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

2. 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

4. National to local planning
Session Title
National to local planning

5. 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?

6. 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

7. Low rise and high rise!

8. Air pollution makes for beautiful sunsets!

9. 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

10. 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

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

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

15. 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

18. Session Title
Be good neighbours!