Indonesia's Decentralization After Crisis

In 1999, the Indonesian Parliament adopted two laws requiring that drastic decentralization measures be implemented in fiscal 2001 in a "big bang" fashion. Several lessons can be drawn from Indonesia's experience. 1) Ideally, decentralization should be managed so that the devolution of fiscal resources occurs in line with the devolution of spending. In reality, politics determines the devolution of resources, often with little regard for spending responsibilities. 2) Spending responsibilities can be devolved to a level of government in line with its administrative capacities. 3) Every effort should be made to avoid delays in establishing regulations that detail the responsibilities of various levels of government. 4) Local governments should be assigned one or a few substantive taxes over which they have some rate of autonomy, to ensure local accountability and fiscal discipline.

Bibliographic Details

Main Authors:	Ma, Jun, Hofman, Bert
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2000-09
Subjects:	DECENTRALIZATION IN GOVERNMENT, REGIONAL GOVERNMENT, FISCAL ADMINISTRATION, SUBNATIONAL GOVERNMENT, LAW REFORM, AUTONOMY, LOCAL GOVERNMENT, POLITICS ACCOUNTABILITY, ADMINISTRATIVE CAPACITIES, AUTHORITARIAN RULE, CENTRAL GOVERNMENT, CENTRAL TRANSFERS, CURRENT COSTS, DECENTRALIZATION, DECENTRALIZATION PROCESS, DEMOCRACY, DEVOLUTION, DISTRICT GOVERNMENTS, DISTRICTS, EQUALIZATION, ETHNIC GROUPS, FINANCIAL CRISIS, FISCAL, FISCAL BALANCE, FISCAL DECENTRALIZATION, FISCAL RESOURCES, GOVERNMENT, GOVERNMENT LEVELS, GOVERNMENT REVENUE, IMPLEMENTATION STRATEGIES, INTERGOVERNMENTAL TRANSFERS, LACK OF ACCOUNTABILITY, LAWS, LEGAL SYSTEMS, LEVELS OF GOVERNMENT, LOCAL ACCOUNTABILITY, LOCAL GOVERNMENTS, LOCAL REVENUE, LOCAL SPENDING, MINISTERS, MINISTRY OF FINANCE, NATURAL RESOURCES, POLITICAL DECENTRALIZATION, PRESIDENCY, PROPERTY TAXES, PUBLIC SERVICE, PUBLIC SERVICES, PUBLIC SUPPORT, REVENUE SOURCES, SERVICES, SUBNATIONAL GOVERNMENTS, TAX, TAX REVENUES,
Online Access:	http://documents.worldbank.org/curated/en/2000/09/828349/indonesias-decentralization-after-crisis http://hdl.handle.net/10986/11424
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