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Ketergantungan fiskal telah ditengarai sebagai salah satu penghalang keberhasilan pembangunan
pasca pelaksanaan otonomi daerah. Makalah ini mengevaluasi tingkat kemandirian fiskal di kabu-
paten dan kota di Provinsi Jawa Timur dan dampak dari Dana Alokasi Umum dan Dana Alokasi
Khusus pada upaya pajak pemerintah daerah (kabupaten dan kota) di Provinsi Jawa Timur. Hasil-
nya menunjukkan bahwa Dana Alokasi Umum secara signifikan mempengaruhi upaya pajak, se-
mentara Dana Alokasi Khusus tidak mempengaruhi upaya pajak secara signifikan. Penelitian ini
juga menemukan bahwa Dana Alokasi Umum mempengaruhi pertumbuhan ekonomi, dimana un-
tuk satu persen peningkatan di Dana Alokasi Umum, pertumbuhan ekonomi daerah tumbuh 0.28
persen.
Keywords: Kemandirian fiskal, dana alokasi umum, dana alokasi khusus, upaya pajak
JEL classification numbers: H21, H53, H71, H72
INTRODUCTION be more fiscally independent, where each
Since the enactment of Act No. 22/1999 on region is expected to experience acceler-
Regional Governance, and Act No. 25/1999 ated economic growth, which in turn can
on Equalizing Funds between Central and increase local financial capacity and im-
Local Government, which then both acts prove its service to the community. The
were updated to Act No. 32 and Act No. implementation of regional autonomy is
33/2004, respectively, Indonesian central also expected to reduce local dependence
government has been giving greater au- on central government, where local gov-
thorities to local governments to manage ernments are expected to become more in-
more resources. dependent in terms of fiscal management,
These greater authorities through and able to finance regional development in
regional autonomy demands the districts to accordance with the fiscal capabilities
sourced from its own potential.
190
This study analyzes the degree of capability of that region will be to finance
fiscal independence of local governments its own expenditures. The higher the con-
in East Java province. The study also ana- tribution of local revenues and the higher
lyzes the effect of GAF and SAF to tax ef- the ability to fund its own merits, the better
fort undertaken by the regions. In addition, the financial performance of the region will
this study looks at the influence of RII, be.
GAF and the SAF to economic growth of Fiscal decentralization is a process
the regions. of budget distribution from the higher lev-
Before further analysis, this paper els to lower levels of government to sup-
will explain the definition of some key port the delegated functions or duties. Fis-
variables in this study. Regional autonomy, cal decentralization is a logical conse-
according to Act No. 32/2004, is the right, quence of the implementation of regional
authority, autonomous regions and obliga- autonomy. The income sharing is done
tions to regulate and administer their own through the mechanism of equalization
affairs and interests in accordance with funds, namely the distribution of funds
laws. across levels of government. The problem
The implementation of regional of income sharing becomes a serious prob-
autonomy has to face the fact that districts lem because the central government does
in Indonesia have different situation. Some not allow local governments to conduct
are more than ready for the implementa- publicdebt .
tion, while some others need a lot of things The implementation of fiscal decen-
to prepare. Two things cause this differ- tralization can be done using expenditure
ence. The first is the differences in fiscal assignment and revenue assignment ap-
capacity between regions. The second is the proach (Waluyo, 2007). This approach
existence of differences in managerial abil- states that the transfer of some tasks of
ity to manage a variety of resources, in public services from central government to
terms of human resources, biological re- local governments increases the role of lo-
sources and funds. cal public goods. This policy was carried
According to Halim (2004), there out in two stages. The first is to determine
are some key characteristics that need to be the limits of central and regional tasks.
considered if we are to evaluate the ability Second is to explicitly divide the central
of a region in implementing regional and regional government tasks. This ap-
autonomy. The first is the ability of local proach requires that the Minimum Service
finance, namely the ability and authority to Standards (MSS) for any matters delegated
explore the area of financial resources and to local governments has been identified, so
manage its own finances to fund the gov- the magnitude of the Standard Spending
ernment activities. The second characteris- Assessment (SSA)can be known .
tic is the minimum dependency on assis- The main characteristic of revenue
tance from the central government. In other assignment approach is to improve the re-
words, the RII becomes the largest regional gional financial capability in order to fi-
financial resources. nance the decentralized functions (Waluyo,
The performance of regional fi- 2007). The determination of the financing
nance can be measured using a degree of sources which are given to regions is con-
fiscal decentralization between central and ducted using the tax assign. More on the
local governments (detail on fiscal decen- five principal in conducting tax assignment
tralization and fiscal relations can be seen can be read in Waluyo (2007).
in De Mello, 2000). The higher the degree There are at least three functions of a
of independence of a region, the higher the govnerment, namely the function of distri-
Regional Fiscal Independen … (Ahmad) 193
the paper uses a multiple regression equa- relevant region. This ratio reflects the re-
tion using panel data as follows: gion's fiscal capacity in financing the de-
velopment activities from its own sources.
ln TE it = i + 1 ln GAFit The data on fiscal independence of the dis-
(4) tricts in East Java province during the pe-
+ 2 ln SAFit + t riod 2003-2008 can be seen in Figure 1 (in
the form of bar charts) and Figure 3 (in the
To determine the effect of GAF, SAF and form of box plots).
