Abstract
This study, prepared under EU funding and on request by the Indonesian government,has the ambition to understand the inter-regional dynamics in terms of economics, but also in terms of employment and Decent Work (DW) dimensions. It tries to showcase, with the help of simulations, on how to combine macro policy instruments more effectively with inter-regional characteristics, i.e. by identifying the most important “within” region activities, main natural resources, strategic or privileged location and how each region relates to the other regions. Its ultimate goal is to provide insight into how to enhance different types of regional programmes and investments of certain main regional sectors and how such investments relate to higher region’s growth and regional employment creation for different types of workers. The study uses the Social Accounting Matrix methodology for ex-ante“decent employment” impact assessment of key sectoral policies in Indonesia. Such approach builds on work developed by the ILO, EMPINVEST, on Dynamic SAM and Inter-Regional SAM and the indicators compiled and analyzed in the case of Indonesia.