IMPLEMENTASI KEBIJAKAN DESENTRALISASI FISKAL INDONESIA: PENINGKATAN PEMERATAAN PEMBANGUNAN EKONOMI PADA PROVINSI SE-INDONESIA

PEMERATAAN PEMBANGUNAN EKONOMI PADA PROVINSI SE-INDONESIA

Abstract

The Fiscal Decentralization Policy is an implementation  of Regional Autonomy in Indonesia after the 1998 Economic Reform with the aim of achieving equal distribution of economic development in all regions, then will encourage economic growth.

 

The main objective is to estimate and prove how regional transfer variables such as DID, DAU, DAK, and DD can influence the Human Development Index (HDI) as an indicator of economic development. Furthermore, IPM can influence economic growth with the 2SLS model. The data used is pooling data, where the cross section is all provinces while the time series uses 12 years data (2005-2016). Estimation method with the least squares method (OLS) and autoreggressive model that uses E-Views 8 software.The results to indicate that the R² (goodness of fit) value is 86.03%. Furthermore, the DID and DAU variables are not significant, while DAK, DD, and IPMt-1 have a positive and significant effect, although relatively small on the level of HDI in the provinces in Indonesia. This means that the policy to increase Transfer funds to the regions at the provincial level, only DAK and DD affect the increase in HDI, although with a very small response. While IPM_t-1 also has a positive effect on the current HDI. The APBD turns out to fund a lot of routine components so that it relies heavily on the state budget funds. The concept of regional autonomy in Indonesia is not for provinces but for districts and cities. While the HDI variable with the 2SLS model has a positive and not significant effect on economic growth in Indonesia