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"Dana perimbangan adalah dana dari pemerintah pusat untuk pemerintah daerah, dan telah menjadi sumber pendapatan utama bagi pemerintahan daerah. Dengan demikian, dana perimbangan dapat mempengaruhi pertumbuhan ekonomi lokal. Berdasarkan data dari tahun 2011 hingga 2018, tulisan ini meneliti dua hal, pertama adalah hubungan antara dana perimbangan dengan pertumbuhan ekonomi lokal dan juga mengidentifikasi apa yang menjadi penentu utama pertumbuhan ekonomi lokal di Indonesia. Lebih jauh lagi, apakah hasil antara kelompok regional terdapat perbedaan. Tulisan ini menemukan bahwa dana perimbangan memiliki efek positif pada pertumbuhan ekonomi. Dengan dana paling signifikan adalah DAU dan DAK. Tulisan ini juga mengkonfirmasi bahwa peningkatan sumber daya manusia dapat meningkatkan pertumbuhan ekonomi. Tulisan ini juga menemukan bahwa belanja modal pemerintah daerah masih menunjukkan efek positif bagi pertumbuhan ekonomi. Temuan dari esai ini dapat memiliki implikasi kebijakan yang penting bagi pemerintah pusat di Indonesia dalam meninjau kebijakan keseimbangan fiskal dan menentukan sektor-sektor prioritas.

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The fiscal balance funds are the funds from the central government for the local government, and it has become the main revenue for the local governance. As the main revenue, the fiscal balance funds could affect the local economic growth. By looking at the data from the period of 2011 to 2018, this essay investigates two things, first is the relationship between fiscal balance funds and the local economic growth. This essay also identifies what are the major determinants of local economic growth in Indonesia is. Furthermore, do the results differ across regional groups. The essay finds that the relationship between fiscal balance funds have positive effect on economic growth. With the most significant funds are the DAU and DAK. The results also confirm that increasing human capital would increase economic growth. This essay also finds that even though the results for regions vary, capital expenditure still shows positive effect for economic growth. The findings from this essay would have important policy implication for the central government in Indonesia in reviewing the fiscal balance policy and determining the priority sectors."

"The phenomenon of a budget deficit in local governments at the provincial, regency, and city levels shows that there is budget stress. Budget stress is a regional fiscal condition reflected in the lower revenue budget, while regional expenditure is getting higher. The consequence of budget stress is low budget implementation, and it reduces the quality of services to the public. This study aims to map the regions experiencing budget stress at the local government levels. Furthermore, this study examines and analyzes the consequences of budgetary stress on budget implementation. The research sample used local governments at the provincial, regency, city levels throughout Indonesia during 2016-2020. This study uses Ordinary Least Square (OLS) to test the research hypothesis. This study groups the five regions with the highest budget stress during 2016-2020. The results of this study can contribute to the theory, methodology, and implementation related to the budget. The theory's contribution is that the political budget cycle can maintain government performance through various efforts to reduce budget stress. This study also found that budget stress can reduce budget implementation. Therefore, the government needs to pay attention to indicators of budget stress."

"Dengan menggunakan data panel 505 kabupaten/kota di Indonesia selama periode pelaksanaan desentralisasi dari tahun 2001-2017, penelitian ini bertujuan untuk menguji tentang indikasi konvergensi perekonomian antar daerah di Indonesia dan untuk mengetahui pengaruh kebijakan desentralisasi fiskal terhadap konvergensi pendapatan perkapita antar daerah di Indonesia. Indikator desentralisasi fiskal menggunakan indikator pendapatan dan indikator belanja daerah. Indikator pendapatan daerah terdiri dari pendapatatan asli daerah, dana bagi hasil, dan dana transfer. Indikator belanja daerah fokus pada belanja sektor pendidikan, sektor kesehatan, dan sektor infrastruktur. Menggunakan analisa konvergensi statis, penelitian ini menemukan bukti bahwa terjadi konvergensi pendapatan perkapita antar kabupaten/kota di Indonesia. Analisa konvergensi dinamis dengan model absolute convergence dan conditional convergence. Hasil estimasi model absolute convergence menunjukkan terjadinya konvergensi pendapatan perkapita antar kabupaten/kota di Indonesia dengan tingkat konvergensi sebesar 7 persen. Sedangkan hasil estimasi model conditional convergence menghasilkan tingkat konvergensi sebesar 19 persen ketika tenaga kerja, investasi, angka partisipasi pendidikan, dan indikator desentralisasi fiskal disertakan dalam model.

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Using panel data of 505 regency/municipality in Indonesia during the implementation period of decentralization from 2001-2017, this study aims to examine indications of economic convergence between regions in Indonesia and to determine the effect of fiscal decentralization policies on the convergence of per capita income between regions in Indonesia. Fiscal decentralization indicators use income indicators and regional expenditure indicators. Regional income indicators consist of local revenue, revenue sharing funds and transfer funds. Regional expenditure indicators focus on spending on the education sector, the health sector, and the infrastructure sector.

Using a static convergence analysis, this study found evidence that there was a convergence of per capita income between regency/municipality in Indonesia. Analysis of dynamic convergence with absolute convergence and conditional convergence models. The absolute convergence model estimation results show the convergence of per capita income between regency/municipality in Indonesia with a convergence rate of 7 percent. While the estimation results of the conditional convergence model produce a convergence rate of 19 percent when labor, investment, education participation rates, and indicators of fiscal decentralization are included in the model."

"This study tries to measure the optimum size of local government (municipality and city) which will support the accomplishment of decentralization policy 's objectives. The result of this study will be beneficial to know how the reformation pattern toward local government in Indonesia should lie done. The regression result of translog and quadratic functions using cost per capita minimization approach shows the existence of economy of scale from the size of municipality/city?s population. Using maximization approach, it is also shown that local ,government expenditure is not efficient yet and has H01 supported the efforts to accomplish the desired development performance. With various regulations, the significant variable used in the measurement of optimum size is the number of population. The result of using minimization and maximization approaches show that the optimum size for local government is d@rent between municipality and city; among each kind of per capita expenditure, and across time. Generally the optimum size of population for local government such that per capita expenditure can be minimized and minimum size of population such that Regional GDP per capita can be increased are approximately two million people. The reality of local government's size, which in general is relatively small compared to the optimum and minimum measurement shows the inefficiency of local government expenditure, and its ineffectiveness to improve the welfare of society. Hence, local government fragmentation policy that has been done so far is actually worsening the accomplishment of decentralization policy's objectives."