Special Economic Zones can raise formal employment and wages in the right conditions, but without strong complementary policies such as education, infrastructure and trade openness, they are unlikely to deliver sustained economic growth.

Indonesia’s Special Economic Zone programme (known as Integrated Economic Development Zones) had minimal impact on regional growth and welfare, largely because it targeted remote, low-potential areas and relied solely on tax incentives. Effective des...

Better roads help manufacturers create new jobs, enabling worker transitions out of informal employment, and increasing wages.

Better roads help manufacturers create new jobs, enabling worker transitions out of informal employment, and increasing wages.

Evidence from Indonesia’s TransJakarta Bus Rapid Transit suggests that low-cost BRT systems can actually worsen traffic congestion

Clustering of firms in Indonesia only leads to substantial productivity spillovers in a few industries, suggesting the need to review cluster policies

Better matching between transmigrants’ origin and destination agroclimate and languages can substantially improve productivity and integration

Relocation programmes should consider providing agricultural extension services to ensure migrants adapt and cope in new environments