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

30 Pages Posted: 15 Feb 2006

See all articles by Ehtisham Ahmad

Ehtisham Ahmad

International Monetary Fund (IMF)

Luc Leruth

International Monetary Fund (IMF)

Date Written: June 2000

Abstract

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.

Keywords: Social safety nets fiscal decentralization incentives energy prices

JEL Classification: E61 E64 H42 H53 H72 I38

Suggested Citation

Ahmad, Ehtisham and Leruth, Luc, Indonesia Implementing National Policies in a Decentralized Context Special Purpose Programs to Protect the Poor (June 2000). IMF Working Paper No. 00/102, Available at SSRN: https://ssrn.com/abstract=879669

Ehtisham Ahmad (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Luc Leruth

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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