Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia

Edited by James Alm, Professor and Chair, Department of Economics, Tulane University, US, Jorge Martinez-Vazquez, Emeritus Regents Professor of Economics and founding Director, Public Finance Research Cluster and International Center for Public Policy, Georgia State University, Atlanta, US and Sri Mulyani Indrawati, Minister of Finance, Indonesia

• Contents: 1. Introduction Part I: The History and Politics of the ‘Big Bang’ Decentralization 2. The Making of the ‘Big Bang’ and its Aftermath: A Political Economy Perspective 3. Political Reforms, Decentralization and Democratic Consolidation in Indonesia 4. The Policy of Decentralization in Indonesia Part II: Expenditure and Tax Assignment 5. Expenditure Assignment under Indonesia’s Emerging Decentralization: A Review of Progress and Issues for the Future 6. Local tax Revenue Mobilization in Indonesia’s Decentralizing Era 7. Combining Expenditure Assignment, Revenue Assignment and Grant Design in Indonesia’s Fiscal Decentralization Part III: Closing the Fiscal Gap: Transfers, Borrowing and Natural Resource Revenues 8. An Analysis of Indonesia’s Transfer System: Recent Performance and Future Prospects 9. How Should Revenues from Natural Resources be Shared in Indonesia? 10. Decentralization and Local Government Borrowing in Indonesia Part IV: An Initial Assessment of Progress 11. Indonesian Decentralization: Opportunities Appear but Risks Abound 12. The Indonesian Experience with the Implementation of Regional Autonomy 13. Decentralization and the Challenge for Indonesian Fiscal Sustainability Part V: Lessons from International Experience and the Current State of Decentralization 14. Implementing Decentralized Local Government: A Treacherous Road with Potholes, Detours and Road Closures 15. The Current State of Decentralization Reform in Indonesia: A Postscript Index