DESENTRALISASI FISKAL DAN PENGARUHNYA TERHADAP KINERJA EKONOMI DAERAH KABUPATEN DAN KOTA DI INDONESIA: 2001-2008

• Main Authors: , Sunoto, Ir.,M.Si., , Prof. Dr. Insukindro, M.A.
• Format: Theses and Dissertations NonPeerReviewed
• Published: [Yogyakarta] : Universitas Gadjah Mada 2013
• Subjects: ETD
• Online Access: https://repository.ugm.ac.id/120498/; http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=60529
• Institution: Universitas Gadjah Mada

Decentralization in Indonesia is conducted by the principle of money follows function. It�s means that public services function delivered to the local goverment and followed by financial support, in the form of delivery of local revenue sources and allocation of transfer. Local governments are no longer merely execute the instructions of the central government, but actually has the discretion to increase creativity in developing local policy which during the era of centralization can be said stuck. As a radical change, decentralization in Indonesia was initially raises the pros and cons in the public. For the cons, is feared to worsen the quality of public services, expanding corruption, collusion, and nepotism. For a pro, decentralization is believed to be able to accelerate the better local good governance. However, the results of empirical research on the impact of fiscal decentralization on the economy so far is still ambiguous (mixed) or does not always support the hypothesis of a positive effect of fiscal decentralization on economic growth. In this regard, the objectives of this study were: (1) to analyze the effect of fiscal decentralization on the economic growth of districts and municipalities, (2) to analyze the effect of fiscal decentralization on the inflation of districts and municipalities (3) to analyze the effect of fiscal decentralization on the efficiency of public expenditure of districts and municipalities, (4) to analyze the effect of fiscal decentralization on the institutional capacity of districts and municipalities, (5) to analyze the effect of decentralization of the health sector and decentralization of the education sector to the development of the Human Development Index (HDI) of districts and municipalities, and (6) to analyze the presence or absence of dependence of districts and municipalities to transfer of General Allocation Fund (DAU) from the central government. The analysis in this study uses panel data structure of 255 districts and municipalities during the time period of 2001-2008. Selection of districts and municipalities as a sample base on the purposive sampling. Model was estimated by multiple regression analysis with fixed effect method (FEM). The study produced several findings that: (1) the ratio of real DAU/real local budget proved significantly has positive effect on the economic growth of districts and municipalities, (2) the ratio of real DAU/real local budget proved significantly has positive effect on the inflation of districts and municipalities, (3) the ratio of real DAU/real local budget proved significantly has positive effect on the efficiency of public spending of districts and municipalities, (3) the ratio of real DAU/real local budget proved significantly has positive effect on the institutional capacity of districts and municipalities, (5) the decentralization of health sector and the decentralization of education sector proved significantly has positive effect on the human development indexs (HDI) of districts and municipalities, and (6) the lag-ratio of real DAU/real local budget proved significantly has negative effect on ratio of real PAD/real local budget, thus supporting the hypothesis that the districts and municipalities budgets depend on transfers from the central government.