1
o fu
c is
R 2
tr in
p in
lo c
o b
ti r
fa
p ic
g o
s p
w tu
th d
r r
a
12
After rev of regional g
und transfer can be conclu
s recorded Rp140.6 trilli
2009 or incr rillion per y
ng the peri provide grea
n funding t ooking at th
can say that obstacle for r
be expected ive correlati
egional reve are.
The suc policies of ea
cy can be d gional reven
oriented to th so it can crea
poor people will be refle
ure. There a he structure
direct expend ect expendi
ectly related activities. Th
So
Figure 11
viewing and overnment r
r and other l uded that th
substantial ion in 2007
reased by an year, or grow
iod 2007-20 at meaning to
the provisio he magnitud
the fundin regional gov
to occur is ion between
enues and i ccess of a r
ach regional done throug
nues in pr he needs of s
ate jobs and e. Allocation
ected in the are two com
e of regional diture and d
iture is expe d to the fin
here are eigh
ource: Finance M
1. Trends in R 2007-2009
Ju
d analyzing revenues, bo
local revenu e total regio
l and incre to Rp364.01
n average o w by 62.56 p
009. This tr o regional go
on of public de of this a
g is no long vernments. W
the existenc n the magni
increase of p region depen
l governmen gh the alloca
ograms and society pub
d reduce the n of regiona
allocation o mponents exp
budget AP direct expend
enditure tha nancing pro
ht types of
Ministry, Finance
Regional Go in million ru
a b
a
urnal Ekonom
the amount oth from the
e sources, it nal revenue
eased from 1 trillion in
of Rp255.34 percent dur-
end would overnments
c goods. By amount one
ger a major What should
e of a posi- itude of the
people wel- nds on the
nt. The pol- ation of re-
d activities blic interest,
e number of al revenues
of expendi- penditure in
PBD are in- diture. Indi-
at is not di- ograms and
indirect ex-
e Note, varies se
overnment Ex upiah
c
mi Pembang
penditur rates, su
penditur lage gov
provinci ments; a
rect expe to the pr
types o penditur
and capi
The iture in
is still d an avera
Althoug APBN,
lization. rate rea
year. In penditur
penditur direct e
direct ex average
an avera ernment
2009.
By and ind
ments s governm
ries processed
xpenditure P
b a
b
gunan Volum
res: person ubsidy, gra
re of the p vernment; f
ialdistrictc and expendi
enditure is e rograms and
f direct ex re, expendit
ital expendit e trend of re
the whole p ominated by
age per year gh it seems
, but it is exp As events i
ached 153 p n 2008, the
re of total re is 62 perc
expenditure xpenditures
is 188,194.5 age of 46 pe
t expenditur looking at
direct expen till seem to
ment admini
data
Province, Di
c
c
me 13, Nomor nnel expend
ants, social provinciald
financial as city and v
iture unexpe expenditure
d activities. xpenditures:
ture on good ture.
gional gove provinces an
y indirect ex is about Rp2
a decline in pected to inc
in the year 2 percent from
proportion regional g
ent. The rest by 38 per
was relativ 5 billion rup
ercent of tot re during th
the develop nditures, re
o focus on istration rath
istrictCity i
b c
a
r 1, Juni 2012: diture, inte
assistance, districtcity
ssistance to village gov
ected. While directly rel
There are t personnel
ds and serv rnment expe
nd District xpenditure w
222,319.8 bill n the year 2
crease in its 2008, its gro
m the prev of indirect
government t is allocated
rcent. Trend vely stable.
piah per year al regional g
he period 2 pment of d
egional gov expenditure
her than of
n Indonesia:
: 1-17 erest
ex- vil-
the vern-
e di- ated
hree ex-
vices, end-
City with
lion. 2009
rea- owth
vious t ex-
ex- d for
d of The
r, or gov-
2007- irect
vern- e for
f de-
:
Implem
velopm Sala-i-M
classifi routine
contrib
The sta indirec
sonnel expend
rect ex percen
cated i the al
creases itures.
