Does Fiscal Decentralization Affect Human Development in Indonesia?

Solahudin, Didin (2011) Does Fiscal Decentralization Affect Human Development in Indonesia? Magister thesis, Universitas Brawijaya.

Abstract

Studi ini berfokus pada analisis dampak desentralisasi fiskal pada pembangunan manusia, terutama di sektor pendidikan dan kesehatan, di wilayah Jawa Barat, Indonesia menggunakan kumpulan data panel kabupaten dan kota dalam administrasi Provinsi Jawa Barat selama 2001-2006. Meskipun pemerintah daerah memiliki lebih banyak wewenang untuk mengumpulkan pendapatan dari komunitas mereka, kabupaten dan kota Jawa Barat tidak memiliki kapasitas fiskal dan sangat tergantung pada bantuan keuangan pemerintah pusat. Di sisi lain, struktur anggaran kabupaten dan kota Jawa Barat didominasi oleh pengeluaran operasional seperti untuk gaji karyawan pemerintah yang mengonsumsi sekitar 38% dari total anggaran, sehingga alokasi untuk program pengembangan khususnya untuk kesehatan sangat terbatas, berkisar antara IDR 1,105 dan IDR 256.144 per kapita. Dalam hal layanan pendidikan, anggarannya cukup tinggi - antara IDR 15.994 dan IDR 369.849 - karena persyaratan hukum sistem pendidikan nasional 2003. Melalui model regresi, kami menemukan bahwa desentralisasi fiskal memiliki dampak positif pada kinerja pendidikan yang ditunjukkan dengan meningkatkan tingkat pendaftaran SMP dan SMA (NERMP dan NERSMA) serta pada pencapaian kesehatan yang ditunjukkan dengan mengurangi angka kematian bayi (IMR), Meskipun perlu waktu untuk mengamati hasil, satu hingga tiga tahun setelah mengimplementasikan kebijakan terkait.

English Abstract

The present study focuses on analyzing the impact of fiscal decentralization on human development, especially in education and health sectors, in West Java Region, Indonesia using a panel data set of regencies and cities within West Java Province Administration during 2001–2006. Although local government has more authority to collect revenue from their communities, West Java`s regencies and cities lack fiscal capacity and highly depend on the financial assistance of central government. On the other hand, budget structures of West Java`s regencies and cities were dominated by operational expenditures such as for government employees` salaries consuming approximately 38% of total budgets, so that allocation for developmental program particularly for health is very limited, ranging between IDR 1,105 and IDR 256,144 per capita. In the case of education services, its budget was high enough – between IDR 15,994 and IDR 369,849 – because of the 2003 national education system law requirements. Through regression models, we find that fiscal decentralization has a positive impact on education performance indicated by increasing the rates of junior and senior high school enrolment (NERSMP and NERSMA) as well as on health attainment indicated by decreasing the infant mortality rate (IMR), although it needs time to observe the results, one to three years after implementing the related policies.

Item Type: Thesis (Magister)
Identification Number: TES/352.283 244/SOL/d/041105091
Subjects: 300 Social sciences > 352 General considerations of public administration > 352.2 Organization of administration
Depositing User: Endro Setyobudi
Date Deposited: 06 Dec 2011 10:13
Last Modified: 06 Dec 2011 10:13
URI: http://repository.ub.ac.id/id/eprint/156756
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