THE CARE ECONOMY IN INDONESIA A Pathway for Women’s Economic Participation and Social Well-being © 2024 International Bank for Reconstruction and Development/The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, nor the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. 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The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being. Washington, DC: World Bank. THE CARE ECONOMY IN INDONESIA A Pathway for Women’s Economic Participation and Social Well-being CONTENTS Contents..................................................................................................................................... ii List of Figures............................................................................................................................ iv List of Tables.............................................................................................................................. vi List of Boxes.............................................................................................................................. vii Acknowledgments.................................................................................................................... viii Abbreviations.............................................................................................................................. x Executive Summary.................................................................................................................. xiii .......................................................................... 1 Chapter 1. Introduction. 1.1. Nexus of Care, Economic Participation, and Well-Being...................................................... 1 1.2. The Case for Investing in the Care Economy....................................................................... 5 1.3. Care Economy as a Development Priority for Indonesia...................................................... 7 1.4. Report Objectives and Outline........................................................................................... 8 Chapter 2. Institutional Framework for Childcare....................................11 2.1. Childcare as a Form of ECED............................................................................................11 2.2. Institutional Drivers of Service Gaps.................................................................................14 2.3. Other Missing Pieces of the Care Ecosystem......................................................................17 2.4. Forward Look..................................................................................................................21 Chapter 3. Social Organization of Childcare.............................................25 3.1. Diversity of Childcare Arrangements................................................................................25 3.2. Availability, Affordability, and Quality of Institutional Childcare Services............................30 3.3. Demand for Institutional Childcare Services.....................................................................36 3.4. Confronting Informality...................................................................................................44 Chapter 4. Costs and Benefits of Childcare Arrangements........................47 4.1. LFP, Employment, and Working Arrangements.................................................................47 4.2. Time Allocation for Paid and Unpaid Work........................................................................57 4.3. Children’s Well-Being and Institutional Childcare..............................................................62 4.4. Can Benefits Outweigh Costs?...........................................................................................64 ii The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Contents Chapter 5. Experiences in Addressing Childcare Gaps..............................65 5.1. Improving Availability and Access to Childcare Services....................................................65 5.2. Making Care Affordable for All.........................................................................................67 5.3. Promoting Service Quality and Conditions of Care Providers..............................................68 5.4. Improving Coordination between Responsible Agencies and Stakeholders..........................70 5.5. Addressing Social Norms to Promote Gender-Equitable Caregiving Roles............................72 5.6. Workplace Policies and Employer-Supported Childcare. .....................................................74 Chapter 6. Conclusion............................................................................77 6.1. Moving toward a Functioning Care Economy in Indonesia.................................................77 6.2. Recommendations Supporting the Roadmap.....................................................................79 Annexes................................................................................................85 Annex 1. Household Caregiver Survey..........................................................................................86 Survey Design and Sampling Methodology..............................................................................86 PMT Scores for Socioeconomic Status.....................................................................................88 Annex 2. Supplementary Data Sources.........................................................................................94 Qualitative Interviews............................................................................................................94 Online Survey of Care Providers..............................................................................................95 Global Review of Childcare Policies.........................................................................................96 Review of Selected Employer-Supported Initiatives in Indonesia...............................................97 Annex 3. Econometric Framework. ..............................................................................................99 Probit and Multinomial Models...............................................................................................99 SUR Model........................................................................................................................... 100 AIM-ECD............................................................................................................................. 101 Annex 4. Regression Results...................................................................................................... 102 References............................................................................................................................... 116 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being iii Contents LIST OF FIGURES Figure 1.1. LFP in Southeast Asian Countries (%)......................................................................... 2 Figure 1.2. LFP in Indonesia by Marital Status and Age (%)........................................................... 3 Figure 1.3. The Effect of First Childbirth on Entrepreneurship and Wage Work.............................. 3 Figure 1.4. Respondents Who Believe Men Should Have More Right to a Job than Women (% of Respondents)............................................................................................................ 4 Figure 2.1. Ratio of Population to PAUD Facilities by Province (total and 0–6-year-old population)..13 Figure 3.1. Sources of Childcare Support for Mothers by Children’s Age (% of responses)..............26 Figure 3.2. Sources of Childcare Support for Mothers by Socioeconomic Status (% of responses)...27 Figure 3.3. Childcare Arrangements (Excluding Mothers) by Region (% of responses)...................27 Figure 3.4. Childcare Support Received by Mothers throughout the Day (% responses)..................30 Figure 3.5. Barriers to ECED Enrollment for Interested Families (% of responses).........................31 Figure 3.6. Reasons for Choosing PAUD as Childcare Arrangement (% of responses).....................32 Figure 3.7. Out-of-Pocket Payments for Children Attending PAUD................................................33 Figure 3.8. Service Issues Caregivers Find Challenging about PAUD (% of responses)....................35 Figure 3.9. Satisfaction of Mothers of Children Enrolled at PAUD with Services (% of responses)...35 Figure 3.10. Mothers’ Agreement with Value Statements Related to Childcare (% of responses). .......36 Figure 3.11. Acceptance of Children Attending Daycare outside the Home when the Mother Is Working by Children’s Age (% of responses)...............................................................37 Figure 3.12. Mothers’ Preferred Childcare Arrangements by Children’s Age....................................38 Figure 3.13. Preferred Hours for Childcare Services by Children’s Age............................................40 Figure 3.14. Support for the ‘Ideal’ Childcare Services by Proposed Price Point (% of respondents)...................................................................................................43 Figure 4.1. FLFP Rate by Children’s Age and Number of Hours of Childcare Support (% of respondents)............................................................................................................48 Figure 4.2. FLFP Rate by Number of Hours of Childcare Support (% of responses)........................48 Figure 4.3. Employment Type by Number of Hours of Childcare Support Available for Working Mothers (% of respondents).........................................................................49 Figure 4.4. Workplace Location by Number of Hours of Childcare Support Available for Working Mothers (% of respondents).........................................................................51 Figure 4.5. Work-Related Problems Experienced by Ever-Working Mothers after Childbirth (% of responses).......................................................................................................53 Figure 4.6. Time-Use Activities by Children’s Age Group (number of hours per day).......................59 Figure 4.7. Time-Use Activities by Number of Hours of Childcare Support Available to Mothers (number of hours per day)........................................................................................60 Figure 4.8. Children’s Development Status by Socioeconomic Status and Region...........................63 Figure 4.9. Children’s Development Status by Childcare Support Sources Available. .......................63 Figure 5.1. Enrollment Rates in Private ECED Institutions in Selected Countries (% of total enrollment)..............................................................................................................71 iv The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Contents Annex Figure 1. External Validity of PMT Model (left) and Comparison of Household Caregiver Survey and SUSENAS Samples (right).................................................92 Annex Figure 2. Cumulative Distribution of Real Per Capita Income across Household Caregiver Survey and SUSENAS Samples...........................................................93 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being v Contents LIST OF TABLES Table 1. Selected Policy Areas and Actions ............................................................................xvi Table 2.1. Types of ECED and Care Services in Indonesia...........................................................12 Table 2.2. Government Entities Involved in Regulating Childcare. ...............................................15 Table 3.1. Time of the Day Childcare Sources Provide Care (conditional on the source providing care).........................................................................................................29 Table 3.2. Factors Identified by Mothers to Improve Childcare Conditions by Children’s Age, Household Socioeconomic Status, and Location.........................................................39 Table 3.3. Fair Price and Willingness to Pay for the Hypothetical Childcare Service by Region (amount in IDR, % of respondents)............................................................................43 Table 4.1. Sector of Employment by Number of Hours of Childcare Support Available for Working Mothers (% of respondents).........................................................................50 Table 4.2. Percentage of Working Mothers with Workplace Benefits............................................57 Table 4.3. Definition of Time-Use Activities...............................................................................58 Table 6.1. Selected Policy Areas and Actions..............................................................................79 Annex Table 1. Summary Characteristics of Household Caregiver Survey Respondents (Mothers)........................................................................................................87 Annex Table 2. PMT Model Estimates for RPCE........................................................................89 Annex Table 3. Distribution of Socioeconomic Status Categories across the Household Caregiver Survey Sample and SUSENAS.............................................................93 Annex Table 4. Summary of Qualitative Interviews...................................................................94 Annex Table 5. Countries Covered in the Global Policy Review..................................................97 Annex Table 6. Marginal Effects of the Motherhood Penalty and Correlation between the Availability of Childcare and LFP.................................................................... 102 Annex Table 7. Marginal Effects of Correlation between the Availability of Childcare and Types of Jobs of Mothers, Conditional on Mother’s Employment....................... 104 Annex Table 8. Marginal Effects of Correlation between the Availability of Childcare and Sector of Job of Mothers, Conditional on Mothers’ Employment....................... 106 Annex Table 9. Marginal Effects of Correlation between the Availability of Childcare and Workplace and Mode of Transportation of Mothers, Conditional on Mothers’ Employment................................................................................................. 108 Annex Table 10. SURs for Time-Use Activities.......................................................................... 110 Annex Table 11. SUR for Availability of Childcare and Time-Use Activities................................. 112 Annex Table 12. Children’s Development Scores and Sources of Childcare Support Available...... 114 vi The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Contents LIST OF BOXES Box 1.1. What Is the Care Economy?........................................................................................ 6 Box 1.2. Indonesia Care Economy Roadmap and National Action Plan, 2025–2045...................... 8 Box 2.1. The Mother and Child Welfare Law 2024....................................................................20 Box 2.2. Parallel Policy Actions for Improved ECED Outcomes: The Case of Uzbekistan.............22 Box 3.1. Limited Services for Children with Disabilities...........................................................41 Box 3.2. Role of CSOs in Providing Institutional Childcare.......................................................41 Box 3.3. Scaling Availability, Affordability, and Quality: The Case of the Republic of Korea.........44 Box 4.1. The ‘Skip Generation’: Elderly Providing Childcare.....................................................51 Box 4.2. Influencing Gender Norms around Work and Care in Indonesia..................................54 Box 4.3. The Business Case for Inclusive Workplace Policies that Recognize Childcare..............56 Box 5.1. Employer-Provided Childcare Initiatives in the Public Sector in Indonesia...................75 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being vii ACKNOWLEDGMENTS This report was prepared by a team led by Emcet Oktay Taş with Ririn Purnamasari. The report was authored by Emcet Oktay Taş, Shaianne Osterreich, Tanima Ahmed, Najaf Zahra, and Antonia Milcheva Doncheva. Other core team members included Ade Febriady, Abror Tegar Pradana, Muhammad Noor Farid, Johanes Purwanto, Enurlaela Hasanah, Jescinta Isimeme Izevbigie, Riri Khariroh, Dewi Novirianti and Jack Britton. Satu Kahkonen, Bolormaa Amgaabazar, Janmejay Singh and Rinku Murgai provided overall guidance. Karlina Widyastuti and Dewi Sutisna provided administrative support; Tabrez Altaf Ahmed and Susi Victor provided editorial support; and Purwa Rahmanto provided publication support. The team would like to thank peer reviewers Janssen Edelweiss Nunes Teixeira, Aakash Mohpal, Sarah Haddock, Frances Mary Beaton-Day, and Liana Lim Hinch for their excellent comments. The team also thanks Lenny Nurharyanti Rosalin, Hana Brixi, Amanda Devercelli, Amy Luinstra, Sarah Twigg, Abigail Goodnow Dalton, Valerie Morrica, Sonya Sultan, Helle Buchhave, Elizaveta Perova, Hillary Johnson, Daniel Halim, Forest Brach Jarvis, Lisa Cameron, Diana Contreras Suarez, Sama Khan, Oliver Rowntree, Liana Lim Hinch, Gema Minang, Serenat Kivilcim and Dinda Putri Hapsari for their support throughout the implementation of this research. Special thanks are due to Achim Daniel Schmillen, Vikas Choudhary, Megha Kapoor, Imelda Luciana Noto, Bimbika Sijapati Basnett, Keiko Nowacka and Channe Lindstrom Oguzhan for their collaboration. The team is grateful to representatives from the following institutions in Indonesia for their useful inputs: The National Development Planning Agency (Bappenas), Coordinating Ministry for Human Development and Culture (KemenkoPMK), Ministry of Women’s Empowerment and Child Protection (MoWECP), Ministry of Education, Culture, Research and Technology (MoECRT), Ministry of Religious Affairs (MoRA), Ministry of Social Affairs (MoSA), Ministry of Labor (MoL), Ministry of Health (MoH), Ministry of Home Affairs (MoHA), and Ministry of Villages, Development of Disadvantaged Regions and Transmigration (MoV). The team also thanks the participants of various workshops and feedback sessions organized by the Government of Indonesia (GoI), World Bank, Australian Government’s Department of Foreign Affairs and Trade (DFAT), International Finance Corporation (IFC), Asian Development Bank (ADB), International Labour Organization (ILO), United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Association of Southeast Asian Nations (ASEAN) and Oxfam during which earlier versions of this work were presented. The participants of these events included representatives from academia, civil society, the private sector, donor agencies, multilateral organizations, and national and subnational governments. viii The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Acknowledgments The team would like to thank the researchers at the Regional Economic Development Institute (REDI) who led the fieldwork for the household survey and qualitative interviews. They included Erlyn Yuly Astuti, Wahyu Wibowo, Miguel Esquivias Angel Padilla, M. Ayub Mirdad, Syifa Syarifah Alamiyah Regina Niken Wilantari, Ahmad Qomaruzzaman, Erna Widiastuti, Albertus Eka Putra H., Inneke Kumalasanti, Aulia Safitri, Agus Krisnanto, Abul Hayat, Aziz Kurniawan, Fauzi Firdaus, Ahmad Maulana, Inriyanti Pertiwi S. Ginting, Nuraji Nugroho, Junaedi Edison P. Fobia, Mariun, David Ari Kusuma, Seto Watugunung Rokhmatulloh, Any Sundari, Dyah Rani Mardaningrum, Rahmad Saiful, Ryan Sugiarto, Rahmad Suciyono, Sadirman, M. Farid Arifin, Aprilia, M. Riadissalihin, Baiq Fitriatun, Ika Wahyuni, Ronny Togo, Bahrul Fikri, Faris Afif S., Dawud Rahmatillah, Henky Kurniawan, Mariani, Marta Uli Agustin, Tisa Maharani, Erlina Permatasari, Gagan, Khusnul Khotimah, Mario Firmansyah. The team also thanks Survey Meter and the Gender Innovation Lab for the East Asia and the Pacific region at the World Bank for implementing the online survey of care providers and Ergon Associates and the IFC for leading the research on employer-supported childcare initiatives. This research would not have been possible without financial contributions from DFAT through the Australia-World Bank Indonesia Partnership (ABIP) at the World Bank. Additional funding from the Early Learning Partnership (ELP) and Umbrella Facility for Gender Equality (UFGE) multi-donor trust funds are also gratefully acknowledged. The views expressed in this publication belong to the authors and do not necessarily reflect the views of the donors or the governments they represent. Finally, the team is grateful to all the individuals, households and companies who participated in this research and shared details about their lived experiences. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being ix ABBREVIATIONS AIM-ECD Anchor Items for the Measurement of Early Childhood Development ASEAN Association of Southeast Asian Nations BAN-PDM National Accreditation Board for Early Childhood Education, Primary Education, and Secondary Education (Badan Akreditasi Nasional Pendidikan Anak Usia Dini, Pendidikan Dasar, dan Pendidikan Menengah) Bappenas National Development Planning Agency (Badan Perencanaan Pembangunan Nasional) BKB Toddler Family Groups (Bina Keluarga Balita) BKKBN National Population and Family Planning Board (Badan Kependudukan dan Keluarga Berencana Nasional) BKPM National Investment Coordinating Board (Badan Koordinasi Penanaman Modal) BOP PAUD Operational Assistance Grants (Bantuan Operasional Penyelenggaran PAUD) BPS Statistics Indonesia (Badan Pusat Statistik) CCT Conditional Cash Transfer CDW Child Development Worker CSR Corporate Social Responsibility DAK-Fisik Special Allocation Funds-Physical (Dana Alokasi Khusus-Fisik) DHS Demographic and Health Survey DSU Disability Service Units ECEC Early Childhood Education and Care ECED Early Childhood Education and Development EDC Early Development Center EQAF Education Quality Assurance Framework FGD Focus Group Discussion FLFP Female Labor Force Participation GDP Gross Domestic Product GoI Government of Indonesia GPK Inclusive Education Teacher (Guru Pembimbing Khusus) x The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Abbreviations HCC Home Childcare Coordinating HCP Home Childcare Providers IBCWE Indonesia Business Coalition for Women Empowerment ICT Information and Communication Technology IFC International Finance Corporation IFLS Indonesian Family Life Survey ILO International Labour Organization KB Playgroups (Kelompok Bermain) KII Key Informant Interview LFP Labor Force Participation MAM Childminder Homes (Maisons d’assistantes maternelles) MoECRT Ministry of Education, Culture, Research and Technology MoH Ministry of Health MoHA Ministry of Home Affairs MoL Ministry of Labor MoRA Ministry of Religious Affairs MoSA Ministry of Social Affairs MoWECP Ministry of Women’s Empowerment and Child Protection MoV Ministry of Villages, Development of Disadvantaged Regions and Transmigration MSS Minimum Service Standards NGO Nongovernmental Organization NU Nahdlatul Ulama OECD Organisation for Economic Co-operation and Development OLS Ordinary Least Squares P&G Proctor and Gamble PAUD Early Childhood Education Programs (Pendidikan Anak Usia Dini) PAUD HI National Holistic and Integrated PAUD PEKKA Empowerment of Female-Headed Households Organization (Pemberdayaan Perempuan Kepala Keluarga) PKH Family Hope Program (Program Keluarga Harapan) PLN State Electricity Company (Perusahaan Listrik Negara) PMT Proxy Means Test PosPAUD Community Posts Posyandu Integrated Healthcare Center The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being xi Abbreviations PPP Public-Private Partnership RA Islamic ECED Centers (Raudhatul Athfal) RPCE Real Per Capita Expenditure RPJMN Medium-Term National Development Plan (Rencana Pembangunan Jangka Menengah Nasional) RPJPN Long-Term National Development Plan (Rencana Pembangunan Jangka Panjang Nasional) SAKERNAS National Labor Force Survey (Survei Angkatan Kerja Nasional) SDGs Sustainable Development Goals SMEs Small and Medium Enterprises SNP Supervised Neighborhood Play SPS Similar Preschool Unit (Satuan Paud Sejenis) SUR Seemingly Unrelated Regression SUSENAS National Socioeconomic Survey (Survei Sosial Ekonomi Nasional) TAAM Muslim Children Orphanage (Taman Asuhan Anak Muslim) TAS Children’s Parks (Taman Anak Sejahtera) TK Kindergartens (Taman Kanak-kanak) TKQ Quranic Playgroups (Taman Kanak-kanak Quran) TP Integrated Healthcare Center Park (Taman Posyandu) TPA Daycare Centers (Tempat Penitipan Anak) TPQ Quranic Kindergarten (Taman Pendidikan Quran) UNESCO United Nations Educational, Scientific and Cultural Organization UNICEF United Nations Children’s Fund UU KIA Mother and Child Welfare Law (Undang-undang tentang Kesejahteraan Ibu dan Anak) xii The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being EXECUTIVE SUMMARY Indonesia has achieved impressive growth and poverty reduction in the past two decades, while closing gender gaps. Yet, there has been little change in women’s economic participation. The female labor force participation (FLFP) rate has remained unchanged for the last two decades at around 53 percent, compared to around 81 percent for males, despite improvements in women’s educational attainment and fertility, and the overall increase in economic opportunities. While 90 percent of married men work uninterrupted from ages 20 to 60, married women reach their peak labor force participation (LFP) rate at around age 45. It is well-documented that care and family responsibilities are among the most significant barriers to women’s economic participation in Indonesia. Social norms position women as the primary caregivers, and men as breadwinners. Workplace policies do not accommodate social expectations from women to balance paid work with their care roles or incentivize the redistribution of care roles between men and women. An enabling care economy—the sector of economic activities related to providing care, including paid and unpaid labor and services—is critical to promoting women’s entry and retention in the workforce and for promoting long-term social well-being. Since Indonesia’s population is relatively young, most care needs are currently concentrated in childcare. Yet, the current childcare provision landscape does not meet the needs of the population. Although many women face caregiving constraints after childbirth, the early childhood education and development (ECED) or Pendidikan Anak Usia Dini (PAUD) system primarily serves children in the 4–6 age group and only for a few hours a day. The operation of ECED facilities is often led by private entities, which follow discretionary practices and fee structures, and the fragmentation of the system across formal and nonformal models reinforces inequalities by region and socioeconomic status. As a result, most care provision is concentrated in informal arrangements, where mothers, domestic workers, and other family members share caregiving roles, informally, often without pay or protection, and at a high opportunity cost of forgone workforce participation. Improved access to childcare in Indonesia would reduce the time constraints of unpaid care responsibilities, increase employment and productivity, and promote economic growth. For these benefits to materialize, coordinated initiatives are needed across the entire care ecosystem. While Indonesia has invested in improving different aspects of its ECED or PAUD system, there has been little improvement in complementary ecosystem investments, such as in the skills and rights of the care workforce, in service quality standards, or in labor market policies that support the nexus of work and care. The gaps in laws, regulations, and mandates contribute to a stagnant care sector. The complementary roles of the public and private sectors in care provision remain largely untapped. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being xiii Executive Summary Indonesia has made a series of commitments to address the work-care nexus through investments in the care economy. The Government of Indonesia (GoI) has adopted the Care Economy Roadmap and National Action Plan 2025–2045 (Peta Jalan dan Rencana Aksi Nasional Ekonomi Perawatan), building on the policy momentum generated during Indonesia’s presidencies of the G20 and the Association of Southeast Asian Nations (ASEAN). Additionally, the critical role of care in women’s economic participation and social well-being are recognized in the Long-Term National Development Plan (Rencana Pembangunan Jangka Panjang Nasional, RPJPN) 2025–2045, while the GoI set a new FLFP target of 70 percent in its Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional, RPJMN) for 2025–2029. It is envisaged that coordinated action on regulatory changes, policies, and laws, supported with new care provision modalities and ecosystem improvements, will lead to a vibrant care economy in Indonesia by 2045. Before the suite of reforms, policies, and investments under the Care Economy Roadmap are rolled out, it is necessary to (a) identify the strengths and weaknesses of the current childcare landscape, (b) understand the perspectives of families and other stakeholders involved in caregiving, (c) assess the demand for different types of services, and (d) suggest policy and program options based on experiences from other contexts. This report focuses on these issues. It provides an assessment of the care ecosystem in Indonesia, with a focus on childcare. It is based on a nationally representative survey of 3,000 households with children in the 0–6 years age group (or 0–72 months) living across 52 districts of Indonesia. The survey data is complemented with interviews with 200 individuals involved in the care provision space. The report also draws from a series of background studies conducted by the World Bank and its partners during 2022–2024. The findings show that universally, mothers are the primary caregivers for children in Indonesia. Mothers spend an average of 13.7 hours per day on childcare, compared to only 3.8 hours by fathers, 4.2 hours by household family members, and 3–4 hours by non-household family members and nonfamily members, respectively. As the current childcare provision landscape is limited, families manage their care needs through diverse, largely informal arrangements. A typical day involves an intensive effort by families to mobilize multiple care sources to look after their children. This translates into a large labor market penalty, especially for mothers of young children. Having a child in the 0–12 months age group is associated with a reduced probability of LFP by 20 percentage points, compared to mothers with children in the older age groups. Social norms play an important role in mediating the choice of childcare arrangements, along with the availability, affordability, and quality of institutional or center-based care options. xiv The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Executive Summary When mothers are relieved of some of their childcare duties, their availability for paid work increases, along with their earnings and the quality of their employment. Having 8 or more hours of childcare support per day is associated with an increase in the LFP rate by 29 percentage points and the time spent on market work by 1.5 hours per day. It also improves mothers’ likelihood of having a formal job by 15 percentage points, working full time by 20 percentage points, and earnings by 66 percent. The number of hours allocated to care work and domestic work remain unchanged even when mothers have childcare support, pointing to a double burden of paid and unpaid work. In addition, time spent on market work increases only when childcare support is available on a full-time basis, highlighting that the limited support of 3–4 hours per day from ECED or PAUD institutions does not fully respond to the needs. Childcare support is also associated with improvements in children’s well-being. Children in the 4–6 age group who attend ECED institutions or PAUD score higher on the Anchor Items for the Measurement of Early Childhood Development (AIM-ECD) scale compared to those whose mothers do not receive any childcare support. Similarly, children who benefit from having mixed childcare arrangements have better AIM-ECD scores compared to children who are only cared for by their mothers or family members. There are disparities by socioeconomic status and location, with children living in poorer households and outside of Java performing worse than others. There is a risk that the limited quantity and quality of childcare options, if not addressed, will widen the gap in well-being outcomes across Indonesia. The success of Indonesia’s efforts to strengthen its care economy depends on the extent to which different elements of the care ecosystem work together. This includes, but goes beyond, improvements to the ECED or PAUD system. The Care Economy Roadmap and National Action Plan 2025–2045 provides a robust framework for Indonesia to align initiatives and incentives around a common vision while strengthening the weaknesses of the existing landscape. Possible actions that GoI can take in the first few years of roadmap implementation (Table 1), informed by the detailed analysis in this report and lessons from other contexts, will set the pace at which Indonesia moves toward achieving its care economy targets by 2045. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being xv Executive Summary TABLE 1. SELECTED POLICY AREAS AND ACTIONS Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Availability Expanding the Mandates for operating Target 1.1: Development Workforce and access operating hours hours to align with of ECED models that are scarcity, high cost to childcare of institutional working schedules and responsive to family and for establishing services center-based for service flexibility to be community needs and operating childcare services provided at a reasonable care facilities, and aligning them cost low regulatory with the working compliance, and hours of parents weak monitoring Supporting home- Development of Target 1.1: Development Scarcity of based care to accreditation, licensing, of ECED models that are qualified register and be and registration system responsive to family and providers, limited recognized as a for home-based workers, community needs quality and safety formal care option potentially utilizing protocols, and and encourage domestic workers nonrecognition of flexibility in care home-based care services as work Promoting Access to grants, credit, Target 1.1: Development Cost, financial community- land, allowances, of ECED models that are sustainability, and based models and tax incentives responsive to family and weak monitoring through incentives to service providers, community needs of service to enhance nongovernmental Target 1.5: Increase in standards or care services’ organizations (NGOs), and the number of childcare quality responsiveness to civil society organizations and education centers for local needs (CSOs) that establish and children of school age in operate community-based proportion to the number childcare programs of children of school age Awareness about Public awareness Target 1.1: Development Restrictive social care services and campaigns, community of ECED models that are norms regarding their benefits events, and parent responsive to family and mothers’ role in network groups community needs care provision and social and political resistance to change Making care Financial support Subsidies, grants, and Target 7.5: Development Cost, financial affordable for families tax credits for families a comprehensive sustainability, for all extending beyond contribution-based social and complex Financial support enrollment fees to include security scheme with cash regulatory for childcare expenses related to care, benefits that is accessible to framework for providers such as transportation, workers, care workers, and social assistance meals, books, uniforms, care service providers and support for and more. Similar service providers incentives for service providers to reduce costs of entry and operation xvi The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Executive Summary Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Promoting Formalizing Develop an institutional Target 6.2: Development of Regulatory service and regulating system for home- a care worker recognition compliance, quality for workers in home- based care, including policy weak monitoring, childcare based childcare accreditation, licensing, Target 1.2: Preparation of limited quality arrangements, registration, and network guidelines and regulations and safety including domestic connecting families and related to the protection of protocols, and workers workers noninstitutional workers in possibility of low ECED centers service uptake Improving Minimum wage standards Target 6.3: Determination Alignment with recognition, commensurate to of wage policy and care broader labor compensation, educational attainment worker protection policy market policies protection, and and public awareness Target 1.2: Preparation of and local market working conditions campaigns to promote the guidelines and regulations conditions, of care employees importance and prestige related to the protection of coordination, and of care work noninstitutional workers in enforcement of ECED centers compliance Improving training Developing a practitioner Target 6.5: Capacity Financial and learning qualification framework building and certification sustainability and opportunities for and associated learning for care workers limited career care providers management and training development programs to be conducted opportunities for periodically and building care workers a skilled care workforce Simplifying and Target 1.4: Increasing reducing the financial the competence of ECED and transactional workers to be qualified costs of licensing and and certified according to accreditation competency standards Strengthening licensing, Target 1.3: Development accreditation, technical of a quality assurance assistance, and and monitoring system monitoring of care including accreditation to centers’ compliance ensure the quality of all with minimum service ECED centers standards (MSS) Improving Developing Strengthened n.a. Complex coordination strong oversight interministerial task force institutional between mechanisms for for ECED at the national structure for responsible improving service and subnational levels. childcare agencies and availability, quality, provision, stakeholders and affordability Clarification of mandates, complex roles, responsibilities, decentralized and reporting lines across governance central ministries and structure, and subnational entities siloed ministerial Coordination of budgeting and regulation, enforcement, performance financial support, and management labor protections across structures ministries The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being xvii Executive Summary Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Social norms Developing gender- Public awareness Target 5.1: Strengthening Restrictive social to promote equitable roles in campaigns aimed community awareness of norms regarding gender- care giving and at promoting the the importance of male men and women’s equitable redistribution of involvement of fathers involvement in care work, roles in care caregiving care work in childcare, men taking especially the role of fathers provision and roles paternity leave, and in childcare social and political support for mothers to resistance to join the workforce change Updating attitudes Establishment of Target 5.1: Strengthening Restrictive social and perceptions partnerships for community awareness of norms regarding about the paid and informational programs, the importance of male men and women’s unpaid roles of campaigns, and outreach involvement in care work, role in care women, including to correct misperceptions especially the role of fathers provision and support for women about level of family and in childcare social and political working outside community support for resistance to the home women working outside change the home Enhancing Mandates for women n.a. Restrictive social women’s political quotas in political and norms regarding participation to administrative positions, men and women’s promote positive especially at the roles and social role models community level and political resistance to change Discouraging the Stricter laws, mandates to n.a. Restrictive social prevalence of safeguard women’s rights norms regarding harmful gender men and women’s norms roles and social and political resistance to change Workplace Expanding the Expanded, state- Target 4.1: Adjustment of Cost, financial policies and duration of paid sponsored, paid the duration of maternity sustainability, employer- maternity leave maternity leave and leave in accordance with informality, weak supported benefits and family-friendly policies international standard enforcement, care bringing it under a to encourage women references and Indonesian and weak publicly provided to enter, reenter, and legislation complementary social assistance remain in the workforce Target 4.2: Development of labor laws and system maternity benefit policies regulations that through a social security protect workers system linked to maternity who participate in leave maternity benefits Target 4.3: Development of guidelines for effective implementation of maternity leave through labor inspection xviii The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Executive Summary Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Expanding the Expanded, state- Target 5.2: Development Cost, financial duration of paid sponsored, paid paternity of a policy at the company/sustainability, paternity leave benefits to redistribute workplace level regarding informality, weak benefits and care work and encourage enforcement, paternity leave that is more bringing it under a men to share care roles representative and balancedand weak publicly provided and responsibilities with maternity leave complementary social assistance Target 5.3: Creation of a labor laws and system mechanism that encourages regulations that fathers to take paternity protect workers leave with a comprehensive who participate in monitoring mechanism paternity benefits Target 5.4: Development of a paternity benefit policy through a social security system linked to paternity leave Promoting Incentivize employers to Target 1.6: Development High capital employer- provide on-site childcare of an incentive mechanism investment cost supported options, vouchers or that encourages companies for employers, childcare subsidies, and other to develop policies, access limited state- parental and flexible to services, and facilities for sponsored workplace policies employees and workers programs to co- finance, limited availability and quality of private care providers for parents to use their vouchers and subsidies Developing family- Expanding worker Target 4.4: Strengthening Cost for employers friendly workplace eligibility for care-related of the participation of and limited policies leave and providing companies and industries state-sponsored health protections at in building worker welfare programs to co- workplace, transition facilities (family planning, finance support to women, quality lactation, and and flexible work adequate breastfeeding arrangements breaks, proportional to the number of employees) Source: World Bank team. Note: n.a. = not applicable. