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All Journal Journal of Management
Bahtiar, Sundawa
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Economics, Econometrics & Finance

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General Allocation Fund (DAU) and Regional Fiscal Independence: Finding a Balance Point in Central-Regional Relations Bahtiar, Sundawa
Journal of Management Vol. 3 No. 2 (2024): July - December
Publisher : Yayasan Pendidikan Belajar Berdikari

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This study aims to analyze the relationship between the General Allocation Fund and regional fiscal independence in the context of regional autonomy in Indonesia. The General Allocation Fund is the main transfer fund from the central government to regional governments, serving to support the equalization of fiscal capacity among regions. However, a high dependency on the General Allocation Fund may indicate low fiscal independence and weaken the regions’ motivation to optimize their Own-Source Revenue. This research uses a qualitative approach with a descriptive method. The results show that the General Allocation Fund is allocated based on the needs and fiscal capacity of each region using the principle of equity, so regions with large populations, vast areas, and geographical challenges receive larger allocations. Although regional autonomy grants the authority to manage finances independently and encourages the increase of Own-Source Revenue, most regions are still heavily dependent on transfers from the central government, with the contribution of Own-Source Revenue to total regional income still below 30 percent. This dependency hampers regional initiatives to develop local economic potential and leads to inconsistent development planning. Therefore, a balanced role between the central and regional governments is crucial to ensure equitable and sustainable national development. The General Allocation Fund should function as an instrument to encourage regions to enhance fiscal independence while ensuring effective use of funds through proper oversight, in order to reduce interregional disparities and support fair and sustainable development.
Synergy and Conflict: Examining Central-Regional Relations in Public Policy Bahtiar, Sundawa
Journal of Management Vol. 3 No. 2 (2024): July - December
Publisher : Yayasan Pendidikan Belajar Berdikari

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This study aims to examine the dynamics of the relationship between the central and regional governments in the formulation and implementation of public policy in Indonesia. Within the context of regional autonomy, the relationship between these two levels of government often exhibits two contrasting sides: synergy and conflict. Using a qualitative approach with a case study method, this research analyzes several strategic policies in the fields of education, health, and disaster management that illustrate patterns of interaction between governments. The findings show that the relationship between the central and regional governments in public policy implementation is dynamic, characterized by both synergy and potential conflict. Synergy arises when there is a clear division of authority, effective coordination, and sufficient human and institutional resources at the regional level. On the other hand, conflicts frequently occur due to regulatory inconsistencies, overlapping authorities, political affiliation differences, and high fiscal dependency on the central government. Factors such as public participation, transparency, and effective communication also significantly influence the quality of central-regional relations.
The Role of the Central Government in Supervising Regional Governments in the Era of Autonomy Bahtiar, Sundawa
Journal of Management Vol. 2 No. 1 (2023): January - June
Publisher : Yayasan Pendidikan Belajar Berdikari

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Abstract

This study aims to analyze the role of the Central Government in supervising Regional Governments in the context of regional autonomy implementation in Indonesia. Regional autonomy grants broader authority to local governments to manage their internal affairs; however, it remains within the framework of the Unitary State of the Republic of Indonesia (NKRI), which necessitates oversight by the Central Government. The research method used is descriptive qualitative, employing a literature review approach and documentation of statutory regulations. The results show that the role of the central government in supervising regional governments is crucial to ensure that the implementation of regional autonomy aligns with the principles of a unitary state and does not deviate from national objectives. The central government has strategic functions in providing guidance, supervision, monitoring, evaluation, and revocation of regional policies that contradict public interests and legal regulations. However, the implementation of this supervision faces several complex challenges, such as a lack of coordination between central and regional governments, limited human resource capacity, weak transparency and accountability in regional financial management, and inadequate law enforcement and sanctions for violations. These challenges impact the effectiveness of supervision and open up opportunities for deviations and corrupt practices at the regional level.
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