The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor

Temenggung, Yuswandi A. and Moenek, Reydonnyzar and Suwanda, Dadang and Mulyadi, Mohammad (2020) The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor. Jurnal Bina Praja: Journal of Home Affairs Governance, 12 (1). pp. 77-89. ISSN 2503-3360


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Indonesia has conducted state proliferation to improve public services, create more effective governance, and increase regional development. State proliferation 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 state proliferation 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. Keywords: State Proliferation, Fiscal Decentralization, Economic Growth, Regional Development, Poor Eradication.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Divisions: Campus > IPDN Kampus Jatinangor
Depositing User: S.IP, M.Si Kuncoro G. Pambayun
Date Deposited: 10 Jun 2020 02:18
Last Modified: 10 Jun 2020 02:18

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