This paper tests the hypothesis that, by giving people more voice in the government decision-making process, fiscal decentralisation fosters social capital, measured in terms of interpersonal trust. Empirical evidence based on World Values Survey data and seemingly unrelated probit estimations...

This paper examines the determinants of currency crisis, particularly the role of economic fundamentals in explaining the currency crisis in Indonesia in the 1990’s. This study has an objective: to analyze the role of the ratio of M2 to reserves, the ratio of banks’ claims on the private...

Few policy analysts or politicians believe that there should be no natural resource revenue sharing. The question is, “how large a share?” The objective in this paper is to evaluate the system of sharing natural resource revenue in Indonesia against the criteria that are most often discussed...

Indonesia is engaged in an unprecedented major social and economic experiment in which much authority and responsibility for its governmental expenditures are being decentralized from the national government, largely to the local government level rather than the provincial government level. From...

Fiscal decentralization in Indonesia had been a slow-burning affair since the mid 1970s, with the country being one of the most centralized in the world, until the “Big Bang” of the 1999 reforms, when, in the period of one year, Indonesia became in terms of expenditure shares one of the most...

Indonesia is currently in the process of evaluating and revising the decentralization legislation and the progress made during the first stage of its “big bang” decentralization reforms. This first wave of decentralization reform was implemented without major interruptions in service...

This paper examines the flows of capital within Indonesia. The hypothesis being that capital is perfectly mobile among regions with Indonesia, and that capital is concentrated in the Java and Sumatra islands. To test the hypothesis, savings and investment rates are gathered from the Indonesian...