Indonesian Decentralization: Accountability Deferred

Abstract

For nearly a decade, Indonesia has been engaged in one of the world's largest programs of public sector decentralization. The evidence suggests that Indonesian decentralization has not yet, however, led to good quality local public services. Implementation of immediate remedies typically proposed by government officials and others are all likely to be deficient in one regard or another. A long-term, incremental approach that focuses on experimenting with output-based central-local incentive grants, enhancing local government capability in expenditure and revenue management, and, most importantly, building capacity in civil society groups to educate citizens and motivate demand seems the most feasible strategy for moving forward under the current circumstances.