Regional Autonomy and Local Resource Mobilization in Eastern Indonesia: Problems and Pitfalls of Fiscal Decentralization

Noore Siddiquee, Dian Nastiti, Nur Ana Sejati

    Research output: Contribution to journalArticle

    2 Citations (Scopus)

    Abstract

    Does fiscal decentralization empower sub-national governments to raise
    sufficient revenue from local sources thereby reducing their dependence on the national government? This paper addresses this question by focusing on Indonesia’s most recent decentralization policy and assessing and analysing the role of local governments in this regard. Based on data collected from two different locations in Eastern Indonesia the paper shows that the dependency of local authorities on central government is excessive and that the share of local revenue in regional budget has remained rather small. It also shows that while the fiscal power granted to local governments is limited, a combination of politico-economic and contextual factors has further undermined the prospect of revenue mobilisation at the local level.
    Original languageEnglish
    Pages (from-to)44-68
    Number of pages25
    JournalAsian Affairs- An American Review
    Volume39
    Issue number1
    DOIs
    Publication statusPublished - 2012

    Keywords

    • Eastern Indonesia
    • fiscal decentralization
    • governance
    • regional autonomy
    • resource mobilization

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