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Fiscal Decentralization in Indonesia: Historical Context, Milestones, and the Way Forward

  • ISEAS - Yusof Ishak Institute, Seminar Room 2 30 Heng Mui Keng Terrace Singapore, 119614 Singapore (map)

Organizer: Regional Economic Studies Programme at ISEAS - Yusof Ishak Institute

Type/Location: Hybrid / Singapore

Description:

Fiscal decentralization has emerged as a key component of governance reforms since the 1980s. It transferred political, administrative, and fiscal responsibilities from central to local governments often in response to economic crises and growing public demands for democratic accountability.

Over the past two decades, fiscal decentralization has profoundly reshaped Indonesia’s governance structure. While it has contributed to economic growth, poverty reduction, and better public services, new challenges have emerged alongside calls for reforms to adapt to the evolving needs of the regions. This seminar will provide an in-depth analysis of Indonesia’s fiscal decentralization, highlighting key achievements, current challenges, and future strategies to ensure sustained progress.

About the Speakers:

Dr. Luky Alfirman is the Director General of Fiscal Balance at the Ministry of Finance (MOF) of the Republic of Indonesia. He manages the intergovernmental fiscal transfers to subnational governments. Dr Alfirman started his career in the Directorate General of Taxes in 1995. After completing his studies in the US, he returned to modernize the DG Taxes’ administration and was appointed as Deputy Director in charge of estimating tax potential. He later moved to the Fiscal Policy Office as Director of the State Budget Policy Centre and the Macroeconomic Policy Centre. He was then appointed as Director of the Policy Analysis and Harmonization Centre, also known as Chief of Staff for the Minister of Finance.

Dr Alfirman earned a bachelor’s degree in industrial engineering from the Bandung Institute of Technology (ITB). He obtained his MA and PhD, both in Economics, from the University of Colorado, Boulder, USA.

Registration Links:

To attend the event in person, please register here.

To attend the event online, please register here.

 
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