comparatively higher income          • Yogyakarta – 242,000 possible job losses, and the economic risks for women,
      than those who did not. The 2020           youth and low-income workers being five to six times higher than the average
      Labour Survey data showed that             across the country
      24 percent of the total workforce        • West Nusa Tenggara – 204,000 possible job losses, and the economic burdens
      had a monthly income below 1               expected to be more prominent for female workers and lower-educated workers
      million rupiah; in contrast, only          with a 10 percent unemployment rate
      5 percent of employees in the            • Kepulauan Riau – 114,000 possible job losses, and one in every six low-income
      accommodation and food service             and female workers expected to endure significant job and income losses
      sector in Bali were in this category.    • Jakarta – 241,000 job losses. Youth and low-income workers at a relatively higher
      The reduction of tourism demand            job risk.
      therefore affected more of those in
      relatively higher-income groups.            “... The COVID-19 situation will make it much more
                                                  difficult for them to find alternative employment in
                                                   either the tourism industry, which has contracted
                                                significantly, or other sectors where their skill set may
                                                              not satisfy job requirements.”

                                                                                         32%       11.273%      11.271%    8%     5%
           Kepulauan Riau
           Low-income: 17%
             Women: 16%
            Low-edu: 10%
             Youth: 10%

                                            Yogyakarta                 Bali
                                            Youth: 13%              Youth: 38%
                                            Women: 13%             Women: 35%
                                          Low-income: 13%        Low-income: 32%
                                           Low-edu: 10%            Low-edu: 31%
             Jakarta
            Youth: 5%                                                                          West Nusa Tenggara
          Low-income: 5%                                                                          Low-edu: 12%
            Women: 4%                                                                             Women: 11%
           Low-edu: 2%                                                                              Youth: 9%
                                                                                                 Low-income: 7%

                  Figure 10: The potential unemployment rate for demographic groups across five provinces.

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      Photo by Arty via Unsplash

      4.0. C O N C L U S I O N A N D        decline in international tourism        figures support the conclusion
      R E C O M M E N DAT I O N S           and a 47 percent contraction in         that women, youth and lower-
                                            domestic tourism in Indonesia           educated workers in Indonesia
      Evidence-based policy is              between January-September 2019          are disproportionately affected
      required to manage complex            and January-September 2020,             by the pandemic. Unexpectedly,
      socioeconomic systems and             with a resulting revenue loss of        the impact on low-income
      related tourism impacts               202 trillion rupiah (US$14 billion).    workers has been less significant.
      (Cvitanovic et al., 2016;             Based on the multi-regional input-      This may be because relatively
      UNWTO, 2014). Evidence-based          output model (provided by the           higher wages are offered in
      policymaking refers to policy         Ministry of Finance) and tourism        the accommodation and food
      decisions being informed by           satellite account (Ministry of          service sector in many tourism-
      rigorous research and high-           Tourism), the study estimated the       dependent provinces, especially
      quality empirical evidence from       reduced tourism spending has            in Bali and West Nusa Tenggara.
      a balanced perspective. This          resulted in a 208 trillion rupiah dip   Working in tourism before
      approach to policymaking helps        in GDP (1.6 percent), 88 trillion
                                                                                    COVID-19 generated higher
      mitigate the risk of idiosyncratic    rupiah loss of personal income
                                                                                    income relative to other sectors
      decisions and leads to a better       (1.7 percent) and a potential
                                                                                    of the economy. Thus, when
      long-term outcome.                    3.4 million job losses (2.6 percent).
                                                                                    tourism demand disappears,
                                            Of those jobs affected, 62 percent      affected positions tend to be in
      To effectively manage COVID-19
      related impacts, we need strong       were in four provinces: Bali            a higher income group.
      and valid evidence to guide policy    (32 percent), Kepulauan Riau
      measures towards vulnerable           (11 percent), Yogyakarta                    “These figures
                                            (11 percent) and West Nusa
      groups, to allow an inclusive                                                       support the
      recovery. This project fills this     Tenggara Barat (8 percent). Among
      information gap by providing a        these at-risk workers, 1.63 million         conclusion that
      high-resolution economic analysis     were women; 755,000 were                     women, youth
      mapping economic impact to both       youths (aged 15-27); 1.12 million
      geographic region and socio-          were lower-educated workers;                   and lower-
      demographic status. It presents       and 541,000 were low-wage. This           educated workers
      the first detailed regional-level     translates to 3.1 percent of female
                                            workers, 2.7 percent of youth              in Indonesia are
      analysis of the direct and indirect
      effects of reduced tourism.           employees, 3.1 percent of lower-          disproportionately
                                            educated staff and 2.3 percent of
      COVID-19 related restrictions and     low-income workers who are facing
                                                                                          affected by
      risk aversion saw a 70 percent        high levels of job insecurity. These        the pandemic.”

