Determinant Analysis of Fiscal Decentralization in Indonesia

Abstract

The Indonesian government implemented a fiscal decentralization policy in order to encourage regional autonomy policies and realize regional development. Regional Original Revenue (PAD) is a form of fiscal decentralization policy. This research aims to determine the factors that influence regional original income in provinces throughtout Indonesia. This is quantitative research with secondary data, and the data source comes from BPS reports for the 2021-2022 period. Data analysis used panel data regression with the help of the Eviews 9 program. The results showed that the level of unemployment rate, human development index, and investment had a negative and significant influence on regional original revenue, while the number of poor people had a negative but not significant influence.