The structure of taxes in Indonesia is unusual among developing countries in that regional governments derive a significant proportion of their revenues from vehicle-based taxes. Vehicle-based taxes constitute the single most important form of own-source revenue for provincial governments...

A fundamental restructuring of intergovernmental relations involving decentralisation and expanded autonomy for provincial and local governments is under way in Indonesia. This paper explores the intergovernmental financial system that preceded the new General Allocation Fund (DAU), with...