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Jurnal Ekonomi & Bisnis Indonesia


decentralization, primary education, panel data.


Deniey Adi Purwanto




    outcomes nowadays not only measured by the successful of economic growth but
    more comprehensively by the achievement of human development. Obviously
    education has been place a one substantial factor not only as a basic human
    right but also in international development. Meanwhile after more than 8 years
    of decentralization in Indonesia,
    many concerns arise regarding the decentralization impacts. One of the
    considerable questions is on how far the fiscal decentralization has enhanced
    education development achievement. Therefore, a set of fiscal decentralization
    variables used in this paper to analyze their roles on primary education
    outcomes. Enrollment rate used as dependent variables to represent the primary
    education outcomes. Regional characteristics were also utilized to improve the
    robustness of the result.


    panel data set of 434 sub provincial regions (districts and cities) in
    Indonesia, the estimation result show that fiscal decentralization instrument
    played a significant role on primary education outcomes. Furthermore, DAK seems
    to have a greater impact on primary education outcomes than DAU. Additionally
    the estimation result also shows that there is still a significant disparity
    among sub provincial region in primary education achievement. The results
    suggest that fiscal decentralization instrument rearrangement substantially
    needed next to the education development equalization in all sub provincial
    region. This way, decentralization will foster more favorable outcomes in
    education development outcomes hopefully.



    Vol 25, Nomor 01, Tahun 2010


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