Publication: Indonesia's Decentralization After Crisis
Date
2000-09
ISSN
Published
2000-09
Author(s)
Ma, Jun
Hofman, Bert
Abstract
In 1999, the Indonesian Parliament
adopted two laws requiring that drastic decentralization
measures be implemented in fiscal 2001 in a "big
bang" fashion. Several lessons can be drawn from
Indonesia's experience. 1) Ideally, decentralization
should be managed so that the devolution of fiscal resources
occurs in line with the devolution of spending. In reality,
politics determines the devolution of resources, often with
little regard for spending responsibilities. 2) Spending
responsibilities can be devolved to a level of government in
line with its administrative capacities. 3) Every effort
should be made to avoid delays in establishing regulations
that detail the responsibilities of various levels of
government. 4) Local governments should be assigned one or a
few substantive taxes over which they have some rate of
autonomy, to ensure local accountability and fiscal discipline.
Citation
“Ma, Jun; Hofman, Bert. 2000. Indonesia's Decentralization After Crisis. PREM Notes; No. 43. © World Bank, Washington, DC. http://hdl.handle.net/10986/11424 License: CC BY 3.0 IGO.”