TY - JOUR
T1 - The yearly financing need of providing paid maternity leave in the informal sector in Indonesia
AU - Siregar, Adiatma Y.M.
AU - Pitriyan, Pipit
AU - Hardiawan, Donny
AU - Zambrano, Paul
AU - Vilar-Compte, Mireya
AU - Belismelis, Graciela Ma Teruel
AU - Moncada, Meztli
AU - Tamayo, David
AU - Carroll, Grace
AU - Perez-Escamilla, Rafael
AU - Mathisen, Roger
N1 - Funding Information:
This research was supported by Alive & Thrive, an initiative managed by FHI 360 and funded by the Bill & Melinda Gates Foundation. This research was supported in part by Bill & Melinda Gates Foundation (PI: Lapping; Grant Number OPP50838). The BBF project is funded by The Family Larsson-Rosenquist Foundation through a grant to Yale University (PI, Rafael Pérez-Escamilla). Yale University has received a one-off grant for BBF by the Family Larsson-Rosenquist Foundation. Selection of test sites for BBF has been within the sole and full discretion of Yale University. There is no agreement for follow-on funding based on results and all results of BBF must be made publicly available. The Family Larsson-Rosenquist Foundation is an independent foundation set up in 2013 by the Larsson family and it functions strictly in line with the Swiss law. The foundation pursues charitable objectives and acts completely independent from the companies it owns assets of. As such, no member of the board of the Family Larsson-Rosenquist foundation has a commercial role within the field of breastfeeding. The foundation owns the Olle Larsson Holding, which comprises several companies, including a property investment portfolio, and medical technology companies, such as Medela. Regardless of these assets, the foundation can receive funding from different sources.
Publisher Copyright:
© 2021, The Author(s).
PY - 2021/12
Y1 - 2021/12
N2 - Background: The economic cost of not breastfeeding in Indonesia is estimated at US$1.5–9.4 billion annually, the highest in South East Asia. Half of the 33.6 million working women of reproductive age (WRA) in Indonesia (15–49 years) are informal employees, meaning they are working as casual workers or they are self-employed (small scale business) and assisted by unpaid/family worker(s). No specific maternity protection entitlements are currently available for WRA working informally in Indonesia. This study aims to estimate the financing need of providing maternity leave cash transfer (MCT) for WRA working in the informal sector in Indonesia. Method: The costing methodology used is the adapted version of the World Bank methodology by Vilar-Compte et al, following pre-set steps to estimate costs using national secondary data. We used the 2018 Indonesian National Socio-Economic Survey to estimate the number of women working informally who gave birth within the last year. The population covered, potential cash transfer’s unitary cost, the incremental coverage of the policy in terms of time and coverage, and the administrative costs were used to estimate the cost of MCT for the informal sector. Result: At 100% coverage for 13 weeks of leave, the yearly financing need of MCT ranged from US$175million (US$152/woman) to US$669million (US$583/woman). The share of the yearly financing need did not exceed 0.5% of Indonesian Gross Domestic Product (GDP). Conclusions: The yearly financing need of providing MCT for eligible WRA working in the informal sector is economically attractive as it amounts to less than 0.5% of GDP nominal of Indonesia. While such a program would be perceived as a marked increase from current public health spending at the onset, such an investment could substantially contribute to the success of breastfeeding and substantial corresponding public health savings given that more than half of working Indonesian WRA are employed in the informal sector. Such policies should be further explored while taking into consideration realistic budget constraints and implementation capacity.
AB - Background: The economic cost of not breastfeeding in Indonesia is estimated at US$1.5–9.4 billion annually, the highest in South East Asia. Half of the 33.6 million working women of reproductive age (WRA) in Indonesia (15–49 years) are informal employees, meaning they are working as casual workers or they are self-employed (small scale business) and assisted by unpaid/family worker(s). No specific maternity protection entitlements are currently available for WRA working informally in Indonesia. This study aims to estimate the financing need of providing maternity leave cash transfer (MCT) for WRA working in the informal sector in Indonesia. Method: The costing methodology used is the adapted version of the World Bank methodology by Vilar-Compte et al, following pre-set steps to estimate costs using national secondary data. We used the 2018 Indonesian National Socio-Economic Survey to estimate the number of women working informally who gave birth within the last year. The population covered, potential cash transfer’s unitary cost, the incremental coverage of the policy in terms of time and coverage, and the administrative costs were used to estimate the cost of MCT for the informal sector. Result: At 100% coverage for 13 weeks of leave, the yearly financing need of MCT ranged from US$175million (US$152/woman) to US$669million (US$583/woman). The share of the yearly financing need did not exceed 0.5% of Indonesian Gross Domestic Product (GDP). Conclusions: The yearly financing need of providing MCT for eligible WRA working in the informal sector is economically attractive as it amounts to less than 0.5% of GDP nominal of Indonesia. While such a program would be perceived as a marked increase from current public health spending at the onset, such an investment could substantially contribute to the success of breastfeeding and substantial corresponding public health savings given that more than half of working Indonesian WRA are employed in the informal sector. Such policies should be further explored while taking into consideration realistic budget constraints and implementation capacity.
KW - Breastfeeding
KW - Costing
KW - Indonesia
KW - Informal sector
KW - Maternity cash transfer
KW - Maternity leave
KW - Maternity protection
UR - http://www.scopus.com/inward/record.url?scp=85101483531&partnerID=8YFLogxK
U2 - 10.1186/s13006-021-00363-7
DO - 10.1186/s13006-021-00363-7
M3 - Article
C2 - 33588917
AN - SCOPUS:85101483531
SN - 1746-4358
VL - 16
JO - International Breastfeeding Journal
JF - International Breastfeeding Journal
IS - 1
M1 - 17
ER -