scholarly journals Fiscal Decentralization, Economic Growth and Regional Development Inequality in Eastern Indonesia

2021 ◽  
Vol 9 (2) ◽  
pp. 1-9
Author(s):  
Nur Farida

This study analyzes the relations between fiscal decentralization, economic growth, and regional development inequality in Eastern Indonesia using 2016-2019 panel data of thirteen Eastern Indonesia provinces obtained from Statistics Indonesia and the Directorate General for Fiscal Balance. Using simultaneous equations estimated through the Three-Stage Least Squares, this study finds that fiscal decentralization has not fully supported economic growth and correct the inequality in eastern Indonesia’s regional development. The mandate for managing the budget has not been optimally used by the local governments, indicated by poor allocation for productive expenditures and its decreasing proportion during the research period. It is caused by poor human resource quality in budget planning and management, which finally hinders the quality of public service and economic growth. Supports from physical and human capital are required to keep up with the occurring economic activities so that inequality in regional development in the area can be reduced.

2021 ◽  
Vol 748 (1) ◽  
pp. 012028
Author(s):  
Hani Sri Mulyani ◽  
Dadang Sudirno ◽  
Abdul Hakim

Abstract The independence of Regional Development in regional autonomy is the ability of local governments to self-finance government activities, development, services to the community and manage regional finances, especially Regional Original Income (PAD) and Economic Growth Levels without relying mostly on assistance from the central government. This study aims to determine the effect of local taxes, levies and the level of economic growth on the independence of regional development in CIAYUMAJAKUNING regencies/cities for the period of 2011-2018, either partially or simultaneously. The variables used in this study are Local Taxes, Retribution, Economic Growth Rate and Regional Development Independent Ratio obtained from the website of the Directorate General of Fiscal Balance (DJPK) and the website of the Regency / City Central Statistics Agency (BPS) in West Java. The analytical method used is descriptive analysis method and verification. The sample selection in this study used the saturated sample method, and the samples from this study were 5 districts/cities, namely Cirebon City, Cirebon Regency, Majalengka Regency, Indramayu Regency and Kuningan Regency in the period of 2011-2018 so that 40 sample data were obtained. The analytical tool used in this research is multiple regression analysis. The results of this study indicate that partially Local Taxes have a significant effect on the Independence of Regional Development, Levies have a significant negative effect on the Independence of Regional Development and the Level of Economic Growth has no effect on the Independence of Regional Development. However, simultaneously it shows that local taxes, levies and economic growth rates have a significant effect on the independence of regional development.


2021 ◽  
Vol 21 (02) ◽  
Author(s):  
Dadang Sudirno ◽  
Hani Sri Mulyani2

Independence of Regional Development in regional autonomy is the ability of local governments to self-finance government activities, development, services to the community and manage regional finances, especially Regional Original Income (PAD) and Economic Growth Levels without relying mostly on assistance from the central government. This study aims to determine the effect of local taxes, levies and the level of economic growth on the independence of regional development in CIAYUMAJAKUNING regencies / cities for the 2011-2018 period, either partially or simultaneously. The variables used in this study are Local Taxes, Retribution, Economic Growth Rate and Regional Development Independent Ratio obtained from the website of the Directorate General of Financial Balance (DJPK) and the website of the Regency / City Central Statistics Agency (BPS) in West Java. The analytical method used is descriptive analysis method and verification. The sample selection in this study used the saturated sample method, and the samples from this study were 5 districts / cities, namely Cirebon City, Cirebon Regency, Majalengka Regency, Indramayu Regency and Kuningan Regency in the 2011-2018 period so that 40 sample data were obtained. The analytical tool used in this research is simple linear regression analysis. The results of this study indicate that Retribution has a significant effect on the Independence of Regional Development.


2016 ◽  
Vol 26 (1) ◽  
pp. 24
Author(s):  
Imam Sumardjoko

The issue of inter-regional development imbalances and fiscal disparities into the current fiscal decentralizationissues. The toughest challenge in building fiscal decentralization not only gives funds to local governments, butcreating impact of improving the quality of public services and economic growth. Transfer to the area hasincreased every year. However, this increase has not been maximized to reduce poverty, equitable distribution ofinfrastructure, fiscal gap, and competitive regional economy.Research funds for fiscal decentralization in some countries have done long before the implementation ofregional autonomy. The result will vary according to the characteristics of the area in the country. In addition toa variety of research results, the implementation of regional transfers caused disagreement. Indonesia has adiversity of characteristics and distribution of a wide area. An interesting question is whether the increase intransfers to the regions to encourage regional development through capital expenditure area.The study uses a quantitative approach that is explanatory research with two research data is local governmentthat receives DID for three consecutive years and areas that do not pay attention DID streak. Regression analysis involves five independent variables, transfer funds DAU, DAK, DBH, DID, BOS seta dependent variable is thearea of capital expenditure. The research data come from reports on realization of the budget and Transfer ToThe Financial Statements year period 2012-2014.The first test results prove DAU, DAK, DBH, and DID have a significant effect on capital spending area withprobability signifkansi each less than 0.05. These results are in line with the theory of fiscal federalism. BOSwhereas no significant effect on capital spending area with p-value of 0.379. BOS as the provision of basiceducation aid has not been able to provide flexibility to the budget to increase the use of capital expenditure. Theresults of the second test with the data local governments do not pay attention DID streak gives similarity with theresults of the first test except variable DID no significant effect on capital spending. All variables simultaneouslyaffect the area of capital expenditure.


