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Why Democratization and Decentralization in Indonesia Have Mixed Results on the Ground: A Systematic Literature Review

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  • Andi Rahmat Hidayat
  • Otto Hospes
  • C. J. A. M. Termeer

Abstract

Indonesia has been subject to democratization and decentralization since Suharto's resignation in 1998. Whilst these two institutional reforms have attracted the attention of many scholars, no one has provided an overview explaining their mixed results. To address this gap, we conduct a systematic review of democratization and decentralization literature in Indonesia, exploring how democratization and decentralization relate and identifying moderators (constraining or supporting contextual factors) of the effects of the two institutional reforms. Our first finding is that the actual processes of democratization and decentralization may undermine each other. Our second finding is that clientelistic informal state institutions together with capture by old predatory elites in the context of legal fragmentation negatively affect outcomes of democratization and decentralization processes, whereas citizen collective action and reform‐oriented leadership positively affect them. Based on our findings, we present an advanced framework and three lessons for future studies on democratization and decentralization.

Suggested Citation

  • Andi Rahmat Hidayat & Otto Hospes & C. J. A. M. Termeer, 2025. "Why Democratization and Decentralization in Indonesia Have Mixed Results on the Ground: A Systematic Literature Review," Public Administration & Development, Blackwell Publishing, vol. 45(2), pages 159-172, May.
    • Handle: RePEc:wly:padxxx:v:45:y:2025:i:2:p:159-172
    DOI: 10.1002/pad.2095
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    References listed on IDEAS

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    3. World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Publications - Reports 14632, The World Bank Group.
    4. Inhye Heo, 2018. "The Paradox of Administrative Decentralization Reform in Young Asian Democracies: South Korea and Indonesia," World Affairs, John Wiley & Sons, vol. 181(4), pages 372-402, December.
    5. Gonschorek, Gerrit J., 2021. "Subnational favoritism in development grant allocations: Empirical evidence from decentralized Indonesia," World Development, Elsevier, vol. 139(C).
    6. Christian von Luebke, 2009. "The political economy of local governance: findings from an Indonesian field study," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(2), pages 201-230.
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