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

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 pro...

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Main Authors: Yuswandi Arsyad Temenggung, Reydonnyzar Moenek, Dadang Suwanda, Mohammad Mulyadi
Format: Article
Language:English
Published: Bina Praja Press 2020-05-01
Series:Jurnal Bina Praja
Subjects:
Online Access:http://jurnal.kemendagri.go.id/index.php/jbp/article/view/681
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author Yuswandi Arsyad Temenggung
Reydonnyzar Moenek
Dadang Suwanda
Mohammad Mulyadi
author_facet Yuswandi Arsyad Temenggung
Reydonnyzar Moenek
Dadang Suwanda
Mohammad Mulyadi
author_sort Yuswandi Arsyad Temenggung
collection DOAJ
description 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.
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spelling doaj.art-299af19e1bab411db4996a9d5a2a3cc42023-04-09T18:15:32ZengBina Praja PressJurnal Bina Praja2085-43232503-33602020-05-0112110.21787/jbp.12.2020.75-87The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the PoorYuswandi Arsyad Temenggung0Reydonnyzar Moenek1Dadang Suwanda2Mohammad Mulyadi3Institute of Governance of Home AffairsInstitute of Governance of Home AffairsInstitute of Governance of Home AffairsResearch Center of the Expertise Agency of House of Representatives 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. http://jurnal.kemendagri.go.id/index.php/jbp/article/view/681State ProliferationFiscal DecentralizationEconomic GrowthRegional DevelopmentPoor Eradication
spellingShingle Yuswandi Arsyad Temenggung
Reydonnyzar Moenek
Dadang Suwanda
Mohammad Mulyadi
The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor
Jurnal Bina Praja
State Proliferation
Fiscal Decentralization
Economic Growth
Regional Development
Poor Eradication
title The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor
title_full The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor
title_fullStr The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor
title_full_unstemmed The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor
title_short The Fiscal Capacity of the New Autonomous Region (DOB) in Increasing Economic Growth and Eradication of the Poor
title_sort fiscal capacity of the new autonomous region dob in increasing economic growth and eradication of the poor
topic State Proliferation
Fiscal Decentralization
Economic Growth
Regional Development
Poor Eradication
url http://jurnal.kemendagri.go.id/index.php/jbp/article/view/681
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