RII to the economic growth of dis- From Figure 1 we can see that the
tricts/cities in East Java province, the paper degree of fiscal independence of most dis-
uses a multiple regression equation using tricts in East Java province is between 0.05
panel data as follows: to 0.10, except the districts of Gresik, Jom-
bang, Tuban and Surabaya, which has a
ln RGDP it = i + 1 ln GAFit degree of fiscal independence between
12.15 until 12.20. This means that in gen-
+ 2 ln SAFit + 3 ln RII it (5) eral, these districts could only fund a
+ t maximum of 20% of local expenditures,
which is come from the regional initial in-
RESULTS DISCUSSION come (RII). Districts which have higher
degree of fiscal independence are Tuban,
Fiscal independence is the ratio of Regional Jombang, Gresik and Sidoarjo.
Initial Income (RII) to Total Revenue of the
0.12
0.1 2003
0.08
0.06 2004
0.04
0.02 2005
0 2006
NG RTO
2007
MA AN
MA G
GE N
MA AN
NG K
N
KE G
PA AWI
JU
MA DIU
TA
N
JO AN
LU NG
T
JA
AN
2008
CI
MO L
MO
LA
0.2
0.15 2003
0.1 2004
0.05
0 2005
2006
OW O
GR O
GI
UW AN
G
BO NEG AR
MB R
JE SIK
RI
ND OR
OS
AN
JO BE
2007
AN
DI
NY AL
E
JO LI
KE
M
BA GK
2008
N
BA
BO
0.25
0.2 2003
0.15
0.1 2004
0.05
0 2005
2006
SIDOARJO
SITUBONDO
TUBAN
TULUNGAGU
PROBOLING
TRENGGALE
PASURUAN
PONOROGO
SAMPANG
PAMEKASA
SUMENEP
2007
2008
To make things worst, Figure 1 also Java province has decreased over the pe-
shows that the degree of fiscal independ- riod 2003-2008.
ence is getting lower from 2003 to 2008. When the situation is described in
This means that the level of financial de- the form of box plots, as in Figure 3, it can
pendence of these districts is getting bigger. be seen that the fiscal independence of Su-
Thus, it can be interpreted that one of the rabaya and Sidoarjo regency in 2007 are far
purposes of the implementation of regional above the average and median degree of
autonomy, namely increasing local inde- fiscal independence of districts/cities.
pendence and gradually reduce regional Overall, the average degree of fiscal inde-
dependence, is not reached. pendence of all districts/cities in East Java
The degree of fiscal independence is very low, namely below 0.10, and tended
of the cities in East Java can be seen from to decline during the period of 2003-2008.
Figure 2 (in the form of bar charts) and This can be seen from the position of the
Figure 3 (in Box Plots). It can be inferred box plot that continues to decline and
from the figures that degree of independ- shrinking, especially after 2005.
ence in most cities is less than 0.10. This Fiscal independence in a region
means that the ability of these cities to fi- cannot be separated from the tax effort un-
nance its expenditure, namely based on its dertaken by local governments. Tax effort
Regional Initial Income (RII), is less than is an attempt to increase taxes by a local
10%, while the rest comes from central government that is measured through a
government assistance, in the form of GAF comparison between the proceeds (realiza-
and the SAF. Some cities with a quite high tion) of RII with the potential RII. Because
degree of fiscal independence, namely be- the data of potential RII is not available and
tween 0.10 to 1.2, is the city of Kediri and is hard to measure, it is approximated by
Malang. The only city in East Java which Gross Regional Domestic Product (RGDP)
has a degree of fiscal independence be- from the corresponding districts. Tax effort
tween 0.20 to 0.40 is the city of Surabaya. demonstrates the government's efforts to
It can be concluded that the degree of fiscal obtain income for the district considering
independence of most cities in East Java is its potential sources. Potential is the target
very low. Furthermore, the degree of fiscal to be achieved within the budget year that
independence in the urban areas in East area.
196
0.45
0.4
0.35
0.3
0.25 2003
0.2
0.15 2004
0.1 2005
0.05
0 2006
O
2007
OL AN
YA
O G
AR
K_ IUN
RI
GG
RT
OJ N
DI
OB U
BA
IT
M LA
2008
AD
IN
KE
PR UR
KE
BL
RA
K_ MA
M
K_ PAS
K_
K_
SU
K_
K_
K_
Source: Ministary of Finance.
Figure 2: Bar Chart for Fiscal Independence of District and Cities in
East Java Province, 2003-2008
.4
Surabaya Surabaya Surabaya
.3 Surabaya
Surabaya
Surabaya
.2 Sidoarjo
.1
.0
T2003 T2004 T2005 T2006 T2007 T2008
Source: Ministry of Finance.
Figure 3: Boxplot Diagram for Fiscal Independence of District and
Cities in Est Java Province, 2003-2008
.020
Pacitan Pacitan
.016 Pacitan
Pacitan
.012
.008
.004
.000
T2003 T2004 T2005 T2006 T2007 T2008
Source: Ministry of Finance and Indonesia Bureau of Central Statistics.
Figure 4: Boxplot Diagram for Tax Effort of District and Cities in
East Java Province, 2003-2008
Regional Fiscal Independen … (Ahmad) 197
crease local tax effort. This means that in independence. Second, the central govern-
the long run, central government should ment can continue the transfer of GAF.
focus more on GAF to increase the regional However, it needs to investigate on how far
fiscal independency. In addition, the trans- the grant will increase the tax effort before
fer of GAF also had a positive and signifi- it will eventually stop. Third, local gov-
cant impact on regional economic growth. ernments should be more careful in using
Regarding the results of the analy- GAF. It should consider the use of such
sis, a couple of suggestions could be made. funds for capital expenditures associated
First, districts/cities with a low level of fis- with the development of facilities and in-
cal independence need to be more creative frastructure that support the economy, so
in exploring potential sources of initial re- the economy can grow even larger.
gional income levels to increase their fiscal
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