Proceedings of the 4th International Conference on Rural Socio-Economic Transformation, RUSET 2023, 1 November 2023, Bogor, Indonesia

Research Article

Agricultural Fiscal Decentralization: The Role of Local Governments in the Development of the Agricultural Sector

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  • @INPROCEEDINGS{10.4108/eai.1-11-2023.2344336,
        author={Muhammad  Fazri and Yulia Setia Lestari and Nur Hadiati Endah and Nailatalmuna Nitrasatri Atmaja and A. Risdawati Alwi Paluseri and Syarah Siti Supriyanti},
        title={Agricultural Fiscal Decentralization: The Role of Local Governments in the Development of the Agricultural Sector},
        proceedings={Proceedings of the 4th International Conference on Rural Socio-Economic Transformation, RUSET 2023, 1 November 2023, Bogor, Indonesia},
        publisher={EAI},
        proceedings_a={RUSET},
        year={2024},
        month={5},
        keywords={agricultural development fiscal decentralization local government},
        doi={10.4108/eai.1-11-2023.2344336}
    }
    
  • Muhammad Fazri
    Yulia Setia Lestari
    Nur Hadiati Endah
    Nailatalmuna Nitrasatri Atmaja
    A. Risdawati Alwi Paluseri
    Syarah Siti Supriyanti
    Year: 2024
    Agricultural Fiscal Decentralization: The Role of Local Governments in the Development of the Agricultural Sector
    RUSET
    EAI
    DOI: 10.4108/eai.1-11-2023.2344336
Muhammad Fazri1,*, Yulia Setia Lestari1, Nur Hadiati Endah1, Nailatalmuna Nitrasatri Atmaja1, A. Risdawati Alwi Paluseri1, Syarah Siti Supriyanti1
  • 1: National Research and Innovation Agency (BRIN), Indonesia
*Contact email: muhammad.fazri@brin.go.id

Abstract

The agricultural sector is one of main sector in Indonesia. But the proportion of agriculture continues to decline from year to year. Many studies have been done to see why this phenomenon occurs, but very few analysts have analyzed whether the role of local governments is in line with that of the central government in the development of the agricultural sector. Therefore, this study will try to see the extent of the role of local governments and its effect on the contribution of the agricultural sector to the Provincial GRDP and make a model in the role of local governments in supporting of the agricultural sector. This study uses quantitative and qualitative approaches. The data used were secondary data and primary data through Focus Group Discussions with relevant stakeholders. The results found that there is still low local government support for the agricultural sector and there is a relationship between the local government budget and the contribution of the agricultural sector. The form of local government support (fiscal decentralization) can be through 3 channels, namely through Assistance for farmer, Requesting Regional Financial Institutions and Making regulations.