Regional Development and Finances: Challenges for Expanding and Financing Public Services

 “Recent democratization and decentralization, which were hoped to promote local development, in some cases, had the opposite effect. Some regulations that try to clarify the division of responsibilities between central and regional governments on investment policy and its implementation, in fact, to some extent result in overlapping and conflicting regulations and procedures issued by both the central and regional governments. Many factors contribute to lower provision of public services in the region, nevertheless, limited financial “resources are always blamed as the main factor. Various alternatives of financial schemes other than regional government expenditures have been developed to foster regional development such as private sector initiatives, public-private partnership, and municipal bond. However, regional development still highly relies on the central government support. Ironically, inadequate resources are worsened by poor financial management and corruption.
This IRSA Book Series present some articles addressing the above-mentioned issues. It is expected by substance to be a meaningful input and contribution to Indonesia’s regional development. This book will also provide regional development stakeholders with insights drawn from academic basis. As IRSA members are mostly from university-related background  ideas and recommendations covered in this book are the result of researches and through analysis.”
Armida S. Alisjahbana
President of Indonesian Regional Science Association (IRSA) and Minister of National Development Planning

Table of Contents

Hefrizal Handra, Budy P. Resosudarmo, Arief A. Yusuf, Elfindri and Efa Yonnedi

Part I – Regional Development in the Era of Decentralization

  • Chapter 1 – Current Social and Economic Issues of Regional Development in Indonesia
  • Chapter 2 – Creating Knowledge Regions: Indonesia’s Challenge and Future
    Galuh Syahbana Indraprahasta
  • Chapter 3 – Analysis of Regional Growth and Volatility Using a Spatial Econometric Approach: A Case of Indonesia
    Agus Salim and Yulismi

Part II – Disparities and Poverty Issues of Regional Development

  • Chapter 4 – Impact Analysis on Infrastructure Development Program to Reduce Poverty in Indonesia’s Underdeveloped Region
    Perwita Sari, Nunung Nuryartono and Lukytawati Anggraeni
  • Chapter 5 – A Study on Income Disparity in Indonesia Using CGE Model
    Hiroshi Sakamoto
  • Chapter 6 – Urban Inequality in Indonesia
    Akita Takahiro and Alit Pirmansah

Part III – Financing the Regional Development: Challenges for Improvement and Expansion of Services

  • Chapter 7 – An Evaluation on Institution of Public Private Partnership (PPP) in Indonesia
    Arief Ramayandi and Arief Bustaman
  • Chapter 8 – The Impact of Semarang Airport Expansion on the Regional Economy of Central Java
    D.S. Priyarsono
  • Chapter 9 – Forward Estimates for Intergovernmental Transfers in Indonesia: Is It Possible?
    Hefrizal Handra
  • Chapter 10 – Specific Grant in Indonesia: Is It Really Specific?
    Kodrat Wibowo, Astia Dendi and Zulhanif

Part IV – Environmental, Human Resources and Governance Issues in Regional Development

  • Chapter 11 – Peat Swamp Forest Management Scenarios Based on Total Economic Value
    Syafrul Yunardy and Nur Arifatul Ulya
  • Chapter 12 – Wage and Labor Union in Manufacturing Sectors
    Pipit Pitriyan and Adiatma Siregar
  • Chapter 13 – IT Value Creating in Indonesian Local Government: A Service Model
    Herry Irawan, Suhardi and Alfira Sofia
  • Chapter 14 – Improving Local Government Financial Reporting
    Fauzan Misra


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