other 7 financi
cial ass sonnel
62.67 p the last
Ev propor
tends t 13 per
service capital
during dency
decrea
mentation of
ment activiti Martin 200
ied as non e expenditur
bute directly
atement is p ct expenditu
expenditur diture alloca
xpenditure i nt in 2008, t
in 7 kinds of location of
s to 74 perc The rest 26
7 kinds of e ial aid for 9
sistance. In t expenditur
percent of i t three years
vents that dr rtion allocat
to decrease rcent. Then
es around 37 l expenditur
g the period for the prop
sed until 20
Figure 12. T E
f Fiscal Dece
ies. Accordi 0, this typ
n-productive re. This expe
y to econom
proved by th ures allocate
re. The num ation was 74
in 2007 and the rest 60 p
f other expe personnel
cent of total 6 percent is
xpenditure percent and
this case, the re increases
indirect exp s.
raw in direct ted to perso
each year w for expend
7 percent and e by an aver
d 2007-2009. portion of ca
09, but it ha
Source: Finance
Trend Propor xpenditure i
a
entralization
ing to Barro pe of expend
e expenditu enditure doe
mic develop
he distributi ed to higher
mber of pers 4 percent of
d decreased percent was
enditures. In expenditur
indirect ex s allocated t
and is the l d 6 percent
e allocation o by an avera
penditures d t expenditur
onnel expend with an avera
diture good d the largest
rage of 56 pe Despite the
apital expend as shown tow
e Ministry, Finan
rtion of Direc in Indonesia
a a
b
Nursini o and
diture ure or
es not pment.
ion of r per-
sonnel f indi-
to 40 s allo-
n 2009, re in-
xpend- to the
argest of so-
of per- age of
during re, the
diture age of
s and t is for
ercent e ten-
diture wards
be by
oth
vid
20 the
tot wh
17 an
me fie
to the
tur to
cen ho
be of
de ind
of dis
nu pr
3 gio
nce Note, varies
ct Expenditu , 2007-2009 i
b
etter for the y looking at
her type of e If the allo
ded by com
007-2009, the e highest ra
tal regional hile, the sha
7 percent, 26 nd other exp
ent expendi eld, then in
carry out p e top 35 pe
res. Furtherm fund educ
nt, 19 perc ousing, and h
elow the allo 10 percent.
It was me ecentralizatio
dicators: 1 total gove
strictcity t ue indicators
rovincial, di developme
onal govern
series processe
ure of Region in percent
a b
interests of t the larger
expenditure. ocation of reg
mposition, th
e share of per anked an ave
governmen are of goods
6 percent for penditure of
iture is div 2007, region
public servic ercent of to
more, region ational func
cent for the health funct
ocation for t entioned tha
on can be m expenditur
ernment exp to the state
s: the ratio istrictcity t
ent expendi nment deve
ed data
nal Governm
regional dev proportion
. gional expen
hen during t
rsonnel expe erage of 37
nt expenditu expenditure
r capital exp 18 percent.
vided by fu nal expendit
ce function otal regional
nal expendit ction reache
e function tions only 8
the economi at the degre
easured thro re indicators
penditure p expenditure
of regional to state reve
iture: the ra elopment ex
c
ment by Selec
b a
13
velopment than any
nditure di- the period
enditure is percent of
ure. Mean- es reached
penditures If govern-
unction or tures used
that ranks l expendi-
tures used ed 23 per-
of public percent or
ic function ee of fiscal
ough three s: the ratio
provincial, e, 2 reve-
l revenues enues, and
atio of re- xpenditure
cted
1
p o
c fi
F tu
th p
o p
g a
14
provincial, d opment expe
One of t cator of expe
iscal decent Figure 14
: 1 ure to the na
he subsidies penditure to
of districtci penditure. Ba
gree of fisca and district
Degree o
Figu
Source: Fina
Figure 14
c b
a a
districtcity enditure.
the indicator enditure. The
tralization m the ratio o
ational expe s, 2 the ra
the total tra ity expenditu
ased on the al decentrali
city vary fro of fiscal dece
Source:
ure 13. Regio 2007-2
ance Ministry, Fi
4. Degree of F by Expendi