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being xix Chapter 1. INTRODUCTION 1.1. NEXUS OF CARE, ECONOMIC PARTICIPATION, AND WELL-BEING Indonesia has achieved impressive growth and poverty reduction in the past two decades while closing gender gaps. From 2002 to 2021, extreme poverty (population living on less than US$1.90 2011 purchasing power parity per day) dropped from 19 to 2.2 percent, and the national poverty rate has fallen to single digits. Steady economic growth and job creation has expanded economic opportunities, and Indonesia attained upper-middle-income status in 2023. These gains came with notable progress on several areas of gender equality. Life expectancy for females, 69.7 years, is almost 4 years higher than that of males. The fertility rate is just above the replacement rate at 2.2 births per 1,000, a significant fall from 5.6 in 1960, and the adolescent fertility rate is 34 births per 1,000.1 Indonesia has also achieved gender parity in school participation for children ages 7–12, with the gender gap in net enrollment decreasing with each level of education.2 Female students outperform males at all educational levels, not only in school completion rates but also in learning outcomes (World Bank 2020). Despite these achievements, there has been little change in women’s economic participation. The female labor force participation (FLFP) rate has remained unchanged for the last two decades at around 53 percent, despite improvements in women’s educational attainment and fertility, and the overall increase in economic opportunities. The FLFP is significantly lower than the rate for males, which has hovered around 81 percent for decades, and below the average for the East Asia and the Pacific region. The gap between male and female labor force participation (LFP) rates is also one of the largest in East Asia and the Pacific (Figure 1.1). While sectoral distribution of the female workforce has gradually moved toward services, women remain predominantly employed in low-productivity sectors (World Bank 2020) and are overrepresented in informal and vulnerable jobs.3 Self-employed women also own or run less than half of microbusinesses and less than one-quarter of small and medium enterprises (SMEs), which record lower profits and revenues than those of males (World Bank 2023a). Women’s participation in the economy is essential for Indonesia’s aspiration to become a high-income country; however, this has yet to be fully realized (Wihardja and Cunningham 2021). 1 World Bank Gender Data Portal. 2 World Bank staff calculations using Population Census 1971 and National Socioeconomic Survey (Survei Sosial Ekonomi Nasional, SUSENAS) 2019. 3 World Bank Gender Data Portal. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 1 Introduction Care and family responsibilities are among the most significant barriers to women’s economic participation.4 According to the National Labor Force Survey (Survei Angkatan Kerja Nasional, SAKERNAS), around 40 percent of women in wage employment drop out of the labor force after marriage and childbirth, with nearly half of them citing family-related reasons. While 90 percent of married men work uninterrupted from ages 20 to 60, married women reach their peak LFP rate at around age 45 (Figure 1.2) (Cameron et al. 2023a; Schaner and Das 2016).5 For many women, the prime working years coincide with high care responsibilities, including pregnancy, childbirth, and childcare. Hence, the gender gap in LFP rate is largely driven by the gap between married men and married women during the prime working years, while unmarried men and women have similar participation rates during this period. FIGURE 1.1. LFP IN SOUTHEAST ASIAN COUNTRIES (%) East Asia and Pacific 74 59 Cambodia 82 70 Vietnam 78 69 Singapore 77 63 Timor-Leste 72 61 Male Thailand 75 Female 59 Lao PDR 62 55 Malaysia 79 53 Indonesia 81 53 Philippines 71 46 Myanmar 76 45 30% 40% 50% 60% 70% 80% 90% Labor force participation rate Source: World Bank Gender Data Portal based on International Labour Organization (ILO) estimates for 2022. Studies have consistently documented the negative effect of marriage and childbirth on women’s ability to engage in paid work. Women’s entry and retention in the labor market in Indonesia is strongly correlated with their marital status and childbirth. This relationship is large and robust and holds after controlling for location, industry, and household characteristics.6 The birth of the first child is also associated with an increase in the likelihood of becoming self-employed and a decrease in the likelihood of being a wage worker, with both effects getting larger each year after the first birth (Figure 1.3). Women who remain in the workforce after childbirth, on the other hand, look for flexible working 4 Traditionally, agriculture has been the main source of employment for women. As the share of agriculture in the economy declined, the share of female workforce in this sector fell from 31 to 26 percent over the last decade. At the same time, higher educational attainment and lower fertility propelled more women to seek employment in the services sector, resulting in an increase in the share of female wage employees from 34 to 40 percent. The services sector now employs 67 percent of female workers. 5 Based on an analysis of 21 years of the National Labor Force Survey (SAKERNAS) and 2012 Demographic and Health Survey (DHS). 6 See summary provided in Cameron et al. (2023a). 2 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Introduction arrangements or are underemployed. For instance, self-employed women with young children are more likely to work out of their homes, and their businesses are open for fewer hours, compared to self-employed men (World Bank 2023a). Women who reenter the workforce in their mid-40s, once their children have grown up, typically become self-employed or family workers. The disadvantages they have accumulated during their absence from the labor market in prime working years prevent them from seeking wage employment (Schaner and Das 2016). FIGURE 1.2. LFP IN INDONESIA BY MARITAL STATUS AND AGE (%) 100% Labor force participation rate 80% 60% 40% Married Men Married Women Unmarried Men 20% Unmarried Women 0% 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ Age category Source: World Bank staff calculation from National Labor Force Survey (SAKERNAS). FIGURE 1.3. THE EFFECT OF FIRST CHILDBIRTH ON ENTREPRENEURSHIP AND WAGE WORK Panel A: Effect of First Childbirth on Entrepreneurship Panel B: Effect of First Childbirth on Wage Work .4 .4 Selection into entrepreneurship .3 .2 Wage Work .2 0 .1 0 -.2 -.1 -.4 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 Years from first childbirth Years from first childbirth First childbirth First childbirth Source: World Bank 2023 based on an analysis of Indonesian Family Life Survey (IFLS) data. Workplace policies are not sensitive to women’s roles in the social and economic spheres. Social norms in Indonesia position women as the primary caregivers, and men as breadwinners (Cameron 2023). About 77 percent of men and 75 percent of women in Indonesia agree with the statement that men have more right to a job than women, higher than other Southeast Asian countries (Figure 1.4). Workplace policies do not accommodate social expectations from women to balance paid work with The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 3 Introduction their care roles or incentivize the redistribution of care roles between men and women. Limited maternity, paternity, and parental leave policies, exacerbated by little legal protection for women returning to work after childbirth, compel many women to choose between work and family.7 Structural barriers in the labor market also contribute, either directly or indirectly, to women’s low attachment to the labor force. For example, women in wage employment earn 23 percent less than men, with much of this difference attributed to discrimination as opposed to productivity levels (United Nations and International Labor Organization 2020). They are also underrepresented in technical and leadership roles, and poor workplace behaviors such as physical and verbal harassment toward women remain largely unaddressed.8 FIGURE 1.4. RESPONDENTS WHO BELIEVE MEN SHOULD HAVE MORE RIGHT TO A JOB THAN WOMEN (% OF RESPONDENTS) Thailand 30.7 30.1 Vietnam 57.8 47.2 Singapore 31.3 24.6 Philippines 71.5 66.7 Malaysia 57.2 38.4 Male Indonesia 76.5 Female 74.6 0% 10% 20% 30% 40% 50% 60% 70% 80% Percentage of respondents Source: World Values Survey, share of respondents who agree or strongly agree with the statement that men should have more right to a job than women. Note: The most recent year reported for each country (2018 for Indonesia, Malaysia, and Thailand; 2019 for the Philippines; 2020 for Singapore and Viet Nam). Indonesia’s childcare provision landscape does not fully respond to the needs of its population, especially of mothers and caregivers who wish to engage in paid work. In Indonesia, public investment in children under the age of 6 has so far focused on expanding early childhood education and development (ECED, also known as Pendidikan Anak Usia Dini, or PAUD). Yet, public spending in ECED is estimated at only 0.04 percent of gross domestic product (GDP), well below the Organisation for Economic Co-operation and Development (OECD) recommendations of 1 percent. Although many women face caregiving constraints after childbirth, the ECED system primarily serves children in the 4–6 years age group and only for a few hours a day. The ECED facilities are predominantly operated by private entities, such as nongovernmental organizations (NGOs) and community groups, which follow discretionary practices and fee structures. Enrollment in ECED remains low at around 37 percent, and the fragmentation of the system across formal and nonformal models reinforces socioeconomic 7 Although laws prohibit employers from terminating pregnant workers, maternity benefits are significantly below the international standard of 14 weeks of paid leave, while maternity benefits are not fully covered by the state. No paternal leave is available for mothers or fathers, whereas paternity leave for fathers that would support a redistribution of care roles is only available for two days. The government is considering an extension of statutory maternity leave from 3 months to 6 months and paternity leave from 2 days to 40 days, but these changes have not realized as of mid-2024. 8 In 2022, the government introduced legislation to protect women from sexual harassment in the workplace, including civil and criminal penalties for contraventions under the Law on the Crime of Sexual Violence. 4 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Introduction inequalities (Adriany 2022). As a result, most care provision is concentrated in informal arrangements, where women—including mothers, domestic workers, and family members—share caregiving roles, informally, without pay or protection, and at the opportunity cost of forgone workforce participation. 1.2. THE CASE FOR INVESTING IN THE CARE ECONOMY An enabling care economy is critical to promoting women’s entry and retention in the workforce and for promoting long-term social well-being. The care economy refers to the sector of economic activities related to providing care. It consists of paid and unpaid labor and services that support caregiving in all its forms (Box 1.1). It is a significant part of Southeast Asian economies, employing millions of people, and its importance is expected to grow due to rising populations, urbanization, and aging societies. Investing in the care economy would enable women to enter and remain in the workforce, as well as offer the female and male workforce decent work opportunities as care workers. It would also improve the well-being and capabilities of those who receive care, including children, the elderly, and other groups that need care. Since Indonesia’s population is relatively young, most care needs are currently concentrated in childcare, though the demand for eldercare is expected to increase over the next two decades.9 Improved access to childcare would reduce the time constraints of unpaid care responsibilities, increase employment and productivity, and promote economic growth. The gender gap in employment has economic consequences; decreasing it would improve the well-being of not just women but also their families, communities, and the national economy. This impact is well borne out in the data. Research has shown that the expansion of preschools in Indonesia in the early 2000s has led to an increase in mothers’ participation in the workforce by 11 percentage points at the neighborhood level (Halim, Johnson, and Perova 2022). It has also resulted in an increase in the productivity of manufacturing plants that employ female employees by 9 percentage points (Cali et al. 2023). According to World Bank estimates, if Indonesia increased FLFP from 53 percent to just 58 percent through a childcare subsidy, the economy would grow by an additional US$62 billion or 0.7 percentage points per year (World Bank 2023b). Improved early childhood development and associated short-term and long-term gains in employment and productivity would contribute to other aspects of well-being (Devercelli and Beaton-Day 2020). The International Labour Organization (ILO) estimates that by investing in universal childcare alone, Indonesia could create 4.3 million direct jobs by 2035, as well as 1.7 million indirect jobs in non-care sectors (ILO 2022).10 There is a potential multiplier effect, as a well-functioning care sector would enable women in other sectors to join the workforce too. Given Indonesia’s young demographics, early childhood development would also have positive impacts on the physical, cognitive, and spiritual development of children, who will make up the future workforce. The relatively high rate of childhood stunting in Indonesia, at a national average of 21.5 percent in 2023, has impacts The elderly population is expected to reach 25 percent of the total population by 2050. 9 If Indonesia invested in both universal childcare and universal long-term care, it would create a total of 10.4 million 10 jobs, including 4.3 million direct jobs in long-term care. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 5 Introduction on the future prospects of children, especially those from low-income families.11 A study has found that an early childhood development intervention in Indonesia had a 6:1 return on investment for children from low-income families in rural areas (Brinkman et al. 2017). Improving childcare conditions would be a major step in reversing their long-term human capital losses and contributions to society. For these benefits to materialize, coordinated initiatives are needed across the entire care ecosystem. The Sustainable Development Goals (SDGs) call countries to “recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate.” While Indonesia has invested in improving its ECED system, there has been little effort to invest in the complementary ecosystem developments, such as in the skills and rights of the care workforce, in service quality standards, or in labor market policies that support the nexus of work and care for working mothers. For instance, unpaid care work is not considered a productive activity, and paid work is typically provided informally. The gaps in laws, regulations, and mandates about service provision contribute to a stagnant care sector. Holistic investments in the care ecosystem are needed to break this cycle, tackling the supply and demand sides simultaneously. BOX 1.1. WHAT IS THE CARE ECONOMY? The care economy consists of paid and unpaid labor and services that support caregiving in all its forms. It includes care provided at home, such as caregiving for children, the elderly, and those who are ill or have disabilities, and domestic chores. It also includes care provided outside of the home, such as taking care of persons or households not in one’s direct family. The types of care are often defined by the identity of those receiving care (such as childcare or eldercare) and by the employment status of those providing it. Globally, a large portion of care work is provided by women—informally, outside of regulated labor markets, and without pay. Formal care jobs include provision of care services in exchange for pay or profit, including roles fulfilled by domestic workers, childcare professionals, and other providers. Most care jobs are characterized by low wages, few benefits, and limited recognition or protections. Sustainable Development Goal 5 on Gender Equality (target 5.4) calls countries to “recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate.” This requires multi-sectoral initiatives, including those that (a) recognize and value care work through minimum wage, social security coverage, and better working conditions for care workers; (b) reduce the burden of unpaid care work by investing in childcare and eldercare infrastructure, promoting gender equality in caregiving responsibilities, and supporting families with meeting care needs; and (c) redistribute care work more fairly through policies such as parental leave, flexible work arrangements, and affordable and high-quality childcare options. Source: ILO (2018); United Nations (2018). In 2017, Indonesia launched a National Strategy to Accelerate Stunting Prevention, with each dollar spent on 11 stunting prevention programs expected to yield US$48 in economic return (Hoddinott et al. 2013). 6 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Introduction 1.3. CARE ECONOMY AS A DEVELOPMENT PRIORITY FOR INDONESIA Indonesia has recently made a series of commitments to address the work-care nexus. The care agenda has gained increased global attention after COVID-19, which brought the essential role of care to the fore. Across Southeast Asia, adoption of the Association of Southeast Asian Nations (ASEAN) Comprehensive Framework on Care Economy in 2021 went hand in hand with several reforms and policy actions.12 In Indonesia, the care economy formally entered the national development policy lexicon during the presidencies of the Government of Indonesia (GoI) of the G20 and the ASEAN, and after the G20 Ministerial Conference on Women’s Empowerment in 2022. The critical role of care in women’s economic participation and social well-being is explicitly recognized in the Long- Term National Development Plan (Rencana Pembangunan Jangka Panjang Nasional, RPJPN) 2025–2045, and a new roadmap and action plan has been developed to promote coordinated investments in the care economy (Box 1.2). In parallel, the GoI set a new FLFP target of 70 percent in its Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional, RPJMN) for 2025–2029. This significant increase from the previous FLFP target of 55 percent under RPJMN 2019–2024, is unlikely to be met without coordinated efforts to address the work-care nexus. Indonesia’s Care Economy Roadmap and National Action Plan (Peta Jalan dan Rencana Aksi Nasional Ekonomi Perawatan; henceforth, the roadmap) sets out an ambitious long-term agenda. In 2024, the GoI issued a roadmap and national action plan after a two-year consultative process that engaged the public and private sectors, civil society, international community, and other stakeholders. The roadmap set out seven strategic priorities that include, among others, childcare, recognition and protection of care workers, maternity leave, paternity leave, and social protection for care work. Given the multi-sectoral nature of the care economy agenda, further complicated by Indonesia’s decentralized governance structure, the roadmap also set targets that correspond to the roles and responsibilities of various ministries behind the goals of supporting childcare and promotes identification of innovative models. It is envisaged that coordinated action on regulatory changes, policies, and laws, supported with new care provision models and ecosystem improvements, will lead to a vibrant care economy in Indonesia by 2045. Achieving Indonesia’s objectives requires an in-depth understanding of the care ecosystem, with a focus on the most urgent issue of childcare. The first phase of roadmap implementation under RPJMN 2025–2029 will prioritize data, research, and pilot testing to improve the conditions of care services and care workers. There is also an emphasis on childcare, the first strategic priority under the roadmap, since it is an issue that affects millions of families, women, and children across Indonesia. However, before the full suite of reforms, policies, and investments can be identified and rolled out, it is necessary to (a) identify the strengths and weaknesses of the current childcare landscape, (b) understand the perspectives of families and other stakeholders involved in caregiving, (c) assess the demand for different types of services, and (d) suggest policy and program options based on experiences from other contexts. This report focuses on these issues. https://asean.org/asean-comprehensive-framework-on-care-economy/. 12 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 7 Introduction BOX 1.2. INDONESIA CARE ECONOMY ROADMAP AND NATIONAL ACTION PLAN, 2025– 2045 Indonesia’s Care Economy Roadmap and National Action Plan (Peta Jalan dan Rencana Aksi Nasional Ekonomi Perawatan) marks the commitment of Indonesia to accelerate the transformation of its care economy and increase FLFP. It covers seven priorities: (a) developing accessible, quality childcare services; (b) strengthening elderly and long-term care services; (c) improving inclusive, integrated care services for persons with disabilities, HIV/AIDS, and special needs and other vulnerable groups; (d) enhancing maternity leave; (e) increasing the involvement of men, including enhancing paternity leave; (f) recognizing decent work for care workers; and (g) implementing social protection for workers in the care economy. Each strategic priority is supplemented with a set of objectives and targets, some of which have been included in the next RPJMN 2025–2029, and others will be covered under RPJPN 2025–2045. The first phase of roadmap implementation during 2025–2029 will focus on building data and information systems on paid and unpaid care work, the conditions of care workers, and the conditions of care services, which will be followed by development and testing of potential policy and programmatic solutions. Under the first strategic priority on childcare, for example, roadmap implementation under the RPJMN 2025–2029 will develop and pilot ECED models that are responsive to family and community needs; issue guidelines and regulations related to the protection of ECED workers; develop testing, qualification, and certification standards for ECED workers; and develop and pilot various employer- provided childcare incentive modalities. Subsequent phases of roadmap implementation from 2030 to 2045 will deepen these foundational steps. Specifically, the second phase during 2030–2034 will roll out the necessary policies and regulations to transform the care economy; the third phase during 2035–2039 will strengthen them from the perspective of expanding equitable access to care services, guarantee care workers, and promote community participation in innovative care service delivery models; and the last phase will institutionalize and sustain the benefits of improved care services for the well-being of all Indonesians. Source: GoI (2024). 1.4. REPORT OBJECTIVES AND OUTLINE This report provides an assessment of the care ecosystem in Indonesia, with a focus on childcare. The report begins with an overview of the institutional and regulatory framework for childcare provision and then documents the prevailing childcare arrangements, allocation of care work, and perceptions of and demand for care from the perspective of households, communities, service providers, care workers, and decision makers. It also reviews policies and programs from other contexts and makes recommendations to support the implementation of Indonesia’s care economy roadmap. While the report has a sharper focus on childcare, it touches on several aspects of the broader care agenda as they relate to the childcare landscape. The analysis is based on diverse information sources. Primarily, it is based on a nationally representative survey conducted in 2023 of 3,000 households, with children in 0–6 age group (or 0–72 months), living across 52 districts of Indonesia. The respondents were the primary caregivers, 98 percent of whom were mothers. The survey collected information about households, caregivers, and children, 8 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Introduction including early childhood development information for one randomly selected child per household. The survey data are complemented with focus group discussions (FGDs) and key informant interviews (KIIs) with 200 individuals. The report also draws from a series of background studies conducted during 2022–2024, including an institutional assessment, an online survey of non-state childcare service providers, and a review of policies and programs from 17 other contexts and case studies of employer- provided childcare programs. Further details about data sources and methodologies are provided in the annexes. The report is organized as follows. The second chapter is a summary of the institutional framework for childcare services provision in Indonesia, which highlights the regulatory gaps and complexities of service provision. The third chapter provides a detailed overview of the social organization of childcare in Indonesia, including how families meet their care needs; the availability, affordability, and quality of existing services; and the preferred childcare arrangements. The fourth chapter is an assessment of the impacts of childcare (or lack thereof) on women’s workforce participation, time allocation on paid and unpaid work, and children’s well-being outcomes. The fifth chapter is a review of policies and programs from other contexts, and the sixth chapter concludes with a set of policy recommendations. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 9 Chapter 2. INSTITUTIONAL FRAMEWORK FOR CHILDCARE 2.1. CHILDCARE AS A FORM OF ECED In Indonesia, childcare is recognized as a form of early childhood education and development (ECED). It is implemented under the PAUD system, which aims to provide educational stimuli to assist the mental and physical growth and development of children ages 0–6 years to prepare them for further education.13 It is classified into formal and nonformal categories. Formal PAUD, including kindergartens (Taman Kanak-kanak, TK) and Islamic ECED centers (Raudhatul Athfal or RA), target children ages 4–6 years and operate within the preprimary education system. Nonformal PAUD serve children in the 0–6 age group and include daycare centers (Tempat Penitipan Anak, TPA) and playgroups (Kelompok Bermain, KB). In addition, there are numerous informal programs (Satuan Paud Sejenis, SPS) that cover a wide range of arrangements, including toddler family groups (Bina Keluarga Balita, BKB), community posts (PosPAUD), and activities organized in parents’ and caregivers’ houses (Table 2.1). Availability of (and enrollment in) ECED programs is low and oriented toward preprimary education as opposed to childcare. There are nearly a quarter million ECED facilities across Indonesia, which serve only about 37 percent of the country’s 33 million children in the 0–6 age group, against a national enrollment target of 77 percent. About 48 percent of the total registered facilities are TK, which are oriented toward preprimary education for the 4–6 age group, while 42 percent are designated as KB. In contrast, merely 1.4 percent of facilities fall into the category of TPA that are oriented toward childcare.14 The GoI seeks that every community across Indonesia has at least one PAUD facility to achieve universal access to quality ECED by 2030, as targeted under the SDG target 4.2 (Adriany et al. 2019). Although the PAUD enrollment rate increases with age, most Indonesian children do not participate in any ECED program before entering primary school. Article 1 (14) of Law No. 20/2003. 13 Data Pokok Pendidikan (Dapodik) database. Ministry of Education and Culture, Research and Technology 14 (MoECRT). The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 11 Institutional Framework for Childcare TABLE 2.1. TYPES OF ECED AND CARE SERVICES IN INDONESIA Type of service Ages Hours Focus of service Responsible agency Formal Kindergarten 4–6 years 3 hours/ Preprimary education, Ministry of Education, Taman Kanak-kanak day child development, and Culture, Research and (TK) 5 days/ school readiness Technology (MoECRT) week Islamic Kindergarten 4–6 years 3 hours/ Islamic based preprimary Ministry of Religious Raudhatul Athfal (RA) day education, child Affairs (MoRA) 5 days/ development, and school week readiness Nonformal Childcare 3 months– 8–10 Care services for Ministry of Social Affairs Taman Penitipan Anak 6 years hours/day children of working (MoSA) for care and social (TPA) 5–6 days/ parents in some centers service component and week supplemented with child MoECRT for policy and development guideline development Playgroups 2–4 years 3 hours/ Child development MoECRT Kelompok Bermain (KB) day 3 days/ week Quranic Kindergarten 0–6 years 3 hours/ Islamic-based education, MoRA or Playgroups day child development, and Taman Pendidikan 3 days/ school readiness Quran / Taman Kanak- week kanak Quran (TPQ/TKQ) Others (informal) Other Early Childhood 0–6 years Varies Child development Various ministries: Units Satuan Paud supplemented with Ministry of Home Affairs Sejenis (SPS), including additional program (MoHA), Ministry of PosPAUD, Taman (depends on the Health (MoH), Ministry of Posyandu (TP), Taman institutions) Women’s Empowerment Asuhan Anak Muslim and Child Protection (TAAM), and Bina (MoWECP), and National Keluarga Balita (BKB) Population and Family Planning Board (BKKBN) Source: World Bank team synthesis. Nearly all ECED services are provided through private entities, resulting in an immense variation in service availability and quality. Nearly all (99 percent) of the existing PAUD facilities are operated by communities, often with the help of government subsidies or financial and in-kind contributions of families and NGOs (MoECRT 2020). Government grants and subsidies, however, are mostly limited to TK, and the bulk of financing for PAUD comes from fee-paying families. The reliance on private service providers has resulted in a great deal of variation in quality and service delivery standards. Efforts to promote standardization include issuance of Minimum Service Standards (MSS) for children ages 5–6 and a new curriculum, Freedom Curriculum (Kurikulum Merdeka), which applies 12 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Institutional Framework for Childcare universally across formal and nonformal programs. The curriculum was adopted in 2022 to promote age-appropriate practices to support child development in all domains, including religious-moral, physical-motor, emotional-social, language, and cognition (MoECRT 2022a). Other recent efforts for younger age groups include guidelines to make daycare facilities more child friendly. Further, the PAUD accreditation system seeks standardization and monitoring of services, though less than 50 percent of the registered PAUD meet these standards (Teixeira et al. 2023). FIGURE 2.1. RATIO OF POPULATION TO PAUD FACILITIES BY PROVINCE (TOTAL AND 0–6-YEAR- OLD POPULATION) Source: School data taken from referensi.data.kemdikbud.go.id. Children population based on SUSENAS. Remote areas, lower socioeconomic groups, and vulnerable populations have poorer access to ECED. Notwithstanding variation within provinces and major island groups, the existing ECED facilities are heavily concentrated in the central parts of Indonesia. Central and East Java, as well as parts of Kalimantan and Sulawesi, have relatively higher ratio of PAUD compared to their populations. Provinces in eastern and western Indonesia, including Papua and Sumatra, respectively, have relatively lower concentrations (Figure 2.1). Enrollment in the existing programs also varies by socioeconomic status. Children living in rural areas or from households with lower socioeconomic status have lower The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 13 Institutional Framework for Childcare rates of enrollment and are more likely to enter primary school without any preprimary education (World Bank 2023c). Similarly, special population groups, such as children with disabilities or special needs, are largely underserved, as existing facilities are not equipped with resources or trained personnel to cater to these children. PAUD facilities generally have limited operating hours, offering little support to families on balancing their work and care needs or obligations. Generally, TK, KB, Islamic kindergartens (TPQ), and PosPAUD have restricted operating hours of 3–4 hours a day. Most services are available during weekdays, although playgroups generally meet only three days a week, and BKB meet less frequently, with mothers typically attending one session per month. These limited hours can disrupt the working day for parents and do little to address the work-care tradeoffs. On the other hand, early childhood care centers (TPA) are open from 8 a.m. to 4 p.m. to cater to the children of working parents, especially considering that most mothers drop out of the labor force due to childcare needs. Among various types of PAUD, those providing childcare are the least available across Indonesia. TPA are not available in many parts of the country, representing only 1.4 percent of all registered PAUD facilities. Ten provinces with the highest number of TPA are mainly concentrated in central and west Indonesia, whereas the provinces with the fewest are concentrated in eastern Indonesia.15 There are various other childcare arrangements with different informal and nongovernmental actors playing a role, but these largely fall outside the regulated space. Also, some PAUD facilities combine provision of early childhood education and childcare services for working parents. For example, a TK could have an attached TPA to provide care for children outside of the TK’s limited hours of operation, though such arrangements are context-specific and not widely available. 2.2. INSTITUTIONAL DRIVERS OF SERVICE GAPS The ECED conditions in Indonesia partly reflect the complex institutional framework for PAUD governance. At the national level, PAUD is overseen by the Directorate General of PAUD and Community Education at the MoECRT. TK and RA, two types of formal PAUD, are regulated by MoECRT and MoRA, respectively. MoWECP is responsible for the childcare aspects of ECED. Nonformal and informal PAUD are subject to the authority of multiple ministries. For instance, MoWECP provides guidelines for daycare facilities in the workplace, while MoSA regulates children’s parks (Taman Anak Sejahtera, TAS). Various other agencies are responsible for specific tasks such as licensing and accreditation, and several central ministries convene regularly as members of a national task force on PAUD to address coordination challenges (Table 2.2). There does not appear to be a direct correlation between a province’s population, economic development, and the 15 number of TPA. For example, Yogyakarta is the 18th most populous province and has the ninth smallest regional economy but houses the third highest number of TPA units of any province. The number of TPA units also does not necessarily correspond to the number of children attending TPA: Lampung has only 34 TPA units, the 16th highest number, but reportedly 1,074 children attend TPA in the province. 14 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Institutional Framework for Childcare Service provision, licensing, and monitoring functions are largely decentralized to subnational entities. PAUD facilities can be established by district and city governments, village governments, individuals, groups of people, or legal entities (badan hukum). This means that more than 85,000 local governments, along with thousands of individuals and groups, can form and operate PAUD facilities. The central government is responsible for accrediting PAUD facilities, establishing quality standards, and establishing a national PAUD curriculum.16 Provincial governments provide oversight on establishing provincial-level PAUD units.17 District and city governments are responsible for PAUD education management, licensing facilities, and establishment of local content for curriculums.18 District governments also track openings, closures, and changes to PAUD units to the provincial governments, which then report these to the central government.19 Overall, over 500 district and city governments support various administration and service delivery roles, and these entities could sometimes issue and follow contradictory rules or regulations. TABLE 2.2. GOVERNMENT ENTITIES INVOLVED IN REGULATING CHILDCARE Entity Role Ministry of Education, Culture, Research • Oversight of PAUD ecosystem, including TPA and Technology (MoECRT) • National policy maker in charge of licensing, accreditation, quality control, standards, and financial assistance for PAUD • Member of National Holistic and Integrated PAUD (PAUD- HI) Task Force Ministry of Religion (MoRA) • Some oversight over Islamic PAUD, particularly RA • Member of PAUD-HI Task Force Ministry of Social Affairs (MoSA) • Establishment and regulation of TAS facilities • Member of PAUD-HI Task Force Ministry of Women’s Empowerment and • Coordination of child-friendly daycare facilities for working Child Protection (MoWECP) women • Issuance of child-friendly daycare guidelines • Establishment of special programs, such as ‘Happy Childcare Centers’ with the private sector • Member of PAUD-HI Task Force Coordinating Ministry of Human • Chair of PAUD-HI Task Force Development (KemenkoPMK) • Oversight of majority of PAUD-related ministries • Oversight of development of daycares in industrial areas National Accreditation Board for Early • Responsibility for accrediting PAUD units Childhood Education, Primary Education, • Sits under MoECRT and Secondary Education (Badan Akreditasi Nasional Pendidikan Anak Usia Dini, Pendidikan Dasar, dan Pendidikan Menengah, BAN-PDM) 16 Law No. 23/2014 on Regional Governments defines the division of responsibility for PAUD oversight. 17 MoECRT Regulation No. 84/2014 on Establishing PAUD Units details this division of authority. 18 Law No. 23/2014 Attachment 1, Section 1(a): Division of Government Affairs in the Education Sector. 19 Article 11, MoECRT Regulation No. 84/2014. