Siti Aisah Bauw, Lillyani M. Orisu, Melkion D.T. Worabay
Government transfers are one of the central government's interventions in autonomous regions that aim to help regions with low fiscal capacity. With the development of transfers in Manokwari Regency which is always increasing, describing government spending in financing development still depends on the central government or balance funds. The purpose of this study was to etermine the effect of government transfers on the fiscal erformance of Manokwari Regency in the implementation of decentralization. This study is aimed at analyzing he influence of government transfers on the fiscal performance of the Manokwari District government in the implementation of decentralization. With five years of observation. Model estimation is analyzed using simple linear regression (simple linear regression) by partially testing the hypothesis. The results showed that the variable government transfer index had a positive coefficient (+) on the fiscal performance of the regional government, with a R2 value of 86% indicating a ignificant influence on the fiscal performance of the local government.
This research aims to find out the level of financial capacity of regional government in Indonesia before and after the proliferation of administrative region. The level of financial capacity is measured using analysis of local financial ratio consisting of regional financial independence ratio, degree of fiscal decentralization ratio, Local-Own Source Revenue (OSR) per capita growth analysis, and OSR effectiveness ratio. The number of sample used in this research is 15 districts in Indonesia which were split in 2008, 2012, and 2013 using purposive sampling method. Data used in this research is secondary data of Budget Realization Report of State Budget from Directorate General Suhairi 3 of Fiscal Balance of Ministry of Finance of Republic of Indonesia. Technique used to analyze data is analysis of local financial ratio and t-test (paired sample test). The result of t-test shows that there is significant difference between regional financial independence and degree of fiscal decentralization before and after the proliferation of administrative region. There is no significant difference between the OSR per capita growth and OSR effectiveness either before or after the proliferation of administrative region .
Regional financial management is better when government supported with capability of adequate regional financial, so it’s can impact on improving services and community welfare. The government can do it, if government spending on services and community welfare, in the form of capital expenditure should get a relatively large portion. The purpose of this study is to determine the effect of regional financial performance to the allocation of capital expenditure. This research was conducted in all regency Province of Bali for the period of 2012-2016. The results of this study indicate that local financial performance as measured by the degree of fiscal decentralization ratio, regional financial independence, SiLPA financing rate, and the degree of BUMD contribution have a positive influence significantly to the allocation of capital expenditure. Meanwhile, the regional financial performance as measured by the ratio of the effectiveness of regional revenue, the efficiency of regional finance have a negative influance not significantly to the allocation of capital expenditure. Keywords: regional financial management, regional financial performance, capital expenditure
This research aims to analyse the degree of fiscal dependence of local government upon the central government in the regency of Mimika, one of Indonesia’s eastern regencies. The ratio of fiscal decentralization is used to calculate the local government’s ability to increase its regional revenue in order to support development initiatives in all sectors (Malmudi, 2010). Secondary data of locally-generated revenue and total revenue from the period 2010-2015 are used to measure the degree of fiscal decentralization. The results show that the degree of fiscal decentralization in the regency remained at a low level, reflected from the average value of 12.92 percent with the highest degree, of 25.09 percent in 2012. An analysis of fiscal decentralization in the period 2010 – 2015, indicates that the regency lacked sufficient fiscal capacity, showing heavy dependence upon financing from the central government. The local government is expected to develop the region’s potentiality through creative efforts within their governmental apparatus to increase local revenues. The funds from the central government could provide a positive contribution if used in the consumption of goods and services that potentially support economic activities.
Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central government. However, in practice, there are many areas that still rely on the assistance central finance for their regional development. This research aims to discuss the development of regional finance independency and analyze the influence of regional finance independency on economic growth in Banten Province. This research uses descriptive method and panel data on 6 (six) regencies and cities in Banten Province at 2001-2011. The results showed the significantly positive effect of regional finance independency on economic growth and significantly negative effect of balance fund’s ratio on economic growth. Key words: local revenue, economic growth, panel data
Formation of new autonomous regions are meant to promote effective governance, by reducing the span of control of the previous more extensive area, improving the quality of public services, increasing the wealth of the local people, setting the fiscal balance between central and local government, increasing employment and capital inflow. However, the formation process of North MusiRawas as a new autonomous region took 11 years since proposed in 2002 until signed by the central government in 2013. This paper argues that the factors behind the long delay were mainly political factors, instead of administrative. Administrate, the region is eligible to be established as a new autonomous region. This study uses the NVivo Program as a tool for conducting primary and secondary data analyzed from direct interviews, meeting results and statements from related parties. From the research results obtained that the political process, however, involves a series of events in its history that generated constraints for establishing North MusiRawas as a new autonomous region. The historical facts include leadership contest between Governor of South Sumatera and Regent of MusiRawas, conflict over control of the natural gas resource in Suban 4, central government's moratorium policy to new autonomous region formation, leadership change, and internal conflict within the social movement to demand autonomy among local people. It argued in this paper that absence of political network and lack of organization of social mobility to demand freedom allows the recurring events that created constraints to the political process of establishing North MusiRawas as a new regency. The absence of political network to elites in the regional and national levels complicate the political communication to pursue autonomy. It explains why the conflict between Governor and Regent can halt the proposal. Weak organization of social movement allowed internal strife and complicated the resource mobilization to achieve the political goal.
Novianti Valentin Ruung, Ventje Ilat, Heince R. N. Wokas
The Indonesian government imposed a policy of regional autonomy with the aim to facilitate local governments regulate local affairs indenpently. Manado city is one of the areas that implement decentralization policy and requires a lot of funds to finance regional development. The biggest potential possessed Manado city in the financingof regional expenditures derived from local taxes and are expected to ptovide the largest contribution in PAD. This study aims to determain the amount of contribions hotel tax and groundwater tax and to analyze hotel tax and groundwater tax the city of Manado. Methods of data analysis in this research is descriptive analysis. Based on the analysis the average contrition colletion hotel and groundwater tax city parking tax is lack and for hotel tax and groundwater tax reporting mechanism are alredy well underway.Keywords : contribution, reporting, hotel tax, groundwater tax
Open access
Economic Growth and Fiscal Policies
Community-based Tourism Development and Sustainability
Abstract. This research aims to analyze the contribution of the sources of Pendapatan Asli Daerah in supporting the regional financial independence. The research conducted at the Office of Regional Finance and Asset Agency (BKAD) at Sleman Regency. This research uses quantitative descriptive method. Data collection techniques through observation, and documentation studies. The data used on this research was secondary data that is the realization report of APBD period 2012-2016. The results show that the trend of PAD growth experienced an average growth of 25%. Where from sources of PAD that contribute greatly to total PAD comes from local taxes with an average contribution of 59.11%. The financial performance of Sleman Regency is low based on financial ratios. Where the ratio of degrees of decentralization is in the medium the category of 26.34%. The dependency ratio is very high with an average value of 67.78%. The ratio of independence is low or shows the pattern of consultative relationship with an average of 38.86%. As for the ratio of the effectiveness of local revenue is classified as very effective and the ratio of efficiency of local revenue in the category inefficient. Keywords: center contribution of pad; growing of pad; regional financial independence; regional financial performance. Abstrak. Penelitian ini bertujuan untuk menganalisis kontribusi sumber-sumber Pendapatan Asli Daerah dalam mendukung kemandirian keuangan daerah. Penelitian berlangsung di Kantor Badan Keuangan dan Aset Daerah (BKAD) Kabupaten Sleman. Penelitian ini menggunakan metode deskriptif kuantitatif. Teknik pengumpulan data melalui observasi, dan studi dokumentasi. Data yang digunakan adalah data sekunder yaitu laporan realisasi APBD periode 2012-2016. Hasil penelitian mununjukkan, bahwa tren pertumbuhan PAD mengalami pertumbuhan rata-rata sebesar 25%. Dimana dari sumber-sumber PAD yang sangat berkontribusi terhadap total PAD berasal dari Pajak Daerah dengan kontribusi rata-rata sebesar 59,11%. Kinerja keuangan Pemerintah Kabupaten Sleman tergolong rendah berdasarkan rasio keuangan. Dimana rasio derajat desentralisasi berada dalam kategori sedang yaitu 26,34%. Rasio ketergantungan sangat tinggi dengan nilai rata-rata 67,78%. Rasio kemandirian tergolong rendah atau menunjukan pola hubungan konsultatif dengan rata-rata 38,86%. Sementara untuk rasio efektivitas pendapatan asli daerah tergolong sangat efektif dan rasio efisiensi pendapatan asli daerah dengan kategori tidak efisien. Kata Kunci: kemandirian keuangan daerah; kinerja keuangan daerah; kontribusi sumber-sumber PAD; pertumbuhan PAD.
