The Impact of Fiscal Decentralization on Economic Growth in Indonesia: A Literature Study

Authors

  • Kumba Digdowiseiso National University, Jakarta
  • Rosyidah Muhammad Universitas Nasional Jakarta

DOI:

https://doi.org/10.59889/ijembis.v3i3.231

Keywords:

Decentralization, Economic Growth, Impact, Indonesia

Abstract

This research examines the impact of fiscal decentralization on economic growth in Indonesia. The research sample comprises a collection of literature pertaining to the subjects of fiscal decentralization and economic growth in Indonesia, sourced from diverse information outlets. The variables under analysis encompass fiscal decentralization and its impact on economic growth. The methodology employed for data analysis involved the utilization of a qualitative literature review approach. The research findings suggest that fiscal decentralization yields favourable outcomes, including the stimulation of investment, productivity, and regional competitiveness. Additionally, it empowers regions, catalyzes regional economic growth, fosters innovation and competition, and mitigates development disparities among regions. Nevertheless, it is important to acknowledge the adverse consequences that may arise from this approach, including the possibility of exacerbating regional inequalities and the susceptibility to corruption in the administration of local funds. The scholarly literature presents varying perspectives on the influence of fiscal decentralization on economic growth. Consequently, scholars have proposed several strategies to optimize the potential benefits of fiscal decentralization, including enhancing regional fiscal capacity, improving the efficiency of intergovernmental transfers, and implementing rigorous oversight mechanisms to ensure effective local financial management

Downloads

Download data is not yet available.

References

Budihardjo, A., Wiradarmo, A. A., Ramadhanti, F., Saputra, I., Safriana, L., Kusmulyono, M. S., ... & Susila, W. R. (2023). Fenomena Bisnis Ekonomi Terkini: Seri 2 2022-2023. Prasetiya Mulya Publishing.

Christia, A. M., & Ispriyarso, B. (2019). Desentralisasi fiskal dan otonomi daerah di Indonesia. Law Reform, 15(1), 149–163. Retrieved from https://d1wqtxts1xzle7.cloudfront.net/69940433/pdf-libre.pdf?1632096090=&response-content-disposition=inline%3B+filename%3DDESENTRALISASI_FISKAL_DAN_OTONOMI_DAERAH.pdf&Expires=1695925784&Signature=OT3Lmvjc7Ammr-qyFISghEEo70G2qYOjKIhI9wCZVtQ-Xu7PMTzC-dmy50GnC5563DZuxyvDbS6eagvcgvWvJqHSDmAbpggy5AwY03PLrlqRnbe77qtgrV6W8sjs1CrCEgm9kVdCwBcriwXq8HjKLp01HEVziu-jaliWvoWKUwqGLmDyyvZaP1j1iGYTMNRKchtmSX5u~X1xV96NOqEhFvKo0AQ4EazbAh2gkcxALtbpl-H2rU4gPj7g4F-xbs06l2J3UC7m7oktQOUt10JyfMN9zObZLIXuK-VAYJwZrxhYEgCCeY5t8H-Jwk7wBddB8SUX2NVP~MJZH4q4bSffcg__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA

Digdowiseiso, K. (2017). Metode Penelitian Ekonomi dan Bisnis. Jakarta: Unas Press

Digdowiseiso, K., & Rahadi, A. D. (2023). Analisis Kinerja Keuangan Pemerintah Kota Bandar Lampung Tahun Anggaran 2018 – 2022. Management Studies and Entrepreneurship Journal (MSEJ), 4(5), 5946–5956. https://doi.org/10.37385/msej.v4i5.3151

Digdowiseiso, K., Subektiyono, S., & Sari, R. (2023). Penilaian Kinerja Keuangan Pemerintah Daerah Kabupaten Bogor periode Tahun 2017 – 2021. Management Studies and Entrepreneurship Journal (MSEJ), 4(5), 5939–5945. https://doi.org/10.37385/msej.v4i5.3153

Digdowiseiso, K., Rachman, A. K., & Alamsyah, S. (2023). Analisis Kinerja Keuangan Pemerintah Daerah Kabupaten Kepulauan Meranti Tahun Anggaran 2017- 2021. Management Studies and Entrepreneurship Journal (MSEJ), 4(5), 5921–5928. https://doi.org/10.37385/msej.v4i5.3156

Dillinger, W. (1994). Decentralization And Its Implications For Urban Service Delivery. https://doi.org/https://doi.org/10.1596/0-8213-2792-5

Direktorat Analisis dan Pengembangan Statistik. (2023). Laporan Perekonomian Indonesia 2023. Retrieved from Badan Pusat Statistik (bps.go.id)