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      4.1 . R E C O M M E N D A T I O N S

      In response to the pandemic in
      2020, Indonesia’s government
      allocated 695.2 trillion rupiah
      (US$47 billion) in stimulus funds
      up to September 2020, including
      support for the tourism industry
      and low-income workers. Not all
      was disbursed due to bureaucratic
      red tape and/or unreliable data
      (The Jakarta Post, 2020). This
                                            Photo by Tienko Dima via Unsplash
      study has identified specific
      vulnerable groups at the regional
      level, with recommendations for
                                            promoting Bali, Kepulauan Riau,      gain new qualifications and
      further support discussed below.
                                            West Java, East Java, West Nusa      prepare to regrow the tourism
                                            Tenggara and Yogyakarta as           workforce through learning,
      4.2. F O C U S I N G                  destinations for domestic travel     innovation and digitalisation.
      POLICYMAKING ON                       may help encourage people who        For example, although many
      THE REGIONAL LEVEL                    had planned to travel abroad to      Indonesian women are digitally
                                            stay at an Indonesian destination.   connected, business owners’ and
      Overall, we identified five           A strategic plan to leverage         workers’ digital skills continue
      provinces with specific               existing domestic travel demand      to lag (Bentley, 2020). Capacity
      social groups who have been           and convert outbound journeys        building and support through
      significantly impacted, including     to domestic trips will boost local   vocational, on-the-job or online
      Bali (women, youth and lower-         businesses. Government support       training are a must for tourism-
      educated workers); Yogyakarta         for creative small-scale (niche)     related employees, particularly
      (women, youth and low-income          tourism products run by local        for those with limited access
      workers); Kepulauan Riau (women       businesses is also recommended.      or means to do so otherwise.
      and low-income workers); West         These businesses tend to support     Aligned with sustainable health
      Nusa Tenggara (women, youth           local employment with extensive      and safety measures regulated
      and lower-educated workers);          integration of the area’s culture,   by government and industry,
      and Jakarta (youth and low-           arts, souvenirs and gastronomy,      such training offers opportunities
      income workers). This information     delivering more benefits to the      to upskill, reskill and multi-skill
      allows specific relief and subsidy    local suppliers.                     current staff and increase the
      programs to be targeted at                                                 resilience of the local tourism
      affected businesses and workers.      Tourism recovery                     sector. This will create a win-
      Directing central funding to the                                           win situation, with high-quality
                                            The tourism industry has been
      regional level to assist with wage                                         tourism experiences and staff
                                            a driver of economic growth
      compensation, skills training or                                           ready when tourism returns
                                            in Indonesia. The road to
      job relocation will provide much-                                          (CREST, 2020).
                                            recovery requires solidarity
      needed support to ensure the          and collaboration across the         In restarting tourism in the post-
      livelihoods of those communities.     industry and destinations’ local     COVID-19 era, the United Nations
                                            communities as well as public        (UN, 2020) has recommended
      Promoting domestic tourism
                                            and private partners such            five primary areas of focus, with
      and community welfare
                                            as Wonderful Indonesia, the          people at the centre. The priority
      The pandemic has not only caused      Indonesia Hotel and Restaurant       is to mitigate socioeconomic
      loss of income and jobs, but led      Association and the Indonesian       impacts, especially for women
      to many families falling below the    Chamber of Commerce                  and vulnerable groups. Our
      poverty line. A “domestic-led”        and Industry. Stakeholder            study contributes to this goal
      strategy promoting domestic           collaboration supports tourism       by identifying marginalised and
      travel, especially to regions         recovery plans at the regional       vulnerable communities who
      heavily dependent on international    level. People are at the centre      have been hard hit by the tourism
      tourism before COVID-19, will         of the recovery. Programs are        decline, so that those who have
      help fill empty rooms and seats.      needed for vulnerable people         endured the greatest economic
      A national marketing campaign         to be retrained, so they can         hardship can be best helped.

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      5.0. R E F E R E N C E S

      ABC News. (2020). Women bear biggest job losses from coronavirus, latest ABS data shows. Retrieved
      from https://www.abc.net.au/news/2020-05-06/fears-coronavirus-will-destroy-financial-independence-for-
      women/12217672
      Asmara, C.G. (2020, 21 November). Sampai 2021, Pintu Bali masih tutup buat turis asing? (Until 2021,
      will Bali still be closed to foreign visitors?). CNBC Indonesia. Retrieved from https://www.cnbcindonesia.com/
      news/20201121112245-4-203582/sampai-2021-pintu-bali-masih-tutup-buat-turis-asing
      Bentley, C. (2020). Towards gender equality in Indonesian tourism. Tourism Watch. Retrieved from
      https://www.tourism-watch.de/en/focus/towards-gender-equality-indonesian-tourism
      Center for Strategic International Studies (CSIS). 2020. Southeast Asia Covide-19 tracker. Retrieved from
      https://www.csis.org/programs/southeast-asia-program/southeast-asia-covid-19-tracker-0
      CREST. (2020). The case for responsible travel: Trends and statistics 2020. Retrieved from
      https://www.responsibletravel.org/docs/CaseforResponsibleTravel_2020_Web.pdf
      Cvitanovic, C., McDonald, J., & Hobday, A. J. (2016) From science to action: Principles for undertaking
      environmental research that enables knowledge exchange and evidence-based decision-making. Journal of
      Environmental Management, 183(Pt 3), p 864-874.
      Faturay, F., Lenzen, M., & Nugraha, K. (2017) A new sub-national multi-region input-output database for Indonesia.
      Economic Systems Research, 29(2), 234-251. doi:10.1080/09535314.2017.1304361
      Government disburses $163m for micro businesses. (2020c) 25 August. The Jakarta Post. Retrieved from
      https://www.thejakartapost.com/news/2020/08/25/government-disburses-163m-for-micro-businesses.html
      Government to provide Rp 600,000 monthly payments to employees earning less than Rp 5 million per month.
      (2020) 6 August. The Jakarta Post. Retrieved from https://www.thejakartapost.com/news/2020/08/06/govt-to-
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THE AUSTRALIA-INDONESIA CENTRE | PARTNERSHIP FOR AUSTRALIA-INDONESIA RESEARCH                                       20
RAPID RESEARCH       PROJECT FINAL REPORT

