Local taxes boost local economy without harming autonomy, study finds.
The government in Indonesia passed a law to give local governments more control over their finances without hurting the local economy. The law helped local governments manage their money better and provide services to people. A study looked at how well this law worked after seven years. They found that it did increase local governments' financial independence and didn't harm the local economy. The study used interviews, statistics, and data analysis to reach these conclusions. The law also helped local economies grow. Overall, the law achieved its goal of giving local governments more control over their money and helping the local economy.