Studi Bantuan Keuangan Antar Pemerintahan Di Indonesia (Study On Intergovernmental Transfer In Indonesia)

Suyanto, Suyanto (2018) Studi Bantuan Keuangan Antar Pemerintahan Di Indonesia (Study On Intergovernmental Transfer In Indonesia). Fakultas Ekonomi Dan Bisnis Universitas Dr. Soetomo.

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Abstract

This essay is aimed to theoretically examine intergovermental transfer from central government to local government, especially to municipality (Kabupaten) and City (Kotamadya). This essay focuses on government considerations of transfer, types of transfer, modes for determining transfer, and criteria to determine effective transfer. The essay finds that a country chooses a type of transfer based on its typical purposes. Indonesia only recognizes two types of transfer; specific grants and block grants. The basis for determining fund through intergovermental fiscal transfer can be in form of; 1) based on fixed percantage from income originating from central government; 2)following an ad hoc basis, that is the usual types for the rest of budget expenses; and 3) based on formula mechanism, that is to be based an expenses of certain local goverment which was funded by central goverment or those relate to some general features of receiving local goverment. This third variant is found widely around the world. Indonesia uses percentage method as well as formula method. The are some requirements for effective transfer system. The first demands that local goverment must sufficiently fund its own expenses for public services using its own financial resources. The second sytem uses the formula which discourages the occurrence of fiancial deficit. The third states that the formula of fiancial transfer should be equal with the need of local fiscal and it should be in reverse comparison with the capacity of local fiscal. The fourth stresses the transparency and stability.

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