2016 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Faishal Fadli

This study aimed to examine the direct and indirect effects of fiscal decentralization on regional disparity in eastern and western Indonesia through economic growth. Analyzing variable between economic growths because growth based on several theories and previous research says that the increase in local revenues and fund balance can increase economic growth. Meanwhile, according to theory said that increasing economic growth will increase regional disparity. The method of analysis used in this study is a quantitative method, with the use of Path Analysis. The variables used in this study are the General Allocation Fund (DAU), Special Allocation Fund (DAK), Revenue Sharing Fund (DBH), local revenue (PAD), Economic Growth (G), and regional disparity (IW). While to compare the results of the analysis between Eastern Indonesia Region (Borneo, Celebes, Maluku, Papua, and Nusa Tenggara) and Western Indonesia Region (Sumatera, Java, and Bali). The results of the study is that there is no direct effect of fiscal decentralization on regional disparity and economic growth through direct fiscal decentralization on regional disparity both in eastern Indonesia western Indonesia. Although the outcome in eastern Indonesia there is only DAU variable that affects. Whereas in the west Indonesia DBH only have an influence. This is consistent with the composition of the balance funds are disbursed by the central government to local governments, where the composition of the greatest in eastern Indonesia is the General Allocation Fund in which it reflects the dependence of local governments to the center of the high, while for the West Region Indonesia composition equalization funds is greatest DBH where this is a reflection of the independence of local governments are not dependent on the central government. So as to create fiscal decentralization well then required a greater allocation of the fund balance.


2017 ◽  
Vol 6 (1) ◽  
Author(s):  
Abdul Majid

The purposed  of the study was to test the influence of economic growth, the local size government and local revenue  to internal control system  weakness of local government.The thesis is associative research. The population in this thesis are all regency / city in Indonesia and the scope of the discussion was about the influence of economic growth, the local size goverment, and local revenues, in cases of weakness of internal control systems in 2013. The samples were determined by using purposive sampling by total amount of the datas were 229, the total samples  obtained 146 districts and cities in Indonesia by Slovin sampling formula. Data obtained through the Result of BPK’s Summary In 2014, The APBD’s Realization Statement, Balance Sheet Regions obtained from the website of the Directorate General of Fiscal Balance, the Finance Ministry of Republic Indonesia and APBD’s Realization Statement which was obtained from Respective of Regional Revenue each district/city government and the regional balance provided report of the asset which was a measure of local governments and economic growth through the BPS’s data. The results of this study showed the economic growth was positive influance in internal control system weakness, local size governments was negative influance in internal control syistem weakness, and the local revenues was positive influance in internal control system weakness but its unsignificant.Keywords :  internal control system weakness, economic growth, local size government, and local revenues.


2020 ◽  
Vol 1 (2) ◽  
Author(s):  
Dahlia Destari Inayah Ali ◽  
Sri Endang Saleh

The implementation of fiscal decentralization policy has a good impact on the development of the potential and creativity of local governments. Effectiveness in managing the results of regional wealth will affect the original income of the region which can then be utilized for the welfare of the community. This study aims to determine the effect of fiscal decentralization and economic growth on poverty in Gorontalo Province. This research uses quantitative methods. The data used in this study were sourced from the Central Statistics Agency and the Directorate General of Fiscal Balance so that the data in this study were secondary data using the econometrics method through a panel data regression equation in the form of a combination of 10-year time series data (2008-2017) and cross section data 6 Regency / City areas in Gorontalo Province. Estimation is done using the Fixed Effect Model (FEM). The results of this study indicate that (1) Partially the degree of fiscal decentralization has a negative effect (unidirectional relationship) and significant on poverty means that the greater the fiscal decentralization variable will have an impact on reducing the level of poverty (2) Partially economic growth has a negative effect (unidirectional relationship) and significant to poverty means increasing economic growth can reduce poverty levels (3) Simultaneously the degree of fiscal decentralization and economic growth have a significant effect on poverty in Gorontalo Province. Keywords: fiscal decentralization, economic growth, poverty


2018 ◽  
Vol 8 (2) ◽  
pp. 72-85
Author(s):  
Suherman Suherman ◽  
Musaiyadi Musaiyadi ◽  
Dika Huriyatul Mukaromah