Abstract. The purpose of this study was to evaluate the performance of a local government within the framework of fiscal decentralization. Regional financial ratios used are the ratio of independence, the ratio of effectiveness and efficiency, debt service coverage ratio, activity ratio, and growth ratio. The results of the calculation of financial ratios of Bandung Regency Government budget for 2010 –2016 fiscal year show local independence and higt local growth. Bandung Regency Government has been effective and efficient in using its income. The results of the evaluation in this study indicate that Bandung Regency Government is still dependent to Central Government in financing the activities. This condition shows that the welfare of the people is still low. Even though in the LAKIP Bandung Regency Government explained that it has been effective and efficient in managing finance, the number of funds in the budget balance with the central government increases every year.Keywords: government performance; regional financial ratio.Abstrak. Tujuan dari penelitian ini adalah untuk mengevaluasi kinerja pemerintah daerah dalam rangka desentralisasi fiskal. Rasio keuangan Daerah yang digunakan adalah rasio kemandirian, rasio efektivitas dan efisiensi, rasio debt service coverage, rasio aktivitas, dan rasio pertumbuhan. Hasil perhitungan rasio keuangan dari anggaran Pemerintah Kota Bandung untuk tahun fiskal 2010-2016, kemandirian dan pertumbuhan yang cukup tinggi. Pemerintah Kota Bandung telah efektif dan efisien dalam menggunakan pendapatannyaHasil evaluasi dalam penelitian ini menunjukkan bahwa Pemerintah Kota Bandung masih bergantung kepada Pemerintah Pusat dalam membiayai kegiatan pemerintahannya. Kondisi ini menunjukkan bahwa kesejahteraan rakyat masih rendah. Dalam LAKIP Pemerintah Kota Bandung menjelaskan telah efektif dan efisien dalam mengelola keuangan, jumlah dana dalam neraca anggaran dengan pemerintah pusat meningkat setiap tahun. Kata Kunci: pemerintahan daerah ; rasio keuangan daerah.
Without much preparation, Indonesia, in 2000, at a stroke replaced the previous system of centralized government and development planning with a wide range of decentralization programs. The reforms gave greater authority, political power, and financial resources directly to regencies and municipalities, bypassing the provinces. The powers transferred include those of executing a wide range of responsibilities in the areas of health, primary and middle-level education, public works, environment, communication, transport, agriculture, manufacturing, and other economic sectors. At the same time, the government replaced the antiquated cash-based, single-entry system of public finance with a modern double-entry accounting system that uses a single treasury account; is performance based; and has transparent management of the public treasury, tight expenditure and financial controls with performance indicators, computerized reporting, and a tightly scheduled auditing system. On the positive side, unlike in many developing and transition countries, the decentralization program in Indonesia has not caused major political or economic problems. However, the decentralization program was ill prepared and not carried out in a logical order for two reasons. First, the capacity of subnational governments to produce public and private goods, increase productivity and employment, and promote economic growth in their jurisdictions, was not increased. Because of the long tradition of centralization, local government never built the capacity to carry out economic planning and undertake initiatives to promote local economic growth. Before the reform, the local governments had mainly functioned as implementing agencies of national policies and programs. Second, the number of good financial managers, as required by the new laws of public treasury and auditing, was also limited and needed to be trained. The rising revenues of local governments do not follow their increasing government functions to promote economic development that could potentially cause fiscal imbalances.
