As a country where the economic system still depend on financing of the public sector, the expectation that decentralization policy in Indonesia can improve significantly society welfare has not been fulfilled yet. Happened in Yogyakarta which has special authority in control government affairs. Constitution no 13 years 2012 about DIY privileges consist of 5 things like filling the positions, seat, job and authorities governor and vice governor, institutional affairs, culture affairs, land affairs, and spatial affairs. With the constitution expected DIY government can guarantee right of society to live in prosperity. However, the expectation still can not fulfilled either. This study aims to identify and explain the policy configuration of DIY Privileged Funds and determine the contribution of the DIY privileged funds in public welfare acceleration. The research type used is a qualitative approach. Data collection methods technique is dept interview and elite interviews, and documentation.
AbstrakPeningkatan kapasitas pengelolaan keuangan daerah menjadi hal yang sangat penting di era desentralisasi. Pengelolaan pajak parkir yang sekilas terlihat sebagai ranah kebijakan prosedural administratif, tidak pernah bisa lepas dari berbagai patologi yang sangat problematik bagi pengelolaan keuangan daerah. Kecamatan Banguntapan dipilih sebagai unit analisis dalam penelitian ini untuk merepresentasikan permasalahan pengelolaan pajak parkir di wilayah sub urban Kabupaten Bantul. Hal ini dikarenakan kharakteristik kewilayahan Bantul sebagai daerah sub urban dapat dilihat dari kharakteristik peri urban yang ada di Kecamatan Banguntapan. Selain itu, Kecamatan Banguntapan merupakan satu-satunya wilayah di Kabupaten Bantul yang memiliki subyek pajak parkir bertarif self assessment dan flat sehingga dinamika problema manajerial keuangan daerah dapat diobservasi dan dianalisis lebih mendalam di Kecamatan Banguntapan ini untuk melihat komparasi 2 sistem pemungutan pajak parkirtersebut. AbstractCapacity building of local finance management becomes important on decentralizations era. Empirically this research is aim to show that the parking tax management at glance seen as an administrative- procedural policy domain cannot release from phenomena on the existence of problematic pathology for regional financial management. District of Bantul Banguntapan characteristic as its suburbs form themain attractionin the selection of research because of the generallocus in sub-urbanarea, began to metamorphose into a parking tax revenues fromregionsthat contribute to the area thoughnot as big financial contribution income tax parking tax in urban areas. The Banguntapan sub district was chosen as analysis unit in this research to represent the issue of parking tax management in sub urban area of Bantul. This was due to the characteristic of Bantul area as sub urban area that can be seen from the characteristics of sub urban in Banguntapan sub district. Moreover, the Banguntapan sub district is the only area in Bantul which has a parking tax subject that the cost is self assessment and flat thus the dynamic of local finance managing problems can be observed and in-depth analyzed in Banguntapan sub district to seek the comparison of those 2 parking tax collection systems.
This research wasintended to describe the degree of fiscal decentralization in the autonomous regions in East Javaprovince in 2006-2010. This research belongs to the genre of secondary data with quantitativedescriptive type. The population in this study was all regencies/cities in East Java Province. Thedegree of fiscal decentralization was calculated from data collected by the three ratios, that is: a)PAD (Local Revenue) with TPD (Total Local Revenue); b) BHPBP (Tax and Non-Tax Sharing)with TPD; c) regional contribution to TPD. The research results showed that, first, seen from theratio of PAD to TPD, DDF (Degree of Fiscal Desentralization) of regencies/cities in East Javain 2006-2010 was in very low category with an average DDF percentage of 8%. Second, DDFof regencies/cities measured in terms of ratio of local contribution and TPD, had a high level ofDDF, reaching 83%. Third, DDF of regencies/cities in East Java in 2006-2010 of BHPBP ratiowith TPD had a very low percentage, reaching an average of only 9%, so the region’s financialdependence on the construction financing of central government funding is very high. Keywords : regional autonomy, fiscal decentralization, degree of fiscal decentralization.
