Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion?
Borrowing can be an efficient way for sub-national governments to acquire capital assets, but it also carries risks of fiscal distress and insolvency for borrowers. To minimise these risks, many governments around the world have developed ex-post insolvency remedies, including, most importantly, debt-restructuring mechanisms. In an effort to resurrect borrowing for local infrastructure development, the Indonesian government has designed and begun to implement debt-restructuring programs for sub-national government and sub-national government-owned water supply company defaulters. These programs constitute a major effort to reform an important, long-neglected and problematic aspect of sub-national public finances in Indonesia. There are a number of potential difficulties with the design and execution of the reforms, however, which collectively do not inspire much optimism for rapid progress in reviving financial flows to the sub-national public sector. Still, even halting advances in debt restructuring can substantially increase local infrastructure investment in the long run.
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Format: | Journal Article biblioteca |
Language: | EN |
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2010
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Subjects: | National Debt, Debt Management, Sovereign Debt H630, State and Local Borrowing H740, State and Local Government: Other Expenditure Categories H760, Economic Development: Regional, Urban, and Rural Analyses, Transportation O180, Project Analysis O220, |
Online Access: | http://hdl.handle.net/10986/4686 |
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dig-okr-1098646862021-04-23T14:02:19Z Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion? Lewis, Blane Woodward, David National Debt Debt Management Sovereign Debt H630 State and Local Borrowing H740 State and Local Government: Other Expenditure Categories H760 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Project Analysis O220 Borrowing can be an efficient way for sub-national governments to acquire capital assets, but it also carries risks of fiscal distress and insolvency for borrowers. To minimise these risks, many governments around the world have developed ex-post insolvency remedies, including, most importantly, debt-restructuring mechanisms. In an effort to resurrect borrowing for local infrastructure development, the Indonesian government has designed and begun to implement debt-restructuring programs for sub-national government and sub-national government-owned water supply company defaulters. These programs constitute a major effort to reform an important, long-neglected and problematic aspect of sub-national public finances in Indonesia. There are a number of potential difficulties with the design and execution of the reforms, however, which collectively do not inspire much optimism for rapid progress in reviving financial flows to the sub-national public sector. Still, even halting advances in debt restructuring can substantially increase local infrastructure investment in the long run. 2012-03-30T07:29:14Z 2012-03-30T07:29:14Z 2010 Journal Article Bulletin of Indonesian Economic Studies 00074918 http://hdl.handle.net/10986/4686 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Indonesia |
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National Debt Debt Management Sovereign Debt H630 State and Local Borrowing H740 State and Local Government: Other Expenditure Categories H760 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Project Analysis O220 National Debt Debt Management Sovereign Debt H630 State and Local Borrowing H740 State and Local Government: Other Expenditure Categories H760 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Project Analysis O220 |
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National Debt Debt Management Sovereign Debt H630 State and Local Borrowing H740 State and Local Government: Other Expenditure Categories H760 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Project Analysis O220 National Debt Debt Management Sovereign Debt H630 State and Local Borrowing H740 State and Local Government: Other Expenditure Categories H760 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Project Analysis O220 Lewis, Blane Woodward, David Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion? |
description |
Borrowing can be an efficient way for sub-national governments to acquire capital assets, but it also carries risks of fiscal distress and insolvency for borrowers. To minimise these risks, many governments around the world have developed ex-post insolvency remedies, including, most importantly, debt-restructuring mechanisms. In an effort to resurrect borrowing for local infrastructure development, the Indonesian government has designed and begun to implement debt-restructuring programs for sub-national government and sub-national government-owned water supply company defaulters. These programs constitute a major effort to reform an important, long-neglected and problematic aspect of sub-national public finances in Indonesia. There are a number of potential difficulties with the design and execution of the reforms, however, which collectively do not inspire much optimism for rapid progress in reviving financial flows to the sub-national public sector. Still, even halting advances in debt restructuring can substantially increase local infrastructure investment in the long run. |
format |
Journal Article |
topic_facet |
National Debt Debt Management Sovereign Debt H630 State and Local Borrowing H740 State and Local Government: Other Expenditure Categories H760 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Project Analysis O220 |
author |
Lewis, Blane Woodward, David |
author_facet |
Lewis, Blane Woodward, David |
author_sort |
Lewis, Blane |
title |
Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion? |
title_short |
Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion? |
title_full |
Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion? |
title_fullStr |
Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion? |
title_full_unstemmed |
Restructuring Indonesia's Sub-national Public Debt: Reform or Reversion? |
title_sort |
restructuring indonesia's sub-national public debt: reform or reversion? |
publishDate |
2010 |
url |
http://hdl.handle.net/10986/4686 |
work_keys_str_mv |
AT lewisblane restructuringindonesiassubnationalpublicdebtreformorreversion AT woodwarddavid restructuringindonesiassubnationalpublicdebtreformorreversion |
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1756571536523788288 |