I've always envisioned myself and wanted to be acknowledged as a scholar and professional practitioner. My core interest fundamentally lies at the intersection of politics, normative governance practices, and globalisation issues as trans-national policy drives.
Countries around the world embark on decentralisation for political and economic reasons. In this context, power dynamics between national and subnational authorities have received increasing attention, including struggles over political and fiscal resources. Decentralisation has also exacerbated intra-governmental competition over political and fiscal resources in Indonesia after the country shifted far-ranging authorities to the subnational level in 1998. The consequence is especially evident on central fiscal transfers to local governments, where deviation or discrepancy of central budget allocation among regions is present, particularly for non-formula based allocations. Certain local governments (provinces/districts/municipalities) tend to receive more central budget allocation for infrastructure and local development compared to other regions, due to opaque and ambiguous allocation criteria.
This study argues that the fact that certain regions receive bigger revenue sharing or more special allocation funds is not merely the result of formal arrangements set by technocratic/regulatory frameworks. Clearly, there are other factors such as political dynamics between government layers that shape deviation/discrepancy of allocation among local governments. In other words, there are indications that local authorities that proactively establish particularistic informal budgetary relations with national authorities will be able to intervene central allocation decision. Therefore, against this backdrop, this thesis wants to answer why intergovernmental budgetary relations vary in Indonesia? By using the proxy of power relations, this study examines factors that are significant for local regions’ bargaining positions to negotiate with the national authorities such as the role of representation/brokerage at the national level.
- Financial and Development Supervisory Agency of the Republic of Indonesia
- Centre of South East Asian Studies (SOAS)