<p class="Abstract1">The regional autonomy in Indonesia gives the implication to the shift of authority between the center and local government in many sectors. The regional autonomy also makes the decentralization that related with the local financing management, the economy planning including the local planning and other planning that shifted from the central government to the local government. The study aims to know the effect of fiscal decentralization from the income and spending aspect towards the local economic development in Indonesia (gas and oil nationally). The method analysis in this study is the panel data from 1995-2000 and 2001-2004.The result shows that before decentralization on the year of 1995-2000, the fiscal decentralization whether from income or spending aspect has negative influence to the economy growth. Coming into decentralization from 2001-2004, the fiscal decentralization on supporting the economy development, whether from government income or spending is increasing. But the fiscal decentralization is exceeding the spending aspect compare to the income, whether in national level, with oil and gas or without oil and gas, inside Java or outside Java. <p class="Keyword1"> <p class="Abstract2"><strong></strong>Pelaksanaan otonomi daerah di Indonesia membawa implikasi pada pelimpahan kewenangan antara pusat dan daerah dalam berbagai bidang. Adanya otonomi daerah maka terjadi desentralisasi yang menyangkut pengelolaan keuangan daerah, perencanaan ekonomi termasuk menyusun program-program pembangunan daerah dan perencanaan lainnya yang dilimpahkan dari pusat ke daerah. Studi ini bertujuan untuk mengetahui pengaruh desentralisasi fiskal dari sisi penerimaan dan pengeluaran terhadap pertumbuhan ekonomi daerah provinsi di Indonesia (nasional dengan migas dan tanpa migas, di Jawa dan di luar Jawa). Metode analisis yang digunakan dalam penulisan studi ini menggunakan data panel secara terpisah pada periode 1995-2000 dan 2001-2004. Hasil analisa menunjukkan bahwa sebelum pelaksanaan era desentralisasi periode 1995-2000, pengaruh desentralisasi fiskal dari sisi penerimaan dan pengeluaran berpengaruh negatif terhadap pertumbuhan ekonomi, baik untuk tingkat nasional dengan migas dan tanpa migas, di Jawa dan di luar Jawa. Memasuki era desentralisasi selama kurun waktu 2001-2004, pengaruh desentralisasi fiskal dalam mendorong pertumbuhan ekonomi, baik melalui sisi penerimaan maupun pengeluaran mengalami peningkatan dibandingkan sebelum era desentralisasi. Namun pengaruh desentralisasi fiskal tersebut jauh lebih besar melalui sisi pengeluaran dibandingkan sisi penerimaan daerah, baik di tingkat nasional dengan migas dan tanpa migas, di jawa maupun di luar Jawa. <p class="Keyword1">
This research was conducted to empirically prove the effect of financial performance measured from the ratio ofexpense to income, fiscal efforts, financing capability, and the level of fiscal decentralization degree towards anumber of variables, which are: (1) capital expenditure, (2) economic growth and poverty, (3) economic growthand poverty through capital expenditure, and (4) poverty through capital expenditure and economic growth.This research was performed using path analysis method. The samples of this research are 38 districts/cites inEast Java Province during the last 7 years (2005-2011).The result of this research shows that the financial performance measured from financing capability showsinsignificant direct effect towards capital expenditure and economic growth while the effect to poverty showspositive significant effect. Furthermore, from the effects of indirect financial performance through capitalexpenditure, there are variables of expenditure to income ratio, fiscal efforts, and degree of fiscaldecentralization variables which have significant indirect effects towards the economic growth (in a positive way)and poverty (in a negative way) while for the financial performance effects through capital expenditure andeconomic growth to poverty have significant indirect and negative influence, particularly those are measuredusing expense to income ratio, fiscal efforts, and the level of fiscal decentralization. Finally, in order to betterfinancial performance in particular it is necessary to optimize the financing capabilities in terms of both revenueand expenditure, in terms of revenue optimization of PAD, Silpa, and loan, while expenditure optimizers need toconduct a review of expenditure that has been done. Keywords : financial performance, expense to income ratio, fiscal effort, financing capability, the level of fiscaldecentralization, capital expenditure, economic growth, poverty
Anwar Shah, Riatu Mariatul Qibthiyyah, Astrid Dita
Indonesia has come a long way from centralized governance to decentralized local governance, and today Indonesia ranks among the most decentralized developing countries. The Government of Indonesia is revisiting all aspects of local governance to make appropriate legal and institutional adjustments based on lessons leaarned during the past decade. An important area of this re-examination and possible reform is the central financing of subnational expenditures. The system of intergovernmental finance represents one of the most complex systems ever implemented by any government in the world. The system is primarily focused on a gap-filling approach to provincial-local finance in an objective manner to ensure revenue adequacy and local autonomy but without accountability to local residents for service delivery performance. This paper takes a closer look at Dana Alokasi Umum -- the most dominant program of unconditional central transfers to finance provincial-local government expenditures in Indonesia. The paper also presents illustrative simulations of alternative programs and compares these with the existing Dana Alokasi Umum allocations. The paper concludes that super complexity leads to lack of transparency, inequity, and uncertainty in allocation. Simpler alternatives are available that have the potential to address autonomy and equity objectives while also enhancing efficiency and citizen-based accountability. Such alternatives would represent a move away from the complex gap-filling approach to simple output-based transfers to finance operating expenditures. Capital grants would deal with infrastructure deficiencies. And the alternatives would institute fiscal capacity equalization as a residual program with an explicit standard to ensure that all local jurisdictions have adequate means to deliver reasonably comparable levels of public services at reasonably comparable levels of tax burdens across the country.
