Governance and infrastructure development as Indonesia decentralises: case study of industrial estate and port development in Bantaeng and Banyuwangi Districts

Author: Mohammad Yoga Pratama

Pratama, Mohammad Yoga, 2021 Governance and infrastructure development as Indonesia decentralises: case study of industrial estate and port development in Bantaeng and Banyuwangi Districts, Flinders University, College of Business, Government and Law

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Abstract

This research investigates the relationship between governance practices (voice and accountability, regulatory quality, and control of corruption) at the local government level in Indonesia and investor interest to invest in infrastructure development in the region. It examines governance practices during the development process of industrial estates and ports in two districts, Bantaeng District in South Sulawesi Province and Banyuwangi District in East Java Province.

Existing research and literature on governance in Indonesia found that governance processes are problematic, complex, inefficient, complicated and unstable, and need to be improved, yet the research has not always focussed on the importance of good governance. This thesis investigates such matters and explores the impact on investor interest in the construction of four infrastructure projects.

The research demonstrates that how voice and accountability, regulatory quality, and control of corruption are implemented affects the infrastructure development process. It highlights differences between projects in Bantaeng District and Banyuwangi District. It shows that leadership and political will strongly affect outside investment, and finds that investor confidence is higher in Bantaeng District than in Banyuwangi District.

The primary conclusion of this thesis is that when local governments have a good implementation of voice and accountability, regulatory quality, and control of corruption, this strengthens investor’s willingness to invest in the region, and attracts investors to engage and assist local governments in carrying out their mandated infrastructure development.

Keywords: Governance, governance practices, voice and accountability, regulatory quality, control of corruption, local government in Indonesia, infrastructure development, industrial estates, ports, Bantaeng District, Banyuwangi District

Subject: Policy and Administration thesis

Thesis type: Doctor of Philosophy
Completed: 2021
School: College of Business, Government and Law
Supervisor: Professor Adam Graycar