Bevaola Kusumasari, Ph.D., a lecturer from the Department of Management and Public Policy (DMKP), Faculty of Social and Political Sciences (FISIPOL) UGM, has once again demonstrated her contribution to the international academic arena. She recently published a scholarly article entitled “Local Government Financial Performance and Decentralization in Indonesia.”
This publication examines the financial performance of local governments in the context of decentralization in Indonesia. Drawing on data analysis from 66 cities and in-depth interviews in 4 cities, the study highlights how financial performance measures—such as degrees of decentralization, independence, direct spending, and local revenue growth—are used to evaluate local financial governance.
The findings reveal strong correlations between local revenue growth and decentralization, as well as between direct spending and local government independence. However, the study also finds that no early warning system has been developed by provincial, regional, or central government authorities to help local officials anticipate financial problems. The COVID-19 pandemic further had a significant impact, particularly on local government revenues across various cities.
This research makes an important contribution to enriching the understanding of fiscal decentralization dynamics in Indonesia while highlighting the challenges of building more transparent, accountable, and sustainable local financial governance. The study is also closely linked to the pursuit of the Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities), SDG 11 (Sustainable Cities and Communities), and SDG 16 (Peace, Justice, and Strong Institutions).
This publication reaffirms the commitment of FISIPOL UGM academics to producing research that is relevant for advancing local governance and sustainable development in Indonesia.
🔗 Publication link: SAGE Journals