Agenda for Sequencing Decentralization in Indonesia

Jakarta, Indonesia

March 20-21, 2000

A seminar on Indonesian decentralization and its management is to be sponsored jointly by the International Monetry Fund (Fiscal Affairs Department) and the World Bank,
hosted by the Institute of Social and Economic Research, University of Indonesia (LPEM) with the collaboration of Indonesia's Ministry of Finance.

This seminar will provide the opportunity for an exchange of views on the next steps for decentralization in Indonesia, given the country's political realities, as well as the experiences of other countries. The forum will include officials from various central government agencies, as well as representatives of regional governments, academics, international scholars, and participants with experience in decentralization processes in other countries around the world.

March 20
08:30–09:00 Registration
09:00–09:15 Welcome Speech
(Professor Sri Mulyani Indrawati, Director LPEM, and Secretary-General of the National Economic Council)
09:15–09:45 Keynote Speech
(Bambang Subianto, former Minister of Finance, and currently Head of the Decentralization Committee of the National Economic Committee)
09:45–10:15 Coffee Break
10:15–11:00 Background of Decentralization in an International Context
Opportunities, Macroeconomic Constraints and Risks (Ehtisham Ahmad, Advisor, IMF and Bert Hofman, Principal Economist, World Bank)
11:00–12:30 Country Experiences [Discusant:RobertSimanjuntak]
China (Jun Ma, Economist, World Bank)
Hungary (Jean-Jacques Dethier, Senior Economist, World Bank)
Italy (S. Piperno, Advisor, Ministry of Finance)
Latin America (E. Ahmad and Professor Spahn, Frankfurt)
Chair: Bambang Brodjonegoro
12:30–13:30 Lunch
13:30–15:15 Expenditure Assignments [Discussant:RaksakaMahi]
Administration (Darmin Nasution-Director-General, Ministry of Finance, Raphiuddin-Director-General, Ministry of Home Affairs)
Public Works and Transportation (Suyono Dikun- Bappenas)
Education and Health: (Sandy Lieberman, Principal Economist, World Bank)
Chair: Karyaman Muchtar
15:15–15:30 Coffee Break
15:30–17:30 Revenue Assignments/Sharing [Discussant:EhtishamAhmad]
Alternative Local Revenue and Revenue Sharing (LPEM team)
Indonesian Tax Assignment (Dr. Mahfud Sidik- Ministry of Finance)
Alternative Local Government Sources (Professor Spahn—Univ. Frankfurt)
Natural Resources Revenue Sharing (Sahala Gaol-Ministry of Finance)
Chair: Anton Hermanto Gunawan
March 21
08:30–10:30Grants Design [Discussant: Bert Hofman]
International Experience (Jun Ma, World Bank)
General Allocation Grant (Arlen Pakpahan.-Director, Ministry of Finance)
Special Allocation Grant (Dedi M. Riyadi-Bappenas)
Chair: Raksaka Mahi
10:30–10:45 Coffee Break
10:45–12:45 Management of Decentralization [Discussant:Dethier,WorldBank]
Managing Special Purpose Programs--the Safety net (E. Ahmad)
Grant Administration (Bob Searle-Secretary, Commonwealth Grants Commission, Australia.)
Budgeting and Reporting (J. Stevenson-Advisor, Ministry of Finance)
Indonesian Experience (Hatomi-Director, Ministry of Finance)
Chair: Anton Hermanto Gunawan
12:45–13:00 Closing Remark
(Sri Mulyani/Bambang Brodjonegoro, LPEM)
13:00–14:00 Lunch
14:00–16:30 Round-Table Discussion
Cabinet members, National Economic Council, IMF and World Bank staff, International Experts, LPEM team.