Aid Governance in a Decentralised Indonesia: Case study from ‘the land of a thousand donors’

Abstraksi

Indonesia, in spite of its status as a middle-income country, remains one of the largest aid recipients from particular donor. In response to this situation, Indonesian government, both at the central and local level, constantly try to address the challenges of aid delivery in order to bring about development effectiveness. This paper explores the dynamics of aid intervention and coordination as it unfolds in East Nusa Tenggara (NTT) province, the region that has frequently labeled as ‘the land of a thousand donors’. Rather than focusing exclusively on aid implementation, this paper considers the politics of aid governance that has continuously shaped the outcome of international development partnership at the local level. This paper argues that an effective aid governance at the local level too often fails for two main reasons: the first is the lack of genuine partnership between donors and government agencies at different levels; and the second is the lack of true participation and consideration of the local counterpart’s values and processes. This paper also sets out possible strategies for future remedial policy implications.