Fiscal Decentralization In Indonesia: Current Status and Future Challenges

Penulis: Maman Suhendra and Hidayat Amir

Using 214 out of 440 data set in 2004, it is found that most of local governments in Indonesia showed poor performance in generating local own revenues. The methods used here are the Quadrant and Index Methods. Some reasons can explain this poor situation. Beside the weak local taxation power, the dominant role of central government in revenue-generating has led to the poor performance. Furthermore, the Indonesian decentralization is in process toward the more ideal form. Nonetheless, it is widely-known that the "big-bang" decentralization approach has changed Indonesia as one of the most centralized countries into one of the more decentralized ones without any significant interruption.
(hardcopy dapat dilihat pada perpustakaan BKF)

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