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"The study about the relationship between climate and economy is essential because it's understanding is the key to formulate the effective economic policy. El Nino is one of the climate phenomena's that directly impact Indonesia, so it is necessary to analyze its effect on the macroeconomic condition such as inflation. This study aims to analyze the impact of El Nino as an external factor and the impact of another relevant economic factor on the macroeconomic condition such as inflation at the regional level (province) in Indonesia. The method used is a spatial panel method to capture the effect of inter-regional spatial interactions. The results show that El Nino has a positive effect on inflation in the southern Indonesian provinces that are affected by El Nino, but no effect in northern Indonesia. The other significant determinants of regional inflation are minimum wage, local revenue, local government spending, and infrastructure. There is significant spatial dependence on regional inflation in Indonesia, indicating that the inflations of its neighboring provinces influence the inflation of a province."

"Combining regional growth model and integration of financial institution model, this paper evaluates whether intermediary development influences growth in Indonesia. Recent research has proved that not only banks development influence economic growth positively but also its exogenous components.However, there are several different assumptions during adopt this model in Indonesia. Especially regional approach is differing than national approach in growth model. The point is the existence of intermediary integration across region whit causes the economic agent move freely within a nation.The data show that integration of financial intermediation was not always associated with economic growth. Only four of twenty six provinces which proved strong influence of financial intermediation on economic growth. Labor condition and average annual wages are not exogenous variables which explain growth due to financial intermediation in Indonesia. At least during 1987-1998."

"Undang-undang 22/0 dan 25/99 telab merubah pola hubungan pusat-daerah di Indoensia dari pola sentralistik menjadi desentralisis yang efektif berlaku sejak bulan Januari 2001. Lebih jauh pemerintah juga mengeluarkan Peraturan Pemerintah (PP) yang mengatur lebih detail tentang kewajiban dan kewenangan daerah, hutang daerah dan hal lainnya, selain beberapa sektor penting seperti sistem peradilan, agama, keamanan dan hal lain yang masih dibawah tanggung jawab dan kewenangan pemerintah pusat.Konsekuensi langsung dari perubahan ini adalah pemerintah harus mengatur pemerataan dan sustainabilitas anggaran antar daerah. Mengingat karakteristik antar daerah sangat bervariasi dalam hal kandungan sumber daya alam, dan sumber daya manusia, dan juga selepas krisis yang menerpa Indonesia, maka permasalahan yang dihadapi pemerintah pusat dalam menjalankan proses desentralisasi ini, menjadi tidak ringan.Satu hal yang jelas, implementasi proses desentralisasi ini, akan mengurangi penerimaan pemerintah pusat secara langsung sementara agenda peningkatan kesejahteraan, penurunan kesenjangan dan upaya peningkatan pertumbuhan lintas wilayah, sudah didepan mata."

"Penelitian ini menganalisis faktor-faktor penemu tingkat inflasi dalam perekonomian lokal. Penelitian ini menggunakan pendekatan kointegrasi dan model koreksi kesalahan untuk mengungkap hubungan jangka panjang dan jangka pendek antara tingkat inflasi dan variabel ekonomi lainnya. Penelitian ini menemukan bahwa faktor penentu tingkat inflasi di Yogyakarta adalah upah minimum, pertumbuhan ekonomi, dan variabel moneter yang ditunjukkan oleh BI rate. Temuan lainnya, nilai tukar juga berkontribusi terhadap perubahan harga. PEnelitian ini menemukan bukti adanya kausalitas jangka panjang antar upah minimum dan inflasi dan hubungan searah dari upah terhadap inflasi dalam jangka pendek. Temuan ini menegaskan proposi upah non-netral terhadap perubahan harga. Tingkat inflasi dalam perekonomia lokal tidak hany bergantung pada indikator regional tetapi juga bergantung pada perubahan internasional yang tercermin dalam nilai tukar. Variabel moneter yang ditunjukkan oleh BI rate juga berkontribusi secara parsial terhadap perubahan harga ditingkat lokal. Secara keseluruhan, Pemerintah daerah telah berhasil mengelola perubahan harga."

"Singapore -success story and development experience is pretty much characterized by the path of open economy. The nation affluence derived form operating as trading post, resulting in one of the highest international exposures to domestic ration in the world, also in the busiest sea and airport. The geographic arrangement has serve Singapore very veil indeed, hence not without effort. This paper will deal with the consequences of such arrangement in the globalize world with some references to Singapore Johor RiaL Growth Triangle as the pioneer of regional trading arrangement which later evolve into more complex institution such as AFTA and APEC."

"AbstrakThe development policy in Maluku Province cannot separate from the small islands that dominate the areas. Its central potentials are in the field of fisheries, agriculture, and mining. This research aims to analyze the potentials of the leading sector and to formulate policy priorities for regional development in Maluku Province. The research used in this research is Location Quotient (LQ), Growth-Ratio Model (MRP), Overlay, SWOT and Analytic Network Process (ANP). The results showed that in Maluku Province there are eight economic categories that have base sectors. The result of Growth-Ratio Model (MRP) shows that the sector with the highest average the ratio of growth in the study area (RPs) is mining and quarrying sector. Furthermore, Overlay analysis shows that government administration, defense, social security sectors are obliged to contribute to and the highest growth. The result of SWOT-ANP shows that policy priority in regional development is the acceleration of infrastructure development."

