Lewis, Blane D.Smoke, Paul2017-09-082017-09-082008-06https://hdl.handle.net/10986/28248This paper provides background for the Government of Indonesia as it considers if and how to introduce more robust local government performance incentives into the intergovernmental fiscal framework. The next section briefly examines the forces that have driven the recent national wave of interest in improving local government performance. This is followed by a review of the relatively limited set of local government performance incentives currently in force in Indonesia. The fourth section provides a conceptual overview of how to think about the possible expansion of local government incentive programs, outlining the potential role(s) of such programs in general and the key issues involved in designing and implementing them. The fifth section tentatively considers a number of options for additional local government incentives in Indonesia that the central government may wish to consider pursuing. The paper concludes with an outline of next steps for moving forward with the possible development of more purposeful and meaningful performance incentives in Indonesia's intergovernmental fiscal framework.en-USCC BY 3.0 IGOACCESS TO LOANSACCOUNTINGANNUAL BUDGETARREARSBANK ACCOUNTBANK DEPOSITSBENEFIT SPILLOVERSBENEFITS OF DECENTRALIZATIONBUDGET CONSTRAINTBUDGET CYCLEBUDGET ESTIMATESBUDGET PERFORMANCEBUDGETINGBUSINESS CYCLECAPACITY BUILDINGCAPITAL EXPENDITURESCAPITAL INVESTMENTCAPITAL SPENDINGCENTRAL AGENCIESCENTRAL AGENCYCENTRAL GOVERNMENTCENTRAL GOVERNMENT BUDGETCENTRAL GOVERNMENT OFFICIALSCENTRAL GOVERNMENT POLICIESCENTRAL GOVERNMENTSCENTRAL TAXCITIZEN COMPLAINTSCIVIL SOCIETYCOMMERCIAL BANKCONSTITUTIONAL PROVISIONDEBT LIMITSDEBT RESTRUCTURINGDEBT SERVICEDECENTRALIZATIONDECENTRALIZATION FRAMEWORKDECENTRALIZATION PROCESSDECISION MAKINGDEFICITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDISBURSEMENTDISBURSEMENTSECONOMIC DEVELOPMENTEQUALIZATION FORMULAEQUALIZATION FUNDSEXPENDITUREEXPENDITURE DATAEXPENDITURE NEEDSEXPENDITURESFINANCIAL MANAGEMENTFINANCIAL REPORTSFINANCIAL RESOURCESFISCAL CAPACITYFISCAL DISCIPLINEFISCAL DISPARITIESFISCAL EQUALIZATIONFISCAL FRAMEWORKFISCAL GAPFISCAL INCENTIVESFISCAL MANAGEMENTFISCAL OUTCOMESFISCAL PERFORMANCEFISCAL PLANNINGFISCAL RESOURCESFISCAL SURPLUSESFISCAL SYSTEMFISCAL TRANSFERSGOVERNANCE MECHANISMSGOVERNMENT AGENCYGOVERNMENT BANKGOVERNMENT BUDGETINGGOVERNMENT BUDGETSGOVERNMENT CAPACITYGOVERNMENT CONTROLGOVERNMENT DATAGOVERNMENT DEBTGOVERNMENT REGULATIONGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SPENDINGGOVERNMENT SUPPORTHARD BUDGETHARD BUDGET CONSTRAINTHOLDINGINCENTIVE STRUCTUREINCENTIVE SYSTEMINSTRUMENTINTERGOVERNMENTAL FISCAL RELATIONSINTERGOVERNMENTAL FISCAL SYSTEMINTERGOVERNMENTAL FRAMEWORKINTERGOVERNMENTAL REFORMINTERGOVERNMENTAL RELATIONSINTERGOVERNMENTAL TRANSFERINTERGOVERNMENTAL TRANSFERSLEGAL SYSTEMLENDING AGREEMENTLITERACY RATESLOANLOAN REPAYMENTLOCAL ACCOUNTABILITYLOCAL AUTHORITYLOCAL AUTONOMYLOCAL BUDGETLOCAL DEVELOPMENTLOCAL ELECTIONSLOCAL EXPENDITURESLOCAL GOVERNANCELOCAL GOVERNMENTLOCAL GOVERNMENT AUTONOMYLOCAL GOVERNMENT BORROWINGLOCAL GOVERNMENT BUDGETSLOCAL GOVERNMENT CAPACITYLOCAL GOVERNMENT DEBTLOCAL GOVERNMENT DEVELOPMENTLOCAL GOVERNMENT EXPENDITURESLOCAL GOVERNMENT FISCAL BEHAVIORLOCAL GOVERNMENT OFFICIALSLOCAL GOVERNMENT PERFORMANCELOCAL GOVERNMENT REVENUELOCAL GOVERNMENT SERVICE DELIVERYLOCAL GOVERNMENT SPENDINGLOCAL GOVERNMENT TAXESLOCAL GOVERNMENTSLOCAL OFFICIALSLOCAL OWN-SOURCELOCAL OWN-SOURCE REVENUESLOCAL REVENUELOCAL REVENUESLOCAL SERVICESLOCAL TAXLOCAL TAX ADMINISTRATIONLOCAL TAX BASELOCAL TRANSFERSMINISTRY OF FINANCEMORAL HAZARDNATIONAL ELECTIONSNATIONAL GOVERNMENT REVENUENATIONAL POLICIESNATIONAL REVENUESPOLICY DEVELOPMENTPOLICY ENVIRONMENTPOLICY MAKERSPOLICY OBJECTIVESPROPERTY TAXPROPERTY TAX REVENUESPROVINCEPROVINCESPROVINCIAL LEVELPUBLIC EDUCATIONPUBLIC INFORMATIONPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICESRECORD KEEPINGREGIONAL GOVERNMENTSREPAYMENT INCENTIVERESERVERESERVE FUNDRESERVE FUNDSRESERVESRETURNSREVENUE COLLECTIONREVENUE PERFORMANCEREVENUE SHARINGREVENUE SOURCESALES TAXSECTORAL MINISTRIESSERVICE DELIVERYSERVICE STANDARDSSOCIAL SERVICESSUB-NATIONALSUB-NATIONAL GOVERNMENTSUB-NATIONAL GOVERNMENT EXPENDITURESUB-NATIONAL GOVERNMENTSSUB-NATIONAL LENDINGSUBNATIONALSUBNATIONAL GOVERNMENTSUBNATIONAL GOVERNMENT EXPENDITURETAXTAX ADMINISTRATIONTAX BASETAX COLLECTIONTAX EFFORTTAX INCENTIVESTAX OFFICESTAX REVENUETAX REVENUESTAX TRANSFERSTRANSPARENCYTYPES OF DECENTRALIZATIONUSER CHARGESReportWorld Bank10.1596/28248