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Indonesia: Managing Decentralization

Author

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  • Mr. Ehtisham Ahmad
  • Mr. Ali M. Mansoor

Abstract

The process of decentralization in Indonesia was initiated after a long period of autocratic rule. Despite the political imperatives, there is a need to carefully sequence the fiscal decentralization to ensure that financing follows the assignment of functions. The functions should be commensurate with the capacity to provide public services. The paper argues for the proper sequencing to avoid jeopardizing macroeconomic stability or the effective delivery of public services.

Suggested Citation

  • Mr. Ehtisham Ahmad & Mr. Ali M. Mansoor, 2002. "Indonesia: Managing Decentralization," IMF Working Papers 2002/136, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/136
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    Citations

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    Cited by:

    1. Tan Khee Giap & Mulya Amri, 2018. "Slow Growth and Sluggish Manufacturing in Indonesia¡¯s Less Competitive Provinces: A Geweke Causality Analysis," Applied Finance and Accounting, Redfame publishing, vol. 4(2), pages 2-14, August.
    2. World Bank, 2012. "Cameroon - The Path to Fiscal Decentralization : Opportunities and Challenges," World Bank Publications - Reports 11875, The World Bank Group.
    3. Gertler, Paul J. & Gonzalez-Navarro, Marco & Gračner, Tadeja & Rothenberg, Alexander D., 2024. "Road maintenance and local economic development: Evidence from Indonesia’s highways," Journal of Urban Economics, Elsevier, vol. 143(C).
    4. Mr. Eric Mottu & Mr. Ehtisham Ahmad, 2002. "Oil Revenue Assignments: Country Experiences and Issues," IMF Working Papers 2002/203, International Monetary Fund.
    5. Gertler, Paul J & Gonzalez-Navarro, Marco & Gracner, Tadeja & Rothenberg, Alexander, 2023. "Road Maintenance and Local Economic Development," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt38m633q0, Department of Agricultural & Resource Economics, UC Berkeley.
    6. Nasution, Anwar, 2016. "Government Decentralization Program in Indonesia," ADBI Working Papers 601, Asian Development Bank Institute.
    7. Siburian, Matondang Elsa, 2022. "The link between fiscal decentralization and poverty – Evidence from Indonesia," Journal of Asian Economics, Elsevier, vol. 81(C).
    8. Siburian, Matondang Elsa, 2021. "Fiscal Decentralization, Regional Income Inequality, and the Provision of Local Public Goods: Evidence from Indonesia," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(4), pages 87-103, December.
    9. Isaac Khambule, 2021. "Decentralisation or deconcentration: The case of regional and local economic development in South Africa," Local Economy, London South Bank University, vol. 36(1), pages 22-41, February.

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