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"Reducing subnational imbalances of development progress is unquestionable policy for heterogeneous Indonesia. This paper examines the impact of policy that assigns a lagging-region status namely status daerah tertinggal (DT) on poverty rate and poverty gap among districts in Indonesia in the two period of SBY presidency. The panel data fixed effect combined with propensity score matching is used to tackle the selection bias due to the nature of the policy, unobserved heterogeneity and omitted variable bias. The results show that the lagging-region status that was aimed to mainstream central and district?s budget toward lagging regions statistically significant reduces poverty rate and poverty gap in the period. The DT status, on average is associated with 0.75 percentage point of reduction in the poverty rate and 7% reduction in the poverty gap index.AbstrakMenurunkan ketimpangan antar-daerah adalah sebuah agenda kebijakan yang niscaya untuk Indonesia yang majemuk dalam kemajuan ekonomi. Artikel ini berusaha mengukur dampak dari sebuah kebijakan penetapan daerah tertinggal terhadap dua ukuran kemiskinan, yaitu tingkat kemiskinan dan kedalaman kemiskinan pada dua periode masa jabatan Presiden SBY. Metode yang dipergunakan adalah panel data fixed-effect dikombinasikan dengan propensity score matching untuk mengatasi permasalah endogen pada variabel utama yaitu bias dalam seleksi terhadap kebijakan, keragaman daerah yang tidak dapat diukur, dan potensi bias karena ketiadaan variabel-variabel yang berpengaruh terhadap dua ukuran kemiskinan. Hasil pendugaan regresi tersebut menunjukkan bahwa penetapan daerah tertinggal yang ditujukan untuk mengarusutamakan dana pembangunan secara statistik signifikan dan menyebabkan penurunan tingkat kemiskinan dan kedalaman kemiskinan di masa tersebut. Daerah tertinggal secara rata-rata memiliki tingkat kemiskinan lebih rendah sebesar 0.75 (persentase) dan memiliki indeks kedalaman kemiskinan 7% lebih rendah."

"Penerapan kebijakan berbasis tempat melalui penetapan status daerah tertinggal menjadi salah satu upaya pemerintah dalam mengurangi kesenjangan pembangunan antar daerah. Meskipun telah diterapkan sejak tahun 2005, masih terdapat kesenjangan penyampaian pelayanan publik khususnya pada aspek infrastruktur dasar. Penelitian ini menguji dampak dari penetapan status daerah tertinggal terhadap peningkatan akses kebutuhan dasar rumah tangga yakni air bersih, listrik, dan sanitasi aman. Dengan menggunakan metode terbaru heterogeneity-robust difference-in-differences terhadap data panel tahun 2001-2022, efek kausal perbedaan dampak sebelum dan setelah adanya kebijakan dapat diukur. Hasil penelitian menunjukkan bahwa penetapan status tertinggal berdampak signifikan dalam meningkatkan akses listrik rumah tangga. Meskipun demikian, kebijakan ini belum memberikan dampak signifikan terhadap peningkatan akses air bersih dan sanitasi aman di daerah tertinggal. Hal ini menunjukkan belum optimalnya peran pemerintah daerah dalam penerapan kebijakan ini karena dua variabel yang seharusnya dapat dikendalikan lebih leluasa oleh pemerintah daerah masih belum menunjukkan hasil yang signifikan. Kondisi aksesibilitas wilayah menjadi faktor perantara yang berperan dalam peningkatan penyampaian pelayanan publik di daerah tertinggal ini. Penetapan status daerah tertinggal dapat berdampak pada peningakatan akses jalan yang selanjutnya berkorelasi dengan peningkatan penerimaan pelayanan publik, khususnya pada akses listrik rumah tangga.

