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Indonesia’s New Fiscal Decentralisation Law

A Critical Assessment

Bibliographic Data

ID8415946
AuthorsBlane D Lewis (0000-0002-0758-0998, Australian National University, corresponding author)
Year2023
Volume59
Issue1
Pages1-28
Publication date2023-01-02
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueBulletin of Indonesian Economic Studies (JOURNAL)
Journal identifiersISSN: 0007-4918 • E-ISSN: 1472-7234
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00074918.2023.2180838
OpenAlexW4362649237
LanguageEN
Citations received18
References cited29

Indonesia’s new law on fiscal decentralisation, Law 1/2022, begins implementation this year. The legislation makes numerous noteworthy technical adjustments to the intergovernmental fiscal framework. The broader, more implicit intent of the law is clearly to facilitate more central government control over regions. The increased control is operationalised through a variety of standard public finance tools, with a particular emphasis on performance incentives, revenue earmarks and spending mandates. Unfortunately, the design of many of the law’s reforms is rather flawed. Moreover, the legislation does not—indeed, it cannot—address the main underlying problems of decentralisation such as corruption and clientelism. As a result, the law’s interventions are unlikely to satisfactorily realise their intended objectives of improving the distributional equity of transfers across regions and enhancing subnational government tax mobilisation, spending efficiency and service delivery outcomes

Business · Decentralization · Economic policy · Economics · Equity (law) · Government (linguistics) · Incentive · Language change · Legislation · Macroeconomics · Market economy · Political science · Public economics · Public finance · Revenue · Finance · Fiscal Policy and Economic Growth · Law · Local Government Finance and Decentralization · Public Administration · Taxation and Compliance Studies

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Unique citing works18
Citations per year6
Citation span2023 - 2026 (4)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 18

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