IMPLEMENTATION OF FISCAL DECENTRALIZATION IN INDONESIA: 2001-2009
Abstract: In Indonesia, the
implementation of fiscal decentralization has entered the 9th year, however, so
far many problems and obstacles which is faced during the implementation to stimulate
economic growth and reduce poverty. This study aims to analyze: trend of
government expenditure in decentralization era and regional autonomy during
2001-2009 and fiscal decentralization degree in Indonesia. This objective is
achieved through descriptive analysis using secondary data for 2001-2009. The
result shows central government expenditure tends to decreased and transfer
expenditure increased significantly every year in absolutely, but annual growth
rate fluctuated considerably. This indicates the allocation portion of the transfers
was unstable. The largest component of transfers is fund balance and tends to
in-crease every year significantly, fiscal decentralization degree at
districts/city and province increased in 2007-2008. It is recommended to
regional government to allocate public interest bigger than for government
administration such as personnel government spending.
Author: Nursini
Journal Code: jpmanajemengg120007
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