This study describes the effect of government expenditures in economic, education, and health sectors toward the quality index of the population in Lumajang regency. Jenis data yang digunakan dalam penelitian ini adalah data sekunder , diperoleh dari Direktorat Jenderal Perimbangan Keuangan Republik Indonesia, Badan Pusat Statistik Jawa Timur dan Kabupaten Lumajang. The type of data used in this study is secondary data, obtained from the Directorate General of Fiscal Balance of the Republic of Indonesia, Central Statistics Agency of East Java and Lumajang District. Metode analisis data yang digunakan dalam penelitian ini adalah regresi linier berganda. Data analysis method used in this research is multiple linear regressions. Dari hasil analisis diperoleh kesimpulan: pengeluaran pemerintah sektor ekonomi dan pendidikan ber pengaruh signifikan statistik From the analysis results obtained conclusion: government expenditures of economic and education sectors have significant statistical influenceterhadap peningkatan kualitas penduduk di Kabupaten Lumajang sedangkan sektor kesehatan tidak berpengaruh dalam peningkatan kualitas penduduk di Kabupaten Lumajang. toward improving the quality of the population in Lumajang district while the health sector has no effect in improving the quality of the population in Lumajang Regency. Rekomendasi yang bisa diajukan dari hasil penelitian ini adalah p emerintah Kabupaten Lumajang tetap mempertahankan nilai pengelu a ran di Recommendations can be submitted from the results of this study are Lumajang government must retains a value of expand in sektor ekonomi dan sek tor pendidikan, dan perlu menambah jumlah pengeluaran di sek tor kesehatan agar pengeluaran ini berpengaruh signifikan terhadap pembangunan kualitas penduduk di Kabupaten Lumajang . economic and education sectors, and they need to increase the amount of spending in the health sector so that this spending significant effect on the development of population quality in Lumajang.


2017 ◽  
Vol 16 (2) ◽  
Author(s):  
Faishal Fadli

<p><em>The implementation of regional autonomy resulted in each region to be able to manage their finances independently. This is one way the central government to remove the dependency of local governments to the central government. Thus requiring local governments to explore the sources of local revenue in order to finance regional development. In an effort to increase local revenues derived from the PAD is determined by economic factors or economic potential which has the prospect to be developed for each area. While the economic progress of a region heavily dependent on the development efforts undertaken by the government in providing public facilities to support economic activity. so it needs to be studied further economic growth in East Java, which increased from year to year, is also accompanied by an increase in revenue (PAD) as one source of income in financing regional development. The result indicates the role of the revenue (PAD) in the Regional Budget (APBD) of East Java Province indicates that there is still very small, with an average of 15.47% of the total revenue budget. This means that the level of dependence of local governments on the central government is still high. Although the results of regional revenue projections indicate that component has been great in their contribution of the reception area, which amounted to 69.52%. Using the ordinary least squre method, the result of regression correlation are insignificant. This means that the regional gross domestic product does not have an effect on revenue of East Java Province. If an increase or decrease in regional gross domestic product will not increase or decrease revenue amount. This means that there is no significant relationship between economic growths towards the reception of the revenue.</em></p><p align="left"><em> </em></p><p><strong>Keywords: </strong>economic growth, revenues (PAD), Regional Budget (APBD), Gross Domestic Product (GDP).</p>


2020 ◽  
Vol 23 (1) ◽  
Author(s):  
Heru Suwito

Goverment faces economic problem continuously that affect the economic growth where the most impact occured is from State Budge. The low absorption rate of goverment budget as seen from the realization of the state ministry/institutional budget hampers the rate of economic growth. The purpose of this study is to provide empirical evidence about the effect of DIPA quality and the accuracy of cash planning on the level of budget absorption of working unit in the working area of regional office of the Directorate General of Treasury, Lampung Province. The data used is secondary data in the form of data from the spending units which revised the budget and data on the planned withdrawal of the budget in the regional office of the Directorate General of Treasury, Lampung Province in 2013-2016. The sample of this study are working units who managed a budget of more than 10 billion on a quarterly basis during the period 2013-2016, with a total sample of 496 data studies. Hypothesis testing is performed using panel data regression Eviews version. The results of the study show that the quality of DIPA and accuracy of cash planning have a significant positive effect on the level of budget absorption of working units in the working area of regional office of the Directorate General of Treasury, Lampung Province.


2020 ◽  
Vol 19 (2) ◽  
pp. 172-200 ◽  
Author(s):  
Taha Chaiechi ◽  
Caroline Wong ◽  
Silvia Tavares

Federal and local governments around the world usually hail urbanisation as a sign of economic progress. However, the relationship is not that simple. The existence of agglomeration economies does not mean that urbanisation will directly result in positive economic outcomes. Also, there is significant diversity in urban growth patterns, with each pattern resulting in different economic and social outcomes. The diversity in patterns of urban growth and transformation implies that different economies can grow at different speeds in achieving socioeconomic goals. This study explores the urban development of two tropical cities – Cairns and Singapore – with a focus on their different urban growth patterns. Cairns is an expanding tropical Australian city located far from main urban centres, meaning it needs attention to foster positive change that will produce distinctive urban spaces which improve quality of life while providing economic growth opportunities. The city of Singapore is a tropical island-state situated near the equator with limited land and natural resources, and one of the largest urban populations in Southeast Asia. Its landscapes are constantly changing as urban planning plays a key role in formulating and guiding the physical terrains of modern Singapore, thereby shaping the quality of life of its population.


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