IMF Working Papers

Indonesia: Managing Decentralization

By Ehtisham Ahmad, Ali M. Mansoor

August 1, 2002

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Format: Chicago

Ehtisham Ahmad, and Ali M. Mansoor "Indonesia: Managing Decentralization", IMF Working Papers 2002, 136 (2002), accessed April 22, 2025, https://doi.org/10.5089/9781451855821.001

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The process of decentralization in Indonesia was initiated after a long period of autocratic rule. Despite the political imperatives, there is a need to carefully sequence the fiscal decentralization to ensure that financing follows the assignment of functions. The functions should be commensurate with the capacity to provide public services. The paper argues for the proper sequencing to avoid jeopardizing macroeconomic stability or the effective delivery of public services.

Subject: Expenditure, Labor, Oil, gas and mining taxes, Public employment, Revenue administration, Taxes, Vehicle taxes

Keywords: Administration, Central government, Decentralization, Decentralization process, District government, Expenditure responsibility, Gas and mining taxes, Government, Habibie government, Intergovernmental Relations, Oil, Public employment, Revenue, Sequenced decentralization, State administration, Vehicle taxes, WP

Publication Details

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