IRSA-BKF Paper Award

IRSA-BKF Paper Award on Inter-Governmental Transfers and Local Taxation

Eligible Topics

Research paper topics that will be considered for this award should discuss various issues related to transfers from central to local governments, particularly Village Funds, and local taxation. Such topics could be, but are not limited to, the following:

  1. Government transfers as a strategy to reduce regional income inequality
  2. The role of government transfers and/or local taxation in improving regional standard minimum services across Indonesia
  3. The role of village funds in developing physical and social infrastructure to enhance development in rural and peripheral economies
  4. The effectiveness of transfers to regional policy and/or local taxation in supporting local autonomy
  5. The local government budget and its impact on local economic growth, human capital development, poverty alleviation and inequality
  6. Decentralization and sustainability.

The award

The selected papers will receive Rp. 2,000,000.- per paper and an opportunity for presentation at the IRSA-BKF special session on Inter-governmental Transfers and Local Taxations. In addition, the authors will be given the option to have their works published in the BKF-MOF accredited journal, Kajian Ekonomi dan Keuangan ( or in the IRSA Book Series on Regional Development.


In the local autonomy and fiscal decentralization era, local governments play a strategic role in providing basic public services, improving welfare, alleviating poverty, and reducing inequality among regions. Adequate funding is required to implement their authority. In order to support local government, the central government introduced three main funding instruments for fiscal decentralization, namely Own Source Revenues (PAD) including local taxes, Regional Transfers and Village Funds (TKDD), and local government loans.
TKDD is a major source of local government funding. It covers several types of funding intended for different purposes, such as the Revenue Sharing Fund (DBH) for reducing the vertical fiscal gap, the General Allocation Fund (DAU) for reducing the horizontal fiscal gap, the Specific Allocation Fund (DAK) for accelerating the achievement of national priorities, and Village Funds for stimulating infrastructure development and rural community empowerment. The funding allocation is still not effective in achieving development goals due to issues related to the alignment of the allocation with state budget capacity, funding overlaps between ministries, and suboptimal utilization of the inter-governmental transfer by local governments. Further, the effectiveness of Village Funds in reducing poverty and lowering village disparities in the three years since their implementation is still minor.
On the other hand, local governments themselves need to improve their own funding by enhancing local revenue (PAD), particularly from Local Taxes and Local Retributions (PDRD). PDRD is a reflection of the fiscal independence of a region. Regions with an optimal level of taxation can expand their local fiscal capacity and have more options to promote the region. PDRD should be strengthened to improve the accountability of local spending and increase public participation in financing public services. Nevertheless, improvement in the collection of PDRD should not hinder the regional investment climate.
The Central government is committed to continuously improving the quality of fiscal decentralization. In order to improve the quality of local expenditure, the TKDD should be strengthened by considering inputs from various aspects of local governments, society and academics. Moreover, the Central government continues to increase local taxing power. In order to gather information and feedback on fiscal decentralization policies, FEB UNS, IRSA, and BKF-MOF are collaborating to invite scholars to submit papers that empirically study sub-national transfers, local taxation, and local expenditure and their impact in stimulating the economy and lowering inequality across provinces and districts in Indonesia.

How to Apply?

All papers related to the topics mentioned above and submitted to be presented at the 14th IRSA International Conference by 23 June 2018 will be considered for the IRSA-BKF Paper Award. Between 4 to 8 papers will be selected. The papers should be presented at the Conference and all the terms and conditions of the IRSA Conference will apply to all applicants; i.e. paying registration fee etc.


Announcement : 15 February 2018
Deadline for the abstract : 1 April 2018
Deadline for the Full Paper : 23 June 2018
Notification of Winner : 6 July 2018


An extended paper abstract of about 250-500 words should be submitted online via by 1 April 2018. The abstract should consist of the background, data and methodology, potential contributors, and keywords. Both the abstract and full paper must be submitted in English. The full Paper must be submitted online via by 23 June 2018.

