Munich Personal RePEc Archive

A Study on Indonesia Regions Disparity: Post Decentralization

Aritenang, Adiwan F. (2008): A Study on Indonesia Regions Disparity: Post Decentralization.

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Since its independence, Indonesia has developed fluctuated and uneven. The financial crisis and political changes has lead to decentralization in 1999, which has entitled local governments (province and regency/municipality) to develop its region autonomously. Surprisingly, it was concern that the decentralization will increase the disparities, rather than decrease it. This research uses Indonesia disparities in the province level. Using regression analysis we will overview Indonesian provinces disparities and poverty rate to overview the economic growth after decentralization. Overall, this research aims to shows the economic performance of Indonesia regions and highlight determinant factors that impacts poverty rate. This research lays in the Poverty reduction theory and ideology within a context of globalization sub-theme because it studies on the approach that Indonesia government took to solve disparities and encourages poor regions to advance its development.

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