During the past decade, Indonesia has \n transformed itself from centralized governance to \n decentralized local governance. Local governments were given \n extensive expenditure responsibilities while keeping the tax \n system centralized. To finance decentralized \n provincial-local expenditures, Indonesia implemented a new \n system of intergovernmental finance. This paper provides a \n review of the equity and efficiency implications of the \n current system of central-provincial-local transfers. It \n finds that the system of intergovernmental finance \n represents one of the most complex systems ever implemented \n by any government in the world. The system is primarily \n focused on a gap-filling approach to provincial-local \n finance to ensure revenue adequacy and local autonomy but \n without accountability to local residents for service \n delivery performance. This is done through a great degree of \n academic rigor using highly complex procedures. The \n complexity leads to a lack of transparency, inequity and \n uncertainty in allocation as well as creating incentives for \n jurisdictional fragmentation and reducing own-tax effort. \n Simpler alternatives are available that have the potential \n to address equity objectives while also enhancing efficiency \n and citizen-based accountability. Such alternatives would \n represent a move away from complex gap filling and special \n allocation approaches to simple, output based transfers to \n finance operating expenditures. These would be complemented \n by capital grants to deal with infrastructure deficiencies, \n and fiscal capacity equalization as a residual program with \n an explicit standard to ensure that all local jurisdictions \n have adequate means to deliver reasonably comparable levels \n of public services at reasonably comparable levels of tax \n burdens across the country. The paper argues that such an \n alternative system of intergoveernmental finance would \n preserve autonomy, while enhancing equity, simplicity, \n objectivity, transparency and accountability.
One important aspect of fiscal decentralization policy is delegation of authority and responsibility of management of public finance to regional governments, especially those of municipalities/districts. After more than ten years of implementation, it is now the right time to evaluate the policy questioning how effective its impacts on regional economic development. The study intends to find on how effective the performance of regional public finance is in providing basic infrastructures and how effective the provision of basic infrastructures reduces the poverty rates. By using panel data methods, this study confirms the positive relationship between performance of regional finance management and provision of basic infrastructures (especially those of road and electricity, but not that of drinking water). On the other hand, the relationship between the provision of basic infrastructures and poverty rates, as expected, is negative. This finding strengthens the belief that it is necessary to further enhance the basic infrastructures development to reduce poverty rates.
