The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor
DOI:
https://doi.org/10.21787/jbp.12.2020.75-87Keywords:
State Proliferation, Fiscal Decentralization, Economic Growth, Regional Development, Poor EradicationAbstract
Indonesia has conducted territorial expansion to improve public services, create more effective governance, and increase regional development. Territorial expansion was accompanied by fiscal Decentralization, so that allowed the regions to manage their finances by arranging regional development programs and other planning. However, in its implementation, Decentralization, which has been running for two decades, has experienced problems such as the financial over-dependence on central government and development inequity, which has further implications for eradicating the poor. The purpose of this research is to analyze to what extent the territorial expansion that have been running is able to increase the fiscal revenue of new autonomous regions (DOB) in order to maximize economic growth, equitable territorial development and regional development to be able to eradicate the poor and improve the welfare of the community. The research method uses descriptive methods with a qualitative approach. This study uses data from a period of 2015 to 2019 in accordance with the National Mid-Term Development Plan (RPJMN). The results showed that the development of new autonomous regions in the era of post-reform regional autonomy were 8 provinces, 181 districts and 34 cities. Therefore, the allocation of transfer funds to the regions is increasing every year. For the 2020 State Budget, around Rp.858 trillion or around 34.6% of total state expenditure. However, ironically, the over-dependence of DOB on fiscal Decentralization has not declined. If seen from the ratio of PAD to total regional income, it is known that DOB currently still depends on the parent region or central government, while the DOB growth rate is lower comparing to their parent region. On the other hand, the focus of DOB development is more on government facilities and infrastructure. Although in some new autonomous regions, there is a decrease in poverty, in general, poverty levels in new autonomous regions are relatively higher than in parent regions.
Downloads
References
Adhayanto, O., Arianto, B., Winatawira, W., Suryadi, S., & Nurhasanah, N. (2019). The Evaluation of the Utilization of the 2018 Village Funds in Bintan District and Lingga District. Jurnal Bina Praja, 11(2), 125–136. https://doi.org/10.21787/jbp.11.2019.125-136
Ahmad, E. (2002). Financing Decentralized Expenditures: An International Comparison of Grants. Edward Elgar.
Athukorala, P.-C. (2006). Post-crisis export performance: The Indonesian experience in regional perspective. Bulletin of Indonesian Economic Studies, 42(2), 177–211. https://doi.org/10.1080/00074910600873658
Bahl, R., & Bird, R. M. (2018). Fiscal Decentralization and Local Finance in Developing Countries. Edward Elgar Publishing.
Bahl, R. W., & Linn, J. F. (1992). Urban public finance in developing countries. The World Bank.
Bappenas. (2005). Policy Evaluation on the Establishment of New Autonomous Regions: A Study of Institutions, Human Resources, and Fiscal Performance in New Autonomous Regions.
Bappenas, & UNDP. (2007). Studi Evaluasi Dampak Pemekaran Daerah. Bappenas & UNDP. https://www.bappenas.go.id/files/6013/8785/4695/Studi_Evaluasi_Pemekaran_Wilayah-2007.PDF
Blöchliger, H., & Rabesona, J. (2009). The Fiscal Autonomy of Sub-Central Governments. In OECD Working Papers on Fiscal Federalism (No. 9). https://doi.org/10.1787/5k97b111wb0t-en
Boediono. (2002). The International Monetary Fund Support Program in Indonesia: Comparing Implementation under Three Presidents. Bulletin of Indonesian Economic Studies, 38(3), 385–391. https://doi.org/10.1080/00074910215533
Bröcker, J., Dohse, D., & Rietveld, P. (2019). Infrastructure and regional development. In R. Capello & P. Nijkamp (Eds.), Handbook of Regional Growth and Development Theories (pp. 172–197). Edward Elgar Publishing. https://doi.org/10.4337/9781788970020.00016
Brodjonegoro, B. (2002). Fiscal Decentralization in Indonesia. In H. Soesastro, A. L. Smith, & M. L. Han (Eds.), Governance in Indonesia: Challenges Facing the Megawati Presidency (pp. 282–304). Institute of Southeast Asian Studies.
Brodjonegoro, B. (2006). Desentralisasi Sebagai Kebijakan Fundamental untuk Mendorong Pertumbuhan Ekonomi Nasional dan Mengurangi Kesenjangan Antardaerah di Indonesia.
Brodjonegoro, B., & Asanuma, S. (2000). Regional Autonomy And Fiscal Decentralization In Democratic Indonesia. Hitotsubashi Journal of Economics, 41(2), 111–122. https://www.jstor.org/stable/43296034
Brodjonegoro, B., & Ford, J. F. G. (2014). Intergovernmental Fiscal Relations and State Building: The Case of Indonesia. In R. M. Bird & R. D. Ebel (Eds.), Fiscal Fragmentation in Decentralized Countries (p. 320). Edward Elgar Publishing. https://doi.org/10.4337/9781781007617.00021
Darmi, T., & Mujtahid, I. M. (2019). Peningkatan Kapasitas Kebijakan Dana Desa dalam Mengentaskan Kemiskinan. JIPAGS (Journal of Indonesian Public Administration and Governance Studies), 3(1), 547–566. https://doi.org/10.31506/jipags.v3i1.5484
Elliott, R., & Timulak, L. (2005). Descriptive and Interpretive Approaches to Qualitative Research. In J. Miles & P. Gilbert (Eds.), A Handbook of Research Methods for Clinical and Health Psychology (pp. 147–159). Oxford University Press.
