Regional Bankruptcy

Several regencies and municipalities are on the verge of bankruptcy because of financial mismanagement. Improvements to the allocation of regional spending are needed.

July 27, 2011

THIS is a gloomy portrait of regional autonomy, thanks to gross financial mismanagement. The Tasikmalya regency is determined to sell off assets to cover its budget deficit. The Garut regency administration is unable to pay hospitals treating the poor. At least 10 regencies and towns in Nanggroe Aceh Darussalam are bankrupt and have had to borrow money to pay civil servants’ salaries.

A decade since the implementation of regional autonomy, man

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