FP083: Indonesia Geothermal Resource Risk Mitigation Project Indonesia World Bank B.21/15 10 January 2019
Gender documents for FP083 Indonesia: Geothermal Resource Risk Mitigation Project Gender Action Plan I. Background The Government of Indonesia (GoI) is preparing a Geothermal Resource Risk Mitigation (GREM) Project in collaboration with World Bank, which aims to support the GoI in achieving its ambitious target to increase the share of renewable energy in the power generation mix. The objective of the proposed Project is to scale up investment in geothermal energy development and reduce greenhouse gas emissions in Indonesia. It will have two components: Component 1 supports geothermal resource risk mitigation through exploration and delineation drilling by state-owned and private developers. Component 2 supports technical assistance and capacity building to improve the sector governance and investment climate in the long-term. The Project recognizes the importance of ensuring equal opportunities for both women and men throughout the whole project cycle. With a gender lens approach, the project will contribute to national policy frameworks on promoting equal rights to men and women and avoid exacerbating or perpetuating gender inequality. To this end, the Project seeks to incorporate gender-responsive design through improving corporate human resource standards for female participation in decision-making and hiring of female engineers and workers. This would entail careful analysis of various aspects of gender gaps and consideration of targeted interventions, and recommended actions in the Project Operations Manual for perusal by the developers and supervision by PT Sarana Multi Infrastruktur (Persero), the executing agency. II. Gender analysis This analysis examines the different rights, roles, needs and opportunities of both women and men, boys and girls and the relations between them in Indonesia, with strong emphasis on economic opportunities. The analysis would be used to identify opportunities and entry points for promoting gender inequality under the project and thus to inform the actions that are presented in Section III of this plan. The analysis would be focused on five key questions: What is the context? Who does what? Who has what? Who decides? And who benefits?
2.1. The context Gender equality is guaranteed by the Indonesian Constitution and explicitly recognized in various laws and legislations. These include the international Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) in Law No. 7/1984, the Presidential Decree No. 9/2000 on gender mainstreaming in development, Law No. 23/2004 on domestic violence, Law No. 12/2006 on citizenship (regulating doublenationality for children born of foreign husbands), Law No. 9/2004 on Migrant Workers, Law No. 80/1957 on Equal Remuneration, Law No. 21/1999 on Discrimination (Employment and Occupation), and the Labor Law No. 13/2004 and the Presidential Instruction No. 3/2010 and other ministerial regulations on sector-specific gender mainstreaming mechanisms. The Ministry of Women s Empowerment and Child Protection (MOWECP) has a mandate to ensure gender mainstreaming in development activities. Government agencies must set up a Gender Working Group (Pokja PUG) and implement gender-responsive budgeting (GRB), which is mandatory for all agencies at all levels of government. Ministerial Regulation of the Ministry of Home Affairs Permendagri No. 15/2008 identifies responsibilities at each level, including GRB. However, gaps in legal interpretations and implementation of these laws remain problematic. Female heads of households (except those not legally identified as such), have legal protection in securing land tenure and inheritance for their children; however, land and asset distributions remain unequal in practice. Book Two on Inheritance Law from the Islamic Law Compilation prescribes the division of assets between male and female beneficiaries at a 2:1 ratio, and Article 183 allows the inherited parties (men and women) to agree on the distribution of property. Also, Book Two of the Indonesian Civil Code on Inheritance governs the equal division of inheritances (movable and immovable assets) for both Muslims (who are allowed to choose to subject themselves to the Civil Code provisions instead of the Islamic Law) and Non-Muslims. Nevertheless, about 36.2% of married women aged 15 to 49 years own land individually or jointly as opposed to 54.1% of men. In addition, women are highly likely to lose their land rights upon widowhood, divorce, or desertion (DHS 2012). Moreover, evidence shows that implementation of regulations in some provinces (e.g., Aceh) remains discriminatory toward women. Married (Marriage Law) and unmarried (Civil Code) women have equal rights and by law equal inheritance and division of property (in the event of a divorce) are a women's right, but practice is likely to differ. In 1963, the Supreme Court revoked certain provisions (Articles 108 and 110) of the Indonesian Civil Code which required a wife to obtain prior
written consent from the husband for managing her own assets and for appearing before the court of law. Islamic laws on family and inheritance (which apply to the Islamic marriages in Indonesia) regulate specific portion of inherited estates for the wife(s) and which differs from the portion of other heirs. Certain customary laws, including Adat laws, may treat legal rights of women differently as compared to men. Even when gender-equal laws have been put in place, entrenched inequalities, discriminatory social norms as well as dominant patterns of economic development, which of which are presented below, can undermine their implementation and positive impact (UN Women, 2016). 