The Implementation of the Urban Infrastucture Development Program in Indonesia in an Era of Reform

Ichsan, Ichsan (2011) The Implementation of the Urban Infrastucture Development Program in Indonesia in an Era of Reform. Journal of Economics, Management and, 12 (2). pp. 135-150. ISSN Journal of Economics, Management and Business

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Abstract

This study aims to examine to what extent that the objectives of the urban infrastructure development program at the district levels are congruent with those at the national level under the new decentralization policies and how is the organizational structure of the urban infrastructure development program at the district levels managed to achieve the policy goals. This study finds that in general the goals of the urban infrastructure development program at the central government level are incongruent with those at the district government level. This incongruence is traceable to the fact that many district governments have not yet executed the urban infrastructure development program in line with their capacities. Moreover, most district governments have not yet improved their financial resources. Therefore, those who have poor natural resources have serious difficulties in financing the urban infrastructure development program. Keywords: Urban infrastructure development, goal congruence, principal-agent relations.

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