IMPACT OF FISCAL DECENTRALIZATION ON THE PUBLIC SERVICE IN INDONESIA

Ari Mulianta Ginting
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Abstract

The broader autonomy for local governments has impacted regional economics and increased public services in both the health and education sectors. This research has tried to analyze the impact of fiscal decentralization on the heath and education sector in Indonesia. This research was carried out from 2013 to 2020 using sample data from Indonesia's districts and city clusters. A data panel is used as the analysis method. The study shows that in all cluster data, fiscal decentralization has a positive but not substantial effect on public services in the health sector. In addition, fiscal decentralization positively and significantly impacts public services in the education sector. This study recommends the need for the government to relocate the spending to public health and education. The local government should evaluate minimum service standard indicators in public services that the districts/cities have done to local government people.


Abstrak

Otonomi yang lebih luas bagi pemerintah daerah telah berdampak pada perekonomian daerah dan peningkatan pelayanan publik baik di sektor kesehatan maupun pendidikan. Penelitian ini bertujuan untuk membangun model konseptual dampak desentralisasi fiskal pada sektor kesehatan dan pendidikan. Penelitian ini dilakukan dari tahun 2013 hingga 2020 dengan menggunakan sampel data dari kabupaten dan kota di Indonesia. Panel data digunakan sebagai metode analisis. Hasil studi ini menunjukkan dalam semua data klaster, desentralisasi fiskal memiliki efek positif tetapi tidak substansial terhadap layanan publik di sektor kesehatan.. Selain itu, desentralisasi fiskal berdampak positif dan signifikan terhadap pelayanan publik di sektor pendidikan. Studi ini merekomendasikan perlunya pemerintah merelokasi pengeluaran untuk kesehatan dan pendidikan masyarakat. Pemerintah daerah harus mengevaluasi indikator standar pelayanan minimal dalam pelayanan publik yang telah dilakukan kabupaten/kota kepada masyarakat pemerintah daerah.

Keywords

fiscal decentralization; panel data regression; public education sector; public health sector; desentralisasi fiskal; data panel; bidang pendidikan masyarakat; bidang kesehatan masyarakat

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