Territorial Splits (Pemekaran Daerah) in Decentralising Indonesia, 2000–2012: Local Development Drivers or Hindrance?

Not many countries have experienced as fast a growth in the number of local governments as has present day Indonesia. This study examines how territorial splits under new decentralisation policy have effected local development. The paper also critically discusses what needs to change and improve in decentralisation policy to encourage local development. Territorial splits have reinforced spatial fragmentation and ‘local selfishness’, hindering rather than driving local development. Territorial splits have also been a substantial additional burden to the national budget, and have resulted in many conflicts, disputes and tensions at the local level. This paper recommends that there should be a comprehensive review into the practice of territorial splits and suggests that there is a need to make regional mergers a more attractive option for the efficient and effective provision of public services at the local level.