Agung Ridwan, Syaparuddin Syaparuddin, Candra Mustika
This study aims to analyze: 1) sources of financing for fiscal decentralization, GRDP and poverty levels of regencies / cities in Jambi Province (2) the effect of sources of fiscal decentralization financing on gross domestic product in regencies and cities in Jambi Province (3) the effect of fiscal decentralization financing sources towards poverty levels in regencies and cities in Jambi Province. The analysis period is 2007 - 2013. To analyze the influence of the sources of fiscal decentralization funding on GRDP and poverty levels, using two panel data regression models. The results of the analysis found that: 1) During the 2007-2013 period, the sources of financing for fiscal decentralization consisting of Local Original Revenue, Balanced Funds and Other Other Income in regencies and cities in Jambi Province generally increased every year; 2) The GRDP regency-city growth in Jambi Province is fairly high with an average of 6.83%, higher than the national economic growth; 3) In general, the poverty rate of regencies/cities in Jambi Province has decreased significantly every year during the period 2007 – 2013. Original Regional Revenue and other legitimate income have a negative and significant effect while the balance fund does not have a significant effect on the poverty level of regencies/cities in Jambi Province.
<p>This study is for observing the regional financial performance influence of regencies/cities in South Sumatera province. The research is implemented quantitatively by using the data panel double regression of the 2006 – 2015 time period. Regional financial performance covers fiscal decentralization, autonomy, effectiveness and efficiency. Based on a partial count, fiscal decentralization has a regression coefficient as large as 62.73185, which means fiscal decentralization has a positive and significant influence to economic growth. Then regional finance autonomy has a regression coefficient as large as -16.04656 which means that regional autonomy has a negative influence yet significant to economic growth. Observing from regional financial effectiveness which has a regression coefficient as large as -0.074855, which means that effectiveness has a negative influence and not significant to economic growth. Regional financial efficiency has a regression coefficient as large as -0.254122, which means that efficiency has a negative influence and not significant to economic growth. Based on the count as a whole it means that Fiscal Decentralization, Regional Finance Autonomy, Effectiveness, and Efficiency have significant influences to economic growth. This means regional financial performance is very influential to the economic growth of regencies/cities in South Sumatera Province in the 2006-2015 time period.</p><p><br />JEL Classification: E02, H70, H77<br />Keywords: Autonomy, Economic Growth, Effectiveness, Efficiency, Regional Financial Performance, Fiscal Decentralization</p>
<p><em>The purpose of this study was to determine the level of financial capability in Pamekasan in order to support the implementation of regional autonomy. This study took place in the Finance and Asset Management Agency Pamekasan </em><em>regency</em><em>. While the data used in this study is the financial data in the budget Finance and Asset Management Agency Regions 2011-2015 fiscal year. The data collection techniques is to study literature and documentation</em></p><p><em>This research method is descriptive quantitative, using financial ratios, ie the ratio of local financial independence, the ratio of the degree of decentralization, local financial dependency ratios. </em></p><em>The results of the analysis conducted of data obtained as follows: Based on the ratio of local financial independence shown by the average ratios are 36.53%% remained between 25% - 50% are categorized as instructive meaningful relationship patterns Pamekasan government's ability to meet funding needed to perform the duties of Government, Development and Social Services community is still relatively low despite the years has increased and decreased. The degree of decentralization ratio only has an average of 6.4%. this means that the level of financial independence still low Pamekasan in implementing autonomy. Based on the area of financial dependency ratios averaging 19% are in scale interval, 10.01 to 20.00% this means that This means revenue (PAD) has a dependency large enough to cover immediate expenses and Pamekasan government still depends on the source financial receipts from central government and provincial transfers.</em>
This study aims to assess the financial performance of Manado City Government using Financial Ratio Analysis of Regional Budget for Fiscal Year 2011-2015. Type of research is the descriptif qualitative with case study approach. The processed data is the Budget Realization Report of Manado City Government for Fiscal Year 2011-2015 were obtained from the internet publication on the official website of Financial Management Board and Regional Property of Manado City. The analysis used to analyze the Regional Financial Performance is Financial Ratio Analysis by calculate the Ratio of Independence, Degree of Fiscal Decentralization, Ratio of Effectiveness, Ratio of Efficiency and Ratio of Expenditure Congruence. While the analysis used to analyze the Ability of Regional Finance is to calculate the Share and Growth, Map of Regional Finance Capability and Financial Capability Index. Based on the calculation and analysis of the Regional Financial Performance can be concluded that the pattern of the region's autonomy level relationships in Manado City is instructive criteria. Degree of Fiscal Decentralization is still lacking, but the Ratio of Effectiveness is very effective and the Ratio of Efficiency is also very efficient. Ratio of Expenditure Congruence shows the balance between expenditures are not balanced. Based on the calculation and analysis of the Regional Financial Capability can be concluded, that the condition of financial ability of Manado City is still not ideal. Share and Growth calculation results, the position of Manado City is in quadrant II and Financial Capability Index of Manado City is high. Keywords: Financial Ratio Analysis of Regional Budget, Financial Performance of Local Government.