Eschweiler, B. (2010). Restructuring in East Asia: Long-Term Growth Implications for the Crisis Economies. In C. Adams, R. E. Litan, & M. Pomerleano (Eds.), Managing Financial and Corporate Distress: Lessons from Asia (pp. 223–242). Brookings Institution Press.
Faguet, J.-P. (2014). Decentralization and Governance. World Development, 53, 2–13. https://doi.org/10.1016/j.worlddev.2013.01.002
Ferrazzi, G. (2007). International Experiences in Territorial Reform–Implications for Indonesia. USAID.
Firman, T. (2009). Decentralization Reform and Local-Government Proliferation in Indonesia: Towards A Fragmentation of Regional Development. Review of Urban & Regional Development Studies, 21(2–3), 143–157. https://doi.org/10.1111/j.1467-940X.2010.00165.x
Fitrani, F., Hofman, B., & Kaiser *, K. (2005). Unity in diversity? The creation of new local governments in a decentralising Indonesia. Bulletin of Indonesian Economic Studies, 41(1), 57–79. https://doi.org/10.1080/00074910500072690
Foltin, C. (2017). The role of federal regulation in state and local governments and the potential impact of new reforms: An assessment of the effectiveness of reporting, disclosure, and funding. Research in Accounting Regulation, 29(1), 19–29. https://doi.org/10.1016/j.racreg.2017.04.003
Garman, C., Haggard, S., & Willis, E. (2001). Fiscal Decentralization: A Political Theory with Latin American Cases. World Politics, 53(2), 205–236. https://doi.org/10.1353/wp.2001.0002
Grindle, M. S. (2007). Going Local: Decentralization, Democratization, and the Promise of Good Governance. Princeton University Press.
Hakim, A., Hamidi, W., & Tampubolon, D. (2017). Analisis Dampak Pemekaran Daerah Ditinjau dari Aspek Percepatan Pertumbuhan Ekonomi dan Peningkatan Kualitas Pelayanan Publik (Studi Pemekaran Kabupaten Kepulauan Meranti dari Kabupaten Bengkalis). JOM Fekon, 4(1), 843–857. https://jom.unri.ac.id/index.php/JOMFEKON/article/view/12926
Hartley, J., Donaldson, C., Skelcher, C., & Wallace, M. (Eds.). (2008). Managing to Improve Public Services. Cambridge University Press.
Hill, H. (2007). The Indonesian Economy: Growth, Crisis and Recovery. The Singapore Economic Review, 52(02), 137–166. https://doi.org/10.1142/S0217590807002610
Hoessein, B. (2002). Kebijakan Desentralisasi. Jurnal Administrasi Negara, 1(2).
Jesson, J., Matheson, L., & Lacey, F. M. (2011). Doing Your Literature Review: Traditional and Systematic Techniques. SAGE.
Karim, A. G. (2003). Kompleksitas Persoalan Otonomi Daerah di Indonesia. Jurusan Ilmu Pemerintahan, Fakultas Ilmu Sosial dan Ilmu Politik, Universitas Gadjah Mada.
Komariah, A. (2019). Metodologi Penelitian Kualitatif. Alfabeta.
Kuklinski, A. (Ed.). (2019). Regional Information and Regional Planning (Vol. 6). Walter de Gruyter GmbH & Co KG.
Kuncoro, M. (2004). Otonomi & Pembangunan Daerah. Erlangga.
Laugksch, R. C. (2000). Scientific literacy: A conceptual overview. Science Education, 84(1), 71–94. https://doi.org/10.1002/(SICI)1098-237X(200001)84:1<71::AID-SCE6>3.0.CO;2-C
Lefeber, L., & Datta-Chaudhuri, M. (2019). Regional Development Experiences and Prospects in South and Southeast Asia (Vol. 1). Walter de Gruyter GmbH & Co KG.
Lewis, B. D. (2003). Tax and Charge Creation by Regional Governments Under Fiscal Decentralisation: Estimates and Explanations. Bulletin of Indonesian Economic Studies, 39(2), 177–192. https://doi.org/10.1080/00074910302016
Mardiasmo. (2008). Adjustment of Local–Regional Fiscal Balance Systems in the Face of the Regional Proliferation in Indonesia. Strategy for Regional Harnessing in Indonesia.
McGregor, A. (2008). Southeast Asian Development. Routledge.
Myers, M. D. (2019). Qualitative Research in Business and Management (3rd ed.). SAGE.
