Abstract

This study was conducted to inquire some relevant information concerning the readiness of the sub national governments (SNGs) in supporting the implementation of SJSN (National Social Security System—National Social Security System) in the 2014. Concern on the SNGs capacity to support SJSN mostly stems from the reported SNGs' poor performance in managing their financial resources which in turn are envisaged to create adverse effects on local social indicators (such as: poverty rate, literacy rate, school enrollment ratio, etc.).

This study aims to provide quantitative and qualitative evidence concerning the relationship between: (i) SNGs' fiscal capacity and social indicators performance; (ii) the capacity to execute the budget and the social performance indicators; and (iii) the ability to execute budget with the type of revenue obtained by the SNGs. For that, descriptive, correlation and econometric analyzes were conducted using all SNGs data on budget and social indicators during the period of 2007-2010, as well as household data of SUSENAS (National Socio Economic Survey) 2005 and 2011. In addition, this study utilizes the household data to examine the impact of the national and SNG's social assistance programs on the access to the healthcare and educational facilities.

The qualitative analyzes were conducted based on the field survey conducted in the 11 selected SNGs (3 provinces and 8 districts in Java and Sulawesi), which attempts to analyze the regulation, administrative procedure, program feature and program sustainability related to social security programs in the decentralized context.

Keywords: social security, social service delivery, decentralization, Indonesia