SUBNATIONAL POLITICAL FACTORS AND INTERGOVERNMENTAL TRANSFERS IN INDONESIA: A PANEL DATA ANALYSIS
NGASUKO, TRI ACHYA (Adv.: Yamada Kyohei, Dr.), Yamada Kyohei, Dr.
This study investigates the relationship between political factors and per capita intergovernmental transfers in Indonesia. This study utilizes data from 456 regions and municipals in Indonesia over the six year period from 2005 to 2010. The political factor as a main explanatory variable is measured by the percentage of ruling party seats and that of opposition parties. Other explanatory variables include revenue capacity measured by per capita Gross Regional Domestic Product (GRDP) and fiscal needs represented by poverty rate in each region and municipalities. After applying fixed effect models, this study shows that not all types of intergovernmental transfer received by subnational governments in regions and municipals are influenced by political factors. The congruence in legislative political control between the subnational jurisdictions and the central government affects the amount of DAK transfer received by the municipalities and regions. The others two transfer mechanisms, namely DAU and DBH, do not have any significant relationship with political factors. This study also concurs with the finding from previous studies that poverty rate is positively correlated with the amount of per capita intergovernmental transfer for DAU, DAK, and DBH but with different level of significance. The last but not least, the study also confirms earlier studies that per capita GRDP is positively correlated with the amount of per capita DAU, which is at odds with the normative rationales for fiscal transfers. However, GRDP is negatively correlated for per capita DAK and DBH, as expected.
Kata Kunci : Politics, grdp, poverty rate, intergovernmental transfer, DAU, DAK, DBH