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The implementation of place-based policy through the stipulation of lagging region status is one of the government's efforts to reduce development disparities between regions. Although it has been implemented since 2005, there are still disparities in public service delivery, particularly in the aspect of basic infrastructure. This study examines the impact of lagging region status stipulation on increasing households’ access to basic needs, specifically clean water, electricity, and safe sanitation. By employing the latest heterogeneity-robust difference-in-differences method on panel data from 2001-2022, the causal effect of the difference in impact before and after the policy can be measured. The results show that the stipulation of lagging region status has a significant impact on increasing households’ access to electricity. However, the policy has not yet produced a significant impact on improving access to clean water and safe sanitation in lagging regions. This indicates that the role of local governments in implementing this policy has not been optimal, as two variables that should be more easily controlled by local governments have not yet shown significant results. Regional accessibility also plays an important role in improving public service delivery in these lagging regions. Stipulating a region as "lagging" can lead to improved road access, which in turn is correlated with increased public service delivery, especially in households’ access to electricity."

"AbstractThis study aims to determine the relationship between local government spending, agricultural productivity, and poverty in Indonesia for the period of 2005-2008. Using econometric models of the panel and panelsimultaneous, this study find the evidence that local government spending on infrastructure and education significantly affect agricultural productivity and poverty. The study also found that the value of multiplier effect of local government spending on poverty, roads is the largest, followed by education (the literacy rate) and irrigation."

"This paper studies the effect of domestic and foreign macroeconomy performances on the foreign direct investment (PMA) in Indonesia, employing descriptive and inferencial (econometric model) analyses. The national economic growth and national interest rate affect significantly PMA in Indonesia. While the national inflation rate positively -effected on PMA, but results show that hyperinflation contributes to decreasing PMA. The macroeconomic improvement in some _competitor countries, especially Chinese and Thailand tends to decrease PMA in Indonesia. However, the improvement of macroeconomies in Singapore and Malaysia can increase PMA in Indonesia. Therefore, bilateral relationship with these countries must be intensified. In addition, although the economic growth of some More Developed Countries (MDCs) has positive relationship with PMA in Indonesia, but their effect were not significant statistically, except Canada. This implies that global finance crisis, especially in USA and european countries would not largely effect on PMA in Indonesia."

"The study about the relationship between climate and economy is essential because it's understanding is the key to formulate the effective economic policy. El Nino is one of the climate phenomena's that directly impact Indonesia, so it is necessary to analyze its effect on the macroeconomic condition such as inflation. This study aims to analyze the impact of El Nino as an external factor and the impact of another relevant economic factor on the macroeconomic condition such as inflation at the regional level (province) in Indonesia. The method used is a spatial panel method to capture the effect of inter-regional spatial interactions. The results show that El Nino has a positive effect on inflation in the southern Indonesian provinces that are affected by El Nino, but no effect in northern Indonesia. The other significant determinants of regional inflation are minimum wage, local revenue, local government spending, and infrastructure. There is significant spatial dependence on regional inflation in Indonesia, indicating that the inflations of its neighboring provinces influence the inflation of a province."

"Traffic accident ranks the ninth largest of the cause of death in Indonesia. The most of researches studying Indonesia on traffic accidents were only blaming on human, motor vehicles, and environment as main culprits, not incorporating economic factors into the models. This study aims to analyze the impact of real gasoline prices on trac accident in Indonesia and the factors of influence them. This research employs time series data from 1970 to 2013 with OLS analysis world crude oil prices as instrument variable. The estimator results show that real price of gasoline and the policy of usage of motorcycle light insignificant on traffic accident. Meanwhile, real GDP and asphalt roads significantly decrease the traffic accident. However, motorcycles significantly increase the traffic accident.

