Decentralization and good governance: The case of Indonesia
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.
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- 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.
- Era Dabla-Norris & Paul Wade, 2002. "The Challenge of Fiscal Decentralization in Transition Countries," IMF Working Papers 02/103, International Monetary Fund.
- 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.
- 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.
- International Monetary Fund, 2001. "Fiscal Decentralization and Governance: A Cross-Country Analysis," IMF Working Papers 01/71, International Monetary Fund.
- World Bank, 2003. "Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report," World Bank Other Operational Studies 14632, The World Bank.
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