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 15 Institutional Framework for Childcare TABLE 2.2. CONTINUED Entity Role Ministry of Law and Human Rights • Issuance of permissions needed for PAUD operation (MoLHR) National Investment Coordinating Board • Issuance of permissions needed for PAUD operation (BKPM) Ministry of Labor (MoL) • Responsible for regulating domestic workers who provide care services and regulating parental leave Ministry of Finance (MoF) • Has issued a tax break policy for childcare operators Ministry of Home Affairs (MoHA) • PAUD-HI Task Force Deputy Chair National Development Planning Agency • PAUD-HI Task Force Deputy Chair (Bappenas) Statistics Indonesia (BPS) • PAUD-HI Task Force Member The National Population and Family • PAUD-HI Task Force Member Planning Board (BKKBN) Ministry of Villages, Development of • PAUD-HI Task Force Member Disadvantaged Regions and Transmigration (MoV) Cabinet Secretariat • PAUD-HI Task Force Member Subnational governments (district, city, and • Responsible for overseeing PAUD units within their village) jurisdictions, including further layers of regulations and involvement by regional government agencies Source: World Bank team synthesis. PAUD is financially supported through fiscal transfers from the central government and local budgets. Funding for PAUD originates from the central government, district government, village government, the community, and other local sources.20 The main source of central government funding is through operational assistance grants (Bantuan Operasional Penyelenggaran PAUD, BOP PAUD),21 which aim to increase the quality and reach of PAUD services and reduce the financial burden on parents (MoECRT 2020). The funds can be used to pay educators and staff and support their professional development, yet they are typically insufficient.22 The grant amounts change from year to year, according to the national budget and an annually issued regulation from MoECRT, making multiyear planning difficult. Occasionally, other forms of subsidies and tax breaks are provided through special regulations.23 Additional government support for PAUD can also be provided through 20 Article 15, MoECRT Regulation No. 18/2018. 21 BOP PAUD has been provided under various names since 2002. In 2016, it became DAK Non-fisik BOP PAUD under a ministerial regulation (MoECRT 2020). 22 In 2022, the amount provided to PAUD centers was IDR 600,000–IDR 1.2 million per student enrolled with a total BOP PAUD budget allocation of IDR 4.25 trillion (MoECRT 2022b). 23 Under Finance Ministry Regulation No. 3/PMK.03/2022 concerning Tax Incentives for Taxpayers Affected by the 2019 Corona Virus Disease Pandemic, childcare centers were eligible for a tax break in 2022. This regulation provides a legal basis to reduce the income tax owed by childcare service operators by 50 percent of the amount stipulated in the Income Tax Law. 16 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Institutional Framework for Childcare Dana Alokasi Khusus-Fisik (DAK-Fisik),24 discretionary funds from the province or district government, and Village Funds (Dana Desa) managed by the village governments (Denboba, Hasan, and Wodon 2015; Adriany et al. 2019). MoRA manages separate funds for Islamic TK (BOP Raudlatul Athfal), but the overall procedures and budget cycles are similar. There are large funding gaps that require significant contributions from families, communities, and civil society organizations (CSOs). BOP PAUD and other government grants are often not enough to cover the costs of care provision. Most PAUD services are provided by private entities, often associated with additional fees and costs. In addition to basic tuition, many centers charge extra for food and beverages to support child development. These costs are not covered by any existing governmental support systems. In addition, there are no government subsidies, incentives, or tax breaks transferred to the families of children who attend PAUD. The Family Hope Program (Program Keluarga Harapan, PKH), the government’s flagship conditional cash transfer (CCT) program, obliges children from beneficiary families to attend primary and high school, but is silent on PAUD. It only requires children 0–6 years old to take part in nutrition, immunization, and child-weighing programs. Existing funding streams also do not support low-income households or cover food costs, and many facilities have limited ability to provide targeted support for low-income families. 2.3. OTHER MISSING PIECES OF THE CARE ECOSYSTEM A functional care economy depends on the broader ecosystem for care provision, which includes but goes beyond ECED. While investing in the availability, affordability, and quality of Indonesia’s PAUD system is important, a range of other factors contribute to the poor state of care provision for children in the 0–6 age group. These include, among others, the limited size of the skilled care workforce; low compensation and rights of care workers; pervasive informality and nonrecognition of unpaid care work; little incentives for improved service quality by private entities; and limited maternity, paternity, and parental leave benefits for working parents. Improving the care provisioning landscape and addressing the work-care nexus for working parents requires parallel interventions across these, and other, ecosystem challenges. Rights and Skills of the Care Workforce The formal care workers in Indonesia, who are predominantly women, are under-compensated, are under-skilled, and have limited professional opportunities. A survey of PAUD service providers conducted in 2023 (see Annex 2) found that about 95 percent of PAUD workers are women employed by private entities. Since most facilities target older age groups, the childcare subset of PAUD is underrepresented, with childcare workers making up less than 2 percent of all PAUD workers. Most PAUD workers, except those employed in TK, do not hold a bachelor’s degree or equivalent, and only 50 percent of workers are certified. These numbers vary considerably by center type, with TK and KB being more likely to have at least some staff certified. As existing funding streams support TK and KB centers in the professional development of teachers, they are more likely to be able to hire In 2021, the Education Ministry allocated IDR 398.34 billion in DAK-Fisik transfers (Indonesia Baik 2021). 24 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 17 Institutional Framework for Childcare staff with a bachelor’s degree, as required by regulation. However, almost all types of centers report paying workers close to provincial minimum wages. For TK and KB staff, this creates a problem with staff turnover, as these wages are low relative to their educational attainment. Of the providers surveyed, only 2.3 percent compensated caregivers at a level comparable to regional prevailing wages for similarly educated workers. The large pool of informal domestic workers undertakes the bulk of caregiving work across Indonesia. Domestic workers represent the single largest group of female salaried workers contributing to caregiving within families in Indonesia (ILO 2022). The ILO estimates that there are 4 million domestic workers in Indonesia, of which there are almost 3 female workers for every 1 male worker (Kompas 2021). Domestic work is also a primary source of migration, with young girls from rural areas moving to cities to perform a wide range of essential care roles, including caring for children and families’ domestic needs. While these workers are incredibly important to addressing care needs, their work is often perceived as economically unproductive, undervalued, and demeaned. Domestic workers are rarely trained or given any opportunities for personal or professional growth. Domestic workers have few rights and protections under the law. Most domestic workers fall under the category of informal workers, which is defined as those who are self-employed, freelancers, casual workers, family workers, or doing business with the help of temporary workers and unpaid workers. They are at risk of rights violations within the households in which they work. Across Indonesia, domestic workers frequently work 14–18 hours a day, seven days a week, for salaries significantly below the minimum wage. Resolving disagreements over responsibilities and enforcement of rights is often done informally, instead of through the courts. Domestic workers are not protected for injuries, maternity leave, minimum wages, or hours, and they are rarely registered to receive social services. This prevents them from getting access to unemployment benefits, insurance, or pensions (Winarni 2018). Widespread informality, limited recognition for care work, and poor working conditions all contribute to a suboptimal care ecosystem. Due to legal and regulatory gaps that do not recognize or protect care work in its all forms, a large piece of the care landscape in Indonesia, the care workforce, is organized suboptimally. Formal care jobs, such as ECED teachers, are not an attractive career choice, resulting in a shortage of skilled workers. The four essential elements for strengthening the care workforce—attracting high-quality candidates, equipping them with relevant skills and competencies, providing ongoing support and professional development opportunities, and promoting retention through minimum working conditions and job satisfaction—all remain weak (Rao et al. 2022). The gaps are filled by informal workers, or informal arrangements that involve family members and social networks. For a well-functioning care ecosystem, the protection of care workers under relevant labor and social protection laws is necessary (ILO n.d.). Equally important are programs that would transition care workers into becoming members of a skilled workforce who would help raise quality standards and improve service delivery. 18 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Institutional Framework for Childcare Workplace Policies for Working Parents Maternity leave policies are below international standards. Indonesia has ratified ILO Conventions related to maternity rights,25 and local law stipulates that maternity leave lasts for a total of three months and can start one-and-a-half months before delivery and one-and-a-half months after delivery.26 During maternity leave, employees are entitled to a full wage (consisting of basic salary and fixed allowances) and medical reimbursement and insurance. Additional benefits may be regulated under the employment agreement, company regulations, and collective labor agreements. Upon returning from maternity leave, employees are entitled to opportunities to breastfeed their children or to pump breast milk during working hours. Yet, these rights and protections are limited to formal workers only and below international standards of at least 18 weeks of paid leave.27 Paternity leave is limited, and no family leave is mandated. Paternity leave provides an opportunity for fathers to begin nurturing and bonding with their child, to support the mother with the many physical and psychological demands related to childbirth, and to adjust to the new responsibilities of parenthood. By law, only two days of paid leave is allowed for the partner of a mother who has given birth or suffered a miscarriage. Civil servants are entitled to one month of paternity leave and earn their basic pay during this time, which creates an inconsistency compared with private sector employees.28 However, men are frequently discouraged from taking paternity leave due to social expectations about gender roles. Employers may offer unpaid family leave to caregivers, more broadly, at their discretion. This also applies to dependents, a spouse, or a close family member in need of emergency care, where unpaid leave may be granted. Aside from the limited duration, benefits are covered by the employers’ liability schemes, and compliance is poorly enforced. The maternity benefits depend on employer participation in a liability scheme, putting the financial burden and compliance with the employers. There is a wide variation in employer compliance with the full implementation of the law, and this affects eligible women’s tendencies to take advantage of the benefits they are entitled to (Purnamasari et al. 2023; Setyonaluri et al. 2023). Employers sometimes reach informal agreements with pregnant women workers to leave and return to work, but they are negligent regarding paying financial benefits in part or in full. Replacing the employer liability scheme with a more inclusive social protection scheme could increase access, while lengthening the duration of the leave could foster more participation. 25 The ILO Discrimination (Employment and Occupation) Convention No. 111. 26 Indonesia’s Labor Law (Law No. 13/2003 on Labor as amended by Law No. 11 of 2020 regarding Job Creation). 27 The regional government regulates the leave mechanism (including maternity leave) for civil servants. For example, DKI Jakarta Governor Regulation No. 15/2018 on the Procedure for Application of and Granting/ Suspending Leave for Civil Servants. Most regional governments have their own set of rules for civil servants in their agencies. If there is none, then the maternity leave regulation for civil servants refers to National Civil Service Agency Regulation No. 24/2017. 28 National Civil Service Agency Regulation No 24/2017. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 19 Institutional Framework for Childcare There have been recent efforts to improve parental leave policies in Indonesia. From female workers’ perspective, the length of the leave is considered too short to meet care needs, and compliance with the requirements is poorly enforced. In addition, other family leave policies, including paternity leave, remain limited and reinforce women’s primary caregiving role within families. The parliament has led efforts to extend maternity leave and paternity leave, as part of a new law that included several other provisions (Box 2.1). The Mother and Child Welfare Law (Undang-undang tentang Kesejahteraan Ibu dan Anak, or UU KIA) was adopted in mid-2024, and its impact remains to be seen. BOX 2.1. THE MOTHER AND CHILD WELFARE LAW 2024 The People’s Representative Council of the Republic of Indonesia (Dewan Perwakilan Rakyat Republik Indonesia) passed the Mother and Child Welfare Law (Undang-undang tentang Kesejahteraan Ibu dan Anak, or UU KIA) in 2024. UU KIA (Law 4/2004) covers several issues pertaining to care provision and the work-care nexus in Indonesia, including maternity and paternity leave, definition of care roles within families, and requirements on employers to provide women-friendly facilities, policies, and infrastructure in the workplace. It also defines caregiving as a shared responsibility of spouses. Originally, before becoming law, the bill had proposed to extend maternity leave from 3 months to 6 months and paternity leave from 2 days to 40 days. Many employers’ associations opposed these provisions, contending that extended leave policies would significantly increase their costs. Women’s organizations also expressed concern that these additional provisions, without enforcement of complementary labor laws and regulations, would discourage employers from recruiting female workers. The bill was also criticized for perpetuating gender roles and the unequal distribution of care work within families, since a provision placed the responsibility of childrearing with mothers while largely relegating fathers and other family members to supporting or emergency roles. The bill was revised between 2022 and 2024, during which its scope has changed from the originally proposed bill, and it finally became law in June 2024. The law, UU KIA, focuses on children in the first 1,000 days (0–2 years) and their parents, shifting its orientation toward stunting prevention in the early days of life. The maternity leave provisions include 3 months of leave, but an additional 3 months could be granted for medical reasons with a doctor’s note. Mothers are entitled to full wages and benefits for the first 3 months; should any additional leave be granted beyond the first three months, mothers would be compensated partially (the fourth month would be covered at 100 percent, and the fifth and sixth months would be covered at 75 percent). Paternity leave remains unchanged at only 2 days, but conditions under which workers can use this benefit are slightly expanded, and there are provisions that allow fathers to take off an additional 3 days if needed. Although maternity and paternity leave provisions in UU KIA are more limited than initially anticipated, there are new requirements on employers. For example, the law requires employers to provide childcare facilities, health facilities, and lactation rooms in the workplace. It also requires employers to accommodate the needs of mothers and children by adjusting their tasks, working hours, and work location, if doing so does not hinder employee's performance and ability to perform their duties. Employers who do not comply with the law are subject to administrative sanctions, though what these sanctions may entail are not specified. Source: World Bank team synthesis. 20 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Institutional Framework for Childcare Recognition of Different Modalities of Service Delivery Care services can be provided through a variety of modalities besides ECED. Indonesia, like most other countries, has so far provided public support for childcare through its preschool and early childhood development system, while leaving plenty of room for local adaptation and private entities to fill service gaps under the umbrella of the PAUD system. In addition to strengthening the PAUD system, it is possible to consider other public support mechanisms to supplement this primary mechanism. These could include private center-based care; community-based or other non-state solutions; home-based care provided by the parent, grandparent, or a domestic worker; or other unremunerated family arrangements. The role of the public sector need not always be about direct service provision, and a well-functioning care system must recognize and reward these types of arrangements to provide families with more choices. Community- and home-based care may be customized to parents’ needs, generally serving longer hours to accommodate working and commuting hours. Many families rely on grandparents or extended family members to care for their children at home. Having an elderly family member at home, however, may add to the overall care burden and responsibilities of the ‘sandwich generation’, or individuals who must care for both their children and their elderly parents. In Indonesia, much like other countries, this responsibility generally falls on women. Hence, the presence of older family members in a household may present another barrier to women joining the labor force. Some parents have arrangements by which neighbors or other community members assist with childcare. Others rely on a combination of family, community, and domestic workers to meet needs during specific times of the day. All these arrangements currently fall outside of the regulated space. The private sector can be leveraged to provide care services for working parents (PROSPERA 2021). Indonesian employers can play a crucial role in addressing care gaps by offering additional support for workers, reaping potential business benefits. Private companies that have corporate social responsibility (CSR) policies and gender targets often view childcare as an incentive for their female workers to increase their performance and return to work. Employer-backed care could come in various forms, and successful approaches typically tailor them to the company’s specific needs and workforce priorities. While some interventions demand up-front planning and investment, such as on-site childcare, others, such as flexible working arrangements, may be cost-effective and yield immediate gains. Public policy can incentivize such investments through tax mandates, subsidies, and incentives for employers who implement employer-provided childcare programs. 2.4. FORWARD LOOK The success of Indonesia’s efforts to strengthen its care economy depends on the extent to which different elements of the care ecosystem work together. For example, the private sector could partly address childcare needs of its workers by outsourcing the operation of childcare facilities to third- party providers or by giving its employees allowances, vouchers, or subsidies to purchase childcare services of their choice. However, such arrangements depend on the availability of a functional care providers market, with affordable, reliable, and high-quality care services. The latter, in turn, depends The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 21 Institutional Framework for Childcare on the existence of skilled employees, as well as access to finance and other forms of support available to care service providers and care entrepreneurs. The skills of the workforce, similarly, are contingent on incentive mechanisms that make caregiving an attractive career opportunity, including sufficient compensation and protection for care workers, as well as opportunities for them to improve their skills and competencies. All these factors depend on strengthened regulatory frameworks and systems for establishing, enforcing, and monitoring compliance with service standards, and so on. The GoI recognizes that public policy can break this cycle and spark the development of the care economy. Experiences from other contexts suggest that investing in parallel reforms and policy actions, while supporting service providers and families, is crucial (Box 2.2, see Chapter 5 for further details). In Indonesia, several ingredients are already in place for the care economy to grow, but they are underdeveloped, are uncoordinated, and operate under a fragmented and informal care ecosystem. The Care Economy Roadmap and National Action Plan 2025–2045 provides a framework for Indonesia to align initiatives and incentives around a common vision while strengthening the weaknesses of the existing landscape. Particularly, the strategic priorities under the roadmap have sufficient emphasis on the most pressing and intertwined agendas of childcare provision, workplace policies, and recognition and protection of care work and care workers. Specific actions in the first few years of the roadmap’s implementation will set the pace at which Indonesia moves toward achieving its care economy targets by 2045. BOX 2.2. PARALLEL POLICY ACTIONS FOR IMPROVED ECED OUTCOMES: THE CASE OF UZBEKISTAN Uzbekistan has made significant strides in ECED, with enrollment in preschool programs increasing from 20 percent in 2015 to 58 percent in 2021, benefiting approximately 1.6 million children. Supported by a public-private partnership (PPP) model, the number of preschools quadrupled since 2017. By 2022, about 63 percent of the eligible age group attended preschool, with the enrollment rate reaching 77 percent among 6-year-olds. This was achieved through a combination of policy actions targeting different aspects of the care ecosystem in parallel: Regulatory reforms. The Law on Education of 1997 initially guaranteed free primary education to all citizens, a principle later reinforced and updated by the Law on Education of 2020. This newer law introduced reforms such as inclusive education for children with disabilities and expanded provisions for PPPs. A recent decree enhanced additional support measures, including special funding arrangements, concessional use of land, and subsidies for utility bills to private entities engaged in PPPs. The more recent Law on Pre-school Education and Upbringing of 2019 provided the right to one year of free preschool education for all. Uzbekistan has also implemented legislative frameworks and multiyear policy initiatives aimed at improving preschool education. The Programme for Further Improvement of the Pre-school Education System (2017–2021) focused on aligning with international standards, enhancing educational quality, expanding service availability, and improving infrastructure and resources, particularly in rural areas. The Education Sector Plan (2019–2023) built on these efforts by aiming to increase access through new school construction and PPP support, improve quality via curriculum updates and teacher training, and enhance governance with coordinated policies and data systems. 22 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Institutional Framework for Childcare BOX 2.2. CONTINUED Expanding institutional ECED services. In Uzbekistan, preschool education for children ages 3–7 is provided by both government and private institutions. A significant number of private institutions have been established through PPPs, which have effectively expanded access to ECED services. These institutions cater to children through formal preschool education offered by state preschools, private non-state preschools, and family-based non-state preschools. In addition, Uzbekistan employs alternative methods to deliver ECED services, addressing areas with limited access. For example, Early Development Centers (EDCs) are located within teacher training colleges in underserved regions; mobile preschools operate in hard-to-reach neighborhoods through educational spaces set up in buses; and multi-age playgroups serve as half-day daycare centers established in rural and remote areas, often situated in repurposed or unused buildings. Financing for service providers and families. Funding for preschool education in Uzbekistan is sourced from various sources, including the central and regional budgets, local contributions, and non-budgetary sources such as donations and grants. The Pre-school Education Development Fund, established in 2019, supplements funding through revenues from real estate sales, donations, and foreign aid, focusing on expanding state preschools, facility maintenance, staff training, and technology integration. Parents pay enrollment fees, primarily covering the cost of meals provided at school. The Ministry of Pre-School Education sets the fees for public preschools, which vary by administrative region, district, and city. Areas with lower socioeconomic indicators often benefit from reduced fees. While there is no national-level program specifically dedicated to assisting families with the costs of accessing preschool education, the social protection system includes a childcare allowance aimed at supporting low-income families with young children. There is also a Disability Allowance available to families with children who have special needs. Private preschools operate mostly on self-funded models, but those established under PPPs receive government subsidies, contributing to a significant increase in the number of preschools and staff since 2017. Quality monitoring and workforce skills. The quality assurance mechanisms for preschool education in Uzbekistan apply uniformly to both state and non-state institutions. Previously underdeveloped, these mechanisms have been strengthened since 2019, notably with the introduction of the Education Quality Assurance Framework (EQAF), which establishes standards and performance indicators to monitor and enhance educational quality nationwide. Teachers receive base salaries, supplemented by incentives like health coverage and transportation allowances. Monitoring and evaluation responsibilities are shared among agencies under the Cabinet of Ministers. The government also provides teaching materials and basic equipment for preschools, with significant technological support in state institutions. Source: World Bank team synthesis. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 23 Chapter 3. SOCIAL ORGANIZATION OF CHILDCARE 3.1. DIVERSITY OF CHILDCARE ARRANGEMENTS As the current childcare provision landscape is limited, families manage their care needs through diverse, largely informal arrangements. This chapter examines the social organization of childcare provision, based on a nationally representative survey of 3,000 households who have children in the 0–6 years age group. The respondents are the primary caregivers in the households.29 The survey is representative of Java and non-Java areas, as well as different children’s age groups (0–12 months, 13–36 months, and 37–72 months). However, the sampled households have a lower socioeconomic status compared to the national average, as measured by their estimated real per capita expenditure (RPCE) (see Annex 1).30 A detailed profile of existing childcare arrangements across these groups, and families’ preferences for different types of care, demonstrates what arrangements would best serve needs across Indonesia. Sources of Childcare Support Universally, mothers are identified as the primary caregivers for children in Indonesia, with some support from other family members. Over 98 percent of primary caregivers in the sample (2,942 out of 3,000 households) were mothers, indicative of women’s vital role in caregiving. Mothers are also the ones most likely to be responsible for organizing the various other childcare arrangements that families use. In response to a question about their childcare arrangements for each child in the household over the past month, most mothers reported that they receive some support from their spouses and other family members. More than two-thirds of children are cared for by their fathers at some point of the day, though fathers are more likely to be employed outside the home and only provide a few hours of support. Other household members and non-household family members also help, providing care for 25 percent and 15 percent of children, respectively. In comparison, reliance on nonfamily members is generally low, suggesting that social networks and community-based models are not fully leveraged (Figure 3.1). 29 If there were more than one primary caregiver in the household, one of the caregivers was randomly selected for the interview. The discussion in this chapter focuses primarily on the responses of mothers, which comprise a total of 2,942 respondents. There is a total of 3,601 children in the sample: 786 children are in the age group 0–12 months, 1,383 are ages 13–36 months, and 1,432 are ages 37–72 months. 30 Around two-thirds of the respondents lived in households in the bottom 40 percent of the socioeconomic status, compared to about 52 percent in SUSENAS. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 25 Social Organization of Childcare Reliance on ECED facilities is low, but it becomes more prevalent as children get older and other family members’ contributions start to decline. Only 19 percent of children in the sample attend ECED institutions, meaning that four out of five children do not receive any early childhood education at all. This is half the official enrollment rate in PAUD at the national level, which could be partly related to the relatively lower socioeconomic status of the sampled households. However, in line with the official statistics, the PAUD enrollment rate is particularly low for children under the age of 3 (0–36 months), with only 5 percent of 0–12 months-old children and 9 percent of 13–36-months-old children attending ECED. Since the Indonesian PAUD system primarily targets older children, this is when reliance on ECED starts to increase, reaching 36 percent for children in the 3–6 years age group (37–72 months). Yet, because PAUD facilities provide part-time services for only 3–4 hours a day, the supplementary role of other family members in providing childcare does not completely disappear, even for older children who participate in ECED. FIGURE 3.1. SOURCES OF CHILDCARE SUPPORT FOR MOTHERS BY CHILDREN’S AGE (% OF RESPONSES) 67.7 65.6 69.1 67.4 36.2 28.7 25.2 27.1 21.0 15.5 15.1 18.7 19.3 12.8 8.8 5.3 2.6 2.7 1.6 3.4 At home with Household Non-household ECED Non-family father family members family members institutions members All Children Children aged 0-12 months Children aged 13-36 months Children aged 37-72 months Source: Household Caregiver Survey. Note: Sample of 3,601 children in the sample, with 786 children ages 0–12 months, 1,383 children ages 13–36 months, and 1,432 children ages 37–72 months. Socioeconomic status makes a difference for childcare arrangements, including for the distribution of care roles between parents.31 Fathers’ participation in childcare is higher in the top 20 percent of the household socioeconomic status, where 79 percent of children are cared for by their fathers. That number falls to 66 percent for the bottom 40 percent of the socioeconomic spectrum (Figure 3.2). It is possible that fathers in households with higher socioeconomic status have better-paying jobs or work during more standard hours than others, which affords them the ability to support care needs. These patterns could also be related to migration, as the share of fathers who are migrants is much lower Since the household caregiver survey did not include an extensive consumption expenditure module, proxy-means 31 tests (PMTs) were used to determine the household expenditure distribution, where easily verifiable household assets and labor market information in conjunction with preexisting SUSENAS data were aggregated into an index to measure household welfare. 26 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare in the top 20 percent than it is in the bottom 40 percent. Similarly, dependance on other household family members for childcare declines with increased socioeconomic status, with households in the top 20 percent and middle 40 percent of the socioeconomic spectrum relying more on non-household childcare arrangements (Figure 3.2). This could be related to these households’ ability to afford additional, paid care support from outside. FIGURE 3.2. SOURCES OF CHILDCARE SUPPORT FOR MOTHERS BY SOCIOECONOMIC STATUS (% OF RESPONSES) 78.9 69.4 66.0 26.9 21.8 20.2 20.1 21.9 21.5 18.7 18.1 13.7 7.9 1.5 4.2 At home with Household Non-household ECED Non-family father family members family members institutions members Bottom 40 Middle 40 Top 20 Source: Household Caregiver Survey. Note: Based on a sample of 2,320 children in the bottom 40, 971 in the middle 40, and 310 in the top 20. FIGURE 3.3. CHILDCARE ARRANGEMENTS (EXCLUDING MOTHERS) BY REGION (% OF RESPONSES) A. Rural versus Urban B. Java versus Non-Java 69.6 68.7 66.6 65.2 26.8 28.3 25.8 23.3 21.9 17.8 20.4 20.7 16.8 13.9 10.0 12.2 2.3 2.8 3.7 1.4 At home Household Non- ECED Non-family At home Household Non- ECED Non-family with father family household institutions members with father family household institutions members members family members family members members Rural Urban Java Non-Java Source: Household Caregiver Survey. Note: Based on a sample of 1,199 children in rural and 2,402 children in urban areas (left panel), and a sample of 1,885 children in Java and 1,716 children in non-Java areas (right panel). The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 27 Social Organization of Childcare Though there are no major differences in the sources of childcare support between rural and urban areas, childcare arrangements vary across Java and non-Java areas. Compared to mothers outside of Java, a higher percentage of mothers in Java report relying on non-household childcare arrangements, such as non-household family members (a difference of 10.7 percentage points) and on ECED institutions (a difference of 13.6 percentage points). Also, in Java, 25.8 percent of children attend a PAUD institution, whereas less than half of that figure, or only 12.2 percent, of non-Java children do (Figure 3.3). This reflects the higher availability of formal and institutional childcare services in Java, which is home to more than half of the Indonesian population and generally has better infrastructure and services than the other islands, including hosting over 60 percent of all PAUD in Indonesia. Distribution of Childcare Responsibilities Mothers provide childcare every day of the week, whereas other support sources vary, especially on the weekends. As mothers are the primary caregivers, there is little variation in how much time they spend caring for children during weekdays. However, childcare arrangements tend to change on the weekends when fathers are more likely to spend time with their children. At the same time, non- household family arrangements decline on the weekends relative to the weekdays, suggesting that the main role of this group is to fill care gaps when the parents are working during the week. Similarly, for those families who use ECED services for childcare, there is a dramatic fall in the availability of PAUD over the weekend, with just about one-third of children enrolled in PAUD attending these facilities on the weekends. Mothers are responsible for childcare for the entire day, while fathers and other family members play supporting roles at specific times. For 94 percent of the children, mothers are responsible for providing care throughout the day. In contrast, only 20 percent of fathers, 27 percent of household family members, and 19 percent of non-household family members are reported as being responsible for care provision throughout the day—even then, their role is to support the mothers. Most children, 67 percent, are cared for by their fathers in the evenings. Only 28 percent and 17 percent of the fathers provide childcare in the morning or afternoon, respectively. When household family members or nonfamily members provide care, the majority, 45 and 64 percent, respectively, provide care in the afternoon. Similarly, 45 and 51 percent of non-household family members provide care in the morning or afternoon, respectively (Table 3.1).32 As PAUD facilities have restrictive hours, they provide only a few hours of support, usually in the mornings of weekdays. An overwhelming majority of children that attend PAUD, 81 percent, do so in the morning hours, while about 40 percent get care in the afternoon. Most of these children likely engage in early childhood education at PAUD facilities, which are usually open for a few hours a day. Only 3.4 percent of the children attend PAUD for the entire day, and about 15 percent attend PAUD in the evening. These are likely younger children using the TPA (daycare) features of PAUD, which are the only types that are open on a full-time basis and sometimes provide support in the evenings for working families. Although it would be informative to understand specifically how fathers are involved in childcare at home (what 32 tasks they do and how responsibilities are split between them and mothers), this is beyond the scope of this report. 28 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare The intensity of childcare responsibilities for mothers is reflected in the number of hours they spend on childcare compared to other sources. Mothers spend an average of 13.7 hours per day (approximately 98 hours per week) on childcare, significantly higher than the 3.8 hours per day spent by fathers (Table 3.1). Household family members provide about 4.2 hours of support, while non- household family members and nonfamily members each provide 3–4 hours of support. As enrollment in PAUD is heavily skewed toward older children who are getting ECED services, this option averages only 1.5 hours of childcare support per day across the whole sample (because only one-fifth of the sampled households have a child enrolled in PAUD). TABLE 3.1. TIME OF THE DAY CHILDCARE SOURCES PROVIDE CARE (CONDITIONAL ON THE SOURCE PROVIDING CARE) Full Day (% Morning (% Afternoon (% Evening (% Time Spent on Care Responses) Responses) Responses) Responses) (hours/day) At home with 93.9 3.4 3.0 4.8 13.7 mother At home with 19.8 27.8 17.4 66.9 3.8 father Household family 27.2 29.8 45.3 34.5 4.2 members Non-household 19.3 44.6 51.1 23.1 3.3 family members ECED institutions 3.4 80.7 39.9 15.3 1.5 Non-family 9.1 39.2 64.3 32.0 3.0 members Source: Household Caregiver Survey. Note: N = 3,601 children. There is an overlap in responses for morning, afternoon, and night; hence, the row percentages do not add up to 100. Multiple responses, but if a particular arrangement provided care the whole day, they could not select any other time. Taken together, a typical day for Indonesian families involves an intensive effort to mobilize multiple sources and arrangements to look after children. Mothers rely on mixed arrangements that change throughout the day. In the mornings, of children who receive care from a source other than the mother, 38 percent are cared for by their fathers, and 31 percent attend PAUD. As the time moves on toward the afternoon, the use of ECED services by older children rises, father’s involvement starts to decline, and other household members become more important, with 28 percent of household family members providing support at that time of the day. Finally, in the evenings, family and nonfamily members are less likely to be available, and spouses share care responsibilities at home, with the role of fathers increasing substantially (Figure 3.4). Relying on multiple sources of caregivers, and their coordination, may be inconvenient, but it is often the only feasible option for mothers to be able to balance their care roles with other (paid and unpaid) responsibilities. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 29 Social Organization of Childcare FIGURE 3.4. CHILDCARE SUPPORT RECEIVED BY MOTHERS THROUGHOUT THE DAY (% RESPONSES) 100.00 100.00 100.00 29 38 Sources of Childcare Support to Mothers 1 - Father 74 2 - Household family members Percentage 28 3 - Non-household family members 4 - ECED institutions 31 5 - Non-family members 20 15 14 19 14 6 5 Morning Afternoon Evening Source: Household Caregiver Survey. 3.2. AVAILABILITY, AFFORDABILITY, AND QUALITY OF INSTITUTIONAL CHILDCARE SERVICES The prevalence of mixed childcare arrangements is partly a result of the limitations of institutional childcare services. About 89 percent of the 2,341 respondents in the household sample indicate that they are not interested in enrolling their children in these facilities. The remaining 11 percent of respondents who are willing to enroll their children, moreover, report that they are not able to do so. Barriers that these families encounter include availability issues (for 40 percent of these respondents), affordability issues (for 26 percent), and quality issues (for 19 percent) (Figure 3.5). There is also the role of parental preferences, largely underpinned by social norms governing the distribution of care roles within families and communities, which may be the most binding constraint in some contexts. Hence, institutional childcare options are unlikely to completely replace informal arrangements in the near future. 