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IRSA-Local Government Innovation Research Support 2018

IRSA-Local Government Innovation Research Support on Local Government Innovation


Despite nearly two decades of decentralization, inter-regional development disparity is still high and persistent. Moreover, intra-regional disparity reflected in the inequality between different groups of the population has reached a level unprecedented in Indonesian history. A root cause is unequal access to improvements in the quality of human resources, especially those related to skills improvement, through education, and the quality of public health. These services are the responsibility of the state, and have been decentralized to local government. In order to optimally exercise this decentralized function to improve development outcomes, regions and localities need to be innovative in the way they serve people, produce or encourage innovation, and produce innovative development actors and leaders.
In many cities and provinces in Indonesia, we are beginning to see innovative approaches to development, but this is still the exception. The understanding of conditions under which such innovations occur is empirically limited. We need evidence of lessons learned so success in certain areas can be replicated.

Research Support

As an initiative to increase knowledge about how and why such innovation occurs, IRSA and Local Government Innovation are supporting research in this area. The support is in the form of small research grants of Rp. 25,000,000 for any good quality research that potentially can produce new knowledge of local government innovation in Indonesia.

Research topics

Specific research topics can be, but are not limited to, the following:

  • What environments could help to create innovation in the public service in the regions/localities?
  • What are the impacts of innovations in the area of public services delivery in the regions/localities on development outcomes?
  • Have democratization and decentralization produced innovative local/regional development actors, including political leaders, and if so, to what extent?
  • To what extent do political leaders or public figures play a role in the innovation of public services delivery in the regions/localities?
  • To what extent can bureaucracy be transformed to create innovation in public services delivery in the regions/localities?
  • Are there any examples of best practice in the regions/localities related to local government innovations that can be replicated in other areas?

Who can apply?

Indonesian researchers in any science discipline who are willing to present their research findings at the 14th IRSA conference in Surakarta in July 2018.


Announcement: 15 January 2018
Deadline of proposal submissions: 28 February 2018
Notification of the winner: 31 March 2018
Presentation of the findings: 23-24 July 2018
Final paper submissions: 31 August 2018


The proposal needs to be made via the following downloadable form and submitted via email to

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The Indonesian Regional Science Association (IRSA) in collaboration with Sebelas Maret University invite scholars, practitioners, and students to submit papers to be presented in the 14th IRSA International Conference. The theme of the conference is Strengthening Regional and Local Economy, and it will be held in Surakarta – also known as Solo, Central Java on 23-24 July 2018.
Potential topics to be discussed in the conference include, but not limited to:
  1. Local business (including MSMEs) development and competitiveness,
  2. Improving the effectiveness of regional growth centres,
  3. Local government innovation, governance and business climate,
  4. Green growth framework for local development,
  5. Regional standard minimum services across Indonesia,
  6. Local infrastructure, basic utilities and city management,
  7. The role of village funds in developing physical and social infrastructure to enhance rural and periphery economy,
  8. Local government budget and its impact on economy growth, human capital development, poverty alleviation and inequality,
  9. Income inequalities and regional disparities,
  10. Decentralization and sustainability,
  11. Trade and regional development,
  12. Macro and financial policies and local development.
Extended paper abstract of about 250-500 words should be submitted online via by 1 April 2018.
Abstract should consist of background, data and methodology, potential contributions, and keywords. Abstracts must be submitted in English, as also the full paper.
Paper sessions are seminar-style for each paper and ample time for discussion and for participants to provide constructive feedback to authors. Paper presentations will be in English.
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IRSA 2018

The Indonesian Regional Science Association (IRSA) in collaboration with Sebelas Maret University will conduct in the 14th IRSA International Conference. The theme of the conference is Strengthening Regional and Local Economies, and it will be held in Surakarta (also known as Solo), Central Java on 23-⁠24 July 2018. All are welcome to participate.
Visit: for more information

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