Cooperation Between Regional Governments and Foreign Private Entities

OVERVIEW

In Indonesia, the centralized system has been adopted for a rather long time. In fact, it was in place for three presidential administrations, namely Soeharto (1966-1998), Habibie (1998-1999), and Abdurrahman Wahid (elected as president in 1999).

It then changed in 1999, when Law No. 22 of 1999 on Regional Governments was enacted, followed by the enactment of Law No. 25 of 1999 on Fiscal Balance Between the Central Government and Regional Governments. The enactment shifted Indonesia’s centralized system to a decentralized system.