This study aims to assess performance of Regional Budget (APBD) which includes revenues, spending/expenditures and financing activities of Jayawijaya Government. The data used was the budgeted and realization of Revenue, Spending/Expenditure and Financing activities of Jayawijaya regency from 2010 to 2014. The analysis techniques used was a qualitative approach through various financial ratios. To calculate revenues performance this study employed Variant Analysis (differences of) Budget Revenue, Revenue Growth, Degree of Independence of the region, Regional Reliance to the central government, Degree of Decentralization, Local Tax Effectiveness and Overlay analysis to measure performance of the generated income. Meanwhile to measure expenditure used Variant Analysis (difference) Budgeted Expenditure, Growth of Regional Expenditure, Synchronization of Governmental Spending, Spending Effectiveness and Overlay analysis to measure overall spending/expenditures performance.
 
 Following the analysed data, the study obtained following results: 1) Jayawijaya’s revenue performance during 2010 to 2014 based on the overlay analysis was not good. The main caused was due to low degree of the region financial independence, high degree of fiscal dependence for external funding as well as the low degree of fiscal decentralization, 2) Spending/Expenditure Performance of Jayawijaya from 2010 to 2014 was good. This was because of the increasing growth of Jayawijaya’s spending/expenditure and the effectiveness of spending/expenditure in Jayawijaya.
 
 Keywords: Budget, Revenue, Spending/ Expenditure, Regional Budget Performance
Abstrak: Produktifkah Human Capital Investment oleh Pemerintah Daerah Provinsi dalam Era Desentralisasi? Efektivitas pengeluaran pemerintah khususnya human capital investment dalam meningkatkan produktivitas tenaga kerja juga tergantung dari pemilihan pemda dalam menentukan jenis pengeluaran tersebut. Tujuan dari penelitian ini untuk mengetahui pengaruh pengeluaran belanja pemerintah secara umum maupun secara fungsional terhadap produktivitas tenaga kerja melalui pendekatan kuantitatif dengan metode ekonometrika. Penelitian ini menggunakan data sekunder dari ringkasan APBD pemda seluruh Indonesia yang disediakan oleh Kemenkeu Dirjen Perimbangan Keuangan Daerah RI. Data yang digunakan adalah data tahun 2012 dengan unit analisis perekonomian level provinsi seluruh Indonesia. Pengeluaran pemerintah provinsi secara total tidak mempengaruhi produktivitas tenaga kerja regional. Pengeluaran pemerintah daerah provinsi dalam fungsi human capital investment tidak efektif meningkatkan produktivitas tenaga kerja meski demikian pengeluaran pemerintah dalam bidang fasilitas umum dan perumahan mempengaruhi secara positif produktivitas tenaga kerja regionalnya. Kata Kunci: pemerintah daerah, human capital investment, produktivitas tenaga kerja, desentralisasi fiskal, pengeluaran pemerintah Abstract: Is The Human Capital Investment of Provincial Governments Productive in Decentralization Era? The effectiveness of government spending, especially investment in human capital, increases labor productivity also depends on how the local government determines the type of expenditure. The purpose of this study is to determine the effect of government spending in general and functionally to labor productivity. The approach used in this study is a quantitative approach, econometric method. This study uses secondary data from local government budgets across Indonesia summary provided by the Indonesian Ministry of Finance Directorate General of Regional Financial Balance. The data used is the provincial-level economic analysis units throughout Indonesia in 2012. This research shows that provincial government spending in human capital investment does not effectively increase labor productivity. Total provincial government spending does not affect the regional labor productivity. Government spending in the areas of public facilities and housing positively influence regional labor productivity. Keywords: local government, human capital investment, labor productivity, fiscal decentralization, public spending
