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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

    as
    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. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Publications - Reports 14632, The World Bank Group.
    3. Crook,Richard C. & Manor,James, 1998. "Democracy and Decentralisation in South Asia and West Africa," Cambridge Books, Cambridge University Press, number 9780521636476.
    4. 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.
    5. 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.
    6. International Monetary Fund, 2001. "Fiscal Decentralization and Governance: A Cross-Country Analysis," IMF Working Papers 2001/071, International Monetary Fund.
    7. Crook,Richard C. & Manor,James, 1998. "Democracy and Decentralisation in South Asia and West Africa," Cambridge Books, Cambridge University Press, number 9780521631570.
    8. 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.
    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 & Gracner, Tadeja & Rothenberg, Alexander, 2022. "Road Maintenance and Local Economic Development: Evidence from Indonesia's Highways," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8mg7z5kt, Department of Agricultural & Resource Economics, UC Berkeley.
    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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