Abstrak Otonomi daerah dan desentralisasi fiskal mempunyai tujuan untuk menciptakan suatu kemandirian daerah. Tidak semua daerah mempunyai kesiapan yang sama dalam menciptakan kemandiriannya. Untuk mengatasi permasalahan ini, pemerintah pusat memberikan dana perimbangan/dana transfer kepada pemerintah daerah. Tetapi bukti empiris beberapa penelitian menunjukkan adanya fenomena terjadinya flypaper effect pemerintah daerah di Indonesia, dengan indikasi dominannya peran dana transfer terhadap pendapatan daerah dalam membiayai pengeluaran pemerintah daerah. Penelitian ini menggunakan sampel sebanyak 30 daerah di Jawa Tengah yang bersumber dari Laporan Realisasi Anggaran Pendapatan dan Belanja Daerah (APBD) dari tahun 2009 hingga 2011. Metode pengambilan sampel menggunakan metode purposive sampling . Alat yang digunakan penelitian adalah regresi logistik. Hasil dari penelitian ini Belanja Pegawai mempunyai pengaruh yang signifikan terhadap flypaper effect . Sedangkan Investasi Pemerintah Daerah dan Pembayaran Utang Pemerintah Daerah tidak berpengaruh terhadap flypaper effect . . Abstract Regional autonomy and fiscal decentralization has the objective to create a regional self-reliance. Not all regions have the same readiness in creating independence. To overcome this problem, the central government balance fund / fund transfers to local governments. But the empirical evidence, some studies suggest the existence of the flypaper phenomenon of local government in Indonesia, with an indication of the dominant role of the transfer of funds to finance revenue expenditure in the region. This study uses a sample of 30 regions in Central Java are sourced from the Report of Actual Revenue and Expenditure Budget (budget) from 2009 to 2011. Sampling method using Purposive Sampling method. Research tool used is logistic regression. The results of this study Shopping Employees has a significant effect on flypaper. While the Local Government Investments and Local Government Debt Payments had no effect on flypaper.
Part of Regional Otonomy in finance is giving local government to arrange regional receipt to purchase expenses bugget. Government genuine Receipt is one regional receipt that shows how stronger local goverment finance can handled all the expenditure, not only depend on Central Government. Metro and Lampung Timur same with another local government in Indonesia, wants the higher regional otonomy espescialy in finance. The higher decentralization indicate higher ability on local government to fulfill all expenditure. In can be analized from share of Government Genuine Receipt and Tax and non Tax Share compare Total Regional Receipt and Total Regional Expenditure. Higher fiscal Desentralization needed by Metro and Lampung Timur to get higher Regional otonomy.
The enactment of The act Number 2211999, about The Local Government and The Act Number 2511999, about The Balancing Financial between Central and Local Government, they have changed the centralization system to the decentraiization in form of giving the regional autonomy, which it's real, broad and responsible. One of the impacts of that policy is The Local Government's fiscal decentralization (financing the regional autonomy), which it is authorities to coiiect the local tax and local retribution in order to financing public services in local region. Based on the argument, they important reviewed, such as: (a) how the basic concept of the local tax and retribution tax; (b j What is the legal basis of the local tax and retribution tax; and (c) how the implementation of local tax and local retribution. The basics concepts of local tax and local retribution, its essentially, should be able to provide local revenue in accordance with the degree of fiscal autonomy period and clearly had an impact on the fiscal responsibility of owned the relevant owned. The legal basics of tax collecting, such as The Article Number 23A ofUndang- UndangDasar1945; The Article Number 7, Paragraph 4 of The Act Number 1012004, about The Establishment, Regional Regulation; The implementation of the tax collecting have to based on the principles or system, which it is called "closed list". Kata kunci: Desentralisasi Fiskal, Pungutan Pajak Daerah, "Closed List"
This research tested the difference of financial performance between parent areas and new autonomy areas. The financial performances that meant in this research were degree of decentralization, level of independence, capital expenditure ratio, and level of financing capability. The aim of this research was to analyze the difference of financial performance between parent area and new autonomy area. The objects in this research were districts or cities that become parent areas and districts or cities that become new autonomy areas. The division period that used in this research was in the year of 1999—2004. Samples that used in this research were consists of 48 parent areas and 49 new autonomy areas. Data that used in this research is local government revenues and expenditures budget realization report in the period of 2005 —2007. Data analysis performed using independent sample t test from SPSS for window program. \nLevel of significance that used in this research was 5%. Result of this research showing that a) parent areas degree of decentralization significantly better than new autonomy areas, b) parent areas level of independence significantly better than new autonomy areas, c) no significantly difference of financing capability level both parent areas and new autonomy areas and d) new autonomy areas capital expenditure ratio significantly better than parent areas. \n \nKey words: \nparent areas, new autonomy areas, regional financial performance, degree of decentralization, level of independence, financing capability level, capital expenditure ratio.