30 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare FIGURE 3.5. BARRIERS TO ECED ENROLLMENT FOR INTERESTED FAMILIES (% OF RESPONSES) Availability of childcare 39.6 The service fee is too high 25.5 The quality of childcare is not good 18.9 The location of the preferred childcare facility is not convenient 6.7 Difficulties to bring and pick up the 4.8 children from the childcare center The operational hours are not compatible with household responsibilities 2.0 There is not enough quota in the ECED facility 1.2 The child was not accepted 0.8 into the childcare center Others 22.3 Source: Household Caregiver Survey. Note: Sample of 262 respondents who are willing to enroll their children in ECED institutions but not doing it. Multiple responses. Availability Improving the availability of institutional childcare is the first step toward reducing reliance on informal arrangements. For instance, young infants and toddlers are more likely to be kept at home due to a combination of parental preference and limited availability of facilities that can accommodate them. During these early years, families usually have little choice but to mobilize various informal sources of childcare support. However, it is plausible that as children get older, parents not only become increasingly more comfortable with placing them in someone else’s care but also have increased options in the institutionalized childcare space. It can be expected that the more available the PAUD facilities will become, the more these institutions will be used as sources of childcare, and the more responsive will their services become to families’ needs over time. Availability and ease of access are the primary factors behind families’ decision to use ECED services. Around 31 percent of the mothers in the sample indicated that finding and using their desired childcare services has been a challenge over the past year. When the mothers of the children attending PAUD were asked about the reasons behind choosing to send their children to PAUD, 86 percent cited the ease of access to an existing facility from their home as the most important factor (Figure 3.6). For this group, the average one-way distance to the PAUD centers is only around 7.2 minutes, and 96 percent of the drop-offs and pickups were done by family members, highlighting the crucial role of proximity to the home. In fact, proximity to home is the most cited reason for choosing other types of childcare sources as well, with the average one-way distance to non-household family and nonfamily care arrangements reported to be around 2–3 minutes. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 31 Social Organization of Childcare FIGURE 3.6. REASONS FOR CHOOSING PAUD AS CHILDCARE ARRANGEMENT (% OF RESPONSES) Ease of access/close to the house 86.3 Personnel (trained, education background, etc) 36.5 Religious aspects 34.9 Price 31.9 Activities and learning 30.0 Quality of the service 24.3 Infrastructure and facilities 16.2 Operational hours 15.3 Legal aspect of childcare 13.8 Culture similarities 12.2 Recommendation 11.5 Ease of access/close to the workplace 8.3 Provided by employer 1.7 Others 2.9 Source: Household Caregiver Survey. Note: Sample of 649 children using the ECED institutions. Multiple responses. Availability of local facilities is crucial for community education and trust-building in ECED before families decide to enroll their children in PAUD. Of mothers sending their children to PAUD, 65 percent reported learning about the centers because a PAUD already existed in their community or neighborhood, close to their homes. Similarly, another common way in which mothers learned about PAUD services is through word of mouth, as reported by 69 percent of respondents. This suggests that community education about childcare and early childhood education is more likely to occur when these services are readily available in their local areas. The latter, in turn, can be instrumental for families to learn about and build trust in PAUD, before deciding to enroll their children in these facilities. Affordability Affordability is another factor that families consider in choosing childcare. The second most common reason for not enrolling in PAUD despite wanting to do so was the lack of affordable options (Figure 3.5). Since nearly all PAUD across Indonesia are managed by private entities, and there are very few public programs supporting childcare, families typically pay out-of-pocket fees to use these services. In the household sample, about 80 percent of mothers of children participating in PAUD reported that they pay out-of-pocket expenses (Figure 3.7). Urban households and those living in Java are more likely to pay out-of-pocket fees for PAUD than their rural and non-Java counterparts. This is likely driven by the existence of more commercialized forms of PAUD in urban centers and in Java, as opposed to informal models and NGO-supported models that are common everywhere across Indonesia. 32 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare Both poorer and richer families pay out-of-pocket fees to enroll in PAUD, with the amounts spent being proportional to their socioeconomic status. About 85 percent of families in the top 20 percent of the socioeconomic status pay out-of-pocket fees for PAUD, while 79 percent of households in the bottom 40 percent of the socioeconomic status do. On average, families pay a monthly fee of IDR 62,656 (about US$4.00) for PAUD services, but there are important differences between socioeconomic groups in terms of the amounts they pay. Those in the bottom 40 percent of the socioeconomic status spend an average of IDR 52,668 (about US$3.30), whereas those in the top 20 percent pay more than double that amount, IDR 111,723 (about US$7.00) (Figure 3.7). As expected, households in urban areas pay higher out-of-pocket fees for PAUD compared to those living in rural areas. FIGURE 3.7. OUT-OF-POCKET PAYMENTS FOR CHILDREN ATTENDING PAUD A.Mothers Reported Paying Out-of-Pocket (%) B. Average Amount of Out-of-Pocket Payment (IDR) All children attending All children attending All 78.9 All 62,656 ECED institutions ECED institutions Bottom 40 79.0 Bottom 40 52,668 Household Household Economic Middle 40 76.6 Economic Middle 40 72,485 Status Status Top 20 85.4 Top 20 111,723 Region: Rural 66.2 Region: Rural 48,959 Rural or Rural or Urban Urban 87.8 Urban Urban 69,899 Region: Java 87.1 Region: Java 62,964 Java or Java or Non-Java Non-Java 60.0 Non-Java Non-Java 61,627 Source: Household Caregiver Survey. Note: Sample of 649 children using the ECED institutions. Although the out-of-pocket fees seem low in absolute terms, they pose a financial burden to households, especially those with a lower socioeconomic status. Of those households who reported making out-of-pocket payments, 26 percent had reported having difficulty with paying these fees, with observable differences across the socioeconomic scale. Paying for childcare becomes especially burdensome for the mothers in the bottom 40 percent of the socioeconomic status, with 30 percent of respondents saying they struggle to afford childcare, as opposed to only 7 percent of the mothers reporting the same in the top 20 percent of the socioeconomic status. In contrast, across urban-rural areas, and Java versus non-Java regions, about 25 percent of the respondents reported difficulty in affording the fees. When asked about their strategies for coping with the affordability challenge, 20 percent of those paying out-of-pocket fees for childcare report increasing their work hours, and another 4 percent report borrowing from family or friends, to be able to afford these costs. Only 1 percent of households report receiving any subsidy or financial support to cover their childcare costs. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 33 Social Organization of Childcare The out-of-pocket fees also mask differences in affordability across Indonesia. Considering the substantial variation in local wages and cost of living across the country, the financial burden of out-of- pocket PAUD expenses might be higher than what the household caregiver survey responses suggest. Across the sample, the out-of-pocket expenses constituted 7 percent of the RPCE, with households in the bottom 40 percent of the socioeconomic status spending a higher share of their RPCE on childcare, at 8 percent, than those in the top 20, at 5 percent. The relative cost of out-of-pocket expenses was also higher for households living outside of Java, at 8 percent, compared to those living in Java, at 7 percent. For the poorer households, cost could be so prohibitive that they simply do not enroll their children in PAUD despite the services being available and families wanting to use them. In fact, over 95 percent of the households that use non-household family and nonfamily arrangements do not pay anything for it, suggesting that the prevalence of these arrangements is at least in part driven by financial considerations. Quality Service quality may be assessed subjectively, but it remains a key consideration in choosing to enroll in institutional childcare. The quality of PAUD facilities is the third most common reason cited as a concern that dissuaded families from enrolling their children in PAUD (Figure 3.5). Even when facilities exist and charge decent fees, they may not provide the services that families need or consider to be important in each context, or they may not cater to the needs of the parents and their children. More than 80 percent of the mothers whose children attend PAUD listed teaching curriculum and learning, child-friendly activities, and spiritual education as their most important considerations in assessing service quality in PAUD facilities. In fact, the respondents put more emphasis on these factors than, say, cost and payment schemes, which were listed by 70 percent of respondents. These factors do not significantly vary across children’s age groups, household socioeconomic status, or regions. The main service quality considerations relate to the types of ECED activities supported by PAUD facilities. The high importance given to child-friendly activities, curriculum, and learning suggests that mothers who send their children to PAUD are sensitized about the developmental benefits of early childhood education. For example, among the mothers of children already attending PAUD institutions, about 56 percent mentioned the unavailability of a young parent program, and another 51 percent mentioned the unreliability of the service provision, as serious shortcomings of PAUD facilities in their area (Figure 3.8). These challenges did not vary widely across age groups of children or socioeconomic status of the households, indicating that the overall poor conditions affect everyone. There are some geographic patterns in the quality metrics used by parents to assess PAUD performance, reflecting local priorities. Specifically, a significantly higher share of mothers residing in urban areas (52.6 percent) than rural areas (42.7 percent) mentioned cultural safety training for the childcare provider as a concern. Given Indonesia’s cultural diversity and relatively high rates of migration, it is not surprising that cultural sensitivity would be a more important concern in urban areas, where multiple ethnic, religious, and linguistic groups coexist. Additionally, a higher percentage of mothers residing in non-Java regions (61.8 percent) mentioned reliability of the provider as a challenge in using PAUD facilities than those residing in Java (47 percent). This is consistent with the fact that PAUD availability and service conditions tend to be generally poorer outside of Java. 34 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare FIGURE 3.8. SERVICE ISSUES CAREGIVERS FIND CHALLENGING ABOUT PAUD (% OF RESPONSES) 56.1 51.3 48.6 43.3 35.6 31.3 Young parent Reliability of Cultural safety Finding My commnity Availability of program provider training for a someone I trust acceptance the childcare childcare service provider provider Source: Household Caregiver Survey. Note: Sample of 598 children using ECED institutions. Multiple responses. Responses measured on a 5-point scale, with 1, 2, and 3 considered challenging = 1, and 4 and 5 considered not challenging = 0. Despite their shortcomings, PAUD were still viewed relatively favorably, possibly due to the lack of any alternatives or reference points. In contexts with poor service conditions, where there are fewer options or points of reference about what constitutes a ‘good service’, it is not uncommon for users’ expectations to be anchored in modest service standards. This seems to be the case in Indonesia. About 72 percent of the mothers whose children attended PAUD were content with the services provided in these facilities. In terms of specific aspects, the lowest level of satisfaction (59 percent of respondents) was with the limited range of services that were offered, such as meals, drinks, and options for child pickup. In contrast, offerings of child-friendly activities and the skills of the PAUD teachers gained the highest satisfaction ratings of 77 percent and 75 percent, respectively. These responses likely demonstrate families’ yearning for any type of child-friendly community spaces to support early childhood development in a culturally sensitive manner. FIGURE 3.9. SATISFACTION OF MOTHERS OF CHILDREN ENROLLED AT PAUD WITH SERVICES (% OF RESPONSES) 77.7 74.6 74.0 72.2 72.8 72.4 70.6 69.7 67.7 59.4 Child- Training Location Spiritual Curriculum Cost and Schedule Facilities Services Overall friendly and skills of aspects and payment and activities personnel learning scheme infrastructure Source: Household Caregiver Survey. Note: Sample of 649 children using ECED institutions. Multiple responses. Satisfaction is measured on a 5-point scale, with very satisfied and satisfied coded = 1, and not satisfied at all, less satisfied, and somehow satisfied coded = 0. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 35 Social Organization of Childcare 3.3. DEMAND FOR INSTITUTIONAL CHILDCARE SERVICES Role of Social Norms Social norms play an important role in mediating the choice of childcare arrangements and the demand for institutional or center-based care. Families across Indonesia encounter various challenges in handling childcare responsibilities, some of which arise from personal circumstances and constraints, and others from service conditions in their local areas. Social norms regarding childcare and mothers’ role in caregiving are important aspects of this equation. In the household sample, mothers typically adhere to traditional norms that assign childcare as the primary responsibility of women.33 About 89 percent of mothers agree with the statement that mothers should be entirely responsible for their children’s well-being (Figure 3.10). This belief is slightly lower in Java than non-Java areas (87 versus 92 percent), in urban than rural areas (87 versus 92 percent), and among households in the top 20 percent and middle 40 percent of the socioeconomic status compared to those in the bottom 40 percent (86 and 87 percent, respectively, versus 91 percent). FIGURE 3.10. MOTHERS’ AGREEMENT WITH VALUE STATEMENTS RELATED TO CHILDCARE (% OF RESPONSES) 89.3 91.4 53.8 Mothers should be entirely Mothers should prioritize It is acceptable for children to responsible for children’s childcare over work be taken care by daycare wellbeing outside the home when the mother is working Source: Household Caregiver Survey. Note: Sample of 2,942 mothers. Responses measured on a 5-point scale, combined as follows: Strongly agree and agree coded = 1, and neither agree nor disagree, disagree, and strongly disagree coded = 0. The high level of unwillingness to enroll children in institutional care could be related to binding social norms. About 88 percent of mothers across the sample feel they have a choice in childcare arrangements, and only 36 percent agree with the statement that if mothers work, their families will suffer. However, over 90 percent of mothers agreed with the statement that mothers should prioritize childcare over work (Figure 3.10), a belief that held across the entire sample with no significant differences by location or socioeconomic status. Further, only 54 percent of mothers in the sample reported that they find it acceptable for children to be taken care of by daycares outside their home 33 It is important to keep in mind that these findings may be partly driven by a social desirability bias, whereby mothers agreeing to the statements could be indicative of what they are expected to do by society instead of their own belief of what they prefer to do themselves. 36 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare when the mothers are working (Figure 3.10). Interestingly, mothers living in rural areas and in the top 20 percent of the socioeconomic status (56 and 57 percent, respectively) are more accepting of the children taken care of by the daycare than those living in urban areas and in the household in the bottom 40 percent of the socioeconomic status (52 and 53 percent, respectively). Mothers are more reluctant to send their younger children to childcare centers, with the acceptance of children being taken care of by daycares being slightly higher for children 37–72 months old (54 percent) in comparison to children 0–12 months old (52 percent) (Figure 3.11). Together, these responses provide a partial explanation for the low uptake of institutional childcare through PAUD, even when PAUD is available in their communities. FIGURE 3.11. ACCEPTANCE OF CHILDREN ATTENDING DAYCARE OUTSIDE THE HOME WHEN THE MOTHER IS WORKING BY CHILDREN’S AGE (% OF RESPONSES) 54.3 54.0 52.1 Households with children Households with children Households with children in in the age group of 0-12 in the age group of 13-36 the age group of 37-72 months months months Source: Household Caregiver Survey. Note: Sample of 781 mothers in the households with children in the age group of 0–12 months, 1,351 mothers in the households with children in the age group of 1336 months, and 1,343 mothers in the households with children in the age group of 37–72 months. Responses measured on a 5-point scale, combined as follows: Strongly agree and agree coded = 1, and neither agree nor disagree, disagree, and strongly disagree coded = 0. Preferred Childcare Arrangements Mothers prefer that children are taken care of by themselves or by their fathers, as opposed to childcare centers, especially when the children are young. In the household sample, more than 90 percent of the mothers indicate that they prefer that mothers take care of the children themselves, at home. This is particularly the case for younger children, where 98 percent of mothers list themselves caring for children at home as the first preference for the age group of 0–12 months. For children in the 37–72 months age group, this preference declines to 92 percent, and the preference for children going to PAUD increases to 6 percent. This pattern holds for the second preferred childcare sources, that is, the fathers. More than 75 percent of respondents prefer that fathers take care of the children at home as the preferred secondary caregiver for the 0–12 and 13–36 months old groups, but this declines to 68 percent for children 37–72 months old. In other words, as children get older, the demand for institutional care through PAUD increases, but it never comes anywhere close to home-based care arrangements (Figure 3.12). The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 37 Social Organization of Childcare Most mothers, regardless of the age of their children, think institutional childcare services need improvement. Around 55 percent of mothers of children ages 0–36 months and 58 percent of mothers of children ages 37–72 months think that their current childcare arrangement needs improvement. When mothers of children of various age groups were asked about how to improve their childcare conditions, the answers were consistently about more support that addressed the specific needs of their children (reported by 37–40 percent of respondents), lower fees (22–26 percent of respondents), and more hours of support (14–17 percent of respondents). The high demand for services tailored to children’s special needs is consistent with well-known gaps in service provision for certain subpopulations, such as children with disabilities (Box 3.1). Other factors included demand for services that respond to language and cultural needs, which increased with children’s age (Table 3.2). FIGURE 3.12. MOTHERS’ PREFERRED CHILDCARE ARRANGEMENTS BY CHILDREN’S AGE A. Rank 1: Prefer Children to Be Cared for at Home by B. Rank 1: Prefer Children to Attend ECED Mothers (% of Responses) Institutions (% of Responses) 97.9 5.6 95.9 91.5 1.1 0.0 Children aged Children aged Children aged Children aged Children aged Children aged 0-12 months 13-36 months 37-72 months 0-12 months 13-36 months 37-72 months C. Rank 2: Prefer Children to Be Cared for at Home by D. Rank 2: Prefer Children to Attend ECED Fathers (% of Responses) Institutions (% of Responses) 75.7 75.2 10.8 67.5 3.4 0.8 Children aged Children aged Children aged Children aged Children aged Children aged 0-12 months 13-36 months 37-72 months 0-12 months 13-36 months 37-72 months Source: Household Caregiver Survey. Note: Sample of 1,857 mothers ranking their top two childcare preferences in rank 1 and 1,614 mothers in rank 2. Multiple responses. 38 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being TABLE 3.2. FACTORS IDENTIFIED BY MOTHERS TO IMPROVE CHILDCARE CONDITIONS BY CHILDREN’S AGE, HOUSEHOLD SOCIOECONOMIC STATUS, AND LOCATION Region: Rural or Region: Java or Household Socioeconomic Status Factors All Urban Non-Java Bottom 40 Middle 40 Top 20 Rural Urban Java Non-Java For children in age group 0–12 months Activities that support my child’s special needs 36.5 36.1 37.8 36.3 31.9 40.1 39.6 34.0 Lower fees 24.9 27.6 18.2 17.4 31.6 19.4 19.0 29.3 Extended hours and/or days of operation in school or childcare center 17.0 17.4 14.4 20.6 18.6 15.7 16.2 17.6 Increase availability of part-time childcare 5.0 4.3 8.8 1.1 3.7 6.1 3.6 6.1 Increase availability of full-time childcare 3.6 3.9 1.7 6.3 4.2 3.1 2.2 4.6 Activities that meet my language and cultural needs 4.3 3.7 6.2 4.9 4.0 4.5 4.0 4.5 Others 8.9 7.2 13.0 13.5 6.0 11.2 15.4 3.9 For children in age group 13–36 months Activities that support my child’s special needs 40.5 41.5 37.7 40.5 45.0 37.7 40.3 40.7 Lower fees 22.3 21.8 22.9 25.1 21.1 23.1 15.4 28.8 Extended hours and/or days of operation in school or childcare center 14.4 12.9 17.9 17.1 17.6 12.4 15.0 13.8 Increase availability of part-time childcare 3.7 4.5 1.6 3.1 2.1 4.6 4.8 2.6 Increase availability of full-time childcare 4.1 4.4 4.1 0.8 5.1 3.5 3.8 4.4 Activities that meet my language and cultural needs 7.4 7.8 7.2 3.6 6.3 8.1 6.5 8.3 Others 7.6 7.1 8.6 10.0 2.8 10.6 14.1 1.5 For children in age group 37–72 months Activities that support my child’s special needs 38.4 39.1 37.1 35.5 41.0 36.5 42.3 35.1 Lower fees 26.4 25.7 28.7 25.5 25.7 26.9 17.0 34.1 Extended hours and/or days of operation in school or childcare center 14.3 14.7 12.6 15.7 14.8 13.9 16.2 12.7 Increase availability of part-time childcare 2.8 3.1 2.8 0.0 5.0 1.3 1.7 3.6 Increase availability of full-time childcare 3.3 3.2 2.3 8.3 3.1 3.5 2.3 4.2 Activities that meet my language and cultural needs 8.1 8.5 8.2 3.5 6.6 9.1 9.3 7.1 Others 6.8 5.9 8.3 11.4 3.9 8.9 11.2 3.2 Source: Household Caregiver Survey. Note: Sample of 396 mothers with children ages 0–12 months, 714 mothers with children ages 13–36 months, and 747 mothers with children ages 37–72 months. Multiple responses. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 39 Social Organization of Childcare There is demand for childcare support at various times throughout the day, which institutional care services do not offer. Depending on the children’s age, mothers have different preferences about the times of the day they need childcare support. Around 90 percent of mothers want childcare support to start between 6 and 10 a.m., but the ending times vary by the children’s age. Generally, a larger share of mothers with younger children (about 28 percent of 0–12 months old versus 22 percent of 37–72 months old) prefer full-time care services that end late afternoon or early evening. In contrast, a larger share of mothers of older children (36 percent of 37–72 months old, compared to 22 percent of 0–12 months old) prefer for childcare support to be available until noon (Figure 3.13). Overall, there is demand from 25 to 35 percent of respondents for services at all times of the day—early morning before work or the school day, after school or extended into the evenings, and even overnight care. FIGURE 3.13. PREFERRED HOURS FOR CHILDCARE SERVICES BY CHILDREN’S AGE A. Preferred Start Time B. Preferred End Time 1.3 3.1 02:00pm - 11:59pm 1.8 06:00pm - 11:59pm 3.4 1.7 3.2 1.8 22.8 12:00pm - 01:59pm 2.2 04:00pm - 05:59pm 25.7 1.2 27.6 3.1 12.1 10:00am - 11:59am 2.7 02:00pm - 03:59pm 12.7 5.1 13.2 45.8 14.5 08:00am - 09:59am 46.7 12:00pm - 01:59pm 16.2 44.3 18.9 47.0 35.8 06:00am - 07:59am 44.6 10:00am - 11:59am 23.4 45.6 22.0 1.0 11.8 12:00am - 05:59am 2.1 12:00am - 09:59am 13.6 2.0 15.1 Children aged 37-72 months Children aged 37-72 months Children aged 13-36 months Children aged 13-36 months Children aged 0-12 months Children aged 0-12 months Source: Household Caregiver Survey. Note: Sample of 780 mothers with children ages 0–12 months, 1,351 mothers with children ages 13–36 months and 1,343 mothers with children ages 37–72 months. Mothers wish for more affordable services too, especially in areas where incomes are low. Across regions, more mothers with children ages 13–36 months (29 percent) and 37–72 months (34 percent), and more mothers living in non-Java (17 percent) than in Java (15 percent), wanted childcare fees to be lower. The same pattern is noticeable when comparing mothers with children ages 0–12 months living in rural areas, who mention that lowering fees would help improve their childcare situation (32 percent) more than those living in urban areas (19 percent). 40 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare BOX 3.1. LIMITED SERVICES FOR CHILDREN WITH DISABILITIES Despite recent government efforts, inclusive PAUD services for children with disabilities are overlooked in policy, practice, and research. There are explicit efforts in primary and secondary education to develop disability-inclusive practices, but these are not systematically embedded into the governance structure of PAUD in general or the services provided in ECED centers in particular. City, district, and provincial governments are tasked with creating Disability Service Units (DSUs) to support inclusive education for children with disabilities starting in early childhood education, as mandated by law. However, the implementation of these units and the provision of necessary tools is limited. The lack of clear guidelines for establishment and financing, along with capacity issues, contribute to the low number of DSUs across 514 districts. MoECRT mandates one Inclusive Education Teacher (Guru Pembimbing Khusus, GPK) for each inclusive school, but only 11 percent of inclusive schools at the ECED level, on average, have at least one teacher trained in inclusive education. This figure is relatively higher, 20 percent, at the primary and secondary levels. Based on a series of focus groups with stakeholders across Indonesia, a recent study focusing on children ages 4–6 has found significant gaps between policies, school practices, and family needs for children with disabilities. A key finding was related to the established issue of teacher and ECED program quality, with disability-aware competencies to be a particular problem. The insufficient number of trained teachers poses a challenge for providing adequate support to children. The study also revealed broader structural issues, such as the economic burden on parents of children with disabilities. Current interventions, assumed to meet expectations, reveal gaps that can inadvertently exclude children with disabilities. Sources: Hata et al. 2023a; 2023b. BOX 3.2. ROLE OF CSOs IN PROVIDING INSTITUTIONAL CHILDCARE In Indonesia, civil society plays a crucial role in childcare provision. For example, Aisyiyah, the second largest women’s Islamic organization in Indonesia with a membership of approximately 20 million, is a major provider of PAUD. Aisyiyah’s provision of childcare predates the government regulating the space, and the organization continues to be an influential player not just in PAUD but also in the wider education space in Indonesia. Aisyiyah PAUD facilities are registered under the one legal entity (badan hukum) provision. The organization has a National Level Education Council (Dikdasmen) with a dedicated PAUD division that oversees the PAUD units that Aisyiyah branches establish at the local level. The Aisyiyah central leadership provides guidelines, training, and monitoring for local-level PAUD units, some of which are registered with MoECRT and some of which are registered with MoRA. The price of Aisyiyah PAUD varies across the regions, with individual units setting their own prices depending on local costs and demand for services. Like Aisyiyah, other organizations such as Fatayat and Muslimat, two women’s organizations under the largest Indonesian Islamic organization Nahdlatul Ulama (NU), have also established PAUD units. However, these PAUD are more autonomous in nature and are not overseen by a central body. Similarly, women’s empowerment organizations, such as Empowerment of Female-Headed Households Organization (Pemberdayaan Perempuan Kepala Keluarga, PEKKA), Indonesia Business Coalition for Women Empowerment (IBCWE), Gabungan Organisasi Wanita, and CARE Indonesia (Yayasan Care Peduli) all provide community-based childcare services at the local level across Indonesia. Source: Kompas 2016. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 41 Social Organization of Childcare Overall, many of the gaps identified by mothers, and their childcare preferences, underscore the potential role of home- and community-based childcare. Parents seem to be most interested in flexible childcare arrangements that are readily available in their communities, at specific times of the day, and that deliver culturally sensitive care for children across different developmental stages. These types of arrangements could be difficult to accommodate in a one-size-fits-all institutional childcare system. Perhaps it is because of this reason that there is such a wide range of home- and community-based childcare arrangements across Indonesia responding to such context-driven needs delivered with the help of CSOs (Box 3.2). Willingness to Pay for Improved Services The cost of institutional childcare ranks high among the factors that impede using these services, especially considering their quality. While affordability is certainly a key consideration in choosing childcare services, families may perceive their current out-of-pocket expenses as high relative to the very limited range and quality of services they receive. Would families consider institutional care arrangements as an option if the services improved and responded to their needs, even if that would also mean they needed to pay higher out-of-pocket fees? To assess the demand for improved childcare services, this study examined the mothers’ willingness to pay for a hypothetical, high-quality childcare service at different price points. This ideal service was defined as “accessible from home and from the workplace; properly licensed; offers care all day during weekdays and selected services on weekends; employs care providers who have some training in childcare; provides children a lot of individual attention; delivers planned activities for learning and playing; and where the care providers always make everything appear to be clean and safe for the children.” The respondents were randomly selected to receive hypothetical price points for this service (corresponding to 0–15 percent, 16–30 percent, and above 30 percent of predicted household expenditures, calculated separately for rural and urban areas) and then asked how they would vote to a proposal to bring such an arrangement to their community.34 The fees ranged between IDR 300,000 and IDR 500,000 in rural areas and between IDR 800,000 and IDR 1,200,000 in urban areas. In both rural and urban areas, most mothers expressed support for an improved service at a higher fee, but as expected, the demand declined at higher prices. Overall, 47 percent of mothers in rural areas, and 37 percent of mothers in urban areas, said that they would like this hypothetical ‘ideal childcare arrangement’ in their community at the randomly selected price point, indicating a larger gap in existing services in rural than in urban areas. The support for the hypothetical service declined as the proposed price increased. Most respondents, including 57 percent of mothers in rural areas and 60 percent in urban areas, responded positively when the proposed price was within 0–15 percent of their household expenditures. When the share of the proposed price was within 16–30 percent of the household expenditures, the level of support declined to 46 percent in rural areas and The respondents were selected at random to receive one of a set of price points and asked (a) whether they would 34 vote yes for this childcare arrangement; (b) how much the respondent would like the childcare for themselves; (c) irrespective of whether the respondent can afford it, what do they think is the fair monthly price for this childcare; and (d) how much would the respondent be willing to pay per month for this childcare. 42 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare 43 percent in urban areas. The rural respondents did not support the proposed service at a price point that exceeded 30 percent of their household expenditure, but 29 percent of urban respondents still expressed their support at this price level (Figure 3.14). FIGURE 3.14. SUPPORT FOR THE ‘IDEAL’ CHILDCARE SERVICES BY PROPOSED PRICE POINT (% OF RESPONDENTS) 60.4 57.0 45.5 43.2 29.1 Rural Urban 0.0 0-15% 16-30% Above 30% Source: Household Caregiver Survey. Note: Sample of 979 mothers in rural and 1,963 mothers in urban areas. TABLE 3.3. FAIR PRICE AND WILLINGNESS TO PAY FOR THE HYPOTHETICAL CHILDCARE SERVICE BY REGION (AMOUNT IN IDR, % OF RESPONDENTS) Rural Urban Average Price (IDR) Fair price (irrespective of household expenditure) IDR 289,680 IDR 558,421 Price household is willing to pay IDR 221,978 IDR 403,937 Willingness to Pay within a Share of Predicted Household Expenditure (% of respondents) 0–15% 95.4 75.1 15–30% 3.8 20.2 30%+ 0.8 4.7 Source: Household Caregiver Survey. Note: Sample of 970 mothers in rural and 1,941 mothers in urban areas. The respondents’ price expectations fell between what they could afford to pay and what they considered to be a fair price. To assess what the respondents believed to be a fair price for the hypothetical childcare service, they were also asked to list a price. Interestingly, in both urban and rural areas, families believed that fair prices exceeded what they were willing and able to pay (Table 3.3). When offered a price for the proposed service, over 95 percent of mothers in rural areas, and 75 percent of mothers in urban areas, indicated they are willing to pay a price within 0–15 percent of their household expenditure. However, only 4 percent of mothers in rural areas were willing to pay a price within 16–30 percent of the household expenditure, compared to 20 percent of mothers in urban areas. When the share of the proposed price exceeded 30 percent of the household expenditure, only 1 percent of rural respondents were willing to pay this amount, as opposed to 6 percent of urban respondents. Overall, this points to a need for financial support either to the care centers to reduce prices while maintaining high-quality services or for direct subsidies to households, to make it more affordable for those that want to use institutional PAUD childcare options. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 43 Social Organization of Childcare 3.4. CONFRONTING INFORMALITY The social organization of childcare in Indonesia reflects a series of shortcomings in the childcare provision landscape. Most Indonesian families rely on informal support mechanisms that involve the parents, household members, and extended family members to provide care for children. The utilization of institutional childcare services remains low, partly because their availability is sparse, enrollment is costly, and services are not responsive to local needs. There is an unmet demand for improved childcare services to provide families—especially the mothers, who are universally responsible for caregiving—some relief with their care responsibilities. A well-functioning childcare system would need to promote the availability, affordability, and quality of services. All three must be present to ensure childcare services provide a tangible benefit to families and the children (Britto et al. 2011). Adapting the existing network of PAUD facilities to meet the demand for early childhood development could be an essential first step, yet there is plenty of room for other innovative approaches, including increased support for home- and community- based models, as well as financial support mechanisms for households, childcare providers, and care entrepreneurs. Experience from other contexts shows that parallel initiatives that recognize and support various forms of care provision; address funding constraints from the supply and demand sides, and enhance the regulatory, governance, and quality assurance systems to include childcare services under the umbrella of ECED play a role in supporting the formalization of the care ecosystem (Box 3.3, see Chapter 5 for further details). Without such parallel and coordinated actions on all fronts, the status quo in Indonesia will continue to rely on informal arrangements and systems, with significant costs on mothers, their children, the economy, and the society at large. BOX 3.3. SCALING AVAILABILITY, AFFORDABILITY, AND QUALITY: THE CASE OF THE REPUBLIC OF KOREA The childcare sector in Korea has seen substantial transformation, largely driven by the government-led initiatives to expand services, supported by legislation and substantial funding. The country invested about US$1 billion from 1995 to 1997 in childcare expansion. While in 1990 there were 48,000 children enrolled in 1,919 childcare facilities, by 2001, a total of 734,192 children attended 20,097 childcare centers. The enrollment rate in childcare and kindergarten for children between the ages of 0 and 5 was reported as 72 percent in 2020. Among 0–2-year-olds, 64 percent of children were enrolled in ECED in 2020, much higher than the OECD average of 36 percent. The participation rate is even higher for the 3–5 age group at 94 percent, compared to the OECD average of 87 percent. Policies concerning ECED have a long history in Korea. The Education Act of 1949 laid the groundwork for kindergarten policies, subsequently leading to the establishment of the Kindergarten Facility Standards Code in 1962 and the National Kindergarten Curriculum in 1969. A key amendment in 1992 lowered the age of admission to 3 years, broadening access to early education. The Child Welfare Act of 1961 marked a significant step by recognizing daycare centers as legal child welfare facilities, setting standards for operation and operating hours. Initially focusing on protective functions, these centers evolved over time to play a crucial role in ECED. The childcare landscape has also benefited from the Equal Employment Opportunity Act of 1987 that promoted the establishment of workplace childcare facilities, aiming to support working parents. Korea’s approach to childcare has shown a notable 44 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Social Organization of Childcare BOX 3.3. CONTINUED transition in the early 2000s. Initially centered on expanding provider networks and improving service quality, recent policies increasingly emphasize financial support directly to parents. The government’s commitment is underscored by the inclusion of policies within 5-year Plans for an Aging Society, which aim to incentivize childbirth and alleviate the economic burdens associated with raising children. The formal ECED system operates with a clear division between national and public kindergartens managed by the central government or local authorities and national and public childcare centers overseen by state and local governments. National public childcare centers are typically center based, whereas privately operated facilities can be center based, home based, or workplace based. Childcare facilities cater to children ages 0–5, providing essential care services. In addition, services are provided by private or for-profit educational centers. Quality standards are governed by specific laws and regulations outlined in the Childcare Act. Public ECED establishments adhere to stringent monitoring protocols, ensuring compliance with comprehensive quality benchmarks. Private facilities, while required to meet minimum standards, undergo accreditation voluntarily. Accreditation is granted to centers meeting care standards, and penalties or closure orders can be issued for violations, ensuring compliance with operational regulations. Local mayors investigate misconduct reports, including child abuse allegations, and parental monitoring groups can assist in overseeing childcare centers. Since the early 2000s, there has been a gradual increase in the direct cash benefits to families to help them with child rearing costs. Funding for public and national schools is provided by the central budget, as well as municipal and provincial budgets. Private schools are privately financed, but they are also eligible for government subsidies. Tuition costs in private and home-based childcare centers are determined by the facilities themselves, but they must abide by a maximum set by municipalities and provinces. The national and local governments have gradually taken on the responsibility to provide free childcare to children ages 0–2 and 3–5 at public kindergartens. Families that do not avail public care services are eligible for vouchers to be used at private facilities. In addition, the government has rolled out a variety of allowances to support families with children and promote increased births, including the Child Allowance, which covers families with children under 7 years, and the Homecare Allowance, which is available to parents whose children are not enrolled in any ECED, with varying amounts based on specific circumstances. More recently, Parental Benefit allowances offer monthly payments for children up to age 2 years to help families with child rearing and assistance expenditures. Source: World Bank team synthesis. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 45 Chapter 4. COSTS AND BENEFITS OF CHILDCARE ARRANGEMENTS 4.1. LFP, EMPLOYMENT, AND WORKING ARRANGEMENTS It is well-documented in Indonesia that childbirth lowers women’s labor market outcomes, but how various childcare arrangements mediate this relationship is lesser known. Women’s participation in the labor market is limited by their childrearing and household responsibilities. While many mothers rely on families and extended networks for childcare support, those who cannot rely on these networks have little choice but to forego paid work. Returning to work after having a child is, to a certain degree, shaped by availability of childcare support. Since institutional childcare options are sparse across Indonesia, it is important to understand how mothers’ LFP, job status, and working arrangements are mediated by their diverse, largely informal childcare arrangements, including the type and duration of childcare support they receive. Childcare and Mothers’ Employment There is a clear labor market disadvantage associated with having a young child, often referred to as the ‘motherhood penalty’.35 In the household caregiver survey of mothers with children between the ages of 0 and 6 years, the labor force participation of the mothers (henceforth, female labor force participation or FLFP) is 46 percent, lower than the national rate of 53 percent. Within this group, the FLFP for mothers with children 0–12 months old is even lower (30 percent) but progressively increases for households with older children ages 13–36 months (46 percent) and 37–72 months (52 percent) (Figure 4.1, left panel). A probit estimation that controls for individual, household, and regional characteristics indicates that having a child in the 0–12 months age group is associated with a reduced probability of LFP by 20 percentage points, compared to mothers with children in the older age groups (Annex Table 6).36 35 The ʻmotherhood penaltyʼ is a term coined by sociologists Michelle J. Budig and Paula England to explain the disadvantages mothers face in the workplace after having their children (Budig and England 2001). 36 Other factors that have a sizable and statistically significant correlation with FLFP include education (those with a university degree being 19.9 percentage points more likely to participate in the labor market than those who completed elementary school or lower) and socioeconomic status (those living in the middle 40 percent of the socioeconomic status being 5.2 percentage points more likely to participate in the labor force than those in the bottom 40 percent). The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 47 Costs and Benefits of Childcare Arrangements When mothers are relieved of some of their childcare duties, their availability for paid work increases. Mothers with no childcare support available at home have a lower LFP rate (36 percent) than those with some help available from PAUD (45 percent) or family members (46 percent) (Figure 4.1, right panel). As discussed in the previous chapter, mothers typically rely on mixed arrangements to help them with childcare throughout the day. Hence, FLFP is higher and on par with the national average, 52 percent, if the mothers receive help from multiple sources. It is likely that when mothers use multiple childcare arrangements, they are supported for a longer period throughout the day. Indeed, FLFP increases with the number of hours of support that mothers receive, and those who get 8 or more hours of help on a day have the highest FLFP rate, 68 percent (Figure 4.2). Although having access to less than 8 hours of help still increases labor participation, it is not sufficient to push the LFP up in a significant way. These patterns are confirmed in the multivariate analysis, where having more female members in the household ages 15–64 years have a 3.5 percentage points increased likelihood of participating in the labor market and having 8 or more hours of childcare support per day increases the FLFP rate by 29 percentage points (Annex Table 6). FIGURE 4.1. FLFP RATE BY CHILDREN’S AGE AND NUMBER OF HOURS OF CHILDCARE SUPPORT (% OF RESPONDENTS) 52.5 52.3 45.0 46.0 45.9 35.8 30.4 Households with Households with Households with Mother, not Mother and Mother and Mother and children aged children aged children aged getting help ECED other family mixed 0-12 months 13-36 months 37-72 months from other institution member arrangement or arrangement non-family members Source: Household Caregiver Survey. Note: Sample of 2,942 mothers, including 781 mothers with a child age 0–12 months, 1,351 mothers with a child age 13–36 months, and 1,343 mothers with a child age 37–72 months. Some households in the sample have more than one child. FIGURE 4.2. FLFP RATE BY NUMBER OF HOURS OF CHILDCARE SUPPORT (% OF RESPONSES) 67.7 46.8 41.3 42.4 35.8 Mother, not getting Mother get help from Mother get help from Mother get help from Mother get help from help from other other arrangements other arrangements other arrangements other arrangements 8 arrangement less than 3 3 to 6 hours/day/child 6 to 8 hours/day/child or longer hours/day/child hours/day/child Source: Household Caregiver Survey. Note: Sample of 2,942 mothers. 48 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements Having access to full-time childcare support improves mothers’ likelihood of having a formal job, working full time, and making higher earnings. A greater share of mothers who get help for 8 hours or more have formal employment37 (46 percent) and full-time employment38 (75 percent), compared to those without any help (20 percent and 53 percent, respectively) (Figure 4.3). After controlling for individual, household, and regional characteristics, mothers with childcare help available for 8 hours or more are 15 percentage points more likely to have formal employment and 20 percentage points more likely to have full-time employment than those without any help. By the same token, those who have 0–3 hours or 3–6 hours of childcare support are 10 and 12 percentage points less likely to have full- time employment, respectively (Annex Table 7). These improvements in employment conditions are reflected in mothers’ earnings too. Mothers getting help for 8 hours or more have, on average, higher earnings of around IDR 2,517,152 per month, compared to an average of IDR 1,542,959 among those without any help. Multivariate analysis suggests that having full-time childcare support is associated with an increase in total earnings of 66 percent (Annex Table 7). FIGURE 4.3. EMPLOYMENT TYPE BY NUMBER OF HOURS OF CHILDCARE SUPPORT AVAILABLE FOR WORKING MOTHERS (% OF RESPONDENTS) FORMAL EMPLOYMENT 45.8 28.5 25.8 20.9 20.1 Mother, not getting Mother get help from Mother get help from Mother get help from Mother get help from help from other other arrangements other arrangements other arrangements other arrangements arrangement less than 3 3 to 6 hours/day/child 6 to 8 hours/day/child 8 or longer hours/day/child hours/day/child FULL-TIME EMPLOYMENT 73.5 52.6 48.9 41.0 38.9 Mother, not getting Mother get help from Mother get help from Mother get help from Mother get help from help from other other arrangements other arrangements other arrangements other arrangements arrangement less than 3 3 to 6 hours/day/child 6 to 8 hours/day/child 8 or longer hours/day/child hours/day/child Source: Household Caregiver Survey. Note: Sample of 1,231 mothers. Formal employment includes those who are self-employed with permanent or salaried workers or those who work as workers, employees, or staff = 1. Informal employment includes self-employed, self-employed with temporary workers or unpaid laborers, freelance workers, and family or unpaid workers = 0. Full-time is 35 hours and above in a week = 1, else = 0. 37 Formal employment includes those who are self-employed with permanent or salaried workers or those who work as workers, employees, or staff. Informal employment includes self-employed, self-employed with temporary workers or unpaid laborers, freelance worker, and family or unpaid worker. 38 Full-time work is defined as working 35 hours or more in a week. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 49 Costs and Benefits of Childcare Arrangements Childcare support is also associated with transitioning out of low-value-added sectors. In the household caregiver survey, about 62 percent of mothers work in the low-value-added service sector, which includes wholesale and retail; trade; motor vehicle repairs; accommodation and food services; and community, personal, and other services. However, the share of mothers employed in the low- value-added service sector is larger, 66 percent, for mothers who have no childcare help available (Table 4.1). The multinomial logit estimation indicates that, after controlling for individual, household, and regional characteristics, mothers who get help for 3–6 hours are 9 percentage points less likely to work in the low-value-added service sector. Further, those who get 6–8 hours of childcare support are 12 percentage points less likely and those who get 8 hours or more childcare support are 9 percentage points less likely to work in the low-value-added service sector than those without any help (Annex Table 8). On the other hand, the share of mothers working in high-value-added sectors (including financial, real estate, business and insurance services, transport and storage, information, and communications) is much smaller across the sample, but it is higher for mothers who have full-time childcare support. TABLE 4.1. SECTOR OF EMPLOYMENT BY NUMBER OF HOURS OF CHILDCARE SUPPORT AVAILABLE FOR WORKING MOTHERS (% OF RESPONDENTS) Low-Value- High-Value- Other Agriculture Manufacturing Added Added Sectors Services Services Mother does not get any help 19.2 11.9 65.7 2.5 19.2 with childcare Mother gets help <3 hours 16.2 19.1 61.1 2.7 16.2 Mother gets help 3–6 hours 18.4 16.9 60.8 3.8 18.4 Mother gets help 6–8 hours 22.9 15.6 59.4 2.1 22.9 Mother gets help >8 hours 11.8 18.7 63.8 5.0 11.8 Source: Household Caregiver Survey. Note: Sample of 1,231 mothers. Low-value-added services are wholesale and retail; trade; motor vehicle repairs; accommodation and food services; and community, personal, and other services. Other sectors comprise mining, utilities, and construction. High-value-added services are financial, real estate, business and insurance services, transport and storage, information, and communications. Access to longer hours of childcare support enables mothers to work farther away from their homes. Mothers without any childcare support tend to work at or near their homes, with 56 percent reporting that they work from home and 80 percent reporting that they reach their workplace by walking (Figure 4.4). These shares are lower for mothers who get childcare support for 8 hours or longer. Only 40 percent of this group works from home, and only 52 percent report reaching their workplace on foot. After controlling for individual, household, and regional characteristics, the probit estimates suggest that when mothers have 8 hours or longer of help available, they are 23 percentage points less likely to work from home and 14 percentage points less likely to walk to their workplace, compared to those without any support (Annex Table 9). In other words, the ability to work at a workplace away from home, presumably for better economic opportunities, is positively correlated with having full-time care support. However, it is important to note that such arrangements could have implications on the well- being of other family members if, say, they result in migration and ‘skip-generation’ care arrangements (Box 4.1). 50 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements FIGURE 4.4. WORKPLACE LOCATION BY NUMBER OF HOURS OF CHILDCARE SUPPORT AVAILABLE FOR WORKING MOTHERS (% OF RESPONDENTS) A. Working distance from home 80.2 73.6 72.5 60.2 52.3 Mother, not getting Mother get help from Mother get help from Mother get help from Mother get help from help from other other arrangements other arrangements other arrangements other arrangements arrangement less than 3 3 to 6 hours/day/child 6 to 8 hours/day/child 8 or longer hours/day/child hours/day/child B. Working at home 55.8 56.1 50.6 46.9 39.6 Mother, not getting Mother get help from Mother get help from Mother get help from Mother get help from help from other other arrangements other arrangements other arrangements other arrangements arrangement less than 3 3 to 6 hours/day/child 6 to 8 hours/day/child 8 or longer hours/day/child hours/day/child Source: Household Caregiver Survey. Note: Sample of 1,231 mothers. BOX 4.1. THE ‘SKIP GENERATION’: ELDERLY PROVIDING CHILDCARE Absence of care options can lead to skip-generation practices, spreading childcare across geographies and generations. In contexts where there is uneven distribution of employment activities, women with children may need to travel to other parts of a province or to another province, where there are better work options. In the absence of reliable childcare options, it is increasingly common that they need to leave their children with grandparents in their home region. These household formations, known as ‘skip-generation’ households, have been increasing for many low- and middle-income countries in part due to increases in FLFP without added infrastructure for childcare. In Indonesia, it is estimated that 6 percent of people 60 years and above are living in such an arrangement. Being away from their children can lead women workers to become depressed and less motivated at work or require frequent out of town trips in the event of their children’s illness or emergencies, resulting in the reduction in commitment, promotion, and the ability to earn full wages at the workplace. The skip-generation situation also puts additional financial and care burden on the grandparents. When parents, together with grandparents, supplement childcare in one-roof multigenerational households, financial resources and care work can be shared. The skip-generation arrangement leaves elders on their own to balance the paid and unpaid work. In addition, it requires regular remittance flows from the working parents, which can increase conflict and dependency beyond the normal intergenerational dependencies and pressure the working adults as well as the caretaking grandparents. There is limited research on this topic in Indonesia, but qualitative focus groups confirm that this process has the potential to create more tensions in the coming years. Sources: Hein and Cassirer 2010; Zimmer, and Treleaven 2020. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 51 Costs and Benefits of Childcare Arrangements Work-Care Tradeoffs Working mothers’ employment options are constrained by the level of childcare support available to them. About 21 percent of the mothers who are employed said that they would change their jobs if they had access to better childcare arrangements. Mothers expressed that they would prefer to work longer hours (an average of 41.5 hours per week) and expect to earn higher incomes (an average of IDR 3,180,949), almost twice as large as the actual average earnings among working mothers (IDR 1,601,985). However, most of them would still stay in the low-value-added services sectors, including 30 percent who would prefer to work in the wholesale and retail sector (which also includes restaurants and hotels) and 25 percent who would choose a job in community, social, and personal services. About 22 percent would go into manufacturing. Interestingly, of the mothers who reported they would not change their jobs, 60 percent said the reason is having a child and 39 percent said they were constrained by other family responsibilities. Therefore, having children and families to take care of is still an important factor, yet the availability of childcare would not sway them toward changing their jobs. Mothers who have ever worked for pay, and continued working after having children, face regular interruptions in the workplace. Balancing work and childcare responsibilities can be a challenge even for families with access to childcare, such as when children get sick or require close supervision for a specific period. Irrespective of mothers’ reported work status, all mothers in the household caregiver survey were asked whether they have ever worked for pay after their child was born. About 41 percent of the surveyed mothers fell in this category—with this group being larger (52 percent) among the top 20 percent of the socioeconomic status compared to those in the bottom 40 percent (39 percent). Many of these mothers experienced frequent interruptions to their work during this period: 53 percent reported calling out of work when facing a problem with their childcare arrangement, 42 percent had to leave work early, 40 percent arrived at work late, and 39 percent cut back their working hours. In addition, around 37 percent brought their children to work when that was possible, equally many felt distracted or unproductive while at work, and 20 percent had to quit their jobs (Figure 4.5). These coping strategies to managing challenges with childcare arrangements while working are similar across all children’s age groups and among both urban and rural households, yet a higher share of mothers outside of Java reported cutting back on work hours than those living in Java. Childcare is an important consideration for mothers who are not in the workforce, and one of the reasons for why they do not work. Of 1,706 mothers who are not working nor looking for a job, 32 percent state that they would have liked to work, full-time, if childcare were available to them. Like the already employed mothers, they find manufacturing and the wholesale and retail sectors the most desirable for employment. The reservation wage of this group is slightly lower (IDR 2,603,382) than their already working counterparts, but still higher than the actual earnings of employed mothers. On the other hand, among mothers who are not willing or able to work even if childcare were available to them, 78 percent pointed to having a child and 50 percent to having other family responsibilities as the main reasons for not being employed. In other words, whether in the labor force or not, care is a major factor mediating mothers’ work options. 52 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements FIGURE 4.5. WORK-RELATED PROBLEMS EXPERIENCED BY EVER-WORKING MOTHERS AFTER CHILDBIRTH (% OF RESPONSES) Call out of work 53.1 Leave work early 42.4 Arrive late 40.1 Cut back work hours 39.1 Feel distracted/unproductive at work 37.0 Bring your child to the workplace 36.8 Quit your job 19.5 Receive disciplinary action or salary cut 5.1 Lost your job 3.1 Change your job within the company 2.0 Change jobs to another company 1.7 Others 0.6 Did not face any problem 19.5 Source: Household Caregiver Survey. Note: Sample of 1,149 mothers. Multiple responses. The work-care tradeoffs are influenced by social norms, including the internalized beliefs about women’s role, and the support women receive from their families and communities to work outside their homes. As discussed previously, mothers in the sample mostly believe that childcare should be the primary responsibility of women, with 91 percent believing that mothers should prioritize childcare over work, and only 54 percent finding it acceptable for children to be taken care of by daycares outside their home when the mother is working (Figure 3.10). In some cases, respondents with more restrictive attitudes had a more difficult time managing the work-care tradeoffs and were more likely to drop out of the workforce. Using an index that incorporated three ‘traditional’ value statements and three ‘rational’ statements about the work-care nexus,39 mothers who have more restrictive attitudes about women’s work and childcare are less likely to participate in the labor force. In addition, they are less likely to have a formal or a full-time job and more likely to work at or near the home (Annex A traditional value score is constructed for mothers to assess their normative beliefs. Mothers were asked three 39 traditional value statements: (a) mothers should be entirely responsible for children’s well-being, especially for children of age 0–6 years; (b) mothers should prioritize childcare over work; and (c) when mothers work for pay, families suffer. Each traditional value statement is scored −1 to 2, with respondents showing traditional value given a higher score (strongly agreeing = 2, agreeing = 1, neither agreeing nor disagreeing = 0, disagreeing = −1, and strongly disagreeing = −2). Mothers were also asked three rational statements: (a) if a mother works outside the house, the husband should help her take care of the children and do household chores, (b) women should have the same rights as men, and (c) it is acceptable for children to be taken care of by daycare outside the home when the mother is working. Like the traditional value statements, each rational value statement is scored −1 to 2, with the respondent showing a nontraditional mindset given a lower score (strongly disagreeing scored = 2, disagreeing = 1, neither disagreeing nor agreeing = 0, agreeing = −1, and strongly agreeing = −2). The composite score for traditional values is constructed by summing the scores for each of the six statements. The higher the score, the more the conservative are the mothers. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 53 Costs and Benefits of Childcare Arrangements Table 6, Annex Table 7, Annex Table 9). Recent research in Indonesia has shown that these attitudes and perceptions are socially constructed, are enforced within families and communities, and can be updated with information about the actual level of support for women’s work and redistribution of childcare roles, which might be misperceived by men and women alike (Box 4.2). BOX 4.2. INFLUENCING GENDER NORMS AROUND WORK AND CARE IN INDONESIA There is often misperception about what peers believe regarding women working outside the home. Recent research shows that when these misperceptions are updated, it can have a meaningful impact on women’s decisions to engage in the labor force. In a recent study supported by the World Bank, Cameron et al. (2023b), building on a previous study in Saudi Arabia, conducted two experiments based on online surveys from large urban centers in Indonesia to investigate gender norms and the impact of updating community understanding of women’s views on these norms. The first survey asked men and women about whether women or wives of male respondents worked outside the home and their own support for women working and ‘incentivized estimates of the extent to which others are supportive of women working’. The findings suggested that men have the right perception of the level of support they have for women working outside the home. However, both men and women are wrong about how much women want to work, and both underestimate the extent to which men are willing to do childcare. Lastly, both men and women are highly concerned about what their mothers and mothers-in-law think about whether they or their wives should work. The second part of the study follows up on these results with an online experiment of 4,000 respondents by evaluating the impact of updating men and women about women’s support for women working, men’s support for parents sharing childcare, and older women’s support for women working. The respondents were offered an online career mentoring course or a shopping voucher of the same value. The results demonstrate that the interventions that update ideas about what women actually support significantly increases both men and women’s support for women working outside the home. This is evidenced by those exposed to the updated information being more likely to support women’s uptake of the online career course, suggesting they are more in support of FLFP. The impact of the intervention was twice as large for those with children over 6 years old, though even that effect was substantial. This indicates that having younger children with limited options for care is perceived to be a barrier. More importantly, these findings suggest that interventions that update the community on women’s views about working outside the home could result in more women joining the labor force. An additional analysis that extrapolated these results suggests that this intervention could result in an increase in FLFP of 6 percentage points from the current level of 53 percent. Empowering women to express their opinions would likely encourage adoption of the less-restrictive attitudes, especially in areas where women’s support for working women is underestimated. Sources: Bursztyn, Gonzalez, and Yanagizawa-Drott 2020; Cameron, Suarez, and Setyonaluri 2023. 54 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements Workplace Benefits Working mothers have very limited childcare benefits in the workplace. Over 60 percent of working mothers have no access to any forms of workplace benefits, suggesting a large degree of noncompliance with the existing labor policies and regulations. Access to workplace benefits is worse among those living outside of Java, in rural areas, and in households in the bottom 40 percent of the socioeconomic status, with around 70 percent of these groups reporting that they have no benefits. Even in Java and urban areas, where access to benefits is the highest, the majority, 52 percent, do not have access to any benefits. Even among the top 20 percent of the socioeconomic distribution, the group with the best access to benefits, one-third still have no workplace benefits (Table 4.2). Access to maternity leave and other parental benefits is especially sparse. A large share of the workplace benefits that mothers access relates to flexible working hours (24 percent), family sick leave (20 percent), and flexible working arrangements (9 percent). Only 16 percent have paid maternity leave, another 6 percent have access to unpaid leave, and about 4 percent have access to child pay benefits. Access to on-site childcare and lactation room or storage for breast milk was only available to 3 percent and 8 percent of the mothers, respectively (Table 4.2). About 10 percent of the top 20 percent of the socioeconomic status, and 9 percent of the middle 40 percent, report having ‘unpaid maternity leave’, which suggests that even when mothers manage to take time off after childbirth, they may be required by their employers to forego salaries during this period in exchange for keeping their jobs. Overall, the limited workplace benefits are not only detrimental to workers and their families but also for companies, as evidence suggests providing inclusive workplace benefits yields economic returns to businesses as well (Box 4.3). Workplace benefits are unequally distributed across socioeconomic groups, with those on the poorer end of the socioeconomic status receiving very little, if any, benefits. The workplace policies favored the richer households and were skewed toward the top 20 percent of the socioeconomic status, suggesting that they were offered by companies in the formal sector for employees occupying higher-paying jobs. Mothers in the bottom 40 percent of the distribution, on the other hand, had the poorest level of access to every type of workplace benefit. For example, a significantly higher share of mothers in the top 20 reported that their workplace offers paid maternity leave (46 percent), lactation room and storage for breast milk (25 percent), flexible work hours (41 percent), flexible remote work arrangement (20 percent), on-site childcare service (8 percent), family sick leave (44 percent), and child pay benefits (14 percent). The corresponding share of mothers in the bottom 40 percent of the socioeconomic distribution that had access to these benefits ranged between 3 and 10 percent, except for flexible work hours and family sick leave, which were accessible to 19 and 13 percent of mothers in this group, respectively. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 55 Costs and Benefits of Childcare Arrangements BOX 4.3. THE BUSINESS CASE FOR INCLUSIVE WORKPLACE POLICIES THAT RECOGNIZE CHILDCARE There is a growing body of evidence suggesting that private sector companies stand to gain from supporting their employees in fulfilling their childcare responsibilities. Research emerging from Indonesia indicates positive outcomes for firms where working parents have increased access to formal childcare and family-friendly working policies. These include improved recruitment and retention outcomes, enhanced attendance, and increased employee performance and productivity. Additionally, such investments contribute to a positive reputation and profile with commercial partners, stakeholders, community members, and other relevant entities. Improved employee recruitment and retention. Investment in care can help companies demonstrate their credentials as a family-friendly employer and boost recruitment across all skill levels. Employers face increased recruitment challenges in areas with limited local labor markets, especially in remote rural regions or areas with intense competition for workers from other companies. Additionally, care support can draw women into industries with skills gaps, such as information and communication technology (ICT), where they are underrepresented. Employers in Indonesia state that flexible work arrangements are appealing not only to working parents but also to early career professionals. Workers prioritize work-life balance, with over half considering leaving jobs without flexible options. Retaining skilled women is challenging in Indonesia, with over 60 percent of companies identifying it as an issue. Improved performance and productivity. Flexible work arrangements also enhance workforce productivity and performance. An ILO survey found 79 percent of Indonesian businesses reported improved productivity with remote or flexible options. Improved productivity is linked to cost efficiency associated with smaller office spaces. Employer-supported care and family-friendly initiatives reduce unplanned absenteeism and late arrivals, preserving productivity. Estimates from 2015 suggest that absenteeism due to ill health alone accounts for 1.9 percent of Indonesia’s GDP, a figure expected to increase to 2.4 percent by 2030. Examples from Indonesia suggest that an on-site daycare facility makes it less likely that employees will need to take unplanned leave, by offering unlimited places for backup or emergency childcare when standard care arrangements fall through. Childcare facilities boost productivity for manufacturers. Concerns about childcare quality can diminish focus and effectiveness at work for parents, affecting productivity. A recent World Bank study found that providing one additional preschool facility per 1,000 children between 2002 and 2014 resulted in a 9 percent increase in the productivity of manufacturing facilities. Stronger management and leadership teams. Indonesia’s private sector faces challenges in recruiting top talent for leadership roles, with 80 percent of firms unable to fill managerial vacancies. These deficiencies are starker in higher-value-added services. Despite representing a growing share of tertiary graduates, women are underrepresented in leadership positions, comprising only 8 percent of gender-balanced boards and 15 percent of CEOs. It is estimated that firms would have 25 percent higher profitability with gender-diverse executive teams. To reap the benefits from increased gender diversity in leadership, support for working parents is crucial. To recruit from a wider talent pool, firms can introduce flexible working arrangements and childcare support. Research indicates that women prioritize family-friendly benefits and work-life balance over higher salaries. Enhanced reputation and relations with customers, investors, and communities. Companies investing in initiatives to support employees’ childcare responsibilities enhance their reputation as progressive employers. This not only aids in attracting and retaining staff but also boosts the company’s profile with customers, investors, and other stakeholders. Recent research on Indonesian manufacturing companies shows a significant link between CSR initiatives and increased return on assets. The business benefits of childcare provision extend to improved reputation among the public and potential business partners. Additionally, sustained commercial success often relies on fostering positive relations with local communities, especially when operations are anchored in specific locations for an extended period. Companies can build such relations by offering on-site daycare or early learning facilities or supporting family well-being. Lastly, quality care and early learning opportunities not only benefit current employees but also contribute to the future community workforce. This could address long- term development for children and has economic impacts, for example, saving, by some estimates, US$1.3 billion in annual wage losses through optimized breastfeeding practices in Indonesia. Source: IFC (2023). 56 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements TABLE 4.2. PERCENTAGE OF WORKING MOTHERS WITH WORKPLACE BENEFITS Lactation Room Paid Maternity Unpaid Flexible Flexible Remote/In- On-Site Childcare Family Sick Child Pay No Benefits and Storage for Leave Maternity Leave Work Hours Person Arrangement Service Leave Benefits Available Breast Milk All working 16.2 6.2 7.9 23.9 9.4 2.9 18.8 4.2 60.7 mothers Socioeconomic Status Bottom 40 10.1 4.7 4.5 18.7 7.0 2.0 13.4 2.4 68.9 Middle 40 21.0 8.5 10.7 30.5 12.0 3.5 23.6 5.3 50.5 Top 20 45.9 10.2 24.8 41.7 20.0 7.7 43.8 13.8 33.0 Region: Rural or Urban Rural 12.6 5.4 6.0 15.3 6.5 2.0 13.3 5.1 71.3 Urban 19.1 6.9 9.5 30.7 11.8 3.6 23.2 3.4 52.4 Region: Java or Non-Java Java 18.3 6.6 10.9 30.9 13.5 3.9 23.1 4.1 52.3 Non-Java 13.7 5.8 4.5 15.9 4.7 1.7 13.9 4.3 70.4 Source: Household Caregiver Survey. Note: Sample of 1,230 working mothers. Each workplace benefit was evaluated separately, so the row percentage does not add up to 100. 4.2. TIME ALLOCATION FOR PAID AND UNPAID WORK Childcare is often a non-renumerated and time-consuming activity, even if it is rewarding for the parents, which comes at the opportunity cost of paid work. Care responsibilities are particularly intense and binding in children’s early years and gradually decline as they get older. Many women in multigenerational households may face a double responsibility of caring for parents and relatives too while simultaneously managing their care and work obligations. It is important to document how, in the Indonesian context, mothers as the primary caregivers balance their paid and unpaid roles and to validate the previous findings on labor market outcomes, including how they change in response to the availability of various childcare options. This topic has received little attention in previous research in Indonesia.40 Time Allocation of Mothers On a typical day, mothers’ time is allocated across paid market work, unpaid care and domestic work, and various other activities. A time-use module for the mothers shows how they spend their time over a 24-hour period. The time-use activities are divided into six broad categories: market work, domestic chores, care work (including childcare), leisure, self-care, and other activities (Table 4.3). Market work captures employment and production, whereas domestic chores, care work, and It is reported that the BPS will pilot test a time-use module to be incorporated in SUSENAS in the coming years. 40 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 57 Costs and Benefits of Childcare Arrangements other activities capture mainly non-renumerated activities. From the care perspective, there is a close relationship between care work and domestic chores, both of which tend to be unpaid, as caregiving often implies some degree of additional domestic work related to the well-being of the cared individuals. Mothers spend a considerable amount of time on unpaid care work and domestic chores, which make up more than three times as much time spent on market work. In a 24-hour day, mothers, on average, spend 2.5 hours on market work, 2.6 hours on domestic chores, and 6.4 hours on care work (including childcare). In comparison, time spent on leisure is 2.1 hours, self-care (including sleep) is 8.8 hours, and other activities is 1.6 hours. Together, unpaid care work and unpaid domestic chores take up an average of 9 hours per day, 3.5 times more than the number of hours spent on paid market work, and about 2.5 times more than the time spent on leisure and other activities. Only self-care activities come close to the amount of time spent on care work and domestic chores, but this is largely because self-care includes sleeping time.41 TABLE 4.3. DEFINITION OF TIME-USE ACTIVITIES Market work Employment and related activities and production of goods for own final use Domestic chores Unpaid domestic services for household and family members comprising food and meals management and preparation; cleaning and maintaining of own dwelling and surroundings; do-it-yourself decoration; maintenance and repair; care and maintenance of textiles and footwear; household management for own final use; pet care; shopping for own household and family members; traveling; moving, transporting, or accompanying goods or persons related to unpaid domestic services for household and family members; and other unpaid domestic work Care work Unpaid caregiving services for household and family members comprising childcare and instruction, care for dependent adults, help to non-dependent adult household and family members, traveling and accompanying goods or persons related to unpaid caregiving services for household and family members, and other activities related to unpaid caregiving services for household and family members Leisure Socializing and communication, community participation and religious practice and culture, leisure, mass media, and sports practices Self-care Sleep and related activities, eating and drinking, personal hygiene and care, receiving personal and health/medical care from others, traveling time related to self-care and maintenance activities, and other self-care and maintenance activities Other activities Unpaid volunteer, trainee, and other unpaid work and learning activities Source: World Bank team categorization. While time-use data for Indonesia are not available, the findings in this report are comparable to a recent pilot 41 that was conducted by PROSPERA in collaboration with the University of Indonesia’s Demographic Institute, ILO, UN Women, and BPS using a light time diary developed by the ILO. The pilot included 226 randomly selected couples (452 individuals) in Greater Jakarta and Greater Surabaya and found that mothers with children under 5 years spend approximately 3.5 hours daily on unpaid domestic work and 8.5 hours on unpaid care work, including supervisory care. The slight differences likely stem from the fact that the current report is based on a nationally representative survey of caregivers with children ages 0–6 years, and it captures a wider range of activities across market work, unpaid domestic and care work, leisure, self-care, and other activities. 