Mar 28, 2017·Вісник Житомирського державного технологічного університету. Серія: Економічні науки // THE JOURNAL OF ZHYTOMYR STATE TECHNOLOGICAL UNIVERSITY. SERIES: ECONOMICS
The article analyses the directions of tax management in the context of budgetary decentralization. The paper aims to research tax management in the system of forming local budgets in the conditions of financial resources decentralization and analyze the current tools of tax management on the local level. In spite of a great number of researches, the issue of tax management in strengthening financial independence of local budgets is not enough studied; therefore, to reach financial independence of local communities it is necessary to adopt new normative and legal acts concerning decentralization of financial resources taking into account tax potential of each territorial community. The lack of financial resources causes the problem of optimal redistribution of power among central and local authorities. The author proposes the new mechanisms of solving the current problems on the example of local budget of the city of Uzgorod to contribute budgetary decentralization. The principal idea while conducting the reform of the budgetary process must be the adoption of certain changes in budgetary legislation which have to shift the mechanisms of budgetary financing and equating local budgets. The author concludes that the progressive vector of well-being increasing completely depends on the developed concept of regional economic policy. The article pays attention to the importance of taking into account the tax potential of a territory and characterizes the directions of strengthening financial independence of local government.
Abstract This study aims at identifying the main obstacles to optimizing the provision of public services to the districts in the island areas and to discussing the prototype model of asymmetric decentralization in providing public services to the island areas. This study was conducted in three districts of small islands at the Tual city of Maluku province namely the districts of Kur Island, South Kur Island, and Tayando Tam island. The data were collected through triangulation of sources and methods. The informants were selected based on consideration of the position and competence of the required information. The methods were the in-depth interview, observation, documentation, and the Focus Group Discussion (FGD). The results showed that there were three main obstacles in providing public services to the districts in the island areas. Firstly, the partial authority of Mayor of Tual city had not given yet to the Head of Districts based on the Article 226 of Law No. 23 in 2014 about Regional Government. Secondly, the transportation for the islands was inadequacy and the natural conditions were challenging that obstructed the mobility of citizens to access the service center and it was difficult for officers to reach people who want to be served. Thirdly, the lack of resources (human resources, funds, and facilities) in some districts at the island areas. To overcome those problems, specific autonomous was required by island province that concerned different treatment settings to the districts within the island areas namely the expansion of authority, the increase in the position, and the development of resources and the organizational capacity and districts management.
Implementation of e-government through communication and information technology becomes a big hope towards the increasing quality of public services and improvement of performance in the management of local finance. Implementation of e-government in the effort of transparency of financial management in each region is part of synchronization and synergy between Directorate General of Regional Finance Ministry of Internal Affairs with each Local Government in order to support transparency and accountability of regional finance. through decentralized e-government management, egovernment in the local government has not been able to provide a space for communication for the community to channel aspirations and to oversee the financial management of riau province.