Decentralization policy in Indonesia has given an increase of authority to local government in managing their own local finance. One of the characteristics of the decentralization policy is to increase local taxing power, with the objective to optimize local own revenue in supporting local spending. Given the current data observation, it is obvious that many local governments do not have significant local own revenue to support their local spending. This paper-adopting tax elasticity method-attempts to evaluate the present local own revenue optimization. Furthermore, by adopting a decomposition of tax elasticity, this paper also attempts to elaborate factors affecting local own revenue collection. The estimated local own revenue elasticity show that most taxes and user charges, which are the main sources of local own revenue, are considered not a buoyant tax. More analysis using a decomposition of tax elasticity shows that tax to base elasticity is weak, suggesting that local governments need to improve discreationary tax changes at local level, such as local base changes, collection changes, and enforcement changes. The analysis also shows that some local tax bases are not responsive to the economic growth, which leads to the recommendation to improve local business environment, such as streamlining local regulations and reducing harmfull local taxes and user charges. Keywords: local finance, local government owned revenue, fiscal decentralization, local tax elasticity, local tax base, nuisance local taxes, local economic growth
By autonomy, most of resources that managed by central government becomes managed by local government. By decentralization, services to the society will be more efficient and effectively. This paper will analyze how far the response of local income because of change in Gross Regional Domestic Product (GRDP,) and also the ability of regional finance in regional autonomy era. The result of this paper shows that the coefficient of elasticity of regional income more than one, it means that if Gross Regional Domestic Product (GRDP) increase one percent, it will increases local income more than one percent. The role of domestic income to local income decrease, it means that the local government has to look for a forward alternative how lo increases the role of domestic income to local income.
Intergovernmental fiscal transfers are critical elements of public finance in decentralized countries. In the context of Indonesia’s decentralization reforms, their design and implementation have significant impacts on the potential revenue and fiscal capacity of basic public service provision. The case of Indonesia’s 2001 Big Bang decentralization illustrates the challenges associated with implementing significant reforms in the intergovernmental fiscal system. The practice of decentralization policy in Indonesia since the time has not generally improved local development performance yet. This study evaluates fiscal decentralization, focusing on fiscal capacity as the impacts of the intergovernmental fiscal equalization transfers, in the case of Gunung Kidul, Yogyakarta. The study shows a low percentage of its own revenue compared to its total budget. It indicates the failure of fiscal decentralization policy in improving local government fiscal capacity.
Every regions government must be able increasing their own regional income. The finance of resources in fiscal decentralization era, such as: regional original income, general allocation funds and natural resources revenue sharing and tax revenue sharing This research aims to analyze the fiscal decentralization impact to economic growth at regional district in sub province Semarang. The tool of analisis is regression using panel data with Generalized Least Square (GLS) method and Fixed Effect model. It uses district-level data and supplied by the Indonesian Central Bureau of Statistics during 2002 - 2006 The regression result shows that regional income, natural resources revenue sharing and tax revenue sharing, and labor forces have positive impact on economic growth at regional district in sub province Semarang. General allocation funds have negative effect towards economic growth at regional district in sub province Semarang. Fiscal decentralization brings more advantages for regions to manage their own fiscal capacities. The regions governments must be have informational advantages concerning resource allocation with optimal Keywords: Fiscal Decentralization, economic growth, Fixed Effect Model
Every regions goverment must be able increasing their own regional income. The finance of resources in fiscal decentralization era, such as: regional original income, general allocation funds and natural resources revenue sharing and tax revenue sharing This research aims to analyze the fiscal decentralization impact to economic growth at regional district in sub provinsi Semarang. The tools of analisis is regression using panel data with Generalized Least Square (GLS) method and Fixed Effect model. It uses district-level data and supplied by the Indonesian Central Bureau of Statistics during 2002 - 2006 The regression result shows that regional income, natural resources revenue sharing and tax revenue sharing, and labour forces have positive impact on economic growth at regional district in sub provinsi Semarang.General allocation funds has negative effect towards economic growth at regional district in sub provinsi Semarang. Fiscal decentralization brings more advantages for regions to manage their own fiscal capacities. The regions governments must be have informational advantages concerning resource allocation with optimal Keywords: Fiscal Decentralization, economic growth, Fixed Effect Model