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THE AUSTRALIA-INDONESIA CENTRE | PARTNERSHIP FOR AUSTRALIA-INDONESIA RESEARCH                                    21
Photo by Víctor Vázquez on Unsplash
THE AUSTRALIA-INDONESIA CENTRE:

POLICY PARTNERS:

PA R T N E R S F O R I M PAC T:

Program Management Team:          Research Advisory Panel:                                        Acknowledgements:

Dr Eugene Sebastian,              Anna McNicol,                   Profesor Jamaluddin Jompa,      The Australia-Indonesia
PAIR Program Director             Acting Minister-Counsellor      Advisor for Marine Ecology at   Centre (AIC) acknowledges
Helen Fletcher-Kennedy,           (Economic, Investment and       the RI Ministry of Maritime     the Australian Government
Chief Operating Officer           Infrastructure), Australian     Affairs and Fisheries           for its generous support of
                                  Embassy, Jakarta                Jana Hertz, Team Leader         the Partnership for Australia-
Dr Leonardo Pegoraro,
                                  Profesor Budu,                  at the Knowledge                Indonesia Research (PAIR)
PAIR Program Manager
                                  the South Sulawesi Provincial   Sector Initiative               through the Department
Dr Hasnawati Saleh,                                                                               of Foreign Affairs and
                                  Government’s Development        Muhammad Sani Azis,
PAIR Research Coordinator                                                                         Trade. The AIC also
                                  Acceleration Team (TGUPP)       Regional Coordinator
Dr Martijn van der Kamp,                                                                          gratefully acknowledges
                                  Bronwyn Robbins, Australian     (South Sulawesi), Indonesian
PAIR Team Capability                                                                              the Government of
                                  Consul General in Makassar      Seaweed Association (ARLI)
Coordinator                                                                                       Indonesia’s support for
                                  Dr Elan Satriawan,              Dr Musdhalifah Machmud,         PAIR through its Ministry
Marlene Millott,
                                  Chief of Policy Working         Deputy Minister for Food and    of Research and Technology.
PAIR Program Officer
                                  Group, National Team for        Agriculture, RI Coordinating
Fadhilah Trya Wulandari,          the Acceleration of Poverty     Ministry for Economic Affairs   This research was supported
PAIR Program Officer              Reduction (TNP2K)                                               by the Australia-Indonesia
                                                                  Prakosa Hadi Takariyanto,
                                  Dr(HC) Erna Witoelar,           Technical Director              Centre’s Small, Rapid
                                  Former UN Special               PT Pelabuhan Indonesia IV       Research Grants 2020.
                                  Ambassador for Millennium       (Persero)                       We thank Dr. Futu Faturay
                                  Development Goals (MDGs)                                        of the Indonesian Ministry
                                                                  Pratiwi Hamdhana, Founder
                                  in the Asia Pacific                                             of Finance for providing the
                                                                  and Managing Director,
                                                                                                  Multi Regional Input Output
                                  Dr Eugene Sebastian,            Tenoon, Driver Engagement,
                                                                                                  modelling as the main
                                  Executive Director, The         Gojek Makassar
                                                                                                  analysis in this research.
                                  Australia-Indonesia Centre      Profesor Wihana Kirana Jaya,    This research would not have
                                  Dr Hasnawati Saleh, PAIR        Special Staff to the            been completed without the
                                  Research Coordinator, The       RI Minister for Economic        excellent research support
                                  Australia-Indonesia Centre      Affairs and Transportation      from Dr. Lintje Siehoyono Sie
                                  Profesor Heri Hermansyah,       Investment, Ministry            (Postdoctoral fellow at the
                                  Acting Director of Research     of Transportation               Business School, University
                                  and Community Engagement,                                       of Queensland). We also
                                  Ministry of Research                                            thank Andri Wijanarko
                                  and Technology,                                                 (PhD student at Universitas
                                  Republic of Indonesia                                           Airlangga) for assistance with
                                  Dr Ishak Salim, Co-Founder                                      the labor data preparation.
                                  Indonesian Diffable
                                  Movement for Equality
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