58 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements Childcare and Market Work The time-use patterns confirm the labor market disadvantage associated with childrearing. The younger the child in the household, the less time the mothers spend on market work, and more time on care work. In households with young children ages 0–12 months, mothers spend 1.8 hours on market work per day, compared to 8.2 hours on care work and 2.4 hours on domestic chores (Figure 4.6). Mothers with older children, ages 37–72 months, on the other hand, spend more time on market work, 2.9 hours, and significantly less time on care work, 5.5 hours per day. However, their time allocation to domestic chores, at around 2.6 hours, remains almost unchanged. FIGURE 4.6. TIME-USE ACTIVITIES BY CHILDREN’S AGE GROUP (NUMBER OF HOURS PER DAY) 1.2 8.6 Households with 1.8 children aged 8.2 37-72 months 2.4 1.8 1.5 8.7 Households with 2.1 children aged of 6.6 13-36 months 2.6 2.5 1.8 9.0 Households with 2.3 children aged 5.5 0-12 months 2.6 2.9 Other activities Self-care Leisure Care work Domestic chores Market work Source: Household Caregiver Survey. Note: Sample of 781 mothers in households with a child age 0–12 months, 1,351 mothers in households with a child age 13–36 months, and 1,343 mothers in households with a child age 37–72 months. Some households in the sample have more than one child in the age group 0–72 months. The ‘motherhood penalty’ manifests not only in terms of reduced market work but also in terms of increased care work at the expense of personal and other activities. The Seemingly Unrelated Regression (SUR) analysis, controlling for mothers’ individual, household, and regional characteristics, validates that compared to mothers with older children (13–72 months), mothers who have young children (0–12 months) are predicted to increase their care work by 2.8 hours. This time is reallocated by reducing the time spent on market work by 1 hour per day, leisure by 0.6 hours, self-care by 0.4 hours, and other activities by 0.6 hours (Annex Table 10). There is no statistically significant change in the time spent on domestic chores, suggesting that when mothers face increased childcare responsibilities, they sacrifice market work and other personal activities while maintaining their domestic roles. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 59 Costs and Benefits of Childcare Arrangements Childcare support, accumulated from different sources, helps mothers increase their time on market work. When mothers receive no childcare help, they spend 2.5 hours on market work, 2.8 hours on domestic chores, and 6.1 hours on care work per day. However, when they receive childcare support for 8 hours or more, they dedicate more time, almost 4 hours, to market work (Figure 4.7). The SUR analysis shows that, controlling for individual, household, and regional characteristics, and compared to mothers without any childcare support available, having help available for 8 hours or longer statistically significantly increases the time mothers spend on market work by 1.5 hours per day. This comes with a decline in the number of hours allocated to domestic chores and self-care, by 0.6 hours on each, while the care work remains unchanged (Annex Table 11). It is worth noting that the time spent on market work increases only when childcare support is available on a full-time basis, for 8 hours or more per day. This suggests that the limited support available from ECED institutions or PAUD does not significantly change mothers’ time allocation, as most PAUD focus on older children and provide only 3–4 hours of support per day.42 FIGURE 4.7. TIME-USE ACTIVITIES BY NUMBER OF HOURS OF CHILDCARE SUPPORT AVAILABLE TO MOTHERS (NUMBER OF HOURS PER DAY) 1.3 9.2 Mother, not getting help from 2.1 other arrangement 6.1 2.8 2.5 1.7 Mother get help from other 8.7 arrangements less than 3 2.2 6.5 hours/day/child 2.7 2.1 1.6 Mother get help from other 8.9 2.2 arrangements 3 to 6 6.6 hours/day/child 2.5 2.2 1.8 Mother get help from other 8.5 2.4 arrangements 6 to 8 6.4 hours/day/child 2.6 2.3 1.5 Mother get help from other 8.5 1.8 arrangements 8 or longer 6.0 hours/day/child 2.1 4.0 Other activities Self-care Leisure Care work Domestic chores Market work Source: Household Caregiver Survey. Note: Sample of 781 mothers in households with a child age 0–12 months, 1,351 mothers in households with a child age 13–36 months, and 1,343 mothers in households with a child age 37–72 months. Some households in the sample have more than one child in the age group 0–72 months. 42 Although the findings in the labor market section indicate that help from PAUD and other mixed arrangements pushes up the FLFP, to different extents, it does not, on average, significantly change the time allocation of mothers across different activities, unless the number of hours of support is 8 hours or more. 60 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements Despite receiving more childcare support, the increase in market work results in an increased work-care burden on mothers, as their unpaid care and domestic work remains unchanged. Even with full-time childcare support, the time allocated to care work remains unchanged, about 6 hours per day, and the time allocated to domestic chores declines only by about 0.8 hours. In addition, the time allocated to market work increases by 1.5 hours. As a result, the total work burden (including paid market work and unpaid care plus domestic work) increases by 0.7 hours or around 42 minutes per day. To balance these responsibilities, mothers reduce their time from leisure, self-care, and other activities (Figure 4.7), with potential impacts on mothers’ work-life balance and well-being. The persistence of care responsibilities despite the increase in market work suggests a reshuffle of mothers’ itineraries, as opposed to reduced care burden. It is possible that mothers who work full- time compensate for not being at home during work hours and continue providing childcare as they would normally have done, serving the role of primary caregiver that may, in many cases, be imposed by social expectations or family dynamics. In other words, it could be that mothers simply change the period in which they provide care—they rely on care support during their paid work hours but return to their usual childcare responsibilities at a different time of the day, before or after their working hours. It could also be that childcare support received by mothers who engage in market work comes in the form of domestic help related to children’s well-being (such as cooking, cleaning, shopping, or transportation), therefore enabling mothers to reduce their own time allocation for these activities while their direct care responsibilities remain unchanged. Time Allocation to Secondary Childcare Mothers often engage in childcare as a secondary activity while performing their primary activities. An interesting feature of the survey is the capture of childcare as a secondary or overlapped activity, that is, when childcare is performed while engaging in primary activities. While recording daily activities, mothers specified, in addition to their primary activities, whether they also involved provided care for children at each time slot (such as looking after children while simultaneously engaging in paid market work). To prevent duplication, instances where the respondent identified childcare as their primary activity are omitted from secondary childcare. Measuring the amount of time caregivers provide secondary childcare provides a more accurate depiction of the intensity of care responsibilities that fall on the mothers (Tas and Ahmed 2021). Secondary childcare is a hidden responsibility that adds to the intensity of mothers’ unpaid care work. Around 89 percent of the mothers in the sample engage in childcare as a secondary or overlapping activity, spending an average of 4.5 hours per day on it while performing their primary activities. Receiving childcare help, for any duration, does not significantly reduce the amount of time mothers spend on secondary childcare. The highest proportion of mothers reporting secondary childcare are those who send their children to PAUD, at 97 percent. This group spends the most time out of all subsamples on secondary childcare, which is about 5.3 hours per day. Overall, compared to other groups, mothers who utilize ECED services are 10 percentage points more likely to provide secondary childcare. This is consistent with previous findings which suggest that PAUD provides only a partial solution to childcare needs and further imply that PAUD enrollment contributes to mothers’ care obligations in the form of secondary childcare. This could be driven by the limited operating The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 61 Costs and Benefits of Childcare Arrangements hours of PAUD, which requires mothers to supervise children for a longer duration on a given day or by the limited range of ECED services provided in PAUD centers, which leave sizable learning and developmental gaps for mothers to fill on their own time. That said, the secondary care burden is high for other groups too. For instance, around 87 percent of the mothers who do not receive any form of childcare support engage in childcare as a secondary activity, spending an average of 4.8 hours per day on it. 4.3. CHILDREN’S WELL-BEING AND INSTITUTIONAL CHILDCARE Investments in ECED have long-term developmental benefits for children. ECED institutions not only alleviate families’ care burden but also help build long-term human capital. Improved access to high-quality childcare has the potential to improve families’, caregivers’, and children’s well- being, especially those who come from disadvantaged backgrounds or have special needs. A primary objective of ECED programs is to help children reach physical developmental milestones, as well as improve their cognitive, socio-emotional, and behavioral outcomes. Global evidence suggests that access to affordable, high-quality childcare services improves children’s development outcomes during a window of rapid brain growth and development, from ages 0 to 6, with children from low- income and socially disadvantaged backgrounds benefiting the most (Garcia et al. 2016). The analysis of ECED outcomes in this report is limited to children in the age group 4–6 years. In Indonesia, there have been recent efforts that successfully reduced childhood stunting through health and nutritional interventions in the 1,000 days of life (from conception to age 2). However, the ECED system largely covers children in the preprimary school phases, 4–6 years old (see Chapter 2). To assess the development outcomes of children against households’ childcare arrangements, the household caregiver survey collected data on child development outcomes for one randomly selected child per household.43 Because most young children in Indonesia do not participate in ECED, the resulting sample was the largest for children in the 48–72-months age group (613 children). The mothers of these children were administered the Anchor Items for the Measurement of Early Childhood Development (AIM-ECD) tool,44 which consists of 20 questions about specific tasks that a child can perform independently. There are no set cutoff points or a specified benchmark to gauge children’s level of development, and a higher score on a scale of 0 to 1 indicates a higher level of childhood development (see Annex 3 for details). Children with higher socioeconomic status and living in Java have better ECED outcomes than others. The AIM-ECD is measured as an additive score divided by 20, with the highest value of 1 representing the highest score. The average score for the 4–6-year-old children in the sample is 0.69 (Figure 4.8). The score progressively increases with socioeconomic status. Children in the poorest households in the bottom 20 percent of the socioeconomic status have a lower score (0.67) than those in the middle 40 percent (0.72) and the top 20 percent (0.75). The average child development score is 43 This information was only collected for one randomly selected child per household (as opposed to all children) to manage survey length, interview duration, and respondent fatigue. 44 For details on AIM-ECD, check https://www.worldbank.org/en/topic/earlychildhooddevelopment/brief/a-set-of- resources-to-help-countries-measure-and-improve-early-childhood-development. 62 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Costs and Benefits of Childcare Arrangements also considerably lower for non-Java children (0.66) compared to the children in the Java region (0.75), suggesting that there are inequalities in ECED outcomes based on geography and socioeconomic status. FIGURE 4.8. CHILDREN’S DEVELOPMENT STATUS BY SOCIOECONOMIC STATUS AND REGION 0.75 0.72 0.72 0.69 0.70 0.68 0.67 0.66 Children aged Bottom 40 Middle 40 Top 20 Rural Urban Java Non-Java 48 to 72 months All Household Economic Status Region: Rural or Urban Region: Java or Non-Java Source: Household Caregiver Survey. Note: Sample of 613 children for all. Sample of 377 children in the bottom 40, 184 children in the middle 40, and 52 children in the top 20. Sample of 207 children in rural and 406 children in urban areas. Sample of 342 children in Java and 271 children in the non-Java region. Children enrolled in PAUD and children with mixed childcare arrangements have better ECED scores. Comparing across different childcare arrangements, attending PAUD and having childcare support from nonfamily members is associated with an increase in children’s development. Children who are only cared for by their mothers, or by their mothers and family members, have a child development score of 0.61. In comparison, children who are cared for by the mothers and ECED institutions, and those who are cared for by the mothers together with mixed childcare arrangements and support from nonfamily members, have a score of 0.76 and 0.77, respectively (Figure 4.9). Multivariate analysis controlling for children’s individual characteristics, mother’s characteristics, and household and regional characteristics confirms these differences. Children who attend PAUD are predicted to have statistically significantly higher AIM-ECD scores by 0.09 units, compared to those whose mothers who have no help available. Similarly, children with mixed childcare arrangements are predicted to have statistically significantly higher AIM-ECD scores by 0.12 units (Annex Table 12). FIGURE 4.9. CHILDREN’S DEVELOPMENT STATUS BY CHILDCARE SUPPORT SOURCES AVAILABLE 0.76 0.77 0.61 0.61 Mother, not getting help Mother and ECED Mother and other family Mother and mixed from other arrangement institution member arrangement or with non-family member Source: Household Caregiver Survey. Note: Sample of 613 children. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 63 Costs and Benefits of Childcare Arrangements 4.4. CAN BENEFITS OUTWEIGH COSTS? Having limited access to childcare is costly, but improved childcare options can relieve the care burden on mothers and contribute to social well-being. This chapter shows that improved access to childcare is associated with higher workforce participation, earnings, and ability to hold a full-time and formal job, as well as better time allocation across paid and unpaid work. Yet, many of these benefits accrue in a meaningful way only when childcare options are available for 8 hours per day or more. Since the latter is not common in many parts of Indonesia, most mothers face a heavy tradeoff between their work and care obligations and prioritize their care and domestic roles. Even those who have access to childcare options and participate in the workforce still deal with daily tradeoffs due to poor workplace policies and unequal distribution of care roles. It is important to note that the time spent on unpaid domestic chores and care does not diminish for working mothers, as this has implications on their well-being, as well as on the well-being of their dependents. While many mothers prioritize their unpaid care roles over paid work, the impact of the latter on children’s well-being is limited without additional support. Children who only receive childcare support from their mothers and family members (such as fathers and grandparents) do not perform as well on ECED outcomes as children who have access to mixed childcare arrangements that include the mother, PAUD facilities, and nonfamily members. This suggests that supplementing different sources of childcare support to cater to children’s different developmental needs is important. It is particularly noteworthy that PAUD enrollment has a positive developmental impact, despite the shortcomings of the PAUD system discussed in the previous chapters, suggesting that an improved ECED system in Indonesia that better caters to the needs of the children, such as by providing full-time support and higher-quality services, could yield even better well-being outcomes for children. Conversely, if the quantity and quality of childcare options do not improve, and the status quo regarding low PAUD enrollment and high reliance on informal childcare solutions prevails, it is likely that children’s ECED outcomes will continue to diverge across socioeconomic groups and geographic locations across Indonesia. 64 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Chapter 5. EXPERIENCES IN ADDRESSING CHILDCARE GAPS 5.1. IMPROVING AVAILABILITY AND ACCESS TO CHILDCARE SERVICES The size and diversity of Indonesia requires expanding access to childcare while recognizing varied local contexts and needs. The existing infrastructure and regulatory framework for ECED, which is the backbone of the childcare provision landscape, requires a series of improvements to expand access to services in an equitable manner. For example, the crucial role of NGOs and CSOs that operate nearly all PAUD facilities across Indonesia is not widely recognized or supported by public programs. While improving the effectiveness of Indonesia’s PAUD system is an obvious area of intervention, experiences from 17 other contexts (see Annex 2) suggest that alternative support mechanisms can help mobilize the wide range of stakeholders to make care more available, accessible, and responsive to local needs. Expanding the operating hours of institutional childcare services, and specifically, aligning them with the working hours of the parents, is an essential first step. Evidence clearly shows that when women have access to full-time childcare support (8 hours or more), they are better able to participate in the labor market. Yet, in Indonesia, only TPAs that serve younger children are open for 8–9 hours per day. Many families lose care support as their children grow up, since KB and TK that serve older age groups only provide about 3–4 hours of support per day. In other contexts, one lever that governments have used to improve availability and access to childcare is to mandate care providers to be open for the full day. For example, Brazil, Malaysia, Korea, and Australia have a minimum number of operating hours that care providers are required to follow (World Bank 2022). Uzbekistan also supports short- and long-duration daycares (ranging from 3 to 10 hours per day), as provided for by the Law on Preschool Education. Governments have incentivized service providers to provide longer operating hours at an additional fee. Across the 17 countries reviewed in this study, ECED centers often operate for at least 8 hours a day, and extended hours options are available at additional cost, with a variety of flexible services that cater to nonstandard work schedules. Supporting care provision in forms other than institutional childcare, such as home-based care, can accommodate families’ need for flexibility. At-home care services provided by domestic workers or other providers currently fill an important gap in Indonesia, particularly for younger children. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 65 Experiences in Addressing Childcare Gaps FGDs with domestic workers indicate that parents can sometimes prefer home-based care due to perceptions about the safety and quality of alternate options. Realizing the benefits of and need for home-based care, many high- and middle-income countries have regulated home-based care options. For example, Korea has an income-tested financial assistance for part-time in-home childcare services (OECD 2019). Similarly, in France, informal alternatives (Maisons d’assistantes maternelles, MAM) are small, home-based services where up to four licensed care providers provide services in their own homes. It is important for these arrangements to be accompanied with minimum standards to ensure the safety of the children. The province of Quebec in Canada has a mechanism to register and train home-based providers through government-authorized home childcare coordinating (HCC) offices, whose functions include overseeing and inspecting home childcare providers (HCPs), providing administrative and pedagogical support, and linking HCPs with families that need childcare support (Lafontaine-Émond 2021). Similarly, community-based models can greatly enhance access, especially if they are supported through public programs. Although community-based models that cater to families’ cultural and religious practices already exist in Indonesia, their outreach is geographically uneven and heavily dependent on the presence and generosity of local organizations. Examples from other contexts suggest that government support for these mechanisms can greatly improve their credibility and promote access to care. In Malaysia, community-based childcare is supported financially by the federal and state governments and provided primarily for low-income families who have a higher need for daycare.45 In Myanmar, children of working mothers receive childcare and development services in daycare centers and ‘mother circles’, which offer daycare services through a combination of community-based centers and home-based satellite programs, providing flexibility in scheduling.46 In the Philippines, a community-based care modality called Supervised Neighborhood Play (SNP) is provided with the support of local volunteers and social workers (Department of Social Welfare and Development 2012). In Viet Nam, elders with caretaking experience provide caretaking in neighborhoods, and family groups share resources such as facilities and food, occasionally receiving voluntary contributions of cash or food from other community members (Viet Nam National Institute of Educational Sciences, Research Center for Early Childhood Education 2016). Combining different types of services under one roof could be a cost-effective way to expand access to childcare options. Currently, the primary focus of the PAUD network is early childhood education and learning, especially among the 4–6 age group. Expanding support, regulations, and physical facilities so that care centers can more easily offer, for example, preschool services as well as childcare services could allow them to better meet community needs. According to qualitative data from interviews and focus groups, some centers across Indonesia already serve multiple needs, yet they face segmented policy obligations and limited funding streams that are only targeted at ECED service providers. Better alignment across these types of care services and support for existing service providers that wish to target additional age groups could eliminate the gap in coverage for families, while also providing an enhanced client base for the existing facilities. https://www.malaysia.gov.my/portal/content/31020. 45 Myanmar Policy for Early Childhood Care and Development (2014). https://unicefeaproecdtoolkit.wordpress.com/ 46 wp-content/uploads/2017/08/myanmar-policy-for-early-childhood-care-and-development-2014.pdf. 66 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Experiences in Addressing Childcare Gaps Service uptake depends heavily on community trust, which requires spreading awareness about ECED and local services that are available to families. To improve access and enrollment in ECED, programs targeting parents can help increase awareness about childcare and build trust with parents and families. In France, the state has a networking service called Le relais petite enfance (The Early Childhood Relays) that helps parents learn about local childcare options in their community. In Indonesia, most families learn about PAUD services in their area through word of mouth, and most care providers reach families through community networks and recommendations. Providers share that families are more likely to recommend the center to their neighbors, family, and friends if they have had a good experience with the teachers and providers. It is important to complement childcare options with community awareness programs that could have a snowball effect on enrollment and service uptake. 5.2. MAKING CARE AFFORDABLE FOR ALL Several financial support mechanisms are used by governments to help families afford institutional childcare. These include subsidies, tax credits, and tax breaks, as well as regulations of enrollment fees. In Korea, families with children 0–2 years old are eligible for vouchers to attend full-day childcare, which, even if not applied universally, help many families in need of care for young children. In addition, there are no strict eligibility criteria for government allowances, and all families—regardless of income level—receive assistance vouchers to help cover the costs of childcare and preschool.47 In high-income countries such as the United Kingdom and France, certain subsidies are tied to allocation criteria that provide additional support to families in which only one parent works full-time, parents are students, or parents have a child with special needs.48 In Malaysia, Thailand, and Korea, tax credits or reduced tax obligations are available to families that enroll their children in childcare centers. In Viet Nam, the Philippines, Korea, and France, the government explicitly regulates childcare service fees charged by private providers (World Bank 2022). Financial support that is not limited to institutional care but also covers home- and community- based care helps families use the benefits as best suits them. Creating flexible and sufficient schemes for government support for the diverse array of care providers would enable families to meet their individual needs, as well as have a significant impact on the whole industry. Recognizing the importance of home-based care, for example, France offers parents credits for care at home by licensed caretakers. This incentivizes a cohort of home-based care workers to enter the market and make their services available to families. Korea, similarly, stands out as one of the few countries that aids with home-based childcare for children who do not participate in ECED. Support to families can go beyond enrollment fees and include nonmonetary forms. To accurately capture household spending on childcare, it is necessary to look beyond enrollment fees, since families incur additional costs associated with childcare and attendance in ECED. In higher-income countries, 47 “Individualized Care.” Korean Ministry of Health and Welfare, https://www.mohw.go.kr/menu. es?mid=a20202000000. 48 “La prestation d’accueil du jeune enfant (Paje) [Childcare benefit].” https://www.caf.fr/allocataires/aides-et-demarches/ droits-et-prestations/vie-personnelle/la-prestation-d-accueil-du-jeune-enfant-paje, accessed May 22, 2022. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 67 Experiences in Addressing Childcare Gaps these costs may include meals and transportation costs and fees for activities. In lower-income countries, parents may also be expected to make financial contributions to center improvements, such as a construction fund for repairs (as is the case in Viet Nam), and operational costs, such as caregivers’ stipends (as in the case of Child Development Workers [CDWs] in the Philippines). Support to families in these types of circumstances can be given as monetary grants or subsidies, or they can be given as in-kind support, such as through school supplies. Further, social assistance programs can be leveraged, such as by requiring CCT programs to require enrollment in ECED, or by expanding programs that are meant to reduce malnutrition via food and milk distribution among children in primary school to include ECED. Recognition and reward of home-based care providers in social assistance schemes is another option, especially for when institutional care is not feasible, such as for infants. On the supply side, supporting private and community-based care centers can reduce the cost of enrollment for families while maintaining service quality. In Argentina, France, Japan, Korea, Malaysia, Thailand, the United Kingdom, Viet Nam, and Uzbekistan, private providers are eligible for tax benefits (World Bank 2022). Governments also often provide grants to encourage private and community-based organizations to set up childcare facilities or programs. These grants assist with the capital expenditure to set up childcare centers, as well as recurrent expenditures such as staff salaries, rent, or meals. In Viet Nam and Uzbekistan,49 for example, regulations mandate tax exemptions on land that is lent to childcare providers. In Uzbekistan, the government has implemented a model of public-private partnerships, which entails preferential loan rates, rent-free use of buildings for setting up daycare centers, and subsidies to providers to cover utilities and some operational expenses. Financial support to providers is also used for incentivizing enrollment and services that serve special population groups. In Australia, Canada (Quebec), France, and Japan, providers gain eligibility for government subsidies for each child they enroll, and in Canada (Quebec), Australia, and Uzbekistan, there are monetary incentives for centers that make special accommodations for children with disabilities. Expanding government support to care services provided by public, community, and private sectors is important, and this support needs to be substantial enough to lift the affordability barrier for parents to use higher-quality services. 5.3. PROMOTING SERVICE QUALITY AND CONDITIONS OF CARE PROVIDERS Enforced regulations and standards regarding facility structures, services, safety, and child- teacher ratios improve the quality and confidence in services. Many high-income countries have well-developed accreditation, licensing, and monitoring and evaluation systems to ensure a minimum standard of quality among regulated centers. Teachers also must meet strict qualification and credential requirements. In Indonesia, the quality of ECED is assessed based on nine quality standards,50 but there is limited guidance and instructions provided to supervisors who oversee 49 Resolution No. 3651 of the President of the Republic of Uzbekistan on Measures for Further Stimulation and Development of a System of Pre-school Education. https://cis-legislation.com/document. fwx?rgn=105839#A56J0LGYQP. 50 Quality of service standards are broken down into standards on the educational entity and standards on the personal costs to students—Ministerial Regulation No. 32/2018. 68 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Experiences in Addressing Childcare Gaps compliance, especially in daycare settings. Supervisors encounter difficulties due to the distinct and more intricate nature of daycare metrics, primarily because these centers operate for extended hours throughout the day. Revising quality control criteria and mechanisms for enforcement that would be appropriate for all types of care services is necessary to improve quality and community perceptions regarding safety, curriculum, and facilities. Regulating teacher-child ratios according to different age groups and setting maximum group sizes are vital. Improving safety conditions can change families’ perceptions about care services. Most low- and middle-income countries have mandates and protocols on quality and safety, though implementation may be limited or segmented in low-income countries. In Indonesia, there is limited guidance on safety protocols, though childcare centers have implemented some measures to ensure child safety, such as training their staff to be more vigilant, implementing dedicated protocols, or limiting the number and age groups of children to enhance monitoring. Enhancing oversight of standardized elements in childcare is essential for improving quality and building community confidence in the care sector. Implementing clear and transparent guidelines covering aspects like cleanliness, sanitation, food protocols, allergy procedures, emergency exits, and facility dynamics would contribute to achieving this goal. Shortages in qualified childcare professionals require diversifying the paths and incentives for teacher training. Teachers’ initial qualifications, pre-service training, and continuous education opportunities are of paramount importance for the level of learning and development of children in their care. For example, Japan has national qualifications for kindergarten teachers, with flexible mechanisms to acquire those certifications, including completing a degree in childcare training institution, completing an unrelated degree, or having experience of at least two years working in childcare. The latter two require passing a test to become qualified.51 In Canada, the province of Quebec has devised several paths to obtaining credentials to teach in an ECED, one of which is a work-study program offering paid training to individuals interested and already working in an educational care center (Public Policy Forum 2022). In Indonesia, ECE teachers are required to hold a bachelor’s degree, while those in childcare centers can have either a diploma or bachelor’s degree. The government has set standards on teacher training, but most teachers in TK, or in KB and TPA, do not meet the minimum qualifications requirements. Improving the skills, protections, and incentives of care workers to become better qualified are essential for improved service quality. Training that is available for all types of childcare employees could help elevate skills for initial employment and periodic upskilling. In Australia, for example, a broad set of incentives to attracting qualified teachers exists, including scholarships exclusively for early childhood teachers, relocation incentives for teachers who would like to work in underserved areas, and recognition and training programs for teachers working with young children. In France, teachers in public daycares are département-level civil servants, which, beyond the higher status it Research Center for Child and Adolescent Development and Education, Ochanomizu University. Early Childhood 51 Education Handbook. https://www.ocha.ac.jp/intl/cwed_old/eccd/report/hand_E/1-1e.pdf. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 69 Experiences in Addressing Childcare Gaps represents, also leads to higher pay and additional benefits.52 In Indonesia, teachers working in TKs can access more trainings than those working in other PAUD forms. Tying wages to levels of training and to status is one option to incentivize training, as low wages contribute to the perception that working in ECED is not a high-status profession (Ackerman 2006). Formalizing, protecting, and regulating workers in home-based childcare arrangements are equally important. Noninstitutional care provision represents most care services in Indonesia today, and recognizing and protecting those workers is key to bringing in more qualified and better paid providers in home-based care as well as center-based care options. This will enhance worker protection and also improve safety and development outcomes for the children. This type of support could also be responsible for linking service providers with families and managing expectations accordingly. In Uruguay, for example, legislation sets out fair working conditions for domestic workers, including provisions for maternity benefits. This legislation played a role in expanding social protection coverage and formalizing employment within the domestic work sector. With the latter, the expectation of quality is higher, and the workers are better recognized, making it easier and more desirable to connect families with providers. The province of Quebec in Canada has a mechanism to register and train home-based providers. This can be matched with quality control guidelines that improve the professionalism of at-home care. Some higher-income countries have minimum quality and safety standards in place. The HCC offices are government-authorized bodies whose functions include overseeing and inspecting HCPs. Coordinating offices are primarily tasked with recognizing providers and offering administrative and pedagogical support. 5.4. IMPROVING COORDINATION BETWEEN RESPONSIBLE AGENCIES AND STAKEHOLDERS Enhancing the availability, affordability, and quality of childcare services requires combined efforts to improve regulation, enforcement, financial support, and labor protections. Coordination is necessary horizontally across central government agencies, as well as vertically across national and subnational governments. Indonesia has taken a critical step by developing the Care Economy Roadmap and National Action Plan 2025–2045, which provides a framework to align initiatives and incentives across scales around a common vision and will promote more concrete actions in the coming years. Adequate financing needs coordinated, inclusive, and creative approaches. The development trajectories of ECED policies in high-income countries reveal a pattern of gradually establishing sufficient and consistent funding for these services. Today, many high-income countries allocate public funds to childcare and early education, with spending levels averaging about 0.8 percent of GDP. However, only France and, to a lesser extent, the UK consistently prioritized investment in this sector, while others gradually increased spending over time to reach current levels. Indonesia’s current expenditure on ECED, which stands at about 0.04 percent of its GDP, is significantly lower “Conditions of service for teachers working in early childhood and school education.” Eurydice. https://eurydice. 52 eacea.ec.europa.eu/national-education-systems/france/conditions-service-teachers-working-early-childhood-and- school. 70 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Experiences in Addressing Childcare Gaps than the OECD’s suggested benchmark of 1 percent.53 The government’s primary funding stream distributes funds via city and district government offices, and the funds are directed at addressing a small share of routine costs of the centers. All remaining costs are covered by family contributions, facilities are maintained by private entities, and service gaps are addressed through CSOs. Alternative care arrangements, such as home-based and community-based childcare, are not supported through public financing. It is important to have strong oversight to guarantee the effective utilization of funds for improving service access and quality. One lever to enhance service access and optimize the utilization of available funds is to promote alternative funding mechanisms that support childcare centers and families (MoECRT 2020). Additionally, dividing management roles among various tiers of government can improve the management of existing funds. In Brazil, the central government is the principal financier of education, but three layers of government are responsible for funding various programs (OECD 2021). For instance, municipalities are primarily responsible for financing and managing ECED, municipalities and states share responsibility for primary and lower secondary education, and states are responsible for higher secondary education. The Indonesian system has yet to be streamlined in such a manner, resulting in a complex institutional framework (see Chapter 2), but doing so could foster childcare services that are more responsive to local needs. FIGURE 5.1. ENROLLMENT RATES IN PRIVATE ECED INSTITUTIONS IN SELECTED COUNTRIES (% OF TOTAL ENROLLMENT) Lao PDR Viet Nam Lower middle Cambodia income Philippines Uzbekistan Indonesia Malaysia Upper middle Argentina income Brazil Thailand Mexico Japan Republic of Korea High income UK France 0 10 20 30 40 50 60 70 80 90 100 Source: United Nations Educational, Scientific and Cultural Organization (UNESCO) Institute of Statistics. Note: Data pertain to the ages from 0 to the theoretical age for starting primary school for each country, typically 6. Data for Indonesia are for 2018 and are an estimate based on prior years. The OECD advises governments to allocate approximately 1 percent of GDP toward Early Childhood Education and 53 Care (ECEC) to address key policy objectives such as ensuring universal access and affordability and enhancing service quality. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 71 Experiences in Addressing Childcare Gaps Coordinating government support and regulation for private, home- and community-based, and public sector service providers is essential for equity. Compared to the countries reviewed in this study, Indonesia has a significantly higher share, 98 percent, of childcare and ECED services for children 0–6 years that rely on private entities for service provision (Figure 5.1). Quality control mechanisms and worker protection regulations are handled differently, depending on the source of care provision, leading to serious coordination issues in supporting and overseeing service providers and their licensure, accreditation, and compliance with service standards. Socioeconomic status is correlated with attendance rates across all countries, but in low-income countries, children of richer families are eight times more likely to be enrolled in ECED programs than children of poor families (Adema et al. 2016). The latter are primarily covered by private, home- and community-based arrangements, where lack of direct government oversight and financial support can disproportionally affect their already low enrollment rates. For example, higher prices for childcare services are typically the norm with private sector provision, which can lead to excluding a substantial number of children from these services. Childcare centers that follow government regulations, implement minimum standards, and hire qualified teachers typically charge significantly higher fees for their services. This is evident in Indonesia, where high-quality private centers have fees that can be four times higher and more than they are in centers that provide only the most basic services. 