INTERGOVERNMENTAL DYNAMICS IN INDONESIAN PUBLIC WORKS SECTOR: A STUDY OF CENTRAL-REGIONAL RELATIONS

Abstract

This study investigates the efficacy of the division of central and local government affairs within Indonesia's public works sector, focusing on the fiscal capacity of local governments to manage devolved responsibilities. Employing a qualitative approach, the research examines the dynamics of this division across three diverse provinces: Jakarta, East Java, and Maluku, representing varied regional characteristics. Data were collected through structured interviews with 26 informants, including central and local government officials, practitioners, and experts in regional autonomy, conducted between June and December 2024. A desk study of relevant documentation supplemented the interview data. Findings reveal a disconnect between devolved responsibilities and local fiscal capacity, hindering effective service delivery. Furthermore, the study identifies limitations on local autonomy due to stringent central government oversight. The research concludes by recommending that regional capacity, particularly fiscal capacity, be a key criterion in future divisions of governmental affairs.