Page 2 - Working Paper (Fiscal Decentralization and Sub-national Taxes: Specific Case of Indonesia)
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Fiscal Decentralization and

                                                             Sub-national Taxes:

                                                                      Specific Case of Indonesia

                   Adri A. L. Poesoro*        1

                   This paper mostly conducts literature                      TABLE OF CONTENTS
                   review    on    sub-national     taxes   in
                   developing  countries  with  specific  case
                   of Indonesia.  Similar to many developing
                   countries that experience process of fiscal
                   decentralization,  central  government in
                   Indonesia devolves mostly expenditure
                                                                             1.  Introduction ............  3
                   task  to sub-national  governments after
                                                                             2.  Concept of
                                                                                Managing Local
                   This paper focuses on the  concept  of
                                                                                Revenues .................  4
                   managing local revenues and which taxes
                   should be  assigned to different  kinds of
                                                                             3.   Decentralization in
                   government. Providing  literature review
                                                                                Indonesia .................  6
                   of the concept of managing local revenues,
                   describing  process  of decentralization  in
                                                                             4.   Performance of
                   Indonesia, and showing the performance
                   of sub-national tax in Indonesia.
                                                                                Taxes .......................  8
                   At the end of  the sections,  this paper                  5.  Concluding
                   recommend  a primary  agenda to solve
                                                                                Remarks and Policy
                   the mentioned problems to improve
                                                                                Recommendation .... 11
                   current  tax  administration  system. This
                   system is the most important government
                   instrument to mobilize resources, reduce
                   disparity in income and  wealth  in the
                   country, and as a tool to stabilize the

                   *Adri A. L. Poesoro is a Chief Economist, DANNY DARUSSALAM Tax
                   Center and a Doctoral graduate from Claremont Graduate University,


                   The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or
                   entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate
                   as of the date received or that it will continue to be accurate in the future. The author’s views expressed in this Working Paper do not
                   necessarily reflect of the views of DANNY DARUSSLAM Tax Center. Working Papers describe research in progress by the authors and are
                   published to elicit comments and to further debate.
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