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"Decentralization is expected to reduce poverty. Through fiscal decentralization, poverty may be reduced by optimizing intergovernmental grants. However, its effect on poverty is beginning to be questioned after some districts in Indonesia showed slowing performance on poverty reduction despite increasing transfer. Thus, this paper tends to investigate the linkage of intergovernmental transfer (IT) and poverty in Indonesia. By using panel data from 2005 to 2013, the linkage is tested using linear regression model. The result shows that increasing 1% of IT allocation will re¬duce poverty absolute by 0.12%, or 10% increase of IT will reduce poverty by 1.24%. The intergovernmental transfer also directly affects poverty gap and poverty rate. Increasing 10% of IT will reduce the poverty gap and poverty rate by 9.49% and 31.73%, respectively. Moreover, DAU (unconditional intergovernmental transfer) has a higher effect than DAK (conditional intergovernmental transfer) on poverty eradication. An increase of DAU by 1% will reduce the poverty number by 0.068%, in contrast, DAK only has 0.0418% to reduce poverty. However, as the difference is relatively small, the effectiveness of DAU on poverty is not consistent with the decentralization theory. Unconditional grant must have a significant difference than conditional grant on poverty. It may indicate that the DAU has been spent ineffectively and inefficiently. It may also indicate that it has been spent on not pro-poor policies. Thus, fiscal decentralization in Indonesia needs to be reevaluated in order to support poverty alleviation program."

"ABSTRAKTujuan dari penelitian adalah untuk menganalisis faktor-faktor yang menyebabkan perubahan nilai Indeks Desa Membangun (IDM) dan Status Desa, serta bagaimana pengaruh Dana Transfer yang berupa Dana Desa (DD), Alokasi Dana Desa (ADD) dan Bagi Hasil Pajak dan Retribusi (BHPR) terhadap pembangunan desa di Kabupaten Blora selama periode tahun 2015-2018. Pembangunan desa dalam penelitian ini diukur melalui nilai Indeks Desa Membangun (IDM) dan Status Desa yang ditetapkan oleh Kementerian Desa, Pembagunan Daerah Tertinggal, dan Transmigrasi (DPDTT). Dari sisi nilai IDM, dengan menggunakan metode statistik deskriptif hasil penelitian ini menunjukkan bahwa nilai Indeks Ketahanan Sosial (IKS) merupakan faktor yang paling berpengaruh terhadap nilai IDM di Kabupaten Blora pada tahun 2015-2018. Dari sisi Status Desa, dengan menggunakan metode regresi Ordered Logit, penelitian ini menunjukkan bahwa nilai Indeks Ketahanan Lingkungan (IKL) merupakan faktor yang paling berpengaruh terhadap perubahan Status Desa di Kabupaten Blora pada tahun 2015-2018. Dengan menggunakan metode regresi Ordinary Least Square (OLS), Dana Transfer signifikan secara positif mempengaruhi nilai IDM, dan dengan menggunakan metode regresi Ordered Logit, Dana Transfer tidak signifikan dalam mempengaruhi Status Desa di Kabupaten Blora pada tahun 2015-2018

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ABSTRACTThis study aim to analyze the factors that led to changes in the value of the Village Development Index (IDM) and Village Status, also how Intergovernmental transfer funds consisting of Village Funds (DD), Village Fund Allocation (ADD) and Tax and Retribution Revenue Sharing ( BHPR) affected the village development in the Blora District during 2015-2018. Village development in this study measured by the Village Development Index (IDM) and Village Status established by the Ministry of Village, Underdeveloped Area Development and Transmigration (DPDTT). In terms of IDM value, using descriptive statistical methods the results of this study indicate that the value of the Social Resilience Index (IKS) is the factor that most influences the value of IDM in the Blora District during 2015-2018. In terms of Village Status, using the Ordered Logit regression method, this study shows the Environmental Resilience index (IKL) value is the most related factor to changes in the Village Status in Blora Regency during 2015-2018. By using the Ordinary Least Square (OLS) regression method, Funds Transfer significantly influences the IDM value, but by using the Ordered Logit regression method, Funds Transfer did not impact the Village Status significantly in the Blora District during 2015-2018.

