Time of Event

• 23 September: 8.00 – 12.00 (local time); 10.00 – 14.00 (Tokyo time)
• 24 September: 8.00 – 16.45 (local time); 10.00 – 18.45 (Tokyo time)

Summary

Since the early 2000s, fiscal decentralization has been a central priority for Indonesia. With the recent election in February 2024 and the impending expiry of the National Long-Term Development Plan (RPJPN 2005-2025), the devolution of fiscal responsibilities, resources, and capacities is garnering renewed attention among policy makers.

Empowering local governments with greater fiscal policy autonomy carries considerable potential to foster regional development, improve public service delivery, and reduce interregional disparities. However, the practical implementation of such policies faces numerous challenges, from capacity shortfalls and coordination complications to mismanagement and tax competition between regions.

To mitigate these challenges and more fully realize the benefits of fiscal decentralization, the Indonesian government recently introduced Law 1/2022, seeking to streamline the intergovernmental fiscal framework, improve the distribution of financial resources, and strengthen local government capacities.

Against this backdrop, the ADBI has partnered with the Indonesian Ministry of Finance and ADB Resident Mission Indonesia to organize the session on Optimizing Fiscal Decentralization: Pathway to Promote Growth, Wellbeing, and Convergence. Scheduled for 23 - 24 September, this international conference will bring together a variety of policymakers, academics, and international experts to collectively address the issues related to regional growth, public service delivery quality, and overall wellbeing of Indonesia and the surrounding region.

The conference is designed to promote fiscal decentralization as a key driver for equitable economic growth, enhanced public wellbeing, and regional convergence within Indonesia. This will pave the way toward the development of evidence-based and practical policy recommendations to inform the fiscal decentralization effort at various levels of governance, both within and beyond Indonesia.

Objectives

• Exploring and promoting fiscal decentralization: as a key driver for equitable economic growth, enhanced public wellbeing, and regional convergence in Indonesia.
• Analyzing and showcasing best practices: exchanging insights on innovative policy approaches from across and beyond Asia and the Pacific, with emphasis on advancing successful fiscal decentralization.
• Strengthening international collaboration and knowledge sharing: drawing on global experiences to address challenges and opportunities in Indonesia’s 2024 fiscal decentralization reform agenda, and building a community of practice around the policy tools, financing measures, and institutional architecture required for this to be successful.
• Produce actionable policy recommendations: applicable across various levels of governance, to optimize fiscal decentralization efforts, align them with broader objectives of sustainable development, and improve interregional equity.

Target Participants

This seminar will bring together high-level officials from key Indonesian ministries, subnational governments, and local associations, alongside international development partners such as the World Bank, ADB, OECD, and UN agencies, as well as a diverse array of stakeholders from Indonesia and internationally, focusing on fiscal decentralization, regional growth, and wellbeing.

How to Register

By invitation or prior arrangement with ADBI

Partners

• Indonesian Ministry of Finance (IMOF)
• ADB Indonesia Resident Mission (IRM)