Summary

Research Report: This paper focuses on the introduction of decentralisation laws in Indonesia.

Description

Author: Asia Research Centre, Murdoch University

Decentralisation takes many forms, from those involving minimal and partial
devolvement of political authority (such as administrative decentralisation,
privatisation and establishment of parastatal agencies) to a more comprehensive
transfer of powers and resources (political devolution, autonomy). While
there have been instances when accumulated pressure has made some devolution of
power imperative (as in Indonesia), it is seldom perceived to be in the best
interests of the centre to strengthen the periphery. As such,
decentralisation typically takes place during periods of political and economic
upheavals. This has on occasion led to bad design and/or problematic
implementation of decentralisation programs.

This paper focuses at both a broad theoretical and
country-specific level, using Indonesia as a case study and discusses the
developments leading up to the introduction of the decentralisation laws,
analyses issues and problems of implementation thus far, and maps out the
prospects.

Very little research has been done in Indonesia on the impact
of decentralisation from a local perspective. Most reports on
decentralisation reflect the views of the centre. As most governance
activities currently focus on the national level, the decentralisation process
in Indonesia will require from most donors a change in mindset, moving from a
centric approach to a more regional approach. Donor coordination will be
of utmost importance as a growing number of donors support decentralisation
activities, yet there is limited absorptive capacity at the regional level.

Decentralisation and Development Cooperation: Issues for Donors [PDF 823KB]

Available: Electronic version only

This report was commissioned by AusAID. The findings, interpretations and conclusions expressed in the report are those of the authors and do not necessarily reflect the views of AusAID or the Australian Government.

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