Challenges facing local governments in Indonesia Session Title Challenges facing local governments in Indonesia Steve Gawler May 2016

How LG works in Indonesia Session Title How LG works in Indonesia Decentralisation 2004 – sort of! Sharing of roles between 3 levels – Provincial role ambiguous, still blurring and confusion Cities (kota) and Regencies (kabupaten) Humungous size – some kabupaten represent 4 million pop Interesting relationship between elected council, Executive Mayor and administration

National to local planning Session Title National to local planning

Session Title LG Revenue sources General purpose (DAU) and special purpose (DAK) grants – who really holds the purse strings? Local revenue raising power? Actual collection of taxes?

Key pressures over past 5 years Session Title Key pressures over past 5 years Provision of basic services – water, transport, waste, sanitation, clean air Uncontrolled urban growth, slum settlements

Low rise and high rise!

Air pollution makes for beautiful sunsets!

Key pressures over past 5 years Session Title Key pressures over past 5 years Asset management – huge backlog of infrastructure needs, no systematic asset management system Financial management - budget underspends Shopping Mall–driven development Governance - corruption, oligarchies, nepotism

Pressures over next 10 years Session Title Pressures over next 10 years Population growth (2% p.a.), rural-urban migration Insatiable demand for housing, services A new middle class, purchasing power (6 million motorcycles in Jakarta!) Higher expectations re services and reliability Expectations of greater transparency Stresses and shocks – climate change, rapid growth, poverty, water, air, disasters etc

Session Title What can LG do? A new breed of mayors

Session Title What can LG do? A new breed of government officials

Session Title What can LG do? Address broad urban resilience agenda, apply Green Growth principles Appetite for international relationships and best practice, rather than “foreign aid” Guidance from international frameworks, Sustainable Development Goals, Paris Climate Agreement, Habitat III ……. Harness the pride and the power of local communities

Session Title Be good neighbours!