Materi Ke 2 Desentralisasi Fiskal Prodi Ilmu Administrasi Negara FISIP

Summary

This video discusses the relationship between central and local governments in Indonesia, specifically focusing on fiscal decentralization. It explains key concepts like centralization and decentralization in governance, the legal framework governing financial relationships, and different models of financial distribution between central and regional governments. The video also addresses challenges in optimizing fiscal transfers and local tax revenues, and highlights ongoing efforts to improve fiscal capacity at the local level. The aim is to ensure equitable and transparent financial relations that benefit public service delivery and societal welfare.

Takeaways

• 😀 Centralization involves the concentration of government powers at the national level, while decentralization gives more authority to local governments.
• 😀 Both centralization and decentralization are common concepts in governance, but no country operates purely on one or the other. They exist as a continuum.
• 😀 According to the 1945 Constitution of Indonesia, the relationship between the central government and local governments is based on mutual cooperation and clear legal frameworks.
• 😀 The financial relationship between the central and local governments includes the equitable distribution of revenue, public services, natural resource management, and fiscal responsibilities.
• 😀 The 2022 Law outlines that financial relations between the central and local governments must be fair, democratic, transparent, and accountable.
• 😀 There are three models of financial relations between the central and local governments: 'by percentage,' 'by origin,' and 'by formula,' which involve varying methods of revenue distribution.
• 😀 The 'by percentage' model involves distributing revenues like taxes or royalties based on a set percentage allocated to local governments.
• 😀 The 'by origin' model distributes revenues based on where the income is generated, such as resources extracted from a specific region.
• 😀 The 'by formula' model uses specific formulas, considering factors like population, regional size, and economic data to determine revenue allocation.
• 😀 The current challenges include optimizing transfers to local governments, addressing issues with public spending quality, and improving local tax ratios.
• 😀 There is ongoing work to amend financial laws to enhance the fiscal capacity of local governments, aiming for better alignment with national fiscal policies and a more equitable system.

Q & A

What is the primary focus of the video?

The primary focus of the video is on fiscal decentralization and the relationship between central and regional governments in Indonesia.

What are the two key governance systems explained in the video?

The two key governance systems explained are centralization and decentralization. Centralization involves the concentration of power at the central government, while decentralization gives more authority to local governments.

How does the video define centralization and decentralization?

Centralization is defined as the unification of all governance functions into a central authority, whereas decentralization refers to the distribution of governance powers to regional governments.

What constitutional article regulates the financial relationship between the central and regional governments in Indonesia?

The financial relationship between the central and regional governments is regulated under Article 18, Clause 2 of the 1945 Constitution of Indonesia.

What does the 2014 Law on Regional Government state about financial relations?

The 2014 Law on Regional Government outlines that financial relations between the central and regional governments must be fair, proportional, democratic, transparent, and responsible.

What are the main areas of financial relations between the central and regional governments according to the video?

The main areas of financial relations include revenue sharing (taxes and levies), management of local government assets, expenditure management, local financing, and alignment with national fiscal policies.

What are the three models of financial relations between central and regional governments described in the video?

The three models are the percentage model, where revenue is distributed based on a set percentage; the origin model, where distribution is based on the origin of the revenue; and the formula-based model, which uses a specific formula considering factors like population, GDP, and infrastructure needs.

What is the challenge mentioned regarding local governments' financial management?

The challenge includes the underutilization of transfer funds to regions, inefficiencies in local tax collection, and a lack of synchronization between central and regional fiscal policies.

What steps are being taken to improve fiscal relations between the central and regional governments?

Efforts include amendments to the Regional Government Law, aiming to increase the fiscal capacity of local governments and enhance the harmonization of national and regional fiscal policies.

Why is improving fiscal decentralization important for regional governments?

Improving fiscal decentralization is crucial for regional governments to better manage resources, improve public services, and achieve more equitable development across different regions of Indonesia.