Local Governments Amalgamation in Indonesia: Prospects and Challenges

Abstract

This research focuses on analysing the importance of amalgamation of local governments and critically examine the current neglect of the amalgamation of local governments in Indonesia. By using a case study approach, the investigation on the importance of local government amalgamation in Indonesia found that amalgamation is an alternative policy to be taken by the government, and can be contrasted with the policy practiced until recently, which permitted extensive proliferation in the numbers of local governments. There is no evidence to suggest any specific attempt from the government to implement amalgamation. The government’s objective is to uphold a moratorium on proliferation, even though the government’s target has been broken by the approval of some new local governments during the moratorium period. Adverse economic motives, intertwined with political factors, are the main reasons for the failure to adopt a policy of amalgamation of local governments in Indonesia.