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Land Value Capture as Financial Resource for Infrastructure Development in Palembang City Mabrurotunnisa; Doddy Aditya Iskandar
The Journal of Indonesia Sustainable Development Planning Vol 2 No 1 (2021): April 2021
Publisher : Pusbindiklatren Bappenas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46456/jisdep.v2i1.96

Abstract

Indonesian local governments still depend on the state budget to fund infrastructure development. On the other hand, land value capture (LVC) is suitable for developing countries, such as Indonesia, to fund such development. However, there is an absent legal system to explicitly implement LVC in Indonesia. This paper aims to discuss factors affecting LVC implementation in the context of Palembang. Through an in-depth interview with several experts, the study identified existing issues affecting LVC implementation including delays in revising regulation; risk of corruption, collusion, and nepotism; decrease in public participation; and public complaints due to property tax increase. Finally, we proposed strategies that should be fulfilled by the local government for the successful implementation of LVC in Palembang. They include the establishment of an implementing agency with a clear division of role and skillful members, the enactment of specific regulations, and the establishment of a special forum, e-platform, and mass media.
Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province Mega Novitasari; Doddy Aditya Iskandar
The Journal of Indonesia Sustainable Development Planning Vol 3 No 3 (2022): December 2022
Publisher : Pusbindiklatren Bappenas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46456/jisdep.v3i3.361

Abstract

Poverty is still one of the forefront issues in developing countries. It could hamper the achievement ofsustainable development goals, thereby triggering a recurring call on the government's role in mitigatingpoverty. This paper contributed to the debate on the role of sectoral government spending under thefiscal decentralization policy to combat poverty. Using a case study in South Kalimantan Province, weemployed a spatial panel data analysis covering 13 districts from 2010-2020. This study investigated thepresence of spatial dependency on poverty and the spatial spillover impact of government expenditure—education, health, housing, public facilities, and social protection—on poverty. The research found theexistence of spatial autocorrelation on poverty and the significant high-cluster poverty in the agriculture-based region. The direct estimation from the Spatial Durbin Model uncovered that governmentexpenditure on education, health, and social protection significantly alleviated poverty, while housing andpublic facilities expenditure remained insignificant in reducing the poverty rate. Besides, educationspending also has a significant indirect effect on poverty, indicating the spatial spillover impact ofeducation spending by the neighbors on poverty in a region.