<![CDATA[The implementation of fiscal decentralization in Indonesia has spanned over two decades. Continuous policy evaluation is essential to assess its empirical progress. This study examines the utilization of Local Own-Source Revenue (PAD) and Regional Transfer Funds, evaluating whether their allocation significantly impacts regional development performance. Specifically, this research aims to analyze the efficiency of provincial spending across Indonesia regarding development outcomes. The input variables include expenditure on goods and services, capital, personnel, economy, education, and health. Meanwhile, regional development performance is measured through four indicators: expected years of schooling, welfare level (100 minus the poverty rate), employment rate (100 minus the open unemployment rate), and Gross Regional Domestic Product (GRDP) per capita at 2010 constant prices. Utilizing Data Envelopment Analysis (DEA), the study evaluates spending efficiency across 34 provinces. Under the Variable Returns to Scale (VRS) assumption, 24 provinces demonstrate efficient performance. Conversely, under the Constant Returns to Scale (CRS) assumption, only 22 provinces achieve full technical efficiency (efficiency score equals 1). The CRS results identify several provinces operating inefficiently, namely North Sumatra, Riau, Jambi, South Sumatra, Lampung, West Java, Central Java, East Java, Banten, West Nusa Tenggara, South Sulawesi, and Papua. ]]>
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