Analysis of the Impact of Fiscal Decentralization Policies on Indonesia's Economic Growth During the Covid-19 Pandemic
Abstract
The Covid-19 pandemic has put pressure on the global economy and Indonesia. The impact of Covid-19 is the largest since the 2008 Global Financial Crisis. This study aims to describe the fiscal policies pursued by the Indonesian government in response to the crisis during the pandemic, as well as to examine the influence of balancing funds and capital expenditures on local own-source revenues and their impact on the economic growth rate in 34 provinces in Indonesia. The results of this study showed Indonesian government's success in implementing a flexible fiscal policy with various fiscal stimulus has had a positive impact on the handling of the Covid-19 pandemic in Indonesia both from a health and economic perspective. Based on the results of the path analysis, the balancing funds and local own-source revenue variables have a significant influence on the economic growth rate, while the capital expenditure variable does not have a significant influence on the economic growth rate.
Full Text:
PDFReferences
Adiyanta, F.C. Susila. 2020. Fleksibilitas Pajak sebagai Instrumen Kebijaksanaan Fiskal untuk Mengantisipasi Krisis Ekonomi sebagai Akibat Dampak Pandemi Covid-19. Administrative Law and Governance Journal. 2(1): 162-181.
Antonio, B. (2016). The Impact of Fiscal Decentralization on Growth, Inflation, and Inequality in The Americas. Tulane Economics Working Paper Series.
Badan Kebijakan Fiskal. 2020. Tinjauan Ekonomi, Keuangan, dan Fiskal Bertahan di Tengah Potensi Resesi Ekonomi Global Edisi I 2020. Kementerian Keuangan Republik Indonesia, Jakarta. 74 hal.
Badan Kebijakan Fiskal. 2020. Tinjauan Ekonomi, Keuangan, dan Fiskal Menjaga Ekonomi Nasional di Tengah Pandemi Covid-19 Edisi II 2020. Kementerian Keuangan Republik Indonesia, Jakarta. 85 hal.
Badan Kebijakan Fiskal. 2020. Tinjauan Ekonomi, Keuangan, dan Fiskal Mengurangi Dampak Pandemi Covid-19 dan Mendorong Pertumbuhan Ekonomi yang Positif Edisi III 2020. Kementerian Keuangan Republik Indonesia, Jakarta. 92 hal.
Badan Kebijakan Fiskal. 2020. Tinjauan Ekonomi, Keuangan, dan Fiskal Kebijakan Fiskal Mempercepat Momentum Pemulihan Ekonomi Edisi IV 2020. Kementerian Keuangan Republik Indonesia, Jakarta. 89 hal.
Badan Kebijakan Fiskal. 2020. Tinjauan Ekonomi, Keuangan, dan Fiskal Edisi I 2020. Kementerian Keuangan Republik Indonesia, Jakarta. 74 hal.
Badan Kebijakan Fiskal. 2021. Tinjauan Ekonomi, Keuangan, dan Fiskal Menjaga Optimisme Pemulihan Ekonomi Edisi I 2021. Kementerian Keuangan Republik Indonesia, Jakarta. 99 hal.
Badan Kebijakan Fiskal. 2021. Tinjauan Ekonomi, Keuangan, dan Fiskal Mendorong Pemulihan Ekonomi dan Memperkuat Reformasi Struktural Edisi II 2021. Kementerian Keuangan Republik Indonesia, Jakarta. 84 hal.
Bird, M. R., & Vaillancourt, F. (1998). Fiscal Decentralization in Developing Countries. Cambridge University Press.
Dewi, N. W. R., & Suputra, I. D. G. D. (2017). Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum, Dana Alokasi Khusus, dan Belanja Modal Terhadap Pertumbuhan Ekonomi. E-Jurnal Akuntansi Universitas Udayana, 18(3), 1745–1773. https://doi.org/10.24176/agj.v1i1.3321
Direktorat Analisis dan Pengembangan Statistik. 2021. Kajian Big Data Sinyal Pemulihan Indonesia dari Pandemi Covid-19. Badan Pusat Statistik Republik Indonesia, Jakarta. 108 hal.
Fadli, F. (2014). Analysis of Direct and Indirect Effect of Fiscal Decentralization and Regional Disparity (Case Study Provinces in East and West Indonesia Year 2006-2012). Journal of Economics and Sustainable Development, 5(18), 45–55.
Ginting, A. M., Hamzah, M. Z., & Sofilda, E. (2019). The impact of fiscal decentralization on economic growth in Indonesia. Economic Journal of Emerging Markets, 11(2), 152–160. https://doi.org/10.20885/ejem.vol11.iss2.art3
Göcen, S., Alp, B., & Nülifer, G. (2017). Fiscal Decentralization and Economic Growth : Theory and Application. Mpra Paper, 84523.
Jamil. H. (2017). Implikasi Kebijakan Fiskal Era Orde Baru dan Era Reformasi dalam Mewujudkan Pertumbuhan Inklusif di Indonesia. Jurnal Ilmiah Mahasiswa FEB 5 (2)
Nasrudin, R. (2014). Kebijakan Fiskal APBN 2014 dalam Kaitannya dengan RPJMN 2014-2019 (Seminar Internal Tim EKP).
Nazara, S. (2021). Perkembangan Perekonomian Terkini & Pemulihan Ekonomi Nasional (Sesi Super Mentor Session #2).
Siregar, L. H. M. (2019). Analisis Pengaruh Kebijakan Fiskal dan Moneter Terhadap Indikator Stabilitas Ekonomi Indonesia Tahun 2000-2017 dengan Menggunakan Error Correction Mechanism (ECM). Politeknik Statistika STIS.
DOI: https://doi.org/10.32535/jicp.v6i1.2310
Refbacks
- There are currently no refbacks.
Copyright (c) 2023 Muhammad Eko Purnomo, Agus Suman, Susilo Susilo

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Published by:
AIBPM Publisher
Editorial Office:
JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:+62 341 366222
Email: journal.jicp@gmail.com
Website:http://ejournal.aibpmjournals.com/index.php/JICP
Supported by: Association of International Business & Professional Management
If you are interested to get the journal subscription you can contact us at admin@aibpm.org.
ISSN 2622-0989 (Print)
ISSN 2621-993X (Online)
DOI:Prefix 10.32535 by CrossREF
Journal of International Conference Proceedings (JICP) INDEXED:
In Process
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.