The Government of Ghana introduced the decentralization concept in 1988 as part of hereffort/determination to make local government administration autonomous in Ghana. Themain aim of the concept was to make the people at the grassroots part of the decision makingprocess with the view to ensuring total socio-economic transformation of the country. Untilthen, decentralization was not a new phenomenon in the politics of Ghana, however, it hassince 1988, assumed a new dimension. New structures and institutions such as the NationalDevelopment Planning Commission (NDPC), and the District Assemblies Common Fund(DACF) were established by law. These structures and institutions sought to transfer means,skills, power and competence to the districts. The DACF is believed to be the majorinnovation under the reform. The fund, which constitutes five percent of the National Income(NI), is disbursed by the central government to the districts through the Office of the CommonFund Administrator. In addition, each DA is required to generate revenues from local sourcesreferred to as Internally Generated Fund (IGF) to supplement the DACF to carry out socioeconomicdevelopment of the local areas.It is against this background that, this study was carried out to describe and explain theimplementation process of the Fiscal Decentralization Policy in the Akuapem South Districtof Ghana. The study set out to describe the assumption that inadequate bureaucratic resources,lack of political resources, poor economic and social resource and lack of inter-governmentalcommunication and enforcement agency may impede effective implementation of the fiscaldecentralization policy in the district. The Mixed method approach of social science researchand a case study approach were used in the study. Interviews and questionnaires were used tosolicit data for the study.The research found out among things that the fiscal decentralization policy is underway.However, the ability and capabilities of the DAs implement the policy is affected by variousseveral factors namely bureaucratic resource such as technical, managerial and financialresource; political resource which implies the acceptance by the bureaucrats of the policy;economic and social resource such as the social condition prevailing at the time of theimplementation; and the inter-organizational communication and enforcement agencieswhich refers to the relationship between the policy makers and the implementers. The studyconcludes that for effective implementation of fiscal decentralization in Ghana there is theneed to provide the necessary resources intended for the policy.2The study seeks to investigate the implementation of the fiscal decentralization policy in theAkuapem South District of Ghana. It aims to highlight some of the challenges confrontingthe district in the implementation of the policy and the strategies being employed to meetthese challenges.
This study examined the current decentralized system in Indonesia for increased disparities in educational expenditures across districts. It also examined the impact of these on the quality of education at public junior secondary education. The study used the most recently available data from the Ministry of National Education (MONE) and Central Bureau of Statistics (BPS) covering 1999/00 and 2002/03. These data measured district level school expenditures, demographic and socio-economic variables.The study found that the current decentralized system in Indonesia increased fiscal capacities for education at districts. Unfortunately, increases in the fiscal capacities for education led to increased disparities in education expenditures per student, creating growing gaps in fiscal capacities for education across districts. Districts which received larger general allocation funds (DAU) per capita were also more likely to allocate more funding for education, whether or not they were poor or wealthy districts. This fact was reflected by the finding that district GRDP per capita in sub-national regions of Java-Bali and Sumatera had no impact on districts' education expenditures per student. In addition, the sub-provincial districts of the Kota (more urban) and Kabupaten (less urban) also differed in the way that they allocated funding for education. The Kota in the Sumatera region tended to allocate significantly more for education than did the Kabupaten. At the same time, the Kota in Java-Bali did not allocate significantly more for education than the Kabupaten. Teacher compensation was national, so funding variance was measured by locally controlled variables. The most significant impact on student achievement were teaching and learning process expenditures (textbooks, libraries, labs, field trips, etc.). The study concluded that increased funding, combined with more efficient budget allocations, were keys to quality improvement. Policy recommendations include: a) targeting DAU transfers to reduce the gaps in fiscal capacity for education across districts; b) rewarding districts with effective budget allocations that support improved student achievement; and c) placing education closer to the center of development and security policy. Better government monitoring and district transparency is needed for this major investment. Improved policy research and reporting capacities are needed, including annual reports on decentralization policy implementation.
The background of this research is the fall of the New Order Regime which occurred in 1998, followed closely behind by the creation of local autonomy policy. This policy was issued based on Law Numer 22/1999 (Local Government) and Law Numer 25/1999 (Intergovernmental Finance). Both laws have changed the local public administration from a centralized into a decentralized system and also caused reform in some components such as planning, organization, personnel, and finance. Even though Law Number 22/1999 had been implemented for four years, the reform seemed very tardy. In fact, several regions showed a progress tendency that was the reverse of the expectation. For this reason, the question that will be formulated in this research is 'Why was there a different level of performance of local public administration reform after the local autonomy implementation in Indonesia?' The conceptual framework of this research is outlined as follows: it is presumed that the performance of Local Public Administration Reform is determinedby two major independent variables that are interrelated. These are the Central Government Role Variable and the Response of Local Government and its Environment toward the Reform. The Central Government Role consists of two variables Decentralization as an Architecture Reform Variable and the Policy Reform Variable. Both major variables interrelate with some varibles at the local level such as the Mayor/Regent's Role, the Response of Bureaucrats and Politicians to Local Public Administration Reform, and the Response of Civil Society to the Reform.
