•  
  •  
 

Abstract

One of major policies of Indonesia Decentralisation is the adoption on various type of revenue sharing among provinces and local governments and also the devolved of taxes to lower level government in particular to the province level. Challenges of policy toward higher degree of revenue autonomy, is that an increase in revenue sharing as well as devolved taxes would enhance economic disparity among regions. Further, our finding shows that different types of revenue sharing seem to have different effect on intra-province economic disparity.

References

[1] Ezcurra, R & Pascual, P 2008, ’Fiscal Decentralization and Regional Disparities: Evidence from several European Union Countries’, Environment and Planning A, vol. 40, no. 5, pp. 1105–1201.

[2] Galbraith, JK & Hale,JT 2014, ’The evolution of economic inequality in the United States, 1969-2012: Evidence from data on inter-industrial earnings and inter-regional income’, World Economic Review, vol. 3, no. 1.

[3] Government of Indonesia 2009, Law no. 28 2009 on Subnational and Local Taxes and Charges.

[4] Jiang, T & Zhiyung Z 2012, ’Government transfer payments and regional development’, in China: New Engine of World Growth. Ed. R Garnaut & L Song. ANU Press.

[5] Knight, J & Song, L 2003, ’Increasing urban wage inequality in China: Extent, elements and evaluation’, in J Knight, Economics of Transition.

[6] Lessman, C 2011, ’Regional Inequality and Decentralization – An Empirical Analysis’, Environment and Planning A, vol. 44, no. 6, pp. 1363–1388.

[7] List, J & Gallet, CA 1999, ’The Kutznets curve: What happens after the Inverted-U?’, Review of Development Economics, vol. 3, no. 2, pp. 200–206. [8] Ministry of Finance 2014, Financial (APBN) Note 2014, Government Republic of Indonesia.

[9] Ministry of Finance 2017, Sistem Informasi Transfer ke Daerah Dan Dana Desa (SIMTRAD4), Extracted data from http://www.djpk.kemenkeu.go.id/simtrada/.

[10] Mofidi, A & Stone, JA 1990, ’Do state and local taxes affect economic growth?’, The Review of Economics and Statistics, vol. 72, no. 4.

[11] Rodriguez-Pose & Gill 2004, ’Is there a global link between regional disparities and devolution?’, Environment and Planning A, vol. 36, pp. 2097–2117.

[12] Ross, M, Lujala, P & Rustad, S 2012, ’Horizontal inequality, decentralizing the distribution of natural resource revenues, and peace’, In High-Value Natural Resources and Peacebuilding, ed. P Lujala & SA Rustad, pp. 251–259. London: Earthscan.

[13] Sacchi, A & Salotti, S 2011, ’Income inequality, regional disparities, and fiscal decentralization in industrialized countries’, presented in Workshop on Regional and Urban Economics: Inequality and Regional Growth and Cohesion.

[14] Shankar, R & Shah, A 2003, ’Bridging the economic divide within countries – a scorecard on the performance of regional policies in reducing regional income disparities’, World Development, vol. 31, no. 8, pp. 1421–1441.

[15] Silva, JA 2005, ’Devolution and Regional Disparities in the Philippines: Is There a Connection?’, Environment and Planning C, vol. 23, no. 3, pp. 399–417.

[16] Song, Y 2013, ’Rising Chinese regional income inequality: The role of fiscal decentralization’, China Economic Review, vol. 27, pp. 294–309.

[17] Suratman, E, Ananda, CF, Paddu, H, & Adji, A 2013, ’Evaluasi Pelaksanaan Undang-Undang Nomor 28 Tahun 2009 tentang Pajak Daerah dan Retribusi Daerah dan Pengaruhnya Terhadap Peningkatan Pendapatan Daerah’, Laporan Tim Asistensi Desentralisasi Fiskal dan didukung oleh Program Australia Indonesia Partnership for Decentralisation (AIPD). http://perpustakaan.bappenas.go.id/lontar/file?file= digital/ 152571-[_Konten_]-Konten%20D329.pdf.

[18] Swastyardi, D 2008, Regional Inequality in Indonesia: Is the General Allocation Fund (DAU) Likely to Have an Impact?, Erasmus University Thesis Repository.

[19] Widmalm, F 2001, ’Tax structure and growth: Are some taxes better than others?’, Public Choice, vol. 3, no. 4, pp. 199–210.

Bahasa Abstract

Salah satu kebijakan utama Desentralisasi Indonesia adalah pengambilan berbagai bagi hasil pendapatan antar provinsi dan pemerintah daerah serta pelimpahan pajak kepada pemerintah tingkat bawah khususnya ke tingkat provinsi. Tantangan kebijakan menuju otonomi pendapatan yang lebih tinggi, adalah bahwa pelimpahan bagi hasil serta pelimpahan pajak akan meningkatkan kesenjangan ekonomi antar daerah. Hasil temuan kami menunjukkan bahwa berbagai jenis bagi hasil tampaknya memiliki pengaruh yang berbeda terhadap kesenjangan ekonomi antar-provinsi.

Download

Share

COinS