The politics of fiscal decentralisation in Indonesia a study on policy development 1974-2004
| dc.contributor.author | Kumorotomo, Wahyudi | |
| dc.date.accessioned | 2014-11-04T02:49:45Z | |
| dc.date.available | 2014-11-04T02:49:45Z | |
| dc.date.issued | 2007 | |
| dc.description | PhD | en_US |
| dc.description.abstract | Policy change in inter-governmental fiscal relations is a crucial part of Indonesia’s thrust towards democratisation. This study examines the process of decision-making on fiscal decentralisation policy in order to explain policy changes and continuities. It focuses on developments from 1974 to 2004. This actually consists of two periods: the more centralised fiscal arrangements under the 1974 legislation of the New Order government and the relatively more decentralised arrangements under the 1999 legislation and its modification in 2004. The 1974 legislation provided the basis for the New Order’s centralised fiscal arrangements and tight control over the regions. Although there was a basic law providing for central-local revenue sharing, the New Order used revenue from the oil boom to buy regional acquiescence through two main policy instruments: the SDO funds which were basically aimed at maintaining the local bureaucratic machinery, and the Inpres grants which were used to boost economic development in the regions. The end of the oil boom, administrative complications and regional over-dependence led the New Order government to consider some decentralisation measures. The economic crisis and subsequent downfall of the New Order government changed central-local fiscal relations. With the 1999 legislation passed by the caretaker government, the resource-rich regions were able to lock in some revenue sharing arrangements. Subsequent implementation and development, however, shows a substantial continuation of the policies under centralised administration. Thus this study highlights both continuity and change in fiscal decentralisation policy. The study also reveals four main factors that are likely to influence the future course of policy development on fiscal decentralisation: the ability of revenue-sharing to pacify the resource-rich regions, political negotiations on the DAU block grants to achieve a formula-based equalisation among regions, the settlement of disputes over “expenditure assignment” or the purposes for which money is to be used, and the need to ensure effective service delivery and fiscal accountability at the local level. | en_US |
| dc.identifier.uri | http://hdl.handle.net/123456789/338 | |
| dc.language.iso | en | en_US |
| dc.subject | Social science | en_US |
| dc.subject | Fiscal decentralisation | en_US |
| dc.subject | Policy development | en_US |
| dc.title | The politics of fiscal decentralisation in Indonesia a study on policy development 1974-2004 | en_US |
| dc.type | Thesis | en_US |
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