.png)
The study examines how the province finances its development agenda under the Regional Medium-Term Development Plan (RPJMD) and concludes that weak local revenue capacity and non-strategic budgeting continue to limit development outcomes. According to the authors, improving fiscal independence is essential if Central Kalimantan wants to achieve inclusive and sustainable growth.
Dependence on Central Transfers Still Dominates
Although Central Kalimantan is rich in forestry, plantations, and mineral resources, its financial structure tells a different story. The research shows that around 78 percent of regional income comes from central government transfers, while locally generated revenue contributes less than 20 percent.
This imbalance creates long-term vulnerability. When regional budgets depend primarily on national transfers, local governments have limited flexibility to design programs that match regional priorities. It also weakens accountability, as funding is not directly linked to local economic performance.
The authors note that this condition reflects a broader national challenge in Indonesia’s decentralization system, where many resource-rich regions remain fiscally dependent despite their economic potential.
Why Fiscal Independence Matters
Fiscal independence is not merely a financial issue. It directly affects how effectively a region can deliver public services, reduce poverty, and stimulate local economic growth.
According to the study, limited fiscal autonomy leads to:
- Restricted innovation in development programs
- Overreliance on routine spending
- Weak incentives to optimize regional assets
- Low responsiveness to local community needs
The researchers emphasize that regions with stronger own-source revenue tend to design more targeted and sustainable development policies.
How the Study Was Conducted
The research uses a qualitative case-study approach focusing on Central Kalimantan Province. The authors analyzed:
- Regional budget (APBD) documents from 2019–2023
- The RPJMD 2021–2026
- Financial accountability and performance reports
- Statistical data from the Central Bureau of Statistics (BPS)
- Policy documents and academic literature
Rather than relying on complex models, the study examines patterns in revenue composition, budget allocation, and policy consistency to assess how fiscal decisions affect development outcomes.
Key Findings: Revenue Weakness and Budgeting Gaps
The study identifies two major structural problems.
This disconnect weakens the effectiveness of public spending, especially in priority areas such as poverty reduction, rural development, and economic empowerment.
Untapped Opportunities for Growth
The authors highlight several areas with strong potential to increase regional revenue and improve fiscal resilience:
- Green economy initiatives, including ecotourism and ecosystem services
- Improved management of regional assets, such as land and public facilities
- Digitalization of tax and service systems, which can increase efficiency and transparency
- Public–private partnerships for infrastructure and service delivery
If managed properly, these sectors could provide sustainable revenue while supporting environmental protection and long-term growth.
The Role of Evidence-Based Budgeting
One of the study’s key contributions is its emphasis on evidence-based budgeting. This approach requires government programs to be supported by data, research findings, and measurable performance indicators.
The authors argue that many current budget decisions are driven by administrative routines or political considerations rather than objective evaluation. As a result, spending often fails to address root problems or produce meaningful outcomes.
“Budget planning should be guided by evidence, not assumptions,” the authors note, stressing that data-driven decision-making improves efficiency and accountability.
Strategic Recommendations
The study proposes four integrated strategies to strengthen fiscal performance and development quality:
1. Expand and diversify local revenue sourcesDevelop green economy instruments, improve asset management, and modernize tax collection systems.
2. Strengthen institutional capacity
Improve the technical skills of local revenue and planning agencies.
3. Implement evidence-based budgeting
Require program proposals to include data analysis, performance targets, and evaluation mechanisms.
4. Increase transparency and public participation
Open access to budget information and involve communities in planning and monitoring processes.
According to the authors, these reforms must be implemented simultaneously. Increasing revenue without improving governance risks inefficiency, while better planning without adequate funding limits impact.
Implications for Regional Development
The findings carry important implications for policymakers, particularly in regions with abundant natural resources but low fiscal autonomy.
By strengthening local revenue systems and adopting data-driven budgeting, Central Kalimantan could:
- Improve public service delivery
- Reduce development inequality
- Enhance accountability and transparency
- Support sustainable economic growth
The study also recommends that the central government provide incentives for regions that successfully implement fiscal reforms and evidence-based planning.
.png&description=Central Kalimantan’s Fiscal Autonomy Remains Fragile, Study Urges Data-Driven Reform){kind=link}
0 Komentar