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Decentralisation and Poverty Alleviation in Indonesia

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  • Anne Booth

    (Department of Economics, School of Oriental and African Studies, University of London, London WC1 HOXG, England)

Abstract

Indonesia has embarked on an ambitious decentralisation programme which is aimed at empowering regional parliaments and giving them far more autonomy in formulating budgets and implementing expenditures. Beginning in the calendar (and fiscal) year 2001, the central government replaced many of the existing grants from the centre to the regions with a ‘general allocation grant’; in addition, those regions with substantial mining and forestry sectors received a share of the revenues accruing from exploitation of these resources. The author explores the background to these reforms by examining the regional grants system which developed through the Soeharto era, and the criticisms which this system attracted. The impact of the new system on both rich and poor regions is also discussed.

Suggested Citation

  • Anne Booth, 2003. "Decentralisation and Poverty Alleviation in Indonesia," Environment and Planning C, , vol. 21(2), pages 181-202, April.
    • Handle: RePEc:sae:envirc:v:21:y:2003:i:2:p:181-202
    DOI: 10.1068/c0127
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    References listed on IDEAS

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    1. Crook,Richard C. & Manor,James, 1998. "Democracy and Decentralisation in South Asia and West Africa," Cambridge Books, Cambridge University Press, number 9780521636476.
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    3. James Alm & Robert Aten & Roy Bahl, 2001. "Can Indonesia Decentralise Successfully? Plans, Problems And Prospects," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(1), pages 83-102.
    4. Crook,Richard C. & Manor,James, 1998. "Democracy and Decentralisation in South Asia and West Africa," Cambridge Books, Cambridge University Press, number 9780521631570.
    5. Smoke, Paul & Lewis, Blane D., 1996. "Fiscal decentralization in Indonesia: A new approach to an old idea," World Development, Elsevier, vol. 24(8), pages 1281-1299, August.
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