General Policy Strategy for Economic Diversification in the Context of Regional Autonomy and Fiscal Decentralization

This study explores policy strategies for economic diversification in the context of regional autonomy and fiscal decentralization in Indonesia. By identifying best practices from countries that have succeeded in economic diversification, this study highlights the importance of the division of authority between the central and regional governments to support sustainable economic transformation. This study also emphasizes the role of government, both active and passive, in providing public goods such as infrastructure, education, and banking systems to support economic diversification.

This report is part of a study supported by the Ford Foundation, which aims to provide strategic recommendations for the implementation of economic diversification policies in Indonesia. Using comparative research methods, multicriteria analysis, and the analytical hierarchy process (AHP), this study combines secondary data from previous research, reports from international economic institutions, and national and regional development planning and regulatory documents. The results of this study provide a critical analysis of relevant policies to be implemented within the regulatory and institutional framework in Indonesia.

This article is part of a series of studies on “General Policy Strategies for Economic Diversification in the Context of Regional Autonomy and Fiscal Decentralization,” which explores potential policy directions to accelerate economic transformation at the regional level. More complete information on the research results and policy recommendations can be accessed through the links below.

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