Fiscal decentralization has increased the Local Revenue but allegedly still many governments prefer to suspend the local expenditure financing at matching grant. This study purpose is to obtain empirical evidence the phenomenon of fiscal illusion with income approach (revenue enhancement), and also to obtain empirical evidence the effect of Fiscal Decentralization on Capital Expenditure, Economic Growth, and Human Development Index for district/cities in Bali Province. Multiple regression analysis with SPSS V.20 software was used to test the phenomenon of fiscal illusion and research hypotheses. The results showed that there is no fiscal illusion in expenditure financing for district/cities in Bali Province. Also found that: 1) Fiscal Decentralization has no effect on Capital Expenditure, Economic Growth, and Human Development Index, 2) Fiscal Decentralization affect on Capital Expenditure, Economic Growth, and Human Development Index for districts/cities with level of financial independence below the average in Bali Province, 3) Fiscal Decentralization affect on Capital Expenditure, Economic Growth, and Human Development Index for districts/cities with financial independence level above average in Bali Province. Keywords : fiscal illusion, local revenues, general allocation fund, local expenditure, capital expenditures, economic growth, human development index
Decentralization is one of the authorities given to the region in managing their own household. Villages are considered as areas that have an important role in assessing the success of a state. For that is needed to be a independence for the village in managing its own finance. One of the authorities is trough the village fund allocation. The village fund allocation is the financial gain of the village from the district trough the village stash. The village fund allocation is very important because the policy of the village fund allocation is in line with the regional autonomy agenda where the village is the basis of Decentralization. However, in the course of the village fund allocation still found the problems of not achieving the objectives of its in financing the empowerment and development of the village, because the village fund allocation is only used as a source of income for the village head and village apparatuses plus no control of the village community. For that, its needed the supervision of the village community itself.
Implementation of regional autonomy as the government's efforts for the welfare society in accordance with the characteristic of each region. Implementation of the fiscal decentralization recurring phenomenon is the phenomenon of flypaper effect. Flypaper effect occurs when the local government responded to the regional expenditure larger than the central government transfer revenue. The purpose of research is to prove the phenomenon of flypaper in East Java Province period 2011-2015. This research uses quantitative analysis with a population of 29 districts and 9 cities in East Java province. Data were analyzed using panel data regression analysis with Eviews statistical test equipment. The result showed that regional revenue positively affects regional expenditure, general allocation fund positively affects regional expenditure, financing budget surplus positively affects regional expenditure, regional revenue positively effect on growth, positive effect on the regional expenditure growth at district/city in East Java Province. The result of the comparison coefficient general allocation of funds and region revenue indicate there has been a flypaper effect on region expenditure districts/cities in East Java Province period [2011][2012][2013][2014][2015]
In the context of financial relations between the central and local governments, the central government has now allocated a Balancing Fund (Dana Perimbangan) to finance local needs in order to support the implementation of decentralization of governance and development as a form of political will to reform and democratize. The aim of this study is to evaluate the effectiveness of DAK allocation for financial year 2003-2013 and to analyze the impact of Dana Alokasi Khusus (DAK) allocation from 2003 to 2013 on various development indicators in the regions (districts / cities). DAK transfer design is the main cause of various issues related to the implementation of DAK. In addition, the problem of DAK allocation mechanisms in the determination of programs and activities, the calculation and use of DAK, budgeting and disbursement of DAK, reporting and monitoring and evaluation of DAK. DAK, as one type of Balancing Fund, has a positive impact on the fiscal capacity of the region, especially the district /city. In addition to regional fiscal capacity, DAK also plays a role in reducing the level of fiscal gap between districts / cities during the period 2003-2007. The result show that DAK allocation (in total) is not significant influence to PDRB per capita of Regency / City. In conclusion, DAK has not had a significant impact on public services and public welfare. This is because the direction of using DAK is not directly used to "build", but only to "maintain". Therefore, DAK is considered not effective enough in an effort to achieve the national priority target.
This paper gives an overview of the implementation of the constitution laws such as the embodiment of the political will of the Central Government, but in practice occur various obstacles. The model has become divided in 3 (three), namely: the bottleneck in the autonomous region, of good Governance and capacity building in implementing Regional Autonomy. The Government of the provinces, counties and cities should implement the values of good Governance, such as strategic vision, transparency, responsiveness, fairness, consensus, effectiveness and efficiency, accountability, freedom of Assembly and participation, rule of law, democracy, in cooperation with community organizations, our commitment to the market, and commitment to environment and decentralization. Some elements of capacity development in order to realize a good Governance can be seen from some of the items, the first development of the vision and mission of regional and provincial government institutions/district/city. Second, the institutional development of the Government of the province/district/city. Third, the development of a network of Government provincial/district/city. And fourth, the development and utilization of the environment of the Government of the province/district/city.