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"ABSTRACT This study explores the flypaper effect in Indonesia using a spatial approach. Covering data from 2000-2014, the paper shows that grants stimulate overspending by local governments even though spatial interdependence is carefully treated. The elasticity of lump sum grants to expenditure is stronger than the elasticity of matching grants. Further, the elasticity of lump sum grant is greater on routine expenditure, which shows the over-dependency of local governments to lump-sum grant. The over-dependency phenomenon has not changed a lot even after a major change of lump-sum grant formulation being applied by the 2004 decentralization law package."

"Pada tahun 2015, pemerintah Indonesia meluncurkan program Dana Desa dan memberikan skema ‘1-Desa-1-Miliar’ untuk setiap desa di Indonesia. Sebagai salah satu transfer antar pemerintah terbesar di dunia, Dana Desa bertujuan untuk mempercepat pembangunan pedesaan, mengurangi kemiskinan, dan mengatasi ketimpangan regional. Tujuan dari penelitian ini adalah untuk mengidentifikasi dampak Dana Desa terhadap kesejahteraan pedesaan dan ketimpangan wilayah di Indonesia. Studi ini menggunakan data cahaya malam sebagai proksi kesejahteraan pedesaan dan selanjutnya digunakan untuk mengukur ketimpangan regional. Dengan menggunakan Difference in Difference (DiD) kami menemukan dampak positif dana desa terhadap pertumbuhan ekonomi di desa dalam jangka pendek. Dengan menggunakan Regression Discontinuity Design in Time (RDiT), kami menemukan dampak positif transfer Dana Desa terhadap pertumbuhan ekonomi di  desa dalam jangka menengah. Pengaruh dana desa yang paling besar terungkap di desa tertinggal, di mana desa tertinggal tumbuh lebih cepat daripada desa maju. Hal ini menunjukkan indikasi awal konvergensi di level desa yang memerlukan penelitian lebih lanjut.

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In 2015, the government of Indonesia launched the Village Fund (VF) program and provided the ‘1-Village-1-Billion’ scheme for each village in Indonesia. As one of the largest intergovernmental transfers in the world, the VF aims to accelerate rural development, reduce poverty, and overcome regional inequality. This study aims to identify the impact of the VF on rural welfare in Indonesia. Due to the lack of rural welfare data, we use the monthly night-time light dataset as a proxy for rural welfare in around 75.000 villages from 2014 to 2019. By using Difference in Difference (DiD), we found the short-run positive impact of village funds on rural economic growth. Using Regression Discontinuity Design in Time (RDiT), we found a positive impact of village fund transfer on rural economic growth in the medium run. The most considerable influence of village funds reveals in underdeveloped villages,  where poor villages grow faster than developed villages. This unexpected finding could be an initial convergence at the village level that requires further investigation."

