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"ABSTRACTThis study examines the existence of local budget utilization behaviour by incumbents who have politically interested policies, since they have motive to attract prospective voters. this study focuses on 254 provincial and districts/cities in Indonesia which held simultaneous regional head election in 2015. it analyses targeted expenditures that have highly visible to please voters, and allegedly affect vote-share results, such as budget deficits, total spending, investment spending, discretionary funds include its sub components: grants, social aids, and financial aids. according to the results obtained, there is no indication of politically driven fiscal policy by incumbent candidates in almost all spending categories. However, there is a positive and significant relationship between the regions that have incumbents and grant expenditure subcategory behaviour. This finding indicates that this category expenditure is still popular among incumbents to stimulate citizens and gain sufficient vote-share later on."

"Penelitian ini bertujuan untuk untuk menjelaskan dan mengukur Political Budget Cycles di Tingkat Provinsi, PBC diproksikan dengan adanya pengaruh positif dummy petahana terhadap peningkatan komponen Belanja Tertentu BT yang merupakan akumulasi belanja hibah, bansos dan bantuan keuangan, menjelang tahun pemilihan. Guna mencapai tujuan tersebut peneliti menggunakan estimasi fixed effect model dengan data panel, dengan periode mulai dari tahun 2010 s.d. 2016. Hasil penelitian menunjukan bahwa terjadi Politcal Budget Cycles pada Pemilihan Kepala Daerah tingkat Provinsi. Variabel PAD, DAU dan Government Size, menunjukan pengaruh positif terhadap peningkatan komponen BT, sedangkan tingkat demokratisasi yang ditunjukan oleh Ideks Demokrasi Indonesia IDI Provinsi dan Kemiskinan menunjukan hubungan negatif terhadap komponen BT, namun untuk variabel kemiskinan hubungannya tidak signifikan. Penelitian ini merekomendasikan Pemerintah Pusat menyempurnakan regulasi terkait dengan pengelolaan keuangan daerah dan kebijakan belanja daerah yang berpotensi digunakan sebagai instrumen oportunistik Petahana guna memenangkan kontestasi Pemilihan Kepala Daerah. Pemerintah Pusat dalam hal ini Kementerian Dalam Negeri harus lebih ketat lagi dalam melakukan review Rancangan Perda RAPBD Provinsi khususnya menjelang tahun politik. Pemerintah juga diharapkan mampu mendorong perbaikan kualitas demokratisasi ditingkat lokal agar penyelenggaraan Pilkada semakin berkualitas kedepannya.

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This study aims to explain and measure the Political Budget Cycles at the Provincial Level during the perion of 2010 s.d. 2016. PBC is proxied by the positive influence of dummy incumbent on the BT Expenditure accumulation of grant, social assistance, and financial aid in the local election year. This research is a quantitative research with panel data regression aproach,. The results showed that we find significant political budget cycles PBC for Indonesian local direct election at provincial level. The PAD, DAU and Government Size variables positively and significant influence to BT Expenditure, while the Poverty and democratization level index IDI shows negative relation to the BT Expenditure. This paper recommends the central government to improve the regulation on local financial management and regional expenditure policy which has potential to be used as an opportunistic political instrument in order to win the local election. Central Government Ministry of Home Affairs should be more strict in reviewing the draft of local regulation on local income and expenditure budgets, especially before the political year."

"Rent-seeking behavior is one factor associated with the poor performance of local governments in Indonesia. It is an opportunistic behavior that often occurs in the government's budget allocating process. This study aims to estimate rent-seeking size in regional governments in Indonesia based on Katz and Rosenberg's (1989) method. The determining factors used are the availability of resources and political events. In addition, as an expected control mechanism that may dampen rent-seeking size, auditing is introduced. Using the Generalized Least Square Regression method, this study employs a cross-section time-series panel dataset of 305 local governments from 2015 to 2019. There were three findings in this study: (1) there was a decreasing trend in rent-seeking size after the national election was held in 2014-2015; (2) local governments that held elections showed a tendency to have a higher degree of rent-seeking, especially when the current executives or "incumbents" were standing for election; and (3) local governments that received 'Unqualified Opinion' for their financial statements had a smaller size and allocations of the rents. Those might suggest that auditing was an effective governance mechanism to restrain opportunistic rent-seeking behavior."