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, decentr...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/09/828349/indonesias-decentralization-after-crisis http://hdl.handle.net/10986/11424 |
| Summary: | 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. |
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