2.2. Who does what? Over the past few decades in Indonesia, the proportion of women employed in the services and manufacturing sectors has increased. Yet, just 51 percent of women aged 15 and up participate in the labor force and this rate has remained roughly unchanged since 1990 (2011 SAKERNAS). In addition, this rate is considerably lower than that of male labor force participation, which at over 80 percent exceeds the average in East Asia and Pacific region (63 percent). According to the World Economic Forum s Global Gender Gap Report for 2015, in terms of the women s economic participation and opportunity sub-index, Indonesia ranks 114th out of 145 countries (World Economic Forum, 2015). Although female employment in the services and manufacturing sectors increased recently, the majority of Indonesian women work in the informal sector as self-employed, casual, or unpaid family workers. Levels of vulnerable employment (informal sector, unpaid workers and own-account workers) are relatively high at about 60% and 70% for men and women, respectively. Unemployment among youth (aged 15 to 24 years) is high at 19.3% for males and 21% for females (2011). This indicates that recent graduates have difficulty in finding work as these rates are far above the national unemployment rate, which was and 6.2% in 2015 (down from 6.6% in 2011). Almost half of Indonesian workers possess a primary school degree only. However, the share of higher education degree holders is now rising, with the share of those that only went to primary school decreasing. Career advancement opportunities in Indonesia s civil service are limited by gender. Female civil servants experience lower rates of promotion (i.e., a relative promotion probability of 67%). Educational attainment is beneficial for career advancement, but women with high levels of education are still penalized. The promotion penalty for being female and of a religious minority has worsened since the 1998/99 democratic transition.
Gender wage gaps are another issue. Percentages of female and male professional and technical workers are relatively equal at 49.2% and 50.8%, respectively and Indonesia has made progress in wage equality for similar work, but there have been recent declines (WEF 2017). In 1990, the median woman earned just 57% as much as the median man; this increased to 84% by 2011, but currently stands at 71% (WEF 2017). Much of the gender gap in wages and employment is likely due to gender discrimination within the labor market, rather than differences in productivity. There is an evidence that women wage workers are more educated relative to men, although they remain notably underrepresented in leadership and management positions. Enterprise surveys also suggest that, within the same firms, women are more likely than men to be temporary workers. The gap exists in enterprise sector as well. Female-owned and managed enterprises tend to be less capitalized and operate in less remunerative sectors.. Wage jobs have become more desirable than other types of work, and women who have wage jobs also have a greater say over household decisions. However, many women leave wage work due to family and childcare constraints. Women who have young children are significantly less likely to work compared to peers without children, and few of these tend to re-enter the labor market for wage work as children age. For women who do return to work, childcare constraints are associated with a switch to less lucrative occupations. The project will mitigate this employment and wage disparity between women and men by reducing women s time spent in household duties in the long term as well as directly creating new jobs in geothermal sector in the short term. Access to energy allows for more efficient products such as a washing machine and other home appliances. These products can reduce the time burdens of domestic responsibilities and create time for more productive, formal engagement in the local economy outside the home. Empirical studies that have examined the impact of electrification on female labor rates in developing country settings reinforce this hypothesis. Electricity is often a necessary and important input for microenterprises which are recognized as key contributors to rural job creation and poverty alleviation. Women are able to dedicate time to wealth-enhancing activities whether it be starting a small franchise, selling crafts, or working in the local store and have reliable electricity for productivity-enhancing machinery. Microenterprises in particular require electricity to draw in customers, extend operating hours, improve working conditions, automate production, preserve products, and communicate beyond the local market.
2.3. Who has what? As part of the study, Women entrepreneurs in Indonesia: a pathway to increasing shared prosperity, in 2015, the World Bank administered a survey to 1,633 female micro and small entrepreneurs and 135 financial institutions in addition to local government officials, business development service providers and women credit programs in eight Indonesian provinces. The study found that most micro-enterprises owned and operated by Indonesian women are active in the trade and services sectors and are profitable with 80 percent of the 1,600 entrepreneurs included in their sample recording a 20 to 30 percent profit. Women entrepreneurs also tend to employ female workers and thus play a significant role in building the level of female participation in the labor force. Still, the average woman-owned firm is significantly smaller than the average male owned-firm in terms of profits, sales, and number of employees. The same study shows that a large proportion of enterprises owned and operated by women are affected by a lack of collateral registered under their own name, which limits their access to credit and influences perceptions that women lack business-related knowledge and skills. More specifically, financial institutions reported that women are not bankable due to a lack of collateral, and 27 percent of women entrepreneurs reported that they did not apply for loans due to a lack of collateral. While the same financial institutions believe that women lack sufficient education and business knowledge, over 90 percent of women answered questions about market forces correctly. In terms of access to education, Indonesia achieved parity in terms of male and female gross enrollment rates at the primary and secondary levels more than a decade ago. In general, females achieve higher levels of educational attainment than males at all levels (BPS Population Census 2010). The net enrollment rate for females in tertiary education is slightly higher (32%) than for males (31%). However, gender gaps remain in some STEM subjects. Males are twice as likely to study engineering (12.5% versus 6.4%) and ICT (6.7% versus 13.10%) (WEF 2017) while female graduates outnumber males at 1.71% and 1.41% in natural science, mathematics and statistics (WEF 2017). Gender parity in education has not translated into equal opportunities for women s employment and in wage levels. Indonesia is ranked at 108th in terms of economic participation and opportunity, and at 118th in labor force participation (out of 144 countries) (WEF 2017). This level of economic participation and opportunity compare unfavorably with the Philippines and Vietnam, which are ranked at 25 and 33, respectively.