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Kecelakaan lalu lintas menempati urutan kesembilan penyebab kematian di Indonesia. Kebanyakan penelitian kecelakaan di Indoneia menitikberatkan pada faktor manusia, kendaraan, dan lingkungan, tetapi belum ada yang memasukkan faktor-faktor ekonomi ke dalam modelnya. Tujuan penelitian ini adalah ingin mengetahui pengaruh harga riil bensin terhadap kecelakaan lalu lintas di Indonesia serta faktor-faktor yang memengaruhinya. Penelitian ini menggunakan data time series Indonesia dari tahun 1970 hingga 2013 dan menggunakan OLS dengan variabel instrumen harga minyak mentah dunia. Hasil estimasi menunjukkan bahwa harga riil bensin dan kebijakan penggunaan lampu utama sepeda motor tidak signifikan terhadap kecelakaan lalu lintas. Sedangkan PDB riil dan jalan aspal signifikan berpengaruh menurunkan kecelakaan. Namun, sepeda motor berdampak signifikan meningkatkan kecelakaan lalu lintas."

"This research is aimed to investigate the influence of final demand and price to Indonesian agregate imports in the long-run and short-run. We use analytical technique cointegration test Iohansen procedures for the long-term influence, and Error Correction Model to estimate the short-term influence, by using quarterly time series data period from_1980 to 2004. From the result of cointegration test and Error Correction Model we found that in the long-term, all of final demand components and price except private investment are important I in determining Indonesian agregate imports. The government expenditure variable has the highest influence, while in the short-term all of independent variables except private consumption are important in determining Indonesian agregate imports and foreign price variable has the highest influence."

"Undang-undang 22/0 dan 25/99 telab merubah pola hubungan pusat-daerah di Indoensia dari pola sentralistik menjadi desentralisis yang efektif berlaku sejak bulan Januari 2001. Lebih jauh pemerintah juga mengeluarkan Peraturan Pemerintah (PP) yang mengatur lebih detail tentang kewajiban dan kewenangan daerah, hutang daerah dan hal lainnya, selain beberapa sektor penting seperti sistem peradilan, agama, keamanan dan hal lain yang masih dibawah tanggung jawab dan kewenangan pemerintah pusat.Konsekuensi langsung dari perubahan ini adalah pemerintah harus mengatur pemerataan dan sustainabilitas anggaran antar daerah. Mengingat karakteristik antar daerah sangat bervariasi dalam hal kandungan sumber daya alam, dan sumber daya manusia, dan juga selepas krisis yang menerpa Indonesia, maka permasalahan yang dihadapi pemerintah pusat dalam menjalankan proses desentralisasi ini, menjadi tidak ringan.Satu hal yang jelas, implementasi proses desentralisasi ini, akan mengurangi penerimaan pemerintah pusat secara langsung sementara agenda peningkatan kesejahteraan, penurunan kesenjangan dan upaya peningkatan pertumbuhan lintas wilayah, sudah didepan mata."

"Indonesia currently adopts a new decentralization policy. In the past, central government had been the major role of regional and cities development. With the new policy, central government has transferred its role in developing cities and regions to the local governments. This policy adopts two complimentary laws. Law No.22/1999, which is basically the devolution policy, has been accompanied by Law No.25/1999, which basically is the fiscal decentralization policy. Both laws reflect that decentralization policy in Indonesia has adopted the concept of "money follows functions".Before the implementation of decentralization policy, the government of cities had been benefited from many facilities built by central government on the city area. With the decentralization policy, it is expected that a reduced role of central government will have a significant impact on the growth of cities in Indonesia. The policy has three major fiscal instruments; a block grant funding, a specific grant and revenue sharing. The block grant funding is considered as the most important instruments of fiscal decentralization in Indonesia. About 80 percent of financial transfer from central to local governments will be in the block grant type of transfer. In the past, the use of transfers was determined by central government specifically. Therefore, the role of block grant was very minimal. With the new fiscal decentralization scheme, the benefits of cities from central government investments are expected to decrease. Therefore, there is a question to what extend the cities will be sustainable in the decentralization era.This paper attempts to answer the impacts of current fiscal decentralization policy on the growth of the cities. The first objective of the paper is to evaluate the current intergovernmental tranfers and their impact to cities revenues. Secondly, by utilizing a regional macroeconometric model, this paper also elaborates the implication of the transfers to the city growth and interregional disparity in Indonesia."