Decentralizing Indonesia : A Regional Public Expenditure Review Overview Report

Indonesia has embarked upon a radical and rapid decentralization program. Regional autonomy is transforming one of the most centralized countries in the world into one of the more decentralized ones. If managed well, a country as large and diverse as Indonesia will benefit greatly from decentralization, through more efficient service delivery, but also national unity and democracy. Yet, not all is well. The Consultative Assembly, the country's highest constitutional body, has recognized as much by calling for a thorough evaluation of the decentralization program, and adjustments of the decentralization laws, if needed. Indonesia should use the process of revision as an opportunity to create a consensus on the type and extent of regional autonomy, and define better rules of the game to ensure that the benefits of decentralization will prevail. Rapid decentralization and its hasty preparation have left much unfinished business. Some of the issues encountered are merely teething problems of an ambitious decentralization program, and over time they can be ironed out. Others could jeopardize the success of the program itself, undermine the potential efficiency gains of decentralization, and even trigger fiscal imbalances and macroeconomic instability over the longer run. These issues fall into three broad categories: (i) the assignment of functions over levels of government: (ii) local capacity to implement the functions; (iii) the intergovernmental fiscal system; and (iv) accountability at the local level.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2003-06
Subjects:	ACCESS TO INFORMATION, ACCOUNTABILITY, AD HOC GRANTS, ADB, ADMINISTRATIVE LAW, AUDITING, AUTHORITY, AUTONOMY, BORROWING, BUDGET CONSTRAINTS, BUSINESS TAXES, CENTRAL GOVERNMENT, CITIES, CITIZENS, CIVIL SERVICE, CIVIL SERVICE REFORMS, COAL, CONSENSUS, CONSTITUTION, CORRUPTION, DEBT, DEBT SERVICE, DECENTRALIZATION, DECREE, DECREES, DEMOCRACY, DISTRICTS, ECONOMIES OF SCALE, EMPLOYMENT, EQUALIZATION, EXPENDITURES, FINANCIAL INFORMATION, FINANCIAL MANAGEMENT, FINANCIAL RISK, FISCAL, FISCAL INCENTIVES, FISCAL YEAR, FORESTRY, GOVERNMENT AGENCIES, GOVERNMENT REGULATIONS, GOVERNMENT REVENUE, GOVERNMENT SPENDING, GRANT ALLOCATION, GROSS DOMESTIC PRODUCT, INCOME, INSTITUTIONAL ARRANGEMENT, INTERGOVERNMENTAL FISCAL FRAMEWORK, INTERGOVERNMENTAL FISCAL RELATIONS, INTERGOVERNMENTAL FISCAL SYSTEM, INVESTMENT CLIMATE, LACK OF CLARITY, LAWS, LEGISLATION, LEVELS OF GOVERNMENT, LEVIES, LOCAL ACCOUNTABILITY, LOCAL CONSTITUENTS, LOCAL GOVERNMENT, LOCAL GOVERNMENT REVENUE, LOCAL GOVERNMENTS, LOCAL REVENUE, LOCAL TAX, MINISTRY OF FINANCE, MORAL HAZARD, MOTOR VEHICLE TAXES, NATIONAL CIVIL SERVICE, NATIONAL LEVEL, NATIONAL POLICY, NATURAL RESOURCE TAXES, NATURAL RESOURCES, PENSIONS, PROVINCIAL GOVERNMENTS, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC SECTOR, PUBLIC SECTOR EMPLOYMENT, PUBLIC SERVICES, PUBLIC WORKS, REGIONAL DEVELOPMENT BANKS, REPRESENTATIVES, RESOURCE SHARING, REVENUE SHARING, REVENUE SOURCES, TAX RATES, TAX REVENUES, TAX SYSTEM, TRANSPARENCY, WATERSHED PUBLIC EXPENDITURES, DECENTRALIZATION IN GOVERNMENT, REGIONALIZATION, REGIONAL COOPERATION, REGIONAL COORDINATION, INTERGOVERNMENTAL TAX RELATIONS, INTERGOVERNMENTAL TRANSFER OF FUNDS, LOCAL GOVERNMENT BUDGETS, LOCAL GOVERNMENT EMPLOYEES, LOCAL GOVERNMENT TAXATION, SERVICE DELIVERY, BUSINESS ENVIRONMENT, TAX ADMINISTRATION, BUDGET IMPLEMENTATION, POLITICAL ACCOUNTABILITY, URBAN AREAS, REGIONAL ECONOMIC DISPARITIES, GOVERNMENT SPENDING POLICY, LEGISLATIVE ASSEMBLIES,
Online Access:	http://documents.worldbank.org/curated/en/2003/06/2461573/decentralizing-indonesia-regional-public-expenditure-review-overview-report https://hdl.handle.net/10986/14632
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