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East Asia Forum: How Indonesian local governments spend too much on themselves

Indonesian districts spend excessively on their own administration — money that could be spent on delivering public services for the people. The key problem is that democratic accountability is not (yet) sufficiently effective. After the 2001 decentralisation the districts, the third tier of government after center and provinces, are responsible for the provision of basic services such as health, education, and infrastructure and spend around a third of the consolidated government budget. They are therefore important providers of public goods and services, especially for the poor. An article from Günther Schulze and Bambang Suharnoko Sjahrir