Analyzing the Influence of Decentralization on Governance Quality and Public Service Delivery in Indonesia
Keywords:
Decentralization, Local Governance, Public Service Delivery, Political Decentralization, Fiscal AutonomyAbstract
Decentralization has received broader support as a reform in governance to increase local government performance and better service delivery. This paper examines the effects of political, administrative and fiscal decentralization on local governance and public service provision in Indonesia. Data was collected through a cross-sectional quantitative survey method from 200 LG officials and 500 citizens in different municipalities and districts. The study used stratified random sampling in order to increase chances of getting both residents of the urban and the rural areas. This paper employed structured questionnaires and the official record review to collect data on governance efficiency, resource allocation, accountability for services, and citizens’ satisfaction levels of services in the education sector, health sector, and the infrastructure sector. The findings suggest that political decentralization has the highest positive correlation with governance quality in other domains, including transparency, accountability and citizens’ involvement. Administrative decentralization enhances service delivery efficiency most apparent in urban areas but fiscal decentralization has a moderate impact, reduced fiscal authority is an indication that decentralization should be encouraged to foster efficiency in resource allocation. However, issues of equitable distribution of governance quality and service outcomes across the country is a challenge with rural regions lagging behind the urban regions. This research fills the literature gap by examining and comparing the specific effects of the multiple types of decentralization on governance and service delivery in a developing country setting. The study points to the need for policy target based on the situation to enable decentralisation policy to deliver social equity in various regions.
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