The Specific Allocation Fund (Dak): Mechanisms and Uses

Research team smeru: syaikhu usman, m. sulton mawardi, adri poesoro, asep suryahadi griffith university: charles sampford translator: kate weatherley editor: budhi adrianto abstract this study aims to analyze the management of the specific allocation fund (dak). the three largest dak-recipient sectors are the focus of the study: education, health, and roads infrastructure. the study sample areas are four districts. this paper was compiled based on the results of in-depth interviews and focus group discussions with various stakeholders as well as analysis of dak policy and secondary data. the main objective of dak is to reduce interregional inequalities in public services. we came across policies in dire need of national uniformity but that still allow variation on some aspects. conversely, we found some enforced national uniformity in policies that should have provided rooms for variations to accommodate regional specific conditions. in practice, regional governments have become passive recipients of dak grants. the attitudes of regional government towards the dak allocation process indicate a general feeling that the central government is not transparent. furthermore, it is evident that coordination and communication surrounding dak management between agencies are still limited. based on the above findings, we recommend a new paradigm where the central government is suggested to decentralize the authority for the allocation, coordination, and monitoring of district/city use of dak to provincial governments. keywords: specific allocation fund, education, health, roads infrastructure, new paradig

Impact of Supermarkets on Traditional Markets and Retailers in Indonesia's Urban Centers

This study measures the impact of supermarkets on traditional markets in urban centers in Indonesia quantitatively using difference-in-difference and econometric methods as well as qualitatively using in-depth interviews. The quantitative methods find no statistically significant impact on earnings and profit but a statistically significant impact of supermarkets on the number of employees in traditional markets. The qualitative findings suggest that the decline in traditional markets is mostly caused by internal problems from which supermarkets benefit. Therefore, ensuring the sustainability of traditional markets would require an overhaul of the traditional market management system, enabling them to compete with and survive alongside supermarkets.impact evaluation, traditional market, supermarket, Urban, Indonesia

The Specific Allocation Fund (DAK) : Mechanism and Uses

This study aims to analyze the management of the Specific Allocation Fund (DAK). The three largest DAK-recipient sectors are the focus of the study : education, health, and roads infrastructure. The study sample areas are four districts. This paper was compiled based on the results of in-depth interviews and focus group discussions with various stakeholders as well as analysis of DAK policy and secondary data. The main objective of DAK is to reduce interregional inequalities in public services. We came across policies in dire need of national uniformity but that still allow variation on some aspects. Conversely, we found some enforced national uniformity in policies that should have provided rooms for variations to accommodate regional specific conditions. In practice, regional governments have become passive recipients of DAK grants. The attitudes of regional government towards the DAK allocation process indicate a general feeling that the central government is not transparent. Furthermore, it is evident that coordination and communication surrounding DAK management between agencies are still limited. Based on the above findings, we recommend a new paradigm where the central government is suggested to decentralize the authority for the allocation, coordination, and monitoring of district/city use of DAK to provincial governments.specific allocation fund, education, health, roads infrastructure, new paradigm

Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia

Indonesia's urban centers recently underwent an explosion of supermarkets. With cheaper, higher quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. In this paper, we evaluate whether this is indeed the case. We find that traditional traders experienced declines in their business. However, both qualitative and quantitative findings indicate that the main cause of decline is not supermarkets. Instead, traditional markets are plagued with internal problems and face increasingly bitter competition from street vendors. Therefore, the policy recommendations include strengthening traditional traders and seriously tackling the problem of street vendors.Impact evaluation Traditional market Supermarket Urban Indonesia

Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia

Indonesia's urban centers recently underwent an explosion of supermarkets. With cheaper, higher quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. In this paper, we evaluate whether this is indeed the case. We find that traditional traders experienced declines in their business. However, both qualitative and quantitative findings indicate that the main cause of decline is not supermarkets. Instead, traditional markets are plagued with internal problems and face increasingly bitter competition from street vendors. Therefore, the policy recommendations include strengthening traditional traders and seriously tackling the problem of street vendors

Improving the Business Climate in NTT : The Case of Agriculture Trade in West Timor

Efforts to improve the business climate in East Nusa Tenggara (NTT) Province are still facing significant obstacles. Moreover, a healthy business climate is needed to create conditions conducive to hastening development, increasing the employment field, and adding to local revenue. In June-August 2006, SMERU conducted a study of the business climate in NTT, concentrating on four districts and one city in West Timor. The study aims to identify various government policies at the central, provincial, and district/city level, which are directly and indirectly related to market structure, the flow of goods, fee structures, and prices received by producers and traders of agricultural products. The study also examines the impact of various agricultural product charges on provincial and district/city local revenue. The information and data was gathered from various respondents, including producers (farmers, livestock producers, fishermen, and home industry operators); traders (intermediate traders to exporters); as well as relevant government offices and agencies. The main finding of the research is that district/city local governments in West Timor are still attempting to increase local revenue by imposing various charges on the trade of agricultural commodities, although the total charges are currently lower than the period prior to 1997. Forestry products and large livestock (mainly cattle) attract the most charges. The study made several other findings. Firstly, in an effort to avoid a central government regulation that limits the total charges, the NTT local government has endeavored to reinvent charges as third party contributions or administration fees. Secondly, although the impact of official charges on the local budget (APBD) is relatively small, it can trigger the emergence of various unofficial charges, or bribes. Thirdly, agricultural producers generally have small-scale enterprises and weak bargaining powers as selling prices are still determined by several big inter-island tradersthus forming a monopsony environment.business climate, charges, commodities, agriculture, local government, permits