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Decentralization and good governance: The case of Indonesia

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  • Green, Keith

Abstract

Indonesia began a process of rapid government decentralization in 1999 from a formerly strong centralized government structure. I review the history of decentralization in Indonesia and assess how Indonesia has fared in pursuing a decentralization policy since 1999. I illustrate how Indonesia meets several criteria of successful decentralization and how it is fails the criteria in principle in other areas. Finally, I indicate the likely future challenges faced by Indonesia as it implements decentralization and provide some recommendations to improve the ongoing decentralization process.

Suggested Citation

  • Green, Keith, 2005. "Decentralization and good governance: The case of Indonesia," MPRA Paper 18097, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18097
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    File URL: https://mpra.ub.uni-muenchen.de/18097/1/MPRA_paper_18097.pdf
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    References listed on IDEAS

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    1. George Fane, 2003. "Change And Continuity In Indonesia'S New Fiscal Decentralisation Arrangements," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(2), pages 159-176.
    2. International Monetary Fund, 2001. "Fiscal Decentralization and Governance: A Cross-Country Analysis," IMF Working Papers 2001/071, International Monetary Fund.
    3. Crook,Richard C. & Manor,James, 1998. "Democracy and Decentralisation in South Asia and West Africa," Cambridge Books, Cambridge University Press, number 9780521631570, October.
    4. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Publications - Reports 14632, The World Bank Group.
    5. Crook,Richard C. & Manor,James, 1998. "Democracy and Decentralisation in South Asia and West Africa," Cambridge Books, Cambridge University Press, number 9780521636476, October.
    6. McCarthy, John F., 2004. "Changing to Gray: Decentralization and the Emergence of Volatile Socio-Legal Configurations in Central Kalimantan, Indonesia," World Development, Elsevier, vol. 32(7), pages 1199-1223, July.
    7. Shah, Anwar & Thompson, Theresa, 2004. "Implementing decentralized local governance: a treacherous road with potholes, detours, and road closures," Policy Research Working Paper Series 3353, The World Bank.
    8. Blane Lewis, 2003. "Tax And Charge Creation By Regional Governments Under Fiscal Decentralisation: Estimates And Explanations," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(2), pages 177-192.
    9. Christopher Silver & Iwan Azis & Larry Schroeder, 2001. "Intergovernmental Transfers And Decentralisation In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 345-362.
    10. Ms. Era Dabla-Norris & Mr. Paul R Wade, 2002. "The Challenge of Fiscal Decentralization in Transition Countries," IMF Working Papers 2002/103, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Sudarno Sumarto & Marc Vothknecht & Laura Wijaya, "undated". "Explaining the Regional Heterogeneity of Poverty: Evidence from Decentralized Indonesia," Working Papers 276, Publications Department.
    2. 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).
    3. 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.
    4. Riatu Mariatul Qibthiyyah, 2019. "An Inquiry of Indonesia Central and Sub-national Government Cooperation on National Expenditure Program," LPEM FEBUI Working Papers 201935, LPEM, Faculty of Economics and Business, University of Indonesia.

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    More about this item

    Keywords

    government; decentralization; Indonesia;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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