Policy & Governance Review
Vol 4 No 2 (2020): May

Implications of the Decentralization Policy on Poverty Reduction in Indonesia

Marlan Hutahaean (Master of Administrative Science and Department of Public Administration, Faculty of Social and Political Sciences, Universitas HKBP Nommensen Medan, Indonesia)



Article Info

Publish Date
17 May 2020

Abstract

This paper aims to analyze the implications of decentralization policies that are linked to poverty reduction in Indonesia. The focus of the study is the decentralization policy as regulated in Law No. 22/1999, which was amended twice through Law No. 32/2004 and Law No. 23/ 2014 concerning local government. In addition, it also discussed Law No. 25/1999 concerning financial relations in the central-regional government. Using qualitative methods with a policy/program analysis approach and secondary data, this study found that decentralization policies do not link directly to poverty reduction. Out of 34 provincial regions, only 8 provincial regions have achieved a human development index (HDI) above the national average, while having a poverty rate below the national average. In contrast, there are 13 provincial regions that reached HDI below the national average and at the same time have poverty levels above the national average. Based on these findings, this study recommends, first, that local governments evaluate and direct various programs that lead to HDI improvement and poverty reduction. Second, that they synchronize poverty reduction programs in the regions with the same programs from the central government and international programs in the regions.

Copyrights © 2020






Journal Info

Abbrev

pgr

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences Other

Description

This journal encompasses issues and practices in policy analysis, public management, public policy and administration. PGR provides high quality study outcomes and new thoughts for academic practitioners, researchers, scientists and consultants to discuss about social science theories and concepts ...