ANALISIS DERAJAT DESENTRALISASI FISKAL DAN DERAJAT KEMANDIRIAN TERHADAP INFLASI REGIONAL DI 29 KABUPATEN JAWA TENGAH TAHUN 2011-2016

Abstract

The implementation of regional autonomy was realized in the form of fiscal decentralization. Fiscal decentralization in this study is seen from the ratio of fiscal revenue side (DDF) and expenditure side (DK). The implementation of fiscal decentralization in the district of Central Java shows differences in fiscal ratios from the revenue side (DDF) and from the expenditure side (DK). This study aims to see how the ratio of fiscal revenue side (DDF) and expenditure side (DK), investment, the number of employed workforce and the district minimum wage affect the regional inflation. The data used are annual data from 2011-2016 in 29 districts in Central Java. Data analysis was done by the fixed effect method. The data in this study sourced from the Central Bureau of Statistics. The result of this study show that the ratio of fiscal decentralization on the expenditure side (DK) had a positive and significant effect to regional inflation. Furthermore, another positive effect was found from another variables such as the number of employed workforce. While the other variable such as the district minimum wage show negatively effect to regional inflation.