"Indonesia currently adopts a new decentralization policy. In the past, central government had been the major role of regional and cities development. With the new policy, central government has transferred its role in developing cities and regions to the local governments. This policy adopts two complimentary laws. Law No.22/1999, which is basically the devolution policy, has been accompanied by Law No.25/1999, which basically is the fiscal decentralization policy. Both laws reflect that decentralization policy in Indonesia has adopted the concept of "money follows functions".Before the implementation of decentralization policy, the government of cities had been benefited from many facilities built by central government on the city area. With the decentralization policy, it is expected that a reduced role of central government will have a significant impact on the growth of cities in Indonesia. The policy has three major fiscal instruments; a block grant funding, a specific grant and revenue sharing. The block grant funding is considered as the most important instruments of fiscal decentralization in Indonesia. About 80 percent of financial transfer from central to local governments will be in the block grant type of transfer. In the past, the use of transfers was determined by central government specifically. Therefore, the role of block grant was very minimal. With the new fiscal decentralization scheme, the benefits of cities from central government investments are expected to decrease. Therefore, there is a question to what extend the cities will be sustainable in the decentralization era.This paper attempts to answer the impacts of current fiscal decentralization policy on the growth of the cities. The first objective of the paper is to evaluate the current intergovernmental tranfers and their impact to cities revenues. Secondly, by utilizing a regional macroeconometric model, this paper also elaborates the implication of the transfers to the city growth and interregional disparity in Indonesia."

"This paper studies the effect of domestic and foreign macroeconomy performances on the foreign direct investment (PMA) in Indonesia, employing descriptive and inferencial (econometric model) analyses. The national economic growth and national interest rate affect significantly PMA in Indonesia. While the national inflation rate positively -effected on PMA, but results show that hyperinflation contributes to decreasing PMA. The macroeconomic improvement in some _competitor countries, especially Chinese and Thailand tends to decrease PMA in Indonesia. However, the improvement of macroeconomies in Singapore and Malaysia can increase PMA in Indonesia. Therefore, bilateral relationship with these countries must be intensified. In addition, although the economic growth of some More Developed Countries (MDCs) has positive relationship with PMA in Indonesia, but their effect were not significant statistically, except Canada. This implies that global finance crisis, especially in USA and european countries would not largely effect on PMA in Indonesia."

"Reducing subnational imbalances of development progress is unquestionable policy for heterogeneous Indonesia. This paper examines the impact of policy that assigns a lagging-region status namely status daerah tertinggal (DT) on poverty rate and poverty gap among districts in Indonesia in the two period of SBY presidency. The panel data fixed effect combined with propensity score matching is used to tackle the selection bias due to the nature of the policy, unobserved heterogeneity and omitted variable bias. The results show that the lagging-region status that was aimed to mainstream central and district?s budget toward lagging regions statistically significant reduces poverty rate and poverty gap in the period. The DT status, on average is associated with 0.75 percentage point of reduction in the poverty rate and 7% reduction in the poverty gap index.AbstrakMenurunkan ketimpangan antar-daerah adalah sebuah agenda kebijakan yang niscaya untuk Indonesia yang majemuk dalam kemajuan ekonomi. Artikel ini berusaha mengukur dampak dari sebuah kebijakan penetapan daerah tertinggal terhadap dua ukuran kemiskinan, yaitu tingkat kemiskinan dan kedalaman kemiskinan pada dua periode masa jabatan Presiden SBY. Metode yang dipergunakan adalah panel data fixed-effect dikombinasikan dengan propensity score matching untuk mengatasi permasalah endogen pada variabel utama yaitu bias dalam seleksi terhadap kebijakan, keragaman daerah yang tidak dapat diukur, dan potensi bias karena ketiadaan variabel-variabel yang berpengaruh terhadap dua ukuran kemiskinan. Hasil pendugaan regresi tersebut menunjukkan bahwa penetapan daerah tertinggal yang ditujukan untuk mengarusutamakan dana pembangunan secara statistik signifikan dan menyebabkan penurunan tingkat kemiskinan dan kedalaman kemiskinan di masa tersebut. Daerah tertinggal secara rata-rata memiliki tingkat kemiskinan lebih rendah sebesar 0.75 (persentase) dan memiliki indeks kedalaman kemiskinan 7% lebih rendah."

"Competitiveness is a crucial factor in regional development process. The more open region of technology and information, the more competitive that region in regional competition. Because nowadays, competition not only between nations but also between regions. The purpose of regional competitiveness description is to analyze how technology and innovation have important role in productivity and also social welfare. This regional competitiveness will be explained by Regional Competitiveness Index that following Huggins Regional competitiveness model."