Nasution, A. (2017). The government decentralization program in Indonesia. In Central and Local Government Relations in Asia (pp. 276–305). Edward Elgar Publishing. https://doi.org/10.4337/9781786436870.00017
Nasution, I. K. (2016). The Challenge of Decentralization in Indonesia: Symmetrical and Asymmetrical Debate. International Journal of Social Science and Humanity, 6(9), 691–697. https://doi.org/10.18178/ijssh.2016.6.9.734
Nugrahani, F. (2014). Metode Penelitian Kualitatif dalam Penelitian Pendidikan Bahasa. Cakra Books.
Nwankwo, G. O. (1984). Management problems of the proliferation of local government in Nigeria. Public Administration and Development, 4(1), 63–76. https://doi.org/10.1002/pad.4230040106
Pierskalla, J. H. (2019). The Proliferation of Decentralized Governing Units. In J. A. Rodden & E. Wibbels (Eds.), Decentralized Governance and Accountability: Academic Research and the Future of Donor Programming (pp. 115–143). Cambridge University Press.
Pike, A., Rodriguez-Pose, A., & Tomaney, J. (2016). Local and Regional Development (2nd ed.). Routledge.
Randolph, J. (2009). A Guide to Writing the Dissertation Literature Review. Practical Assessment, Research, and Evaluation, 14, 1–13. https://doi.org/10.7275/b0az-8t74
Ratnawati, T. (2009). Pemekaran Daerah: Politik Lokal & Beberapa Isu Terseleksi. Pustaka Pelajar.
Rukiah, & Siregar, S. (2019). Interactions and Contributions Between Islamic Human Development Index, Economic Growth, Fiscal Policy and Demographics in Indonesian Provinces: Panel Vector Autoregression (P-Var) Analisys. Proceeding International Seminar of Islamic Studies, 1(1), 347–367. http://jurnal.umsu.ac.id/index.php/insis/article/view/4036
Safitri, S. (2016). Sejarah Perkembangan Otonomi Daerah di Indonesia. Criksetra: Jurnal Pendidikan Sejarah, 5(1), 79–83. https://doi.org/10.36706/jc.v5i1.4804
Salim, W., & Hudalah, D. (2020). Urban Governance Challenges and Reforms in Indonesia: Towards a New Urban Agenda. In New Urban Agenda in Asia-Pacific (pp. 163–181). Springer. https://doi.org/10.1007/978-981-13-6709-0_6
Shah, A. (1994). A fiscal needs approach to equalization transfers in a decentralized federation. The World Bank.
Simanjuntak, B. A. (2013). Dampak Otonomi Daerah di Indonesia: Merangkai Sejarah Politik dan Pemerintahan Indonesia. Yayasan Pustaka Obor Indonesia.
Suhardi, M., Husni, L., & Cahyowati, R. R. (2019). Financial Central and Regional Relations Within the Government Enforcement in Indonesia. Journal of Liberty and International Affairs, 5(2), 106–116. https://www.ceeol.com/search/article-detail?id=800063
Suryanto, A., & Kartikaningsih, M. A. (2013). Proliferation of Autonomous Regions Dilemma in Decentralized Indonesia: Participation, Budget Constraint, and Performance of the Newly Formed Local Government. In Eastern Regional Organization for Public Administration (Eropa) Conference.
Talitha, T., Firman, T., & Hudalah, D. (2019). Welcoming two decades of decentralization in Indonesia: a regional development perspective. Territory, Politics, Governance, 1–19. https://doi.org/10.1080/21622671.2019.1601595
Tatâ€Kei Ho, A. (2002). Reinventing Local Governments and the Eâ€Government Initiative. Public Administration Review, 62(4), 434–444. https://doi.org/10.1111/0033-3352.00197
Tulai, O., Petrushenko, Y., Glova, J., Sydor, I., & Ponomarenko, O. (2019). The impact of decentralization on the financial support of regional development. Investment Management and Financial Innovations, 16(4), 1–15. https://doi.org/10.21511/imfi.16(4).2019.01
Ukiwo, U. (2006). Creation of Local Government Areas and Ethnic Conflicts in Nigeria: The Case of Warri, Delta State. In CRISE West Africa Workshop. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.119.5294&rep=rep1&type=pdf
USAID. (2006). Decentralization 2006: Stock Taking on Indonesia’s Recent Decentralization Reforms. USAID. http://kluyskensconsulting.com/wp-content/uploads/2018/07/StockTakingonDecentralization-SummaryReport-2006.pdf
Wagner, C., Kawulich, B., & Garner, M. (2019). A Mixed Research Synthesis of Literature on Teaching Qualitative Research Methods. SAGE Open, 9(3), 215824401986148. https://doi.org/10.1177/2158244019861488
Zhuang, J., Edwards, D., & Capulong, M. V. A. (Eds.). (2001). Corporate Governance & Finance in East Asia: A Study of Indonesia, Republic of Korea, Malaysia, Philippines and Thailand. Asian Development Bank. http://hdl.handle.net/11540/6222