5.5. ADDRESSING SOCIAL NORMS TO PROMOTE GENDER-EQUITABLE CAREGIVING ROLES Shifting attitudes about women’s role as the primary childcare provider is key to redistributing the care burden. Efforts to recognize and redistribute the childcare burden through public campaigns could support opening more opportunities for women and soften the stigma for boys and men related to taking more responsibility for care needs. Attitudes that hold women primarily accountable for childcare, even if they receive assistance from others, result in families needing to engage individualized strategies to manage the double burden of care and labor force activity (Purnamasari et al. 2023). Simultaneously, regardless of attitudes, many families are open to, and in some cases dependent on, varied support from family members, community organizations, or childcare centers. Local information campaigns could change the perceptions of women and men, as well as the broader community. Consistent messages around equal wages, fathers doing childcare, and women’s leadership could help spread new models for families. Recent evidence for Indonesia (Box 4.2) demonstrates that more open communication among community members about working and caring for children can potentially lead to more balanced distribution of care responsibilities and an increase in labor force activity for mothers. Similarly, using popular celebrities has been shown in Indonesia to have an impact on other broad social goals such as immunization practices (Alatas 2019).54 In other countries, supporting targeted programs aimed at building cooperative parenting practices for men has been impactful. For example, Bangladesh, Lebanon, and Brazil have had success shifting men and women’s gender-related attitudes, particularly around caregiving, by working directly with health care providers, group educational curriculum for fathers, and community mobilization campaigns. https://investinginwomen.asia/wp-content/uploads/2023/05/Lembaga-Demografi-Faculty-of-Economics-and- 54 Business-Universitas-Indonesia-Social-Norms-and-Womens-Economic-Participation.pdf. 72 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Experiences in Addressing Childcare Gaps Additionally, media campaigns, including social media, have been shown to work in other contexts for promoting equitable roles within communities.55 Although shifting entrenched gender norms and attitudes can be challenging, there is potential in educational initiatives targeting younger girls and boys. In Cambodia, for example, interventions challenging traditional gender norms through comprehensive education and awareness programs that promote girls’ education, advocate for gender equality, and educate communities on men and women’s rights have been shown to be successful. Programs focused on women’s economic empowerment, such as through vocational training, microfinance, and support for women’s cooperatives, also contribute to shifting norms. Enhancing women’s political representation can influence prevailing gender norms by promoting positive role models for women. France stands out for its 2000 Gender Parity Law mandating equal numbers of male and female candidates in national and European elections, resulting in notable advancements in female representation in parliament and local governments. In India, an older mandate from 1993 introduces a gender quota for women in local government bodies (local Panchayats). The law mandates that at least one-third of seats be reserved for women. This initiative has led to a significant increase in women’s participation in local governance. Such initiatives not only enhance participation but also inspire role models for women and girls. In Indonesia, similar quotas and local structures are already in place, though the potential role of women in local governance can be improved to serve as role models, promote representation, and gradually challenge entrenched gender norms. A comprehensive approach involving legal frameworks, penalties, community engagement, and awareness campaigns is essential. There are lessons from experiences with interventions that targeted harmful norms such as gender-based violence. For example, France has implemented a law in 2010 criminalizing psychological violence within relationships, in addition to existing laws against physical violence, while many other countries have developed laws and frameworks to eliminate child marriage and female infanticide. The effectiveness of the latter vary based on factors such as cultural attitudes, enforcement capabilities, and ongoing social and political developments, but they can still serve as examples. Malaysia has taken steps to address and prevent child marriage through legal mandates, policy measures, community engagement, and educational awareness. Similarly, Brazil has tackled the issue of female infanticide through various initiatives and approaches, including public awareness campaigns to educate communities about the illegality and consequences of infanticide, particularly targeting regions where the practice may be more prevalent. Both Malaysia and Brazil developed collaborative efforts with local communities, leaders, and organizations in addressing cultural attitudes and beliefs that may perpetuate strict norms. For example, media campaigns in India, Pakistan, the Islamic Republic of Iran, and Türkiye have played a pivotal 55 role in advocating for women’s rights and initiating discussions on sensitive topics like honor killings and gender equality. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 73 Experiences in Addressing Childcare Gaps 5.6. WORKPLACE POLICIES AND EMPLOYER-SUPPORTED CHILDCARE Turning maternity and paternity leave systems into social security models is key for promoting universal adoption. Maternity benefits in Indonesia are provided through employer liability schemes, which only cover the formal workforce, are difficult to implement, and are expensive for firms to comply. Expanding worker eligibility for maternity leave, lengthening the duration, providing paternity leave benefits by law, and enforcing these provisions are crucial for redistributing care roles and managing the work-care tradeoff for mothers. In addition to mandatory leave and pay compliance, providing financial assistance, health protections at the workplace, and transition support during maternity is needed to assist women in more easily transitioning back to the workforce after having a child. Turning to a social security-based system will help make the policy more inclusive to formal and informal workers alike, including domestic workers. The public and private sectors can work together to support childcare through family-friendly workplace policies and employer-supported childcare. Globally, only a handful of countries enforce mandates to employers to offer childcare benefits for their employees. This is an area where the public sector can lead the way and serve as an example for other stakeholders, as in the case of government- led childcare services available to the workers of government agencies in Indonesia (Box 5.1). In the private sector, inclusive workplace policies and employer-supported childcare can come in various forms, such as on-site childcare that demands up-front planning and investment or workplace policies such as flexible working arrangements. Employers in Indonesia offer many childcare solutions to their employees, and these models can be further incentivized by public policy (IFC 2023). The presence of on-site childcare facilities can significantly assist employees in managing their caregiving responsibilities. Unilever, Proctor and Gamble (P&G), YAVA, REA, Musim Mas, Golden Agri-Resources, and Cargill, to name a few, offer on-site childcare, either for free or with significant subsidies for employees. Policies such as this are especially beneficial to more low-income employees. Companies may also outsource the operation of childcare facilities to leverage the expertise and knowledge of third-party providers. For instance, Unilever has collaborated with OwpenKidz to provide daycare services, while establishments such as Lovely Sunshine Daycare have partnered with organizations such as Standard Chartered, Allianz, Shopee, and Lazada to offer their services. Finally, a rising number of Indonesian employers offer on-site backup childcare, especially during holidays. Unilever on-site daycare offers ‘overtime hours’ until 8 p.m. for late work and unlimited backup care slots. They also provide full-time ‘Festive Childcare’ to all headquarters employees for two weeks during religious holidays when domestic workers typically return to their hometowns and working parents need to find alternative care arrangements. Other monetary and nonmonetary methods for supporting working families include vouchers to cover childcare costs and training to develop parental skills. The multinational financial services group DBS provides financial compensation to its employees through iFlex, which is an employee benefits scheme. Under the scheme, employees are granted a fixed allowance each year that can be spent according to their choice on a range of family, health, and wellness expenses, including 74 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Experiences in Addressing Childcare Gaps childcare. Under this arrangement, employees have complete autonomy in putting the money toward childcare arrangements of their choice. Companies can also provide various resources to support employees in balancing work and care responsibilities. GoTo and Bank BTPN offer parental clubs and skills training, while Ungaran Sari Garments provides pre- and post-natal support for its predominantly female workforce. BOX 5.1. EMPLOYER-PROVIDED CHILDCARE INITIATIVES IN THE PUBLIC SECTOR IN INDONESIA There are several examples of government-led initiatives that provide services for their employees. The Ministry of Finance operates a TPA called Yayasan Artha Wildan, which accommodates staff of the ministry. About 80 children attend the TPA, and 23 care staff are employed. Meanwhile, MoECRT operates the ‘PAUD Kilometer 0’ at the ministry complex for its staff as an integrated PAUD center for children ages 0–6 years. The facility is designed to provide a model for other PAUD centers to follow. The North Jakarta Government established the Yos Sudarso Public TPA at the North Jakarta Mayor’s Office in 2019 to provide childcare services for employees and the public. This TPA operates according to the working hours of the North Jakarta Government’s office. The TPA organized by the Balikpapan City Government is based on an analysis of the needs of the Balikpapan City Government employees. TPA Day Care provides services during working hours, with four employees including three care workers, and provides CCTV that can be monitored directly by parents. Sources: (a) PROSPERA. Supporting Female Labor Force Participation through Expanded Childcare Services in Urban Indonesia; (b) Jakarta Utara Government (2018); (c) Kementerian Pendidikan dan Kebudayaan » Republik Indonesia (kemdikbud.go.id); and (d) Government of Balikpapan City. TPA K Day Care Harapan, Orangtua Dapat Pantau Aktivitas dari CCTV. Flexible working arrangements are a popular policy to promote worker recruitment and retention. Companies in Indonesia, particularly in office settings, provide various flexible work options. Unilever’s headquarters staff enjoy part-time and remote work flexibility, attending the office three days per week, while having control over when and where they work. DBS in the financial sector offers a flexible scheme, allowing remote work for up to 40 percent of the time and additional flexibility for those caring for a newborn, an adopted child, or a family with health concerns. In manufacturing, Ungaran Sari Garments employs a double shift system, providing predictability and allowing workers to accommodate childcare responsibilities. Some companies offer enhanced leave policies that aim to support the well-being of both parents and foster a positive work environment. Unilever offers a successful comprehensive maternity leave package, entailing four months of paid leave. Similarly, P&G provides a 3.5-month maternity leave, with the flexibility for extension up to 6.5 months. Nestlé also adopts a comparable approach, granting 3.5 months of maternity leave, with the possibility of extension to 6 months. Unilever extends paternity leave beyond the standard two days mandated by law, providing a noteworthy three weeks for fathers. Similarly, DBS offers a two-week paternity leave, promoting active fatherhood and contributing to a more equitable division of childcare responsibilities. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 75 Experiences in Addressing Childcare Gaps Providing support for breastfeeding in the workplace can yield numerous advantages for female employees. For some mothers, managing breastfeeding after returning to work is a significant burden, and accommodating breastfeeding can have significant effects, such as enhancing the health of both the mother and child, lowering absenteeism, and boosting productivity. Indonesian law mandates employers grant time for expressing milk during working hours and provide access to lactation facilities. Staff-employer consultations are important for constructing good policies in this area. Unilever and Ungaran Sari Garments show that staff consultations have improved support for breastfeeding. This involves a creative service where pumped breast milk is delivered directly to the worker’s home, ensuring their babies have access to breast milk while their mothers are at work. Consultations have also initiated peer-to-peer breastfeeding support for women at work. 76 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Chapter 6. CONCLUSION 6.1. MOVING TOWARD A FUNCTIONING CARE ECONOMY IN INDONESIA The findings in this report illustrate that the road to a functioning care economy will be long but also highlight key lessons to make the journey fruitful. The GoI has already taken the important initiative of developing an interministerial Care Economy Roadmap and National Action Plan for 2025–2045, which provides a robust framework for coordinated action across sectors to make the required ecosystem improvements and spark the growth of the care economy. The number and diversity of existing initiatives to meet childcare needs across the archipelago, whether in terms of care provision models, quality standards, or institutional oversight mechanisms, serve as a starting point for future reforms and actions. The findings in this report pertaining to the complex institutional contexts, families’ scramble to meet care needs, and the social and economic consequences of service gaps, complemented with experiences from other contexts, are intended to inform the design and implementation of initiations as part of the rollout of the roadmap. First, more than eight hours of childcare support is needed to enable mothers to participate in the labor market. For the GoI to reach the ambitious goal of achieving an FLFP target of 70 percent in the RPJMN by 2029, it needs to consider similarly ambitious goals for the expansion of childcare services. Flexible, quality, and affordable childcare services give women the stability they need to take up more work hours, more formal employment, and employment in higher-value-added sectors that yield higher incomes. Working mothers who have access to eight hours of childcare support are more likely to work full time than those who have six hours of help and more likely for the work to be formal rather than informal. Second, the existing infrastructure of ECED institutions can facilitate access to childcare to meet working parents’ needs and promote child development. The existing childcare sector is primarily oriented around early childhood education for 4–6-year-olds, which entails only a few hours of support per day. Given the importance of full-day support for working mothers, if childcare centers that provide preschool ECED services were to have longer and more flexible hours for daycare, the mothers, children, and families would benefit greatly. When these centers offer multiple types of care, with flexible hours, under one roof, this could reduce travel, pickup, and drop-off and the time spent on arranging informal childcare solutions. However, achieving such an outcome requires a streamlined and coordinated approach to childcare regulations, teacher training, and financial support for families and centers, among other actions, to guarantee quality services at affordable costs, especially in rural settings. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 77 Conclusion Third, investing in availability of childcare options in communities, whether in institutional or other forms, is likely to deliver substantial benefits. The primary reason for why families use the childcare centers that they do is because of ease of access and location. This highlights the realities working families face in managing their care responsibilities, transportation, and other obligations. As it is rare for mothers to get full-time support to fully engage in the labor market, at a minimum, care options need to be close to the home. This emphasizes the need for more ECED institutions, particularly in rural areas where the centers could be few and far between. Though there is variation in the number of PAUD service providers in different provinces, there are far too few of them to make it feasible to meet the needs of families. Institutional, home-based, and community-based care options are crucial for allowing families to have flexibility, as well as for overall awareness and trust building in the ECED system. Fourth, special attention is needed for younger children, especially those ages 0–12 months. Children ages 0–12 months are the least likely to be cared for by anyone except their mothers and, to some extent, their fathers. Care service options are rare, and the fees are too high, especially in rural communities. The time use data suggest that mothers of younger children are only able to engage in a few hours of market work per day. Teacher training and facility safety are key to enhancing perceptions and demand for care services for younger children, but so too is affordability. The negative effects of the ʻmotherhood penaltyʼ begin to develop early, and improving access to care services for this population is crucial. Fifth, large inequalities in service conditions across socioeconomic status and location, if unaddressed, could result in further divergence of social and economic outcomes. Most PAUD service providers are in the private sector, and there are very few governmental programs that offer financial support to families or care providers. As a result, most families pay out of pocket for these services, with low-income, rural, and non-Java families reporting difficulty in affording them. In addition, service reliability and quality in non-Java regions is a challenge. Financial support needs to be directed at both families and service providers. An array of subsidies, tax credits, and grants, paired with coordinated mechanisms for accreditation and teacher training, are necessary to reduce service quality gaps and improve access for all families. Reforms of the PAUD teacher training and licensing and accreditation systems, combined with substantive investment in facilities and other forms of childcare provision, including home- and community-based systems, would go a long way to improving the quality of childcare services at a variety of levels. Sixth, adapting childcare solutions to the local context and sensitivities is crucial and will ultimately determine uptake of services. For instance, community-based childcare may be more effective in rural areas, whereas in urban areas, home- and center-based childcare options are preferred. Greater community engagement on financial and governance aspects of the childcare system is needed across the central, provincial, and district governments. State-provided financial support from the central and subnational governments could empower local communities to identify solutions that work best in their areas. In addition, rural and low-income communities, and informal and domestic workers, need to be entitled to get the same labor law protections and quality enforcement as workers and families. Participatory decision-making at the local level can ensure that the same opportunities for engagement in the sectors are available regardless of socioeconomic status. 78 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Conclusion Finally, it is necessary to address social norms around caregiving and economic participation to promote the take-up of childcare services and more equitable distribution of care responsibilities. Based on time use analysis, mothers are likely to engage in significantly more labor market activity if they rely on childcare supports. The analysis also concludes that these mothers are likely to face a second shift of care duties when home, creating a potential for double responsibilities for labor market work and unpaid care work. It is important to engage in local and national educational campaigns regarding social attitudes regarding care responsibilities for mothers and fathers. The findings of this report suggest that targeted efforts about how women and men feel about care obligations and preferences for working can help families make more equitable decisions. Specific efforts directed at community-level engagement on how men can contribute to household care and domestic duties can have a significant impact. 6.2. RECOMMENDATIONS SUPPORTING THE ROADMAP The GoI is rapidly rising to addressing the work-care nexus and recognizes that public policy is required to promote the care economy. The Care Economy Roadmap and National Action Plan marks the commitment of Indonesia to accelerate the transformation of its care economy and increase FLFP, with a focus on childcare, care workers, labor market and workplace policies, and social norms around men’s involvement in caregiving, among others. Experiences from other contexts provide several actions that could serve as an inspiration to roll out the implementation of the roadmap. Looking ahead, Indonesia’s diverse population has the potential to be an engine for change, if public policy addresses some of the key ecosystem challenges necessary for the care economy to take off. The priority list of recommendations in Table 6.1 are meant to accelerate the implementation of the roadmap to support Indonesia’s ambitious target to have a fully functioning care economy that serves all Indonesians by 2045. TABLE 6.1. SELECTED POLICY AREAS AND ACTIONS Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Availability Expanding the Mandates for Target 1.1: Development Workforce and access operating hours of operating hours to of ECED models that are scarcity, high cost to childcare institutional center- align with working responsive to family and for establishing services based childcare schedules and for community needs and operating services and aligning service flexibility care facilities, them with the working to be provided at a low regulatory hours of parents reasonable cost compliance, and weak monitoring Supporting home- Development of Target 1.1: Development Scarcity of based care to register accreditation, of ECED models that are qualified and be recognized as a licensing, and responsive to family and providers, limited formal care option and registration system for community needs quality and safety encourage flexibility home-based workers, protocols, and in care services potentially utilizing nonrecognition of domestic workers home-based care as work The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 79 Conclusion Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Promoting Access to grants, Target 1.1: Development Cost, financial community-based credit, land, of ECED models that are sustainability, and models through allowances, and responsive to family and weak monitoring incentives to enhance tax incentives to community needs of service care services’ service providers, Target 1.5: Increase in standards or responsiveness to nongovernmental the number of childcare quality local needs organizations (NGOs), and education centers for and civil society children of school age in organizations (CSOs) proportion to the number that establish and of children of school age operate community- based childcare programs Awareness about care Public awareness Target 1.1: Development Restrictive social services and their campaigns, of ECED models that are norms regarding benefits community events, responsive to family and mothers’ role in and parent network community needs care provision and groups social and political resistance to change Making care Financial support for Subsidies, grants, and Target 7.5: Development Cost, financial affordable for families tax credits for families a comprehensive sustainability, all extending beyond contribution-based social and complex Financial support for enrollment fees to security scheme with cash regulatory childcare providers include expenses benefits that is accessible framework for related to care, such as to workers, care workers, social assistance transportation, meals, and care service providers and support for books, uniforms, service providers and more. Similar incentives for service providers to reduce costs of entry and operation Promoting Formalizing and Develop an Target 6.2: Development Regulatory service quality regulating workers in institutional system of a care worker compliance, for childcare home-based childcare for home-based recognition policy weak monitoring, arrangements, care, including Target 1.2: Preparation of limited quality and including domestic accreditation, guidelines and regulations safety protocols, workers licensing, registration, related to the protection of and possibility of and network noninstitutional workers low service uptake connecting families in ECED centers and workers Improving Minimum Target 6.3: Determination Alignment with recognition, wage standards of wage policy and care broader labor compensation, commensurate worker protection policy market policies protection, and to educational Target 1.2: Preparation of and local market working conditions of attainment and guidelines and regulations conditions, care employees public awareness related to the protection of coordination, and campaigns to promote noninstitutional workers enforcement of the importance and in ECED centers compliance prestige of care work 80 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Conclusion Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Improving training Developing a Target 6.5: Capacity Financial and learning practitioner building and certification sustainability and opportunities for care qualification for care workers limited career providers framework and development associated learning opportunities for management and care workers training programs to be conducted periodically and building a skilled care workforce Simplifying and Target 1.4: Increasing reducing the financial the competence of ECED and transactional workers to be qualified costs of licensing and and certified according to accreditation competency standards Strengthening Target 1.3: Development licensing, of a quality assurance accreditation, and monitoring system technical assistance, including accreditation to and monitoring ensure the quality of all of care centers’ ECED centers compliance with minimum service standards (MSS) Improving Developing strong Strengthened n.a. Complex coordination oversight mechanisms interministerial institutional between for improving service task force for ECED structure for responsible availability, quality, at the national and childcare agencies and and affordability subnational levels. provision, complex stakeholders decentralized Clarification of governance mandates, roles, structure, and responsibilities, and siloed ministerial reporting lines across budgeting and central ministries and performance subnational entities management Coordination structures of regulation, enforcement, financial support, and labor protections across ministries Social norms Developing gender- Public awareness Target 5.1: Strengthening Restrictive social to promote equitable roles in campaigns aimed community awareness of norms regarding gender- care giving and at promoting the the importance of male men and women’s equitable redistribution of care involvement of involvement in care work, roles in care caregiving work fathers in childcare, especially the role of provision and roles men taking paternity fathers in childcare social and political leave, and support for resistance to mothers to join the change workforce The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 81 Conclusion Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Updating attitudes and Establishment Target 5.1: Strengthening Restrictive social perceptions about the of partnerships community awareness of norms regarding paid and unpaid roles for informational the importance of male men and women’s of women, including programs, involvement in care work, role in care support for women campaigns, and especially the role of provision and working outside the outreach to correct fathers in childcare social and political home misperceptions about resistance to level of family and change community support for women working outside the home Enhancing women’s Mandates for women n.a. Restrictive social political participation quotas in political norms regarding to promote positive and administrative men and women’s role models positions, especially at roles and social the community level and political resistance to change Discouraging the Stricter laws, n.a. Restrictive social prevalence of harmful mandates to safeguard norms regarding gender norms women’s rights men and women’s roles and social and political resistance to change. Workplace Expanding the Expanded, state- Target 4.1: Adjustment of Cost, financial policies and duration of paid sponsored, paid the duration of maternity sustainability, employer- maternity leave maternity leave leave in accordance with informality, weak supported benefits and bringing and family-friendly international standard enforcement, care it under a publicly policies to encourage references and Indonesian and weak provided social women to enter, legislation complementary assistance system reenter, and remain in Target 4.2: Development labor laws and the workforce of maternity benefit regulations that policies through a social protect workers security system linked to who participate in maternity leave maternity benefits Target 4.3: Development of guidelines for effective implementation of maternity leave through labor inspection 82 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Conclusion Policy Contributions to Care Potential Objectives Actions Theme Economy Roadmap Roadblocks Expanding the Expanded, state- Target 5.2: Development Cost, financial duration of paid sponsored, paid of a policy at the company/ sustainability, paternity leave paternity benefits to workplace level regarding informality, weak benefits and bringing redistribute care work paternity leave that is enforcement, it under a publicly and encourage men to more representative and and weak provided social share care roles and balanced with maternity complementary assistance system responsibilities leave labor laws and Target 5.3: Creation regulations that of a mechanism that protect workers encourages fathers to who participate in take paternity leave paternity benefits with a comprehensive monitoring mechanism Target 5.4: Development of a paternity benefit policy through a social security system linked to paternity leave Promoting employer- Incentivize employers Target 1.6: Development High capital supported childcare to provide on-site of an incentive mechanism investment cost for childcare options, that encourages employers, limited vouchers or subsidies, companies to develop state-sponsored and other parental policies, access to programs to co- and flexible workplace services, and facilities for finance, limited policies employees and workers availability and quality of private care providers for parents to use their vouchers and subsidies Developing family- Expanding worker Target 4.4: Strengthening Cost for employers friendly workplace eligibility for care- of the participation of and limited policies related leave and companies and industries state-sponsored providing health in building worker welfare programs to co- protections at facilities (family planning, finance workplace, transition quality lactation, and support to women, adequate breastfeeding and flexible work breaks, proportional to the arrangements number of employees). Source: World Bank team. Note: n.a. = Not applicable. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 83 ANNEXES Annex 1. HOUSEHOLD CAREGIVER SURVEY SURVEY DESIGN AND SAMPLING METHODOLOGY To understand the demand and preferences for childcare among Indonesian households, the World Bank carried out a nationally representative survey of 3,000 households in Indonesia in 2023. The survey is representative of the age of the children: 0–12 months, 13–36 months, and 37–72 months. The respondents to the survey were the primary caregivers of the children in the household. If there were more than one primary caregiver in the household, one of the caregivers was randomly selected from each household for the interview. In the survey, 98 percent of the respondents were mothers of the children as their primary caregivers, indicative of women’s vital role in the family. This report focuses only on the responses of the mothers, including a total of 2,942 households in the sample. The survey collected household, caregiver, and children’s data on demographics, household income and assets, economic activities, employment, and disability status of caregivers and other household members; time use of caregivers; norms; current childcare arrangements; and childcare preferences for all children of the household ages 0–6 years (0–72 months), and early childhood development indicators for one randomly selected child in the household age 0–6 years. This detailed diagnostic survey provides a convenient framework to evaluate the availability and affordability of childcare support in Indonesia and assess its relation to caregivers’ labor market outcomes, time use, and children’s development outcomes. Given the sample consists of mothers with children ages 0–6 years, most respondents in the sample (52 percent) are in the 25–34 age group, while the second largest group (30 percent) is between the ages of 35 and 44. The majority of the mothers in the sample, 40.8 percent, at least completed high school, and 28.1 percent of the mothers completed middle school. Only 11.9 percent of the mothers in the sample completed a university degree. A value score is constructed for mothers to assess their normative 86 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Household Caregiver Survey beliefs.56 Mothers in the sample seem to hold a slightly high traditional value with a positive average score of 0.52. For the household characteristics, the average household size in the full sample is 4.5 members. On average, households slightly have over 1 member in the age group of 0–6 years, with 25.3 percent of the household having a child age 0–12 months, 44.7 percent having children ages 13–36 months, and 46.3 percent of households having children ages 37–72 months (Annex Table 1). ANNEX TABLE 1. SUMMARY CHARACTERISTICS OF HOUSEHOLD CAREGIVER SURVEY RESPONDENTS (MOTHERS) Characteristics Age Percent 15-24 14.5 25-34 52.9 35-44 30.2 45+ 2.4 Education Percent Elementary school or lower 19.2 Middle school 28.1 High school 40.8 University 11.9 Norms Average Score for traditional values 0.52 Household has children aged 0-6 years Percent Household has child aged 0-12 months 25.3 Household has child aged 13-36 months 44.7 Household has child aged 37-72 months 46.3 A traditional value score is constructed for mothers to assess their normative beliefs. Mothers were asked 3 56 traditional value statements—mothers should be entirely responsible for children’s well-being, especially for children ages 0–6 years; mothers should prioritize childcare over work; and when mothers work for pay, families suffer. Each traditional value statement is scored −1 to 2—the respondent showing traditional value is given a higher score with strongly agreeing scored as 2, agreeing as 1, neither agreeing nor disagreeing as 0, disagreeing as −1, and strongly disagreeing as −2. Mothers were also asked three secular-rational statements—if a mother works outside the house, the husband should help her take care of the children and do household chores; women should have the same rights as men; and it is acceptable for children to be taken care of by daycare outside the home when the mother is working. Each secular-rational value statement is scored −1 to 2—the respondent showing a nontraditional mindset is given a lower score as strongly disagreeing scored as 2, disagreeing as 1, neither disagreeing nor agreeing as 0, agreeing as −1, and strongly agreeing as −2. The score for traditional values is constructed by summing up six statements. The higher the score, the more mothers are considered to hold more traditional values. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 87 Household Caregiver Survey Characteristics Household Size Average Number of household members ages 0–6 years 1.2 Number of household members ages 7–14 years 0.7 Number of female household members ages 15–64 years 1.3 Number of male household members ages 15–64 years 1.2 Number of female household members ages 65 years and older 0.6 Number of male household members ages 65 years and older 0.7 Number of household members (all) 4.5 Household Socioeconomic Status Percent Bottom 40 68.6 Middle 40 24.6 Top 20 6.8 Region: Rural or Urban Percent Rural 43.8 Urban 56.2 Region: Java or Non-Java Percent Java 54.7 Non-Java 45.3 N 2,942 Source: Household Caregiver Survey. Note: The percentages add to more than 100 percent as a household may have more than one child across age group 0–6 years (0–72 months). Percentages are survey weight adjusted. PMT SCORES FOR SOCIOECONOMIC STATUS Since the survey did not include an extensive consumption expenditure module, PMTs were used to determine the household expenditure distribution, where easily verifiable household assets and labor market information in conjunction with pre-existing SUSENAS data were aggregated into an index to measure household welfare. SUSENAS observations were randomly (stratified by district and urban/ rural) into 80 percent (in-sample) and 20 percent (out-sample). It was tested that the RPCE is statistically indistinguishable between the in-sample and out-sample group, with RPCE as the dependent variable of the PMT regressions (Annex Table 2). 88 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Household Caregiver Survey ANNEX TABLE 2. PMT MODEL ESTIMATES FOR RPCE Dependent variable: ln(Real Per Capita Expenditure) Coefficient Standard Error (SE) Demography # Male HHM 0.186*** (0.002) # Female HHM 0.211*** (0.002) Dependency ratio 0.001*** (0.000) # HHM education: Primary 0.002 (0.002) # HHM education: Junior secondary 0.017*** (0.003) # HHM education: Senior secondary 0.029*** (0.003) # HHM education: Tertiary 0.059*** (0.003) Employment # HHM as Self-employed in Agriculture 0.040*** (0.003) # HHM as Paid workers in Agriculture 0.047*** (0.003) # HHM as Unpaid workers in Agriculture 0.013*** (0.003) # HHM as Self-employed in Manufacturing 0.069*** (0.006) # HHM as Paid workers in Manufacturing 0.094*** (0.004) # HHM as Unpaid workers in Manufacturing 0.014 (0.011) # HHM as Self-employed in Low-VA services 0.068*** (0.003) # HHM as Paid workers in Low-VA services 0.070*** (0.003) # HHM as Unpaid workers in Low-VA services 0.031*** (0.007) # HHM as Self-employed in High-VA services 0.074*** (0.008) # HHM as Paid workers in High-VA services 0.117*** (0.005) # HHM as Unpaid workers in High-VA services 0.067 (0.060) # HHM as Self-employed in Other Industries 0.083*** (0.008) # HHM as Paid workers in Other Industries 0.074*** (0.004) # HHM as Unpaid workers in Other Industries 0.077*** (0.023) Dwelling Characteristics House Ownerships (base: Others) Own house w/ SHM 0.008 (0.005) Own house wo/ SHM 0.006 (0.005) Contract/lease 0.010 (0.007) House Area Size of the house 0.002*** (0.000) Size of the house (squared) 0.000*** (0.000) The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 89 Household Caregiver Survey Dependent variable: ln(Real Per Capita Expenditure) Coefficient Standard Error (SE) Type of Roof Concrete 0.074*** (0.015) Roofing tile 0.009 (0.011) Asbestos 0.003 (0.010) Zink/metal plates 0.016 (0.012) Type of Wall Brick 0.034*** (0.006) Wood/plank 0.004 (0.006) Type of Floor (base: Others) 01 Marble/granite 0.182*** (0.012) 02 Ceramic tile 0.109*** (0.007) 03 Parquet/vinyl/carpet 0.050*** (0.018) 04 Terrazzo tile 0.043*** (0.009) 05 Wood/planks 0.052*** (0.007) 06 Cement/red brick 0.048*** (0.007) Type of Toilet (base: Others) Own toilet - gooseneck 0.058*** (0.005) Own toilet - other type 0.034*** (0.007) Communal toilet 0.046*** (0.007) Source of Drinkwater (base: Others) Bottled/refilled 0.109*** (0.005) Tap water 0.042*** (0.005) Well 0.014*** (0.004) Type of Electricity (base: No electricity) 01 PLN electricity with meter 0.057*** (0.011) 02 PLN electricity without meter 0.032*** (0.012) 03 non-PLN electricity 0.137*** (0.012) Type of Fuels for Cooking (base: Others) Electric 0.267*** (0.029) Gas/LPG 0.361*** (0.020) Kerosene 0.378*** (0.022) Woods 0.459*** (0.021) 90 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Household Caregiver Survey Dependent variable: ln(Real Per Capita Expenditure) Coefficient Standard Error (SE) Asset Ownerships Own LPG 0.129*** (0.006) Own refrigerator 0.089*** (0.003) Own air conditioner 0.201*** (0.006) Own water heater 0.127*** (0.010) Own landline phone 0.151*** (0.016) Own computer 0.138*** (0.005) Own gold 0.146*** (0.004) Own motorbike 0.132*** (0.004) Own boat 0.042*** (0.009) Own motorboat 0.115*** (0.010) Own car 0.311*** (0.005) Own flat TV 0.087*** (0.004) Own land 0.032*** (0.004) Location Urban 0.107*** (0.003) Districts FE Controlled Source: World Bank team calculations based on the Household Caregiver Survey. Note: FE = Fixed effects; HHM = Household member; LPG = Liquified petroleum gas; PLN = Perusahaan Listrik Negara; VA = Value-added. Variables taken from SUSENAS 2022 (March). SUSENAS observations were randomly (stratified by district and urban/rural) divided into 80 percent (in-sample) and 20 percent (out-sample). The SUSENAS out-sample was used for testing the model and its cutoff for determining the ranking of RPCE in the household caregiver survey data. The PMT model performed well in the out-sample data. The predicted RPCE is strongly correlated (0.76) with its actual values. In the SUSENAS, households with children under the age of 6 are generally poorer than other households, as the distribution is shifted to the left (Annex Figure 1). Hence, by design, the household caregiver survey sample is expected to be less wealthy than the national average, as it uses this subpopulation as the sampling framework. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 91 Household Caregiver Survey ANNEX FIGURE 1. EXTERNAL VALIDITY OF PMT MODEL (LEFT) AND COMPARISON OF HOUSEHOLD CAREGIVER SURVEY AND SUSENAS SAMPLES (RIGHT) Susenas-Out: Actual Susenas-Out: Predicted Susenas-Out Under6 HH: Susenas-Out Under6 HH: Actual Predicted Household Caregiver Survey: Predicted Source: World Bank team calculations based on the Household Caregiver Survey and SUSENAS. Note: The predicted RPCE is strongly correlated (0.76) with its actual values, suggesting that the PMT model performs well. However, the final sample of households that were interviewed are even poorer than the typical Indonesian households who have children under the age of 6, as captured in the SUSENAS. This is not driven by the PMT model itself, since the distributions of the SUSENAS out-sample and the household caregiver survey sample performed well and shared the same coefficients. It is driven by the actual characteristics of the sample households, which ended up being poorer than the national average. The cumulative distributions of the SUSENAS and household caregiver survey samples, overlaid with the median RPCE and the national poverty line, illustrate these differences (Annex Figure 2). Comparing the resulting socioeconomic categorization of the sampled households, SUSENAS, and household caregiver survey samples by socioeconomic categories (Annex Table 3), about 69 percent of the sampled households fall in the lowest socioeconomic category constructed for this report, namely the bottom 40 percent of the RPCE distribution. At the national level in SUSENAS, the corresponding share of households that fall under this category is 52 percent. Similarly, the top 20 percent of the RPCE distribution constitutes about 7 percent of the sampled households, while they represent 12 percent in SUSENAS. These differences should be kept in mind while interpreting the findings in this report. 92 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Household Caregiver Survey ANNEX FIGURE 2. CUMULATIVE DISTRIBUTION OF REAL PER CAPITA INCOME ACROSS HOUSEHOLD CAREGIVER SURVEY AND SUSENAS SAMPLES Susenas-Out Under6 HH: Susenas-Out Under6 HH: Household Caregiver Survey: Actual Predicted Predicted Source: World Bank team calculations based on the Household Caregiver Survey and SUSENAS. Note: The red vertical line is the national poverty line (nominal), and the green line is the median of RPCE. The area on the left-hand side of the vertical lines is greater for the Household Caregiver Survey, indicating a larger proportion of the households at the lower end of the consumption level. ANNEX TABLE 3. DISTRIBUTION OF SOCIOECONOMIC STATUS CATEGORIES ACROSS THE HOUSEHOLD CAREGIVER SURVEY SAMPLE AND SUSENAS   Household Caregiver Survey (%) SUSENAS-Under 6 HH (%) Bottom 40 69.01 51.90 Middle 40 24.25 36.15 Top 20 6.75 11.95 Source: World Bank team calculations Household Caregiver Survey and SUSENAS. Note: HH = Household. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 93 Annex 2. SUPPLEMENTARY DATA SOURCES QUALITATIVE INTERVIEWS The stakeholders in the care landscape in Indonesia who were sampled for the qualitative analysis were selected based on a desk review of the institutional framework for childcare service provision. The interviewees included a total of 200 individuals serving as government officials; care service providers; members of CSOs, NGOs, and business organizations; ECED workers; domestic workers; and grandparents (parents of migrant workers) in skip-generation arrangements. The participant profiles and key themes of the interviews with each subgroup are shown below (Annex Table 4). Each of these stakeholders provided a different insight to the childcare landscape in Indonesia. The interviews were semi-structured, following a set of guidance questions and interviewing methods that had been pre-tested, adapted, and organized around an implementation protocol. These included protocols for recording the conversations, note-taking, and transcription. Focus groups and in-depth interviews were inductively coded to extract significant concepts, themes, and patterns. These themes were subsequently organized into six analytical notes to construct a narrative from the viewpoint of key stakeholders. These narratives were later integrated with the quantitative findings. ANNEX TABLE 4. SUMMARY OF QUALITATIVE INTERVIEWS Group Participants Profile Regions (Provinces) Key Themes KIIs Government 18 Subdistrict government Java (central, east, Demand for care officials officials acting as and west), Sumatra services, current supervisor, curriculum (west and south), landscape and gaps; manager, and permits West Kalimantan, licensing, registration control officer South Sulawesi, and accreditation; costs, Bali, and DKI budgets and planning; Jakarta scope of work, workload, and responsibilities; and shortfalls, gaps, and issues 94 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Supplementary Data Sources Group Participants Profile Regions (Provinces) Key Themes NGOs 6 Local organizations East Java, DI Demand for care services providing direct care Yogyakarta, Jakarta, and factors affecting care services for families, and Sumatara (west service and care policies advocating for women and south) and working for the well-being of young children, adolescents, and mothers Care providers 25 Managers, teachers, Java (central, Demand for care services, and principals at care east, and west), care services, service centers West Kalimantan, quality, skill training, Sumatera (south registration and licensing, and west), Bali, and costs and budgets South Sulawesi, and DKI Jakarta FGDs Employees 65 Care center managers, West Kalimantan, Demand for care services, of ECED principals, teachers, East Java, West Java, care services, workload, institutions and caregivers working DKI Jakarta, Central service quality, skill in different types of Java, West Sumatra, training, registration and ECED centers Bali, and South licensing, and costs and Sulawesi budgets Domestic 32 Domestic workers Yogyakarta, East Perceptions about workers working in homes as Java, and DKI domestic work, skill and childcare providers Jakarta training to provide care, and work security Skip- 57 Grandparents of West Kalimantan, Childcare arrangement, generation children whose parents Java (west, central, demand for daycare, caregivers are migrant workers and east), Bali, community perceptions, South Sulawesi, and norms for care Sumatera (west and south), and DKI Jakarta Source: World Bank team. ONLINE SURVEY OF CARE PROVIDERS To gain insights into the childcare services market in Indonesia and the profiles and preferences of families utilizing these services, the World Bank collaborated with an Indonesian data collection firm to conduct a survey of childcare centers across Indonesia. The telephone-based survey consisted of two distinct modules—a ‘mystery shopper’, where enumerators acted as prospective parents looking for childcare services, and a follow-up research questionnaire. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 95 Supplementary Data Sources The ‘mystery shopper’ covers the types of services offered by the center, the associated costs, quality indicators, and information on availability. The research module is more comprehensive and includes questions about the characteristics of the facility, capacity, and enrollment; marketing, financial, and personnel information; the profile of the families served; and the constraints faced in accessing services. In the second module, the same centers were approached, but this time, they were informed they are part of a World Bank study on childcare availability. The primary respondents interviewed at each childcare center were either the facility manager or an individual responsible for the operational aspects. The sample of centers contacted by the data collection firm was chosen from the Data Pokok Pendidikan (Dapodik) database of Indonesia’s MoECRT. At the time of the survey, Dapodik included a total of 199,669 TK, KB, TPA, and other forms of early childcare education centers (Satuan Pendidikan Setara Lainnya or SPS). The number of centers sampled through proportionate stratified random sampling without replacement in each of the five regions (Balinusampua, Java, Kalimantan, Sulawesi, and Sumatera) was calculated to be proportional to the Java and off-Java distribution of centers. In the final sample, a total of 508 centers responded to the mystery shopper survey, and among them, 302 opted to participate in the research survey. Thus, the final matched sample (comprising centers that responded to both survey modules) used for data analysis consisted of 302 centers. Geographically, nearly 60 percent of these centers were in Java, almost 20 percent in Sumatera, 12 percent in Sulawesi, close to 7 percent in Balinusampua, and 2 percent in Kalimantan. Out of the 302 centers surveyed, only 8 were government operated, while the rest are privately owned entities. Notably, a substantial 86 percent of these private childcare facilities were managed by private NGOs, and the remainder were operated by for-profit providers. GLOBAL REVIEW OF CHILDCARE POLICIES Learning from the experiences of other countries is valuable for policy makers and stakeholders seeking to enhance ECEC systems. By examining strategies and innovative approaches implemented elsewhere, countries can gain insights into effective policies, programs, and incentives that promote a sustainable childcare landscape. Consequently, this understanding facilitates informed decision- making, thereby promoting continuous improvement and innovation in the childcare sector. To understand global care systems, an extensive landscape review of 17 economies was conducted (Annex Table 5). A typology was developed to help in this review, including supply-side factors shaping the care landscape. These elements, including access to daycare, affordability, and quality, were examined across three levels of implementation: program, project, and policy. Information was gathered across the typology during the review process, drawing from a range of sources including government policy and legal documents, national and international reports, policy briefs, research papers, and evaluation reports. Additionally, data from the ILO, UNESCO, OECD, and the World Bank were used to complement the information. 96 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Supplementary Data Sources All resources were thoroughly searched, and key information was extracted. Subsequently, an analysis was conducted to identify significant themes, trends, and insights across all resources. Finally, these findings were compared with the Indonesian context to uncover notable patterns and gaps within the care landscape. ANNEX TABLE 5. COUNTRIES COVERED IN THE GLOBAL POLICY REVIEW Countries Region High income United Kingdom Europe and Central Asia France Europe and Central Asia Japan East Asia and Pacific Canada (Quebec) North America Australia East Asia and Pacific Korea, Rep. East Asia and Pacific Upper middle income Malaysia East Asia and Pacific Thailand East Asia and Pacific Argentina Latin America and the Caribbean Brazil Latin America and the Caribbean Mexico Latin America and the Caribbean Lower middle income Cambodia East Asia and Pacific Myanmar East Asia and Pacific Laos East Asia and Pacific Philippines East Asia and Pacific Uzbekistan Europe and Central Asia Viet Nam East Asia and Pacific Source: World Bank team. REVIEW OF SELECTED EMPLOYER-SUPPORTED INITIATIVES IN INDONESIA The International Finance Corporation (IFC)-led study covered five company case studies to understand the case for employers to invest in care support for their employees. The companies were selected purposively to cover various industries and types of employer-provided childcare support. The companies’ management and human resources department were interviewed regarding the company’s operational context, workforce profile, experience of providing childcare supports, and the perceived business case for doing so. The study aimed to identify innovative employer-supported The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 97 Supplementary Data Sources schemes that could be used as models of good practice in Indonesia; provide lessons learned, guidance, and/or inspiration to other companies in Indonesia; and contribute to building the evidence base for the business case for investing in childcare supports. The sampled companies included Unilever Indonesia, Ungaran Sari Garments, Happy Bear Childcare Provider, YAVA Food Processing Company, and DBS Financial Services Group. Each study illustrated a different aspect of employer-supported childcare, including the following: • For Unilever Indonesia, supporting parents with childcare responsibilities is an integral part of being a purpose-driven organization and plays a key role in helping to achieve ambitious organizational targets for increasing gender diversity in management and leadership roles. Workers particularly value the range of support on offer starting with enhanced maternity and paternity leave to ease the transition into parenthood, followed by daycare which helps parents manage childcare responsibilities before children reach school age, and then flexible working, which helps parents manage the demands of older children. • USG’s ‘Women’s Empowerment’ program focuses on providing health and nutrition support to women workers. This intersects with childcare in several respects, including by supporting women during pregnancy and breastfeeding and providing support related to family health issues. At the same time, USG aims to provide predictability and flexibility to workers, to help them juggle work and caring responsibilities. • Happy Bear’s business model of a successful private childcare provider, combined with the provision of training and guidance for people who wish to open their own early education or daycare facility, offers an instructive example of how a private childcare provider can scale up. • YAVA demonstrates how a company’s investment in childcare can improve child welfare and support working families, women’s empowerment, and economic development for an isolated rural community while bringing multiple business benefits for the company, including stronger workforce productivity, improved recruitment and retention, and an enhanced profile with international buyers. • The DBS Indonesia case study illustrates how flexible human resources and rewards policies can benefit working parents and yield significant benefits for the employer. These benefits include better recruitment outcomes in a competitive market and increased employee engagement and satisfaction, which boost staff retention and productivity. 98 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Annex 3. ECONOMETRIC FRAMEWORK PROBIT AND MULTINOMIAL MODELS The probit and multinomial models are used for examining the relationship between the availability of childcare and women’s labor market outcomes. The categorical dependent variables are (a) participating in the labor market (= 1), 0 otherwise; (b) the probability of being employed (= 1), 0 otherwise; (c) having a formal job (= 1), 0 otherwise; (d) having a full-time job (= 1), 0 otherwise; (e) earnings in IDR (logarithmic scale); (f) sector of employment (agriculture = 1, manufacturing = 2, low- value-added services = 3, high-value-added services = 4); (g) walking to work (= 1), 0 otherwise; and (h) working from home (= 1), 0 otherwise. The model is given by Yi=β0+β1θ Cθi+βA Ai+βX Xi+εi,Yi*=I(Yi*>0) Yi*=I(Yi*>0) (1) where Yi represents the dependent variables listed above; Cθ ,θ = 0, 1, 2, 3, 4 is a categorical variable that takes the value of 0 if mothers have no childcare support (reference category), 1 if mothers have childcare support for 0–3 hours per day, 2 if mothers have childcare support for 3–6 hours per day, 3 if mothers have childcare support for 6–8 hours per day, and 4 if mothers have childcare support for 8 hours of childcare support per day or more, respectively; represents a vector of age group classification of children in the household, including household having children ages 0–12 months, 13–36 months, and 37–72 months; X represents a vector of control variables, including age, age squared, education level, conservativeness, household composition (family members ages 7–14 years, female members ages 15–64 years and 65 years and older, and male members ages 15–64 years and 65 years and older), and household socioeconomic status (bottom 40, middle 40, and top 20 percent of RPCE); geographic area (Java and non-Java); and location (urban versus rural), and ε is a vector of residuals. The estimation method is probit for all binary dependent variables, except for (e) earnings in IDR (logarithmic scale), which is estimated with an Ordinary Least Square (OLS) estimator, and (f) sector of employment, which is estimated with multinomial logit. For estimating the motherhood penalty in terms of (a) participating in the labor market, a restricted probit model is used, with the vector of age group classification of children in household, A, and the control variable, X. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 99 Econometric Framework SUR MODEL The SUR estimation accounts for the interdependence of the six activities: market work, domestic chores, care work, leisure, self-care, and other activities occurring within a 24-hour time frame. In this model, the six activity sets are simultaneously determined by the same set of explanatory variables and are jointly estimated as a system. Any change in the time allocated to one activity resulting from a variation in an exogenous variable must be compensated by a corresponding adjustment in the time devoted to other activities. Consequently, the sum of the intercepts across the six equations must equal the total number of hours in a day, that is, 24 hours. Additionally, to ensure that no unaccounted hours remain in a day, the sum of the coefficients for each explanatory variable should be zero. In this model, the three sets of activities are determined simultaneously by the same set of explanatory variables and are estimated jointly as a system: Tia=αa0+αa1θ Cθi+αaA Ai+αaX Xi+εi, (2) where Tia refers to the number of hours per day spent by individual i on activity = 1, 2, 3, 4, 5, 6 corresponding to market work, domestic chores, care work, leisure, self-care, and other activities, respectively, and , Cθ , θ = 0, 1, 2, 3, 4, and A, X and ε are as defined above. The model is estimated for each of the six activities captured in the time-use survey with an OLS estimator. For the motherhood penalty measured in terms of time spent on market work, a restricted SUR model is estimated with the vector of age group classification of children in household, , and the control variable, X. The time-use model in (2) must meet restrictions to capture the interdependence of activities = 1, 2, 3, 4, 5, and 6 performed in any given day. Any variation in the amount of time spent on one activity due to a change in an exogenous variable must be compensated by a corresponding change in the time spent on other activities. Hence, the sum of the intercepts of the six equations must equal the total number of hours in a day or 24 hours. In addition, the sum of the coefficients for each of the explanatory variables should be equal to zero to ensure that there are no unaccounted hours left in each day. These constraints are summarized below: 6 (3) 1 = 0; . . , 61 =0− 11 − 21 − 31 − 41 − 51 =1 6 = 0; . . , 6 =0− 1 − 2 − 3 − 4 − 5 =1 6 = 0; . . , 6 =0− 1 − 2 − 3 − 4 − 5 =1 6 0 = 24; . . , 60 = 24 − 10 − 20 − 30 − 40 − 50 =1 100 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Econometric Framework There are general arguments on whether to use Tobit or OLS to explain individuals’ time allocations using time diaries. We use the OLS approach because time-use specialists suggest it is more appropriate for analyzing time diary data, as suggested by Stewart (2013). The reported zeroes in any activity might be just measurement error rather than nonparticipation. Foster and Kalenkoski (2013) find that Tobit estimations are sensitive to censoring window. Nevertheless, we run Tobit regressions on time spent on secondary childcare with full control variables to check the consistency of the results with OLS estimates and confirm that they are consistent with the findings presented in this report. AIM-ECD As there are different targets for early childhood development at different ages, the household caregiver survey included a caregiver report of the AIM-ECD for children ages 48–72 months. However, because most young children in Indonesia do not participate in ECED, the resulting sample had limited observations with 613 children in the 48–72-months age group. With the AIM-ECD tool, mothers of children 48–72 months old are interviewed to indirectly measure the child’s development status through a series of 20 questions about the types of tasks that their child can perform. The questions can be answered with yes or no and coded as 1 if the child can do the tasks independently and 0 if the child cannot do a certain task. The binary responses for each question are added and divided by 20 to get a score for measuring each child’s development status, ranging between 0 and 1. There are no set cutoff points or a specified benchmark to gauge development, but a higher score on a scale of 0 to 1 indicates a higher developmental level. The OLS estimation is used for examining the relationship between children attending ECED institutions and their developmental outcomes. With the AIM-ECD development score (0 to 1) as the dependent variable, the model is given by Di=γ0+γ1θ Sθi+γX Xi+εi , (4) where D is the dependent variable as defined above; Sθ , is a categorical variable that takes the value of 0 if only the mothers take care of the children (reference category) and 1 if mothers have childcare support only from ECED institutions, 2 if mothers have childcare support only from other the family members, and 3 if mothers have childcare support from mixed sources; X represents a vector of control variables, including child’s age, child’s age squared, sex of the child, mother’s age, mother’s age squared, mother’s educational level, mother’s conservativeness, household composition (members ages 7–14 years, female members ages 15–64 years and 65 years and older, and male members ages 15–64 years and 65 years and older), and household socioeconomic status (bottom 40, middle 40, and top 20 percent of the RPCE); geographic area (Java and non-Java); and location (urban versus rural), and εi is a vector of residuals. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 101 Annex 6. REGRESSION RESULTS ANNEX TABLE 6. MARGINAL EFFECTS OF THE MOTHERHOOD PENALTY AND CORRELATION BETWEEN THE AVAILABILITY OF CHILDCARE AND LFP Motherhood LFP with Childcare   Penalty Support Estimation technique Probit Probit (1) (2) Ref: No help available     = 1 if mother got help less than 3 hours/day/child 0.0613* (0.0351) = 1 if mother got help 3 to less than 6 hours/day/child 0.0625 (0.0417) = 1 if mother got help 6 to less than 8 hours/day/child 0.104* (0.0592) = 1 if mother got help 8 or longer hours/day/child 0.288*** (0.0463) Mother’s age 0.0182 0.0176 (0.0149) (0.0151) Mother’s age squared −0.00018 −0.000165 (0.00022) (0.000227) Ref: Elementary school or lower = 1 if completed middle school 0.009 0.0106 (0.0271) (0.0265) = 1 if completed high school 0.007 0.000216 (0.0437) (0.0429) = 1 if completed university 0.2265*** 0.199*** (0.0491) (0.0492) Mother’s conservative score −0.0139*** −0.0124*** (0.0042) (0.00415) 102 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Regression Results Motherhood LFP with Childcare   Penalty Support = 1 if HH has child age 0–12 months −0.2054*** −0.188*** (0.0395) (0.0363) = 1 if HH has child age 13–36 months −0.0484 −0.0375 (0.0371) (0.0336) = 1 if HH has child age 37–72 months 0.0371 0.0342 (0.0336) (0.0329) Total children ages 7–14 years 0.0407** 0.0403** (0.0159) (0.0153) Total females ages 15-64 years 0.0353** 0.0159 (0.0172) (0.0188) Total females ages 65+ years 0.0573 0.0503 (0.0427) (0.0433) Total males ages 15–64 years −0.0259** −0.0353** (0.0176) (0.0162) Total males ages 65+ years −0.0417 −0.0546 (0.0467) (0.0472) Ref: Bottom 40 = 1 if middle 40 0.0524* 0.0496* (0.0259) (0.0254) = 1 if top 20 0.0524* 0.0528 (0.0412) (0.0420) = 1 if urban −0.0319 −0.0314 (0.0316) (0.0294) = 1 if Java −0.0128 −0.0169 (0.0448) (0.0402) Observations 2,942 2,942 Note: Standard errors in parentheses. ***p < .01, **p < .05, *p < .1. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 103 Regression Results ANNEX TABLE 7. MARGINAL EFFECTS OF CORRELATION BETWEEN THE AVAILABILITY OF CHILDCARE AND TYPES OF JOBS OF MOTHERS, CONDITIONAL ON MOTHER’S EMPLOYMENT Full-Time Jobs Total Earnings (in Formal Jobs = 1 =1 IDR) Estimation technique Probit Probit Log-level   (1) (2) (3) Ref: No help available   = 1 if mother got help less than 3 hours/day/child −0.00932 −0.103** −0.118 (0.0522) (0.0453) (0.152) = 1 if mother got help 3 to less than 6 hours/day/child 0.0134 −0.122** 0.00572 (0.0568) (0.0476) (0.117) = 1 if mother got help 6 to less than 8 hours/day/child 0.0130 −0.0283 0.130 (0.0550) (0.0695) (0.177) = 1 if mother got help 8 or longer hours/day/child 0.147** 0.201*** 0.656*** (0.0555) (0.0518) (0.139) Mother’s age 0.0154 0.0191 −0.0529 (0.0185) (0.0267) (0.0534) Mother’s age squared −0.000300 −0.000221 0.000921 (0.000287) (0.000395) (0.000743) = 1 if completed middle school −0.0417 0.0813 0.179 (0.0502) (0.0594) (0.161) = 1 if completed high school 0.0232 0.0684 0.168 (0.0445) (0.0570) (0.132) = 1 if completed university 0.361*** −0.00188 0.530*** (0.0468) (0.0733) (0.188) Mother’s conservative score −0.0147** −0.0208*** −0.0171 (0.00563) (0.00645) (0.0146) = 1 if HH has child age 0–12 months −0.00820 0.0481 −0.0468 (0.0463) (0.0429) (0.135) = 1 if HH has child age 13–36 months −0.0183 0.0263 −0.0794 (0.0377) (0.0478) (0.130) = 1 if HH has child age 37–72 months −0.0183 0.0632 −0.00506 (0.0395) (0.0490) (0.136) Total children ages 7–14 years 0.0159 0.0278 0.191*** (0.0176) (0.0295) (0.0589) 104 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Regression Results Full-Time Jobs Total Earnings (in Formal Jobs = 1 =1 IDR) Total females ages 15–64 years 0.0202 0.0675*** 0.174** (0.0260) (0.0239) (0.0717) Total females ages 65+ years −0.0777 0.0724 0.212* (0.0621) (0.0684) (0.125) Total males ages 15–64 years −0.0234 0.0296 0.0148 (0.0215) (0.0389) (0.0638) Total males ages 65+ years −0.0525 −0.0524 −0.354** (0.0500) (0.0648) (0.171) = 1 if middle 40 0.0276 0.0737** 0.390*** (0.0310) (0.0358) (0.107) = 1 if top 20 0.0702 0.114* 0.868*** (0.0531) (0.0658) (0.143) = 1 if urban 0.0147 0.0364 −0.152* (0.0259) (0.0348) (0.0845) = 1 if Java 0.0370 −0.0566 −0.0165 (0.0309) (0.0353) (0.0873) Constant 13.87*** (0.955) Observations 1,231 1,231 974 Note: Standard errors in parentheses. ***p < .01, **p < .05, *p < .1. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 105 Regression Results ANNEX TABLE 8. MARGINAL EFFECTS OF CORRELATION BETWEEN THE AVAILABILITY OF CHILDCARE AND SECTOR OF JOB OF MOTHERS, CONDITIONAL ON MOTHERS’ EMPLOYMENT Sector of Employment Low-VA High-VA Agriculture Manufacturing Services Services Estimation technique Multinomial logit   (1) (2) (3) (4) Ref: No help available         = 1 if mother got help less than 3 hours/ 0.0286 0.0345 −0.0613 −0.00177 day/child (0.0433) (0.0395) (0.0490) (0.0204) = 1 if mother got help 3 to less than 6 0.0449 0.0275 −0.0867* 0.0142 hours/day/child (0.0348) (0.0389) (0.0455) (0.0211) = 1 if mother got help 6 to less than 8 0.0771 0.0517 −0.117** −0.0113 hours/day/child (0.0492) (0.0548) (0.0569) (0.0245) = 1 if mother got help 8 or longer −0.00219 0.0705 −0.0866* 0.0183 hours/day/child (0.0416) (0.0429) (0.0467) (0.0243) Mother’s age 0.00355 −0.00299 0.00657 −0.00714 (0.0144) (0.0147) (0.0215) (0.00661) Mother’s age squared −3.20e−06 −1.39e−05 −7.15e−05 8.86e−05 (0.000214) (0.000217) (0.000326) (0.000112) = 1 if completed middle school −0.0496 −0.0582 0.112** −0.00429 (0.0402) (0.0424) (0.0502) (0.0255) = 1 if completed high school −0.096*** −0.0440 0.127*** 0.0133 (0.0274) (0.0489) (0.0445) (0.0185) = 1 if completed university −0.156*** −0.198*** 0.332*** 0.0213 (0.0323) (0.0654) (0.0654) (0.0179) Mother’s conservative score 0.00356 −0.00129 −0.00326 0.000980 (0.00354) (0.00629) (0.00643) (0.00182) = 1 if HH has child age 0–12 months −0.141** −0.0756 0.225*** −0.00811 (0.0636) (0.0451) (0.0696) (0.0199) = 1 if HH has child age 13–36 months −0.0507 −0.0566 0.113** −0.00533 (0.0479) (0.0511) (0.0473) (0.0172) 106 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Regression Results Sector of Employment Low-VA High-VA Agriculture Manufacturing Services Services = 1 if HH has child age 37–72 months 0.0247 −0.103** 0.0925** −0.0141 (0.0414) (0.0478) (0.0416) (0.0148) Total children ages 7–14 years −0.0532** 0.0568*** 0.000472 −0.00402 (0.0202) (0.0205) (0.0252) (0.00999) Total females ages 15–64 years −0.0205 −0.0476* 0.0785*** −0.0104 (0.0188) (0.0253) (0.0222) (0.00991) Total females ages 65+ years −0.0593 −0.117** 0.191*** −0.0141 (0.0465) (0.0563) (0.0667) (0.0270) Total males ages 15–64 years −0.0608** 0.0171 0.0650** −0.0212 (0.0227) (0.0218) (0.0267) (0.0175) Total males ages 65+ years 0.0185 0.0638 −0.0532 −0.0292 (0.0344) (0.0398) (0.0434) (0.0270) = 1 if middle 40 −0.146*** 0.0452 0.0849* 0.0157 (0.0363) (0.0286) (0.0460) (0.0153) = 1 if top 20 −0.238** 0.0411 0.151* 0.0455*** (0.0930) (0.0605) (0.0753) (0.0143) = 1 if urban −0.148*** 0.0774*** 0.0427 0.0278 (0.0473) (0.0264) (0.0485) (0.0201) = 1 if Java −0.0866* 0.0784** 0.0123 −0.00413 (0.0456) (0.0386) (0.0513) (0.0153) Observations 1,231 1,231 1,231 1,231 Note: Standard errors in parentheses. ***p < .01, **p < .05, *p < .1. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 107 Regression Results ANNEX TABLE 9. MARGINAL EFFECTS OF CORRELATION BETWEEN THE AVAILABILITY OF CHILDCARE AND WORKPLACE AND MODE OF TRANSPORTATION OF MOTHERS, CONDITIONAL ON MOTHERS’ EMPLOYMENT Working outside Walking to Workplace Home = 1 =1 Estimation technique Probit Probit   (1) (2) Ref: No help available     = 1 if mother got help less than 3 hours/day/child 0.0299 −0.0992 (0.0618) (0.0788) = 1 if mother got help 3 to less than 6 hours/day/child 0.0629 −0.0778 (0.0635) (0.0607) = 1 if mother got help 6 to less than 8 hours/day/child 0.0721 −0.177** (0.0654) (0.0672) = 1 if mother got help 8 or longer hours/day/child 0.143** −0.230*** (0.0606) (0.0691) Mother’s age 0.0169 −0.0140 (0.0167) (0.0178) Mother’s age squared −0.000270 0.000227 (0.000260) (0.000271) = 1 if completed middle school −0.0109 −0.0556 (0.0435) (0.0416) = 1 if completed high school −0.0461 −0.104*** (0.0467) (0.0328) = 1 if completed university 0.287*** −0.366*** (0.0589) (0.0531) Mother’s conservative score −0.0151** 0.0172** (0.00704) (0.00663) = 1 if HH has child age 0–12 months −0.0736 0.144*** (0.0490) (0.0397) = 1 if HH has child age 13–36 months −0.0771* 0.147*** (0.0445) (0.0427) = 1 if HH has child age 37–72 months 0.0425 0.0497 (0.0417) (0.0422) Total children ages 7–14 years −0.0282 0.0163 (0.0247) (0.0212) 108 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Regression Results Working outside Walking to Workplace Home = 1 =1 Total females ages 15–64 years 0.0202 −0.0345 (0.0342) (0.0209) Total females ages 65+ years −0.00802 −0.0887 (0.0873) (0.0779) Total males ages 15–64 years −0.0419 0.0284 (0.0283) (0.0310) Total males ages 65+ years −0.0995 0.109* (0.0595) (0.0623) = 1 if middle 40 percent −0.0900** 0.00991 (0.0368) (0.0405) = 1 if top 20 percent 0.0105 −0.0850 (0.0680) (0.0581) = 1 if urban −0.166*** 0.121*** (0.0490) (0.0400) = 1 if Java −0.00895 0.0850* (0.0464) (0.0436) Observations 1,231 1,231 Note: Standard errors in parentheses. ***p < .01, **p < .05, *p < .1. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 109 Regression Results ANNEX TABLE 10. SURS FOR TIME-USE ACTIVITIES (1) (2) (3) (4) (5) (6)   Market Domestic Care Other Leisure Self-Care Work Chores Work Activities = 1 if HH has child age 0–12 −1.03*** −0.06 2.77*** −0.64*** −0.44*** −0.6*** months (0.24) (0.12) (0.26) (0.14) (0.16) (0.13) = 1 if HH has child age 13–36 −0.29 0.15 1.05*** −0.33*** −0.29** −0.3*** months (0.22) (0.13) (0.23) (0.10) (0.14) (0.11) = 1 if HH has child age 37–72 0.18 0.10 −0.51** 0.05 0.17 0.01 months (0.21) (0.11) (0.21) (0.12) (0.11) (0.12) Mother’s age 0.08 0.04 0.19** −0.08 −0.15** −0.08* (0.07) (0.05) (0.09) (0.05) (0.06) (0.05) Mother’s age squared −0.00 −0.00 −0.00** 0.00 0.00* 0.002** (0.00) (0.00) (0.00) (0.00) (0.00) (0.001) = 1 if completed middle school −0.17 0.09 0.41** −0.25** −0.31** 0.23** (0.20) (0.11) (0.16) (0.12) (0.13) (0.11) = 1 if completed high school −0.15 0.09 0.19 −0.27** −0.27* 0.42*** (0.20) (0.11) (0.20) (0.12) (0.14) (0.1) = 1 if completed university 0.67** −0.32* 0.44 −0.82*** −0.46** 0.48*** (0.33) (0.16) (0.27) (0.20) (0.20) (0.13) Mother’s conservative score −0.10*** 0.01 0.04 0.02 −0.01 0.03 (0.02) (0.02) (0.03) (0.02) (0.02) (0.02) Total children ages 7–14 years 0.11 0.05 −0.20* 0.05 −0.10 0.09 (0.09) (0.06) (0.10) (0.06) (0.07) (0.07) Total females ages 15–64 years 0.23** −0.24*** 0.13 0.02 0.03 −0.17*** (0.09) (0.06) (0.13) (0.10) (0.07) (0.06) Total females ages 65+ years 0.38 −0.07 0.30 −0.33** −0.10 −0.18 (0.24) (0.14) (0.27) (0.13) (0.17) (0.13) Total males ages 15–64 years 0.02 0.07 0.09 −0.03 −0.08 −0.07 (0.11) (0.07) (0.11) (0.07) (0.07) (0.07) Total males ages 65+ years 0.21 −0.17 0.05 −0.33*** 0.05 0.19 (0.25) (0.12) (0.23) (0.12) (0.17) (0.18) 110 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Regression Results (1) (2) (3) (4) (5) (6)   Market Domestic Care Other Leisure Self-Care Work Chores Work Activities = 1 if middle 40 0.24 −0.08 −0.55*** 0.35*** 0.02 0.02 (0.18) (0.10) (0.16) (0.11) (0.10) (0.11) = 1 if top 20 −0.07 −0.20 −0.14 0.52** −0.00 −0.1 (0.30) (0.15) (0.31) (0.21) (0.15) (0.2) = 1 if urban −0.27 0.06 0.25 0.37** −0.18 −0.23* (0.22) (0.13) (0.17) (0.16) (0.12) (0.12) = 1 if Java −0.48* −0.01 0.85*** −0.35* −0.63*** 0.62*** (0.25) (0.15) (0.25) (0.19) (0.18) (0.17) Constant 0.82 1.85** 1.91 4.26*** 12.59*** 2.6*** (1.14) (0.81) (1.53) (0.82) (1.21) (0.83) Observations 2,942 2,942 2,942 2,942 2,942 2,942 Note: Standard errors in parentheses. ***p < .01, **p < .05, *p < .1. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 111 Regression Results ANNEX TABLE 11. SUR FOR AVAILABILITY OF CHILDCARE AND TIME-USE ACTIVITIES (1) (2) (3) (4) (5) (6)   Domestic Care Other Market Work Leisure Self-Care Chores Work Activities Ref: No help available           = 1 if mother got help less than −0.20 −0.09 0.35 0.09 −0.35** 0.21* 3 hours/day/child (0.24) (0.13) (0.30) (0.15) (0.15) (0.11) = 1 if mother got help 3 to less −0.20 −0.28** 0.35 0.15 −0.21 0.19* than 6 hours/day/child (0.23) (0.14) (0.29) (0.16) (0.15) (0.12) = 1 if mother got help 6 to less −0.08 −0.21 0.27 0.25 −0.61*** 0.37** than 8 hours/day/child (0.34) (0.20) (0.25) (0.19) (0.17) (0.16) = 1 if mother got help 8 or 1.45*** −0.62*** −0.04 −0.24 −0.60*** 0.06 longer hours/day/child (0.39) (0.15) (0.28) (0.21) (0.16) (0.16) = 1 if HH has child age 0–12 −0.93*** −0.10 2.76*** −0.65*** −0.48*** −0.6*** months (0.22) (0.12) (0.26) (0.13) (0.16) (0.12) = 1 if HH has child age 13–36 −0.23 0.13 1.04*** −0.34*** −0.31** −0.3*** months (0.21) (0.12) (0.23) (0.10) (0.13) (0.11) = 1 if HH has child age 37–72 0.18 0.10 −0.52** 0.04 0.19* 0.004 months (0.21) (0.11) (0.21) (0.12) (0.11) (0.12) Mother’s age 0.07 0.04 0.19** −0.08 −0.15** −0.08* (0.07) (0.05) (0.09) (0.05) (0.06) (0.05) Mother’s age squared −0.00 −0.00 −0.00** 0.00 0.00* 0.002* (0.00) (0.00) (0.00) (0.00) (0.00) (0.001) = 1 if completed middle school −0.15 0.09 0.40** −0.26** −0.31** 0.23** (0.20) (0.11) (0.16) (0.12) (0.13) (0.11) = 1 if completed high school −0.18 0.10 0.19 −0.27** −0.26* 0.41*** (0.21) (0.11) (0.19) (0.12) (0.14) (0.11) = 1 if completed university 0.52 −0.25 0.46* −0.80*** −0.41* 0.48*** (0.34) (0.16) (0.27) (0.20) (0.20) (0.14) Mother’s conservative score −0.08*** 0.01 0.04 0.02 −0.01 0.03 (0.02) (0.02) (0.03) (0.02) (0.02) (0.02) 112 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Regression Results (1) (2) (3) (4) (5) (6)   Domestic Care Other Market Work Leisure Self-Care Chores Work Activities Total children ages 7–14 years 0.12 0.05 −0.21** 0.05 −0.10 0.09 (0.09) (0.07) (0.10) (0.06) (0.07) (0.06) Total females ages 15–64 years 0.12 −0.20*** 0.15 0.04 0.07 −0.17*** (0.09) (0.06) (0.14) (0.10) (0.06) (0.06) Total females ages 65+ years 0.30 −0.05 0.32 −0.32** −0.08 −0.18 (0.25) (0.14) (0.27) (0.13) (0.17) (0.13) Total males ages 15–64 years −0.01 0.10 0.08 −0.04 −0.05 −0.09 (0.10) (0.07) (0.11) (0.07) (0.07) (0.07) Total males ages 65+ years 0.14 −0.14 0.05 −0.31** 0.07 0.19 (0.24) (0.12) (0.22) (0.12) (0.18) (0.18) = 1 if middle 40 0.23 −0.06 −0.56*** 0.35*** 0.02 0.02 (0.18) (0.10) (0.16) (0.11) (0.10) (0.11) = 1 if top 20 −0.13 −0.17 −0.14 0.52** 0.02 −0.11 (0.30) (0.14) (0.30) (0.21) (0.15) (0.2) = 1 if urban −0.27 0.06 0.24 0.37** −0.17 −0.23* (0.21) (0.12) (0.17) (0.16) (0.12) (0.12) = 1 if Java −0.45* 0.00 0.81*** −0.36* −0.60*** 0.6*** (0.23) (0.14) (0.25) (0.19) (0.17) (0.18) Constant 0.87 1.98** 1.72 4.18*** 12.83*** 2.42*** (1.19) (0.85) (1.55) (0.83) (1.20) (0.83) Observations 2,942 2,942 2,942 2,942 2,942 2,942 Note: Standard errors in parentheses. ***p < .01, **p < .05, *p < .1. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being 113 Regression Results ANNEX TABLE 12. CHILDREN’S DEVELOPMENT SCORES AND SOURCES OF CHILDCARE SUPPORT AVAILABLE Coefficient  Ref: Only mother = 1 if mother with ECED institutions 0.0992*** (0.0316) = 1 if mother with other family members 0.0144 (0.0254) = 1 if mixed or mother with nonfamily members 0.122*** (0.0314) Child’s age (in months) 0.0112 (0.0164) Child’s age (in months) squared −1.55e−05 (0.000138) = 1 if child is male −0.0282** (0.0136) Mother’s age −0.00999 (0.0100) Mother’s age squared 0.000106 (0.000137) = 1 if completed middle school 0.0231 (0.0302) = 1 if completed high school 0.0329 (0.0276) = 1 if completed university 0.0520* (0.0307) Mother’s conservative score 0.00274 (0.00281) Total children ages 7–14 years 0.00876 (0.0131) Total females ages 15–64 years 0.0192 (0.0169) Total females ages 65+ years −0.00506 (0.0260) 114 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being Regression Results Coefficient  Total males ages 15–64 years −0.00153 (0.00993) Total males ages 65+ years −0.0120 (0.0306) = 1 if middle 40 0.0377** (0.0166) = 1 if top 20 0.0212 (0.0328) = 1 if urban −0.0362** (0.0137) = 1 if Java 0.0218 (0.0184) Constant 0.204 (0.500) Observations 613 R-squared 0.309 Note: Standard errors in parentheses. ***p < .01, **p < .05, *p < .1. 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Treleaven. 2020. “The Rise and Prominence of Skip-Generation Households in Lower- and Middle-Income Countries.” Population and Development Review 46 (4): 709–733. 120 The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being The care economy—the sector of economic activities related to providing care, including paid and unpaid labor and services—is critical to women’s entry and retention in the workforce and to promoting social well- being. Indonesia has made a series of commitments to address the work-care nexus and build a vibrant care economy by 2045. The Care Economy in Indonesia: A Pathway for Women’s Economic Participation and Social Well-being provides a comprehensive assessment of Indonesia’s care ecosystem, with a focus on childcare, and makes practical recommendations for the government, private sector, and other stakeholders.