ASTRACT
This article focuses on one aspect of fiscal decentralization, although the discussion will not necessarily touch on other aspects, because they are an inseparable part.
nGeneral problems that arise from the implementation of decentralization mainly involve the dilemma between macroeconomic stability and state integration. Other attention is given to the two main components of fiscal decentralization, namely: revenue assignments and intergovernmental transfers, with reference to the two laws regarding regional autonomy (UU No. 22 and 25 of 1999) and Law no. 34 of 2000 concerning regional taxes and regional levies.
Dilemmas in implementing decentralization occur especially in relation to basic public services, although their quality can still be implemented and improved, in practice it is quite difficult to fulfill. This is more because the implementation of decentralization of regional autonomy means an increase in the burden of regional government obligations. This transfer of obligations and functions is not easy and takes a long time to achieve. It will become even more complex if some regions are reluctant to accept the delegation of this task. Not to mention the problem of dividing financial resources, the collection of which can trigger disintegration.
The discussion is complemented by a description of the evaluation of regional revenue sources originating from local revenue (PAD), several ?new? in the era of autonomy, tax and natural resource sharing; Another description is regarding the General Allocation Fund (DAK) and Special Allocation Fund (DAK). The article ends with the topic of regional autonomy and the business world, which states that various problems which are opportunities and challenges must be faced so that they can be of benefit in the future, especially in the medium and long term.
Jakarta, August 25, 2003
Robert A. Simanjuntak
