Monday, March 16, 2009

LOCAL GOVERNMENT II (Urban Financing updating)

URBAN FINANCING II (Financing the Cities)
(updating Urban Financing, Thursday, Nov 22, 2007)

Since 1999, based on Government Regulation No. 129/2000 Requirements for Establishment and Criteria for Division, Dissolution and Merging of Regions, new autonomous regions have been established ( until 2008) from 26 province to 33 province, 234 district to 399 district, and 59 cities to 98 cities.

Most of the regions are backward regions, high dependency on fiscal transfer, and deteriorating in delivery of public services (Bappenas - UNDP, 2008, Evaluation of the Proliferation of Administrative Regions in Indonesia). The fiscal transfer to developed infrastructure is important for the new autonomous regions. The new fiscal transfer can be seen on www. djpk.depkeu.go.id. To be success, we can learn from other country experiences, such as the American City experience, market, location, design, financing, entrepreneurship and time are important (Book: The American City What Works What Doesn't by Alexander Grivin).