DAMPAK DESENTRALISASI FISKAL TERHADAP PEREKONOMIAN DAERAH KABUPATEN/KOTA DI PROVINSI SUMATERA SELATAN

Abstract

This research attempts to determine the impact of fiscal decentralization
on regional economic indicators such as economic growth, inequality of income
per capita, the number of poor, human development index and the absorption of
labor and to determine the condition of inter-regional economic performance in
South Sumatra province. This research uses the concept of the degree of fiscal
decentralization approach in terms of revenue and expenditure as well as
regional economic indicators with the calculation of economic growth and income
inequality, and the percentage of poor population, human development index and
the absorption of labor that was obtained from Badan Pusat Statistik (BPS). The
analytical tools used in this study include: the degree of fiscal decentralization,
the inequality index, the index of economic performance, and the simple
regression. The data used is secondary data based on calculations by the relevant
institutions. The calculation result shows that the degree of fiscal decentralization
in most areas is still relatively low. The index shows the inequality of income
inequality between regions is still very unequal. Economic performance index
shows the economic performance of most areas is still very low because of the
regional divisions. Regression results indicate there is a negative correlation
between fiscal decentralization and economic growth, while between fiscal
decentralization and income inequality has a positive correlation, further fiscal
decentralization has a negative correlation to the number of poor people, then
between fiscal decentralization on human development index has a positive
correlation, and for absorption labor positively correlated. The result of these
calculations show that in general the implementation of fiscal policy for 15
regencies/cities in the South Sumatra province are not running optimally and
effectively.
Keywords: Fiscal Decentralization, Economic Growth, Regional Inequality,
Poverty Population, Human Development Index, and Labor
Absorption