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Decentralization and good governance: The case of Indonesia

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  • Green, Keith
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    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.

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    File URL: http://mpra.ub.uni-muenchen.de/18097/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18097.

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    Date of creation: 28 Feb 2005
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    Handle: RePEc:pra:mprapa:18097

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    Keywords: government; decentralization; Indonesia;

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    1. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Other Operational Studies 14632, The World Bank.
    2. Era Dabla-Norris & Paul Wade, 2002. "The Challenge of Fiscal Decentralization in Transition Countries," IMF Working Papers 02/103, International Monetary Fund.
    3. 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.
    4. International Monetary Fund, 2001. "Fiscal Decentralization and Governance," IMF Working Papers 01/71, International Monetary Fund.
    5. 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.
    6. 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.
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