1 month ago
Modern Diplomacy
In many developing countries, the informal economy does make a significant contribution to total economic activity, but in Indonesia, the percentage of its informal economy is very high. Papua, West Sulawesi, and West Nusa Tenggara are the three provinces with the largest number of people working in the informal sector. The Covid-19 pandemic that occurred in 2020 shook the condition of the informal economic sector because people’s purchasing power fell and government policies limited mobilization. There are still many informal economy actors who are reluctant to transform into the formal sector. Apart from the capability of informal sector businesses to meet the requirements of transformation to the formal sector, social norms & values greatly influence their decision to remain in the informal sector.
Continue reading...
