Local Development Planning and Budgeting in Decentralized Indonesia : Missing Links in the Bottom-up Approach

This paper focuses on the workings of Indonesia\u27s local development planning and budgeting mechanisms after decentralization, where citizen participation becomes a central theme for all stakeholders including policy makers. If real local needs are to be articulated, bottom-up mechanisms needs to be strengthened through its institutionalization in local government structures. At the same time, it can not be overlooked that effective and efficient local planning and budgeting in decentralized administration structure much requires good coordination between higher and lower levels of government (vertical linkages), and between neighboring local governments (horizontal linkages). Indonesia needs to make the best strategic use of matching or earmarked grant to link development plans and budgets at all levels of government. For horizontal linkage, role of provincial governments need to be enhanced to set up a formal coordination system

Regional split and local government spending efficiency in Indonesia

The research objectives are to (1) measure the efficiency of local governments in every province in Indonesia and (2) analyse the impact of regional splitting, GRDP per capita, population density, and fiscal capacity on the efficiency of local governments. This study employed per capita personnel spending, per capita spending on goods and services, and per capita capital spending. The output used in the dataset is the human development index. The first objective (local government efficiency) is measured by Data Envelopment Analysis (DEA), with VRS and an output-oriented model. DMUs are 34 provinces from 2013-to 2018. The second objective (the impact of regional splitting, GRDP per capita, population density, and fiscal capacity on efficiency) is measured by panel data regression with a random effect model. Results show that the always efficient provinces for 2013-2018 were Jakarta, Yogyakarta, and Banten. The study revealed 29 inefficient provinces in 2013, and this number increased to 31 inefficient provinces in 2018. Another finding is that regional splitting, GRDP per capita, population density, and fiscal capacity significantly impact local governments' efficiency. As inefficient provinces need to improve their efficiency, this study recommends that local governments focus on these four independent variables to strengthen their efficiency

Are fishers happier? An evidence from a large-scale Indonesian happiness survey

Almost all recent empirical literatures that study the subjective wellbeing of fishers lack of relevant control as they are only based on surveys among fishers. Therefore, they cannot really answer whether being a fisher generate higher or lower life satisfaction, after controlling for other aspects of life. This study is based on Indonesian Family Life Survey (IFLS), a survey of almost 20,000 individuals which contain information of various socio-economic and employment characteristics as well as several life-satisfaction question which include their subjective happiness (generally how happy they are with the scale from 1 to 4) and their subjective position on economic ladders (5 ladders, from poorest to richest). For the economic ladders they are also ask their current and their future position from which we can infer how optimistic they are in their life. From the data, we can also identify whether an individual work as a fisher or other type of occupations within the category of self-employed without worker, self-employed with worker, unpaid family worker, and casual worker. We apply ordered-probit regressions (given the nature the life satisfaction data). We find that, after controlling income, demographics, education, health and regional characteristics, fishers in general are not happier compared to other type of jobs except those under the category of self-employed with workers and casual workers. However, we find that fishers are more optimistic in life as being a fisher is associated with positive attitude toward the change in the economic status

Daya Saing Daerah : Konsep dan Pengukurannya Di Indonesia

x + 354 hlm.; 23.5 cm

Application of the Quadratic Almost Ideal Demand System (QUAIDS) Model in the Demand of the Household Animal Sourced Food in West Java

This paper aims to determine the effect of demographic and socio-economic factors and household responses to household changes in prices and income against the demand for household animal-sourced food in West Java Province. The study used cross-section data sourced from the National Socio-Economic Survey (SUSENAS) of West Java Province in 2017 analyzed through the Quadratic Almost Ideal Demand System (QUAIDS). The results showed that the demand for household animal-sourced food in West Java was influenced by price, income, and social demographic factors. All groups of animal-sourced food were categorized as normal goods, as characterized by an income elasticity value of more than zero. The income elasticity established meat commodities as the highest with eggs being the lowest. The nature of the commodity determined that all animal-sourced food groups except eggs are luxury goods. Luxury goods are categorized as such due to their above one value of the demand response against changes in income- which in this paper refers to the commodities of fish, meat, poultry, and milk. The own-price elasticity also showed meat as the most responsive commodity to price increases compared to fish, poultry milk, and eggs. The five groups of commodities achieved a negative elasticity value, as reflected by the reduced share when the decreasing demand responds to the commodity price increase. The cross-price elasticity of most animal-sourced food commodity groups achieved negative elasticity values, which indicated that the related animal-sourced food commodity groups were complementary, whereas positive elasticity values indicate the related food commodities group as a substitute