IMF Working Papers

Indonesia: Implementing National Policies in a Decentralized Context: Special Purpose Programs to Protect the Poor

By Ehtisham Ahmad, Luc E. Leruth

June 1, 2000

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Ehtisham Ahmad, and Luc E. Leruth Indonesia: Implementing National Policies in a Decentralized Context: Special Purpose Programs to Protect the Poor, (USA: International Monetary Fund, 2000) accessed December 3, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In the context of continuing adjustments in the economy, the Government of Indonesia proposes to bring energy prices closer to long run marginal cost, while adequately compensating the poor. We focus on the constraints on central government policy objectives towards the poor as decentralization takes effect. However, local governments currently lack credible social protection instruments and their objectives usually do not match those of the center, which imposes constraints on program designs. We discuss the suitability of a number of safety net mechanisms in a decentralized context and draw policy implications.

Subject: Agricultural commodities, Commodities, Expenditure, Inflation, National accounts, Oil prices, Prices, Public expenditure review, Transportation

Keywords: Agricultural commodities, Bus coupon, Coupon scheme, Distribution process, Energy prices, Fiscal decentralization, Incentives, Inflation, North Africa, Oil price increase, Oil prices, Public expenditure review, Social safety nets, Transportation, Voucher system, WP

Publication Details

  • Pages:

    29

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2000/102

  • Stock No:

    WPIEA1022000

  • ISBN:

    9781451852608

  • ISSN:

    1018-5941