Dampak alokasi dana desa pada era desentralisasi fiskal terhadap perekonomian daerah di Indonesia

Abstract

This research attempts to describe and analyze the impact of allocation rural fund in decentralization era on regional economy in Indonesia.The analysis applied in this research are Klassen Typologi, Williamson index and econometric model. This study has succesfully formulated a model and using panel data method (time series data of 2005-2009 and cross section data of twenty five Province in Indonesia). The model was developed into a simultaneous equations, consisting of 14 structural equations and 11 identity equations. The results of this research obtain an evidence that Provinces of Indonesia spread in 4 (four) criteria in the Klassen Tipology. In addition, this study also indicates that the disparity among Province of Indonesia in the period of 2005 to 2009 will be higher if allocation rural fund conducted as Government Regulation Number 72 Year 2005.The result of simulation also shows that ADD in rural area could reduce poverty level and increase original regional income (PAD). Finally, the research concludes that the increase of ADD in decentralization era can increase fiscal and economic performance, however the transfer of ADD also increases the disparity among regions in Indonesia. In order to reduce the negative impact of ADD, the government needs to use a affirmative policy in the implementing of ADD.