Indonesia’s fiscal decentralization policy, implemented for over two decades, offers valuable insights and strategies for global policymakers.
Indonesia, having implemented fiscal decentralization for more than two decades, continues to share its experiences, achievements, and challenges with the global community. On December 13, Luky Alfirman, Director General of Fiscal Balance, spoke at the ISEAS Seminar organized by the ISEAS-Yusof Ishak Institute in Singapore.
During his address, Mr. Luky elaborated on Indonesia’s perspective on fiscal decentralization, highlighting key policy developments, accomplishments, and challenges faced. He shared strategies currently being implemented, such as Performance-Based Transfers, Ecology-Based Transfers, Strengthening Local Taxing Power, and Harmonizing National Fiscal Policies. Mr. Luky also introduced future policy directions aimed at equitable welfare distribution, including the development of the Regional Wellbeing Index and Special Allocation Fund (TKD) policies to support Climate Change Adaptation.
In addition to speaking at the seminar, Mr. Luky met with representatives from the ASEAN+3 Macroeconomic Research Office (AMRO) to discuss global economic developments and AMRO’s input on regional economic convergence strategies. He also took the opportunity to meet with Indonesia’s Ambassador to Singapore, Mr. Suryo Pratomo, and Financial Attaché Heru Hardjanto AP.
This seminar underscored the importance of sharing best practices in fiscal decentralization across countries, fostering mutual learning and collaboration for sustainable development.
Source: Indonesian Embassy in Singapore
