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The natural resources industry in decentralised Indonesia: how has decentralisation impacted the mining, oil and gas industries?

Author

Listed:
  • Ana Duek

    (National University of Singapore and University of Lugano)

  • Ridwan Rusli

    (National University of Singapore and Université du Luxembourg)

Abstract

Indonesia’s decentralisation laws have granted local governments more authority for generating higher own revenues and running more tailored decentralised public services. There is evidence, though, that inefficient and ineffective local governance continues to predominate after decentralisation. Regional autonomy, as defined in the decentralisation laws, has left some matters ambiguous, requiring more detailed implementing regulations. In the natural resource sector, in particular, the implementation of these laws has generated uncertainty for most social actors. Traditional as well as new formal and informal rules of conduct among a wide array of social actors continue to influence the management and allocation of the economic and social benefits of natural resources at the local level. All this has resulted in central-local policy inconsistencies and coordination issues, new hierarchies along geographic-political divisions, the wider spread of corruption, serious fiscal and environmental issues and adverse effects on the investment climate of the country.

Suggested Citation

  • Ana Duek & Ridwan Rusli, 2010. "The natural resources industry in decentralised Indonesia: how has decentralisation impacted the mining, oil and gas industries?," DEM Discussion Paper Series 10-25, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:10-25
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    Citations

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    Cited by:

    1. van der Eng, Pierre, 2014. "Mining and Indonesia’s Economy: Institutions and Value Adding, 1870-2010," PRIMCED Discussion Paper Series 57, Institute of Economic Research, Hitotsubashi University.
    2. Perez-Sebastian, Fidel & Raveh, Ohad, 2016. "Natural resources, decentralization, and risk sharing: Can resource booms unify nations?," Journal of Development Economics, Elsevier, vol. 121(C), pages 38-55.
    3. James CUST & Ridwan D. RUSLI, 2014. "The economic spillovers from resource extraction: a partial resource blessing at the subnational level?," Economic Growth Centre Working Paper Series 1402, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    4. Berumen, Sergio A., 2012. "Evaluación del impacto de la política de incentivos sectoriales en el desarrollo de los municipios mineros de Castilla y León," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 17(33), pages 15-30.

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