Dyanti, F. E. (2021). Analisis Pengaruh Desentralisasi Fiskal Terhadap Pertumbuhan Ekonomi pada 33 Provinsi di Indonesia Tahun 2015-2019 (Universitas Muhammadiyah Surakarta). Retrieved from http://eprints.ums.ac.id/id/eprint/94163%0A%0A

Ginting, A. M. (2023). COVID-19 Dan Dampaknya Terhadap Pertumbuhan Ekonomi Indonesia. Kajian, 25(4), 285–300. https://doi.org/http://dx.doi.org/10.22212/kajian.v25i4.3900

Hastuti, P. (2018). Desentralisasi Fiskal Dan Stabilitas Politik Dalam Kerangka Pelaksanaan Otonomi Daerah di indonesia. Simposium Nasional Keuangan Negara: Kementerian Keuangan RI Tahun 2018, 784–799. Retrieved from http://digilib.uin-suka.ac.id/id/eprint/40137

Khusaini, M. (2018). Keuangan Daerah. Retrieved from https://books.google.co.id/books?hl=en&lr=&id=VOmIDwAAQBAJ&oi=fnd&pg=PT5&dq=Desentralisasi+fiskal+adalah+proses+pengalihan+kewenangan+fiskal+dari+pemerintah+pusat+ke+pemerintah+daerah.+Kewenangan+fiskal+yang+dimaksud+meliputi+kewenangan+untuk+memungut+pajak,+mengatur+pengeluaran,+dan+mengelola+anggaran&ots=6EkRQunYS7&sig=jxVHRjPuga90nKaEozMOjHtmN0Y&redir_esc=y#v=onepage&q&f=false

Kusuma, H. (2016). Desentralisasi Fiskal Dan Pertumbuhan Ekonomi Di Indonesia. Desentralisasi Fiskal Dan Pertumbuhan Ekonomi Di Indonesia, 9(1), 1–11. Retrieved from https://ojs.unud.ac.id/index.php/jekt/issue/view/2070

Nazikha, R. S., & Rahmawati, F. (2021). Pengaruh Desentralisasi Fiskal, Kapasitas Fiskal Daerah, Dan Elastisitas Fiskal Terhadap Pertumbuhan Inklusif Indonesia. Jurnal Ekonomi, Bisnis Dan Pendidikan (JEBP), 1(2), 120–134. https://doi.org/https://doi.org/10.17977/um066v1i22021p120-134

Prasetyo, M. A. (2023). Analisis Dampak Desentralisasi Fiskal Terhadap Pertumbuhan Ekonomi. ULIL ALBAB: Jurnal Ilmiah Multidisiplin, 2(3), 1326–1331. Retrieved from https://doi.org/10.56799/jim.v2i3.1304

Priyono, N., Juliprijanto, W., & Setyawan, S. (2019). Studi Empiris: Peran Desentralisasi Fiskal Terhadap Peningkatan Kesejahteraan Masyarakat Dengan Pertumbuhan Ekonomi Sebagai Variabel Intervening Pada Kabupaten/Kota Di Indonesia. Jurnal RAK (Riset Akuntansi Keuangan), 4(2), 13–25. https://doi.org/http://dx.doi.org/10.31002/rak.v4i2.1951

Rustiadi, E. (2018). Perencanaan Dan Pengembangan Wilayah. Jakarta: Yayasan Pustaka Obor Indonesia.

Sari, R. (2014). Dampak Kebijakan Desentralisasi Fiskal Pada Daerah Tertinggal Di Indonesia. Jurnal Ekonomi & Kebijakan Publik, 5(1), 79–99. https://doi.org/http://dx.doi.org/10.22212/jekp.v5i1.146

Syahputra, R. (2017). Analisis Faktor-Faktor Yang Mempengaruhi Pertumbuhan Ekonomi Di Indonesia. Jurnal Samudra Ekonomika, 1(2), 183–191. https://doi.org/https://doi.org/10.1234/jse.v1i2.334

World Bank. (2021). Indonesia’s Economy Grew in 2021 Despite COVID-19, Will Accelerate in 2022, World Bank Report Says.

Zarkasyi, S., & Digdowiseiso, K. (2023). Analisis Desentralisasi Fiskal Kabupaten Bulukumba Tahun 2016-2020. Management Studies and Entrepreneurship Journal (MSEJ), 4(4), 4428–4434. https://doi.org/10.37385/msej.v4i5.2611

Downloads

Published

2023-09-30

How to Cite

Digdowiseiso , K. ., & Muhammad, R. . (2023). The Impact of Fiscal Decentralization on Economic Growth in Indonesia: A Literature Study. INTERNATIONAL JOURNAL OF ECONOMICS, MANAGEMENT, BUSINESS, AND SOCIAL SCIENCE (IJEMBIS), 3(3), 1057–1068. https://doi.org/10.59889/ijembis.v3i3.231

Most read articles by the same author(s)

1 2 3 4 5 6 7 8 9 > >>