LITERATUR REVIEW : DAMPAK DESENTRALISASI FISKAL TERHADAP TATA KELOLA DAN KINERJA PEMERINTAH DAERAH DI INDONESIA
DOI:
https://doi.org/10.23969/jp.v10i04.34585Keywords:
Fiscal decentralization, local capacity, governance, accountability, fiscal equityAbstract
Fiscal decentralization is a major component of Indonesia’s governance reform, intended to improve public service efficiency, strengthen accountability, and promote equitable development. This paper describes the relationship between fiscal decentralization, local government capacity, and accountability, as well as their implications for public service quality, poverty alleviation, and fiscal disparities. Using a descriptive literature-based approach, this study synthesizes empirical findings from national and international peer-reviewed research relevant to the Indonesian context. The findings reveal that fiscal decentralization can enhance public service delivery and regional development when accompanied by strong institutional capacity, robust accountability systems, and performance-based fiscal transfer mechanisms. Conversely, in regions with weak administrative capacity, decentralization tends to increase recurrent spending and potential corruption. Policy reforms in fiscal design and local governance are essential to ensure the effectiveness and equity of fiscal decentralization.
Downloads
References
Akita, T., Riadi, A. A., & Rizal, A. (2021). Fiscal disparities in Indonesia in the decentralization era. Regional Science Policy & Practice, 13(5), 1292–1310. https://doi.org/10.1111/rsp3.12326
Alfada, A. (2019). Does fiscal decentralization encourage corruption in local governments? Journal of Risk and Financial Management, 12(3), 118. https://doi.org/10.3390/jrfm12030118
Arze del Granado, F. J., Martinez-Vazquez, J., & McNab, R. M. (2018). Decentralized governance and public expenditure composition. Public Finance Review, 46(1), 3–35. https://doi.org/10.1177/1091142116639127
Changwony, F. K., & Paterson, A. S. (2019). Accounting practice, fiscal decentralization and corruption. The British Accounting Review, 51(5), 100836. https://doi.org/10.1016/j.bar.2019.04.003
Ghozali, I., & Khoirunurrofik, K. (2020). Fiscal decentralisation and capital expenditure composition of regional government in Indonesia. International Journal of Trade and Global Markets, 13(1), 1–14. https://doi.org/10.1504/IJTGM.2020.104909
Hofman, B., & Kaiser, K. (2004). The making of the Big Bang and its aftermath: A political economy perspective. World Bank Policy Research Working Paper. https://doi.org/10.4337/9781845421656.00007
Kis-Katos, K., & Sjahrir, B. S. (2017). The impact of fiscal and political decentralization on local public investment in Indonesia. Journal of Comparative Economics, 45(2), 344–365. https://doi.org/10.1016/j.jce.2017.03.003
Letelier-Saavedra, L. E. (2015). Fiscal decentralization in specific areas of government: Empirical evaluation using country panel data. Environment and Planning C: Government and Policy, 33(6), 1511–1537. https://doi.org/10.1068/c13111r
Lewis, B. D. (2023). Indonesia’s new fiscal decentralisation law: Implications for intergovernmental relations. Bulletin of Indonesian Economic Studies, 59(2), 145–163. https://doi.org/10.1080/00074918.2023.2180838
Oates, W. E. (1972). Fiscal Federalism. New York: Harcourt Brace Jovanovich.
Pal, S., & Wahhaj, Z. (2017). Fiscal decentralisation, local institutions and public goods provision. Journal of Comparative Economics, 45(2), 383–409. https://doi.org/10.1016/j.jce.2016.07.004
Pietrovito, F. (2023). Fiscal decentralization and income redistribution within regions. Regional Studies, 57(8), 1294–1308. https://doi.org/10.1016/j.strueco.2023.07.002
Rondinelli, D. A. (1999). What is Decentralization? World Bank Institute Working Paper.
Sahputri, R. A. M., & Siswidiyanto. (2023). Decentralisation and human development in Indonesia: The importance of local government capacity. Lex Localis, 21(2), 393–419. https://doi.org/10.4335/21.2.393-419(2023)
Setiawan, A., Tjiptoherijanto, P., Mahi, B. R., & Khoirunurrofik, K. (2022). The impact of local government capacity on public service delivery: Evidence from Indonesia. Economies, 10(12), 323. https://doi.org/10.3390/economies10120323
Siburian, M. E. (2022). Fiscal decentralization and poverty: Evidence from Indonesia. Journal of Asian Economics, 81, 101493. https://doi.org/10.1016/j.asieco.2022.101493
Silitonga, M. S., Wittek, R., Snijders, T. A. B., & Heyse, L. (2023). Democratizing corruption: A role structure analysis of Indonesia’s “Big-Bang” decentralization. Applied Network Science, 8(1), 1–24. https://doi.org/10.1007/s41109-023-00535-w
Smith, B. C. (1985). Decentralization: The Territorial Dimension of the State. Allen & Unwin. https://doi.org/10.4324/9781003404927
Smoke, P. (2015). Rethinking decentralization: Assessing challenges to a popular public sector reform. Public Administration and Development, 35(2), 97–112. https://doi.org/10.1002/pad.1703
Yunan, Z. Y., Freyens, B., Vidyattama, Y., & Mohanty, I. (2023). Spread of corruption in Indonesia after decentralisation: A spatiotemporal analysis. Oxford Development Studies, 51(3), 289–308. https://doi.org/10.1080/13600818.2022.2162493
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Pendas : Jurnal Ilmiah Pendidikan Dasar
This work is licensed under a Creative Commons Attribution 4.0 International License.
