Splitting the Difference? The Politics of District Creation in Indonesia

What explains the patterns of local government proliferation in Indonesia? I argue that ethnic heterogeneity, paired with the political ability to lobby for boundary changes, explains territorial reform. Using data on Indonesian district splits from 2001 to 2012 and information at the district and sub-district levels, I provide evidence in support of these propositions. To further trace the logic of district splitting, the paper draws on census data, as well as information on local violent conflict, to show that newly created districts have higher levels of ethnic homogeneity and experience less political violence. These findings provide new and important insights to existing debates on optimal federalism and the emerging literature on the politics of administrative unit proliferation.