| dc.description.abstract | Fiscal decentralization policy started in 2001 was a “big bang” from a centralistic into decentralistic government. The decentralistic government focuses on triple track strategy which are pro growth, pro job and pro poor as its macroeconomic and sectoral development objectives. Based on the concepts and the implementations of the policy in Indonesia, the amount of transfers fund to region and the possibilities of increasing potential local revenue should have positive related to the effort to increase society wealth through economic growth by creating job creation and decrease poverty. This research using panel data regression analysis to describe the relation between fiscal decentralization with economic growth, poverty and unemployement rate. The research results show that the local finance performance (measured by fiscal decentralization degree and local finance independency ratio) is low. Just then, in the decentralization era the local-central government dependency is increase. The research also encounter that fiscal decentralization policy affects to the increasing of economic growth rate (in small amount), unemployment rate and poverty. The part of local government budget that have positive affect to the economic growth are revenue sharing, specific allocation funds, local tax revenue and local government corporation, while local retribution revenue has negative affect. Meanwhile, total government expenditure affects negatively to the poverty and open unemployment rate. | id |