Decentralization in Indonesia was introduced institutionally in 2001, with a democratization drive promoted by international donors and by the intention of the new government to clear away the centralistic image of Soeharto. Decentralization has had some effects on regional economies and on local government administration. Compared to the period before decentralization, the share of GRDP and local government finance has increased in Java, though investment and bank borrowing have expanded to the outer islands. In qualitative aspects, decentralization has transferred not only administrative authority but also many new vested interests from the center to regions. Local governments have become more extensive economic actors in regional economies. Regional economic actors now compete actively for such vested interests and have missed the opportunity to create market-friendly regional economies. The government sector should not be a mere rent-seeking economic actor, but should play a role as a facilitator promoting private sector activities in regional economies.
The decentralisation of educational administration in Indonesia has recently been the focus of much interest throughout the Asia-Pacific region. With its massive population and multi-ethnic social background, Indonesia serves as an interesting example when considering the real impact of decentralized systems on the financing of Junior Secondary Education in developing countries. In this paper, first, the decentralisation scheme and the current financial budgeting system at the school level of junior secondary education in Indonesia are outlined. Second, a quantitative analysis of the unit cost among provinces, districts and schools is detailed. Finally, policy tasks for the further development of decentralised administration will be identified. Even under the former centralised regime, each school or district was operating in a varied way, while it is also true that the process of this diversified financial budgeting was not always a strategic one.
IntroductionThe challenge for land use management in the nineties is to initiate a people- centered development process which creates opportunities for local people to make their own choices about which development strategy to follow. This need is felt in particular for upland areas where government initiated blue- print programmes for land use management have a record of failure. The major reason is that these programmes are often not adjusted to cope with the complexity and diversity of the uplands. Land use management encompasses both short-term and longterm benefits and is confronted with rapid changes. The differing role of private, state and communal lands in combination with a complex system of control and utilization makes land use management difficult to fully understand. This study responds with the development of an alternative strategy for planning sustainable land use programmes at local level and has the following objectives:- to develop a strategic model for people-centered planning of sustainable land use programmes;- to develop a flexible planning method that can serve as land use management tool at local level;- to test the feasibility of the strategy for the uplands of East Java, Indonesia.Strategic modelThe two major principles of the strategic model are:- Programmes are planned and implemented through a learning process in a local and organizational dimension. The local dimension includes a learning process of planning, implementing and monitoring of small scale programmes. The planning process is short, but planned interventions are regularly adjusted based on new insights and changing conditions. In the organizational dimension the learning process proceeds through three different phases of trial, development and expansion. In this dimension, the government can learn how to manage the strategy of implementing local level planning and how to change attitudes, norms and organizational competence of organizations in order to do so. This dimension embraces local, regional and national governments.- Three major variables have to be considered in programme planning: land use system; interventions and organizations. Sustainable land use programmes are only possible if a good fit between these variables is achieved.In the strategic model these two principles are combined; a fit between the variables is achieved through a learning process. Because achieving a fit between the three variables is a complicated matter, it requires a phased approach which consists of the following three steps: a trial phase, a development phase and an expansion phase. In the trial phase, the focus is on achieving a fit between interventions and land use system in the local dimension. This is achieved through the implementation of trial cases in local level planning in which villagers, field workers of organizations and local leaders become acquainted with this new approach of planning sustainable land use programmes at a local level. In the development phase, attention is focused on achieving a fit between organizations and land use system. Through the development of human resources and extension processes the skills and attitudes of those involved may gradually change to become more people-oriented. In the expansion phase the focus is on achieving a fit between interventions and organization. In this phase the planning approach is accepted and applied at a national level. Changes in government structures and procedures, such as decentralization and strengthening of local leadership need to be achieved. By dividing the process into phases, the complex problems associated with planning sustainable land use become manageable, and step by step the ultimate goal of achieving a fit between all three variables can be reached.Planning methodIn order to reach an optimal fit between the three variables of the strategic model in the trial phase, a planning method should be applied to collect and analyse data that can be