Can Special Autonomy and Fiscal Decentralization Reduce Regional Inequality in Papua Province?
Abu Bakar- Anwar Sanusi- Harsono

Universitas Merdeka Malang

Abstract

The issue of regional inequality has gained significant prominence during the era of progress, driven by the goal of promoting equitable development and enhancing the well-being of all segments of society. As an integral part of Indonesia, Papua Province confronts intricate hurdles in addressing regional inequality. In response, the implementation of special autonomy status and fiscal decentralization as essential components of regional autonomy has been adopted. This study aims to scrutinize the impact of special autonomy and fiscal decentralization on regional inequality within Papua Province. Employing multiple linear regression analysis, the study models this relationship. The dataset used in the study spans the timeframe from 2011 to 2021 and has been sourced from reliable authorities, specifically the Central Bureau of Statistics for Papua Province and the Directorate General of Fiscal Balance under the Ministry of Finance of the Republic of Indonesia. The analytical results underscore that the grant of special autonomy status has exerted a noteworthy influence in diminishing regional inequality within Papua Province. Nevertheless, the unexpected finding is that fiscal decentralization has not substantially curtailed regional inequality within the region. These revelations provide a comprehensive comprehension of the roles played by fiscal decentralization and special autonomy in endeavors to alleviate regional inequality in Papua Province. The implications of these findings lay a pivotal groundwork for policymaking and developmental planning that foster inclusivity and sustainable progress within the Province of Papua.
Keywords: special autonomy, fiscal decentralization, regional inequality.

Keywords: special autonomy- fiscal decentralization- regional inequality.

Topic: Poverty Alleviation and Reducing Inequalities