Women experience higher levels of unemployment and underemployment, and more likely to be unemployed than less-educated men. This represents a significant loss to the Indonesian economy as women s strong performance in educational attainment and qualifications are not being matched with employment. Female labor force participation has hovered at around 50% for the last 30 years. The latest data indicate that labor force participation rates stood at 52.9% and 85.8% for working age females and males, respectively (WEF 2017). A gap is also reflected among those with advanced degrees (81% for women and 93% for men), even though there is a 1.12 ratio of female to male enrolment in tertiary education (WEF 2017). Early marriage is also an important factor in limiting women s productive and economic resources. Marriage of girls aged 17 and 16 accounted for 19.3% of Indonesian marriages in 2015 (UNICEF 2016). Research indicates that delaying marriage tends to increase women s socioeconomic status, position within the household, and education. Married girls have poorer educational, economic, and health prospects. This limits their ability to lift themselves out of poverty and increases the likelihood of passing on similar circumstances to future generations. 2.4. Who decides? Women are employed in decision-making managerial positions at a ratio well below their labor force participation rate. Only 28% of firms have female top managers, which is the same percentage of firms that have female co-owners (WEF 2017). Women own about 35% of Indonesia s small and medium sized enterprises, but these have limited opportunities to grow because many women entrepreneurs have limited knowledge in business development and access to financial institutions (The Asia Foundation 2012). A recent survey found that most female-owned firms are in more labor-intensive activities within the informal sector, that they have limited information about opportunities to engage in business transactions with the government, and that owners face discrimination and harassment in dealing with government staff (ADB 2015). In the political sphere, women s political representation has increased from 11% in 2004 to 18% in 2009 and to 19.8% in 2014. Law No. 10/2008 on General Elections set a minimum quota of 30% female candidates for each political party and Law No. 27/2009 stipulates women s representation. A total of 111 (out of 560) representatives in the national parliament are now female and women hold one-quarter of ministerial positions (Inter-Parliamentary Union 2017, WEF 2017). Although the country is following the global trends of expansion of female representation, Indonesia ranks only 63rd (out of 144 countries) in political empowerment, significantly below the Philippines which ranks 13th
(WEF 2017). Female representation in public decision-making remains low relative to other countries, despite the Indonesian government s efforts to expand participation. Reasons cited for the low percentage of women elected include a lack political experience, networking, and financial support as well as preference for male candidates because of prevailing cultural perceptions and gender bias in terms of roles and capacities. 2.5. Who benefits? Consensus building and consultation during the project design phase will raise awareness about the possible impact on gender roles arising from geothermal development. The project design phase will include women s equal participation in all consultations and communication plans in order to foster positive health behaviors and social outcomes. With increased transparency and openness from the outset of the project it is possible to alleviate problems at the household and community level. The project will create a tipping point for a more gender balanced workforce by increasing the number of talented and well-trained women involved in geothermal sector. Jobs and other economic opportunities that are available to women can play a critical role in transforming gender roles and norms by improving women s incomes, which can in turn increase their decision-making roles. As other energy projects have shown, when women have opportunities previously not available to them, especially technical jobs, communities views of what a woman can do can lead to lasting change. III. The Gender Action Plan This plan presents key impacts, outcomes and output statements which are informed by the gender analysis in Section 2 and mirrors the project outputs in order to address key gender gaps and contribute to greater equality between men and women through the project activities. Each output will be followed by associated gender-responsive activities with gender-performance indicators and targets, timeline, and responsibilities. Capacity to address gender related issues and achieve the outputs will be built through Component 2 of the project on technical assistance and capacity building. At the project level, World Bank gender specialists assigned to the region will be able to provide guidance and suggest options to incorporate gender consideration into project design and implementation.