transformed into the design of effective programmes. No 'off-the-peg' planning method is available, instead a combination of existing approaches, methods and techniques is needed.Three development approaches can be distinguished to this end: planning of land use development; extension approaches and project management approaches. Generally speaking, each approach covers a different side of the strategic model. Land use development focuses on achieving a fit between interventions and land use system; extension processes can be used in achieving a fit between land use system and organizations; and the fit between interventions and organizations can be accomplished with the help of project management techniques.For planning land use development in the trial phase a number of current methods and techniques are discussed. These are Farming System Analysis, Land Evaluation, Agroecosystem Analysis, Landscape Planning, Rapid Rural Appraisal and Gender Analysis. The criteria set by the strategic model determine which aspects of these present planning methods and techniques are useful for the development of a new planning method. None of these methods and techniques as such are ideal as an operational planning method for realizing the first phase of the strategic model. A synthesis of all useful features into a new land use planning method is proposed.For the trial phase the focus is on planning land use development while opportunities to develop extension processes and to influence project management are limited. Therefore plans should basically be tailored to the existing competence of organizations. Within these limitations some attention can be paid to extension processes and management techniques by introducing an additional step to land use planning, called programming which includes the preparation of a detailed design and a programme planning matrix.Planning environment on JavaThe environment for the planning of land use development programmes is diverse and complex in the uplands of East Java. Farmers react to the wide diversity in the land use system by developing a large number of different land use strategies. By contrast, government organizations use standardized programmes with uniform and mostly inflexible procedures for planning and implementation. Village development planning procedures exist, but do not yet function properly. Local organizations responsible for village development planning do not yet possess the skills and capability to develop such plans, and centrally organized sectoral agencies still dominate this 'bottom-up' planning process. The dominance of the central government can be explained by the incorporation of a number of socio-cultural features in their policy, such as the principles of 'sole authority', consensus, and harmony. The government uses these principles to encapsulate autonomous local organizations in the government administration, orienting the local leaders more to government rules and procedures than to the needs of the local population.This orientation towards government administration has two major implications for the current planning of interventions. Firstly, the interventions are adjusted to the competence of implementing organizations rather than letting the organizations develop their competence to implement the tasks of locally planned interventions. Secondly little more than lip-service is paid to the participation of villagers in planning.Notwithstanding these shortcomings in the present village development planning process, official government policy has some room for improvement. This may allow for a more balanced planning process new approach.Secondly, constraints which can be expected while applying the model on Java are described. The feasibility of the trial phase of the strategy is evaluated based on experiences with implementing the trial cases on Java. In this evaluation the question is raised as to what extent the results of local level planning on Java can respond to the research objectives as formulated at the start of this study. No experience has been gained as yet with implementing the development and expansion phase. One programme that provides some valuable lessons for the feasibility of the phased learning process of the strategic model is the Java Social Forestry Programme (JSFP). This programme has followed a comparable phasing strategy and has already reached the expansion phase.Conclusions and policy recommendationsThis evaluation results in a number of conclusions on conditions to be fulfilled for successful implementation of the strategy. To sum up:- although the strategy is aimed at the local level, it cannot be realized at local level only as it requires involvement of regional and national government organizations to deal with changing communication processes and organizational structure;- objectives in village development planning should be set realistically in the knowledge that short term results will always dominate long term benefits, tangible results will get higher priority than social changes, while top-down influences from sectoral agencies will prevail;- in addressing the organizational dimension a choice should be made between following an approach of 'decentralized trial cases' versus 'centrally guided bottom-up process'. Whichever strategy is chosen it needs careful management to avoid difficulties in institutionalization or a too rapid expansion respectively;- it is necessary for the government to be shown better results in terms of sustainable land use development programmes at local level implemented by highly committed villagers. Only then may they be motivated to accept such a participatory approach at the cost of losing some power or consensus;- implementing a participatory planning process is an initially slow process, to which government agencies need to be committed.These conditions are translated into a number of policy recommendations for donor agencies and governments pertaining to: long-term and continuous com