Does Indonesian Decentralized System Lead to a Better Rural Development?

Sutiyo, Sutiyo and Maharjan, Keshav Lall (2012) Does Indonesian Decentralized System Lead to a Better Rural Development? In: the annual conference of the Agricultural Economic Society of Japan, 28 March 2012, Kyushu, Japan. (Unpublished)

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After achieving a successful rural development during the centralized system of New Order regime, the government of Indonesia in 2001 decentralized most of the authorities on rural development to district government. This implies that Indonesian rural development is now relying on the programs and financing from district government. In many studies, the impact of Indonesian decentralized system is mostly analyzed based on cross-sectional data across the regions, from which a comparable achievement among local governments is presented. In order to understand the socio-political reality at local level and what the programs on rural development are established by local government, this study will analyze Indonesian decentralized system by using a case of Purbalingga District, Central Java. Considering the vital role of budget in reflecting the government programs, this study will focus on budgeting analysis through a before-after comparison. Data analysis shows that the district budget is still not pro-rural development. Most of the budget is utilized for the needs of bureaucracy rather than for development activities. Public consultation mechanism in budget formulation cannot be effective to accommodate people inputs. Larger part of indicators on infrastructure, health and education show improvement while those of agriculture seem stagnant. Yet, it is found that most of them are a result of central government intervention in budget allocation rather than a pure initiative of district government. This article argues that for a better rural development, central government should establish regulations to ensure that rural development is not neglected in district budget.

Item Type: Conference or Workshop Item (Other)
Uncontrolled Keywords: Decentralization; rural development; local budgeting; participatory budgetting
Subjects: H Social Sciences > H Social Sciences (General)
J Political Science > JS Local government Municipal government
Divisions: Faculty of Politics and Government > Community Economic and Rural Development
Depositing User: Ph.D Sutiyo Sutiyo
Date Deposited: 02 Apr 2018 02:41
Last Modified: 02 Apr 2018 02:41

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