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Is Central Government Intervention Bad for Local Outcomes? Mixed Messages from Indonesia

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  • Blane D. Lewis

Abstract

Central government line agencies in Indonesia spend a significant amount of their budgets directly in the regions, much of it on functions that have already been decentralised to local governments. Such deconcentrated spending contravenes both international best practices and Indonesian decentralisation legislation. Empirical evidence on the question of actual impact of such spending in Indonesia is mixed. The share of central deconcentrated spending that is co-administered directly with local governments appears to have beneficial service delivery effects; but the portion organised through provinces – without significant input from districts – has a negative impact on service outcomes.

Suggested Citation

  • Blane D. Lewis, 2016. "Is Central Government Intervention Bad for Local Outcomes? Mixed Messages from Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(2), pages 300-313, February.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:2:p:300-313
    DOI: 10.1080/00220388.2015.1068293
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    Cited by:

    1. Eka Intan Kumala Putri & Arya Hadi Dharmawan & Otto Hospes & Bayu Eka Yulian & Rizka Amalia & Dyah Ita Mardiyaningsih & Rilus A. Kinseng & Fredian Tonny & Eusebius Pantja Pramudya & Faris Rahmadian & , 2022. "The Oil Palm Governance: Challenges of Sustainability Policy in Indonesia," Sustainability, MDPI, vol. 14(3), pages 1-20, February.
    2. Gonschorek, Gerrit J. & Schulze, Günther G. & Sjahrir, Bambang Suharnoko, 2018. "To the ones in need or the ones you need? The political economy of central discretionary grants − empirical evidence from Indonesia," European Journal of Political Economy, Elsevier, vol. 54(C), pages 240-260.
    3. Adiwan F. Aritenang, 2025. "Does fiscal decentralization increase urban temperature? The case of Indonesian metropolitans," Asia-Pacific Journal of Regional Science, Springer, vol. 9(4), pages 955-973, December.

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