"Penelitian ini bertujuan untuk mengidentifikasi keberadaan fenomena flypaper effect pada pemerintah daerah di Indonesia serta mengevaluasi respons pemerintah daerah terhadap pengurangan transfer dari pemerintah pusat. Pengaruh transfer ke daerah terhadap belanja daerah dianalisis berdasarkan klasifikasi Pemerintah Kabupaten, Kota, Daerah Tertinggal, dan Daerah Maju. Penelitian ini mencakup 415 kabupaten dan 93 kota selama periode 2015-2022 dengan menggunakan metode data panel Fixed Effect. Variabel dependen yang dianalisis meliputi belanja pegawai, belanja barang dan jasa, serta belanja modal. Sementara itu, variabel independennya meliputi DAU, DAK, DBH, PAD, dummy DAU, dummy DBH, dan kepadatan penduduk. Penelitian ini juga menggunakan metode clustering untuk mengelompokkan daerah berdasarkan klasifikasi kabupaten, kota, daerah tertinggal, dan daerah maju. Hasil penelitian menunjukkan bahwa fenomena flypaper effect terjadi pada belanja pegawai dan belanja modal di seluruh pemerintah daerah, baik kabupaten, kota, daerah tertinggal, maupun daerah maju. Namun, fenomena tersebut tidak ditemukan pada belanja barang dan jasa. Selain itu, belanja modal terbukti menjadi jenis belanja yang paling dipengaruhi oleh transfer ke daerah, khususnya dari DAK. Temuan lainnya mengungkap bahwa pemerintah daerah cenderung lebih mengandalkan DAU untuk belanja pegawai, sedangkan belanja barang dan jasa lebih bergantung pada PAD. Untuk belanja modal, DAK menjadi sumber pendapatan yang paling dominan. Respons pemerintah daerah terhadap transfer ke daerah bersifat simetris maupun asimetris, bergantung pada jenis belanja dan karakteristik daerah. Dalam konteks respons asimetris, pemerintah daerah cenderung menerapkan fiscal replacement untuk belanja barang dan jasa serta fiscal restraint pada belanja modal.

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This study aims to identify the existence of the flypaper effect phenomenon in local governments in Indonesia and evaluate local governments' response to the reduction of transfers from the central government. The effect of intergovernmental transfers on local expenditure is analyzed based on the classification of Regency, City, Underdeveloped Region, and Developed Region. Using the Fixed Effect panel data method, this study covers 415 districts and 93 cities from 2015-2022. The dependent variables analyzed include personnel, goods and services, and capital expenditures. Meanwhile, the independent variables include DAU, DAK, DBH, PAD, DAU dummy, DBH dummy, and population density. This study also uses the clustering method to group regions based on the classification of districts, cities, underdeveloped regions, and developed regions. The results show that the flypaper effect occurs in personnel expenditure and capital expenditure in all local governments, whether districts, cities, underdeveloped regions, or developed regions. However, the phenomenon was not found in goods and services expenditures. In addition, capital expenditure proved to be the type of expenditure most influenced by transfers to the regions, particularly from the DAK. Other findings reveal that local governments tend to rely more on DAU for personnel expenditure, while goods and services expenditure is more dependent on PAD. For capital expenditure, DAK is the most dominant source of revenue. Local government responses to transfers to regions are symmetric or asymmetric, depending on the type of expenditure and regional characteristics. In the context of asymmetric responses, local governments tend to apply fiscal replacement for goods and services expenditures and fiscal restraint on capital expenditures. "

"ABSTRAKDalam pelaksanaan desentralisasi fiskal di Indonesia terdapat fenomena kurang/lebih bayar dana bagi hasil sumber daya alam mineral dan batubara yang menimbulkan utang dan piutang antara Pemerintah Pusat dan Pemerintah Daerah. Penelitian ini bertujuan untuk menjawab bagaimana fenomena tersebut bisa terjadi serta dampaknya. Penelitian studi kasus dilakukan dengan pendekatan kualitatif terhadap data keuangan, peraturan, dan wawancara dengan responden terkait. Hasil penelitian menunjukkan bahwa fenomena tersebut secara umum disebabkan oleh kebijakan dan perencanaan yang kurang memadai. Penelitian ini diharapkan dapat memberikan gambaran penyebab, kondisi dan dampak fenomena tersebut sehingga dapat mengurangi potensi kurang/lebih bayar dana bagi hasil, serta peningkatan transparansi antar pemerintah.

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ABSTRACTIn implementing fiscal decentralization in Indonesia there is a phenomenon of less/over payment revenue sharing funds from mineral and coal resources that create debt and receivables between the Central Government and the Regional Government. This study aims to answer how this phenomenon can occur and its effects. Case study research is conducted with a qualitative approach towards financial data, regulations, and interviews with related respondents. The results of the study indicate that this phenomenon is generally caused by inadequate policies and planning. This study is expected to provide an overview of the causes, conditions and impacts of this phenomenon so that it can reduce the potential for less/over payment revenue sharing funds, as well as increase transparency among governments."