Why Some Districts Fail and Other Succeed?

I want to know why some districts fail and other succeed in decentralization era. The central government has cooperated with the local government to solve the problem. But, until now, we can see where some districts succeed to create good environment for enhancing economy, but other fail. This remains some questions not only from government, but also from academician. 

As an academician, I was promoted to seek what happen behind this problem. May there is something wrong when both the center and local government conduct policy, especially to enhance.economy. I think that academician has to know why the phenomenon was happened around us. So, my curiosity promotes us to look for this problem, and I will create some research to answer this question start now.

I will begin my analysis with describing Indonesia economy related to the amount of district. Indonesia has 477 districts (Kabupaten). They span from Aceh until Papua. The reason behind the huge amount of districts is there some people strive to make district. They want to make splitting district which walk alone. Surely, after they succeed to establish new district, they will be succumbed as a leader in that district. Before establishing district, they propose some argument which support splitting endeavor. One of argument beyond splitting effort is to create better public-service delivery to society. If gov’t closer to people, then the best available public service will be delivered. Also, that public service is suitable with people needs. 

But, I think that it is dubious argument. Why? The experience tells to us that there aren’t many the refinements of public service delivery after splitting conduct. Our glimpse in the gov’t budget will consent that argument. The budget for public official need is dominantly allocated in APBD. As we know, if the gov’t still new established, it needs more and more money to build office infrastructure, facility to public official leader, and to finance salary of public official. So, it is very strenuous for new gov’t to create good public-service delivery if it is still new established. Yet, also there is no assurance that it will conduct pro-public service budget due to its governance process next time. 

In other side, the center gov’t has devolved much fund to establish equality within district. It gives discretion to subnational gov’t to empower poor people, enhance economy, build local infrastructure, provide health and education services, etc. Those tasks or responsibilities are devolved together with fund. So, the local gov’t has fund to defray its task. The remarkable transfer fund from the center gov’t to local gov’t should be followed by good allocation. Now, the main problem isn’t related with the lack of fund, but is related to the minimum capacity to allocate fund. The variety of local gov’t capacity in allocating fund may be is the cause beyond districts disparity. But, it is still assumption. I think that this is interesting topic for academician to find the answer of the question. [] 

NB: I apologize if there are grammatical errors. I am studying english now.

Should Gov’t Eliminate Fuel Subsidy?

One of controversy policy in several weeks ago was related to whether gov’t subsidizes fuel or not. Before the decision is taking in April 1, I convince that gov’t will eliminate fuel subsidy or at least raises fuel price from IDR 4.500 to IDR 6.000. Surprisingly, house representative doesn’t consent the gov’t proposal. Ultimately, gov’t still has to provide subsidized fuel to society.

If we ask, who actually take benefit from this subsidy? The data talk that rich people more earn benefit than that poor people. However, as we know, subsidized fuel is only for poor people. For rich people, they should utilize non-subsidized fuel. Herewith, I want to emphasize that gov’t should eliminate or abolish subsidy for fuel, then using that budget to create anti-poverty programs. I realize that there are many obstructions to conduct this policy. But, the gov’t audacity is very determining to implement it.

The other reason why gov’t should detract fuel subsidy is related to fiscal load. Together with international fuel price hike, APBN has to be adjusted. The budget for fuel subsidy will increase. As we know, subsidy budget in APBN almost reach IDR 200 trillion. It is about 20 percent of APBN just allocated for subsidy. As described before, something that makes us sad is that rich people acquire more benefit than that poor people.  

I will also propose the reason why subsidy on fuel is unreliable. If you can buy something by using your money, surely you like cheaper good. Then, you consume those goods more and more. There are little obstructions to consume, because you have money and the price is cheap.  So, the cheap fuel price will enhance people to consume more and more. If consumption hike, it will be undermine our environment. There are much pollution scattered around us because many vehicles operated. As we know, we can’t forbid people to confine fuel consumption. However, we only provoke and resuscitate people in term of confining consumption on subsidized fuel. But there is no assurance that people want to follow it. It is delighted if rich people conscious for not consuming subsidized fuel. Contrary, it is outraged if rich people do reverse.

As a conclusion, gov’t should take policy which elicits benefit for whole folk. It means that the policy should execute based on sake of broader public. Necessity for subsidy will make APBN loaded.  Unsurprisingly, those subsidies are more utilized by rich people. The other reason, the environment will be safe if we detract fuel consumption. If subsidy is persisted, people will consume more and more. So, I think that subsidy for fuel should be minimized or abolished. Surely, we need time to do that policy, and doesn’t implement suddenly. []

Note: In the article above, I admit that there are many grammatical errors in which I still don’t understand well. So, I apologize for those wrong. It is important to know that I am still studying English, so this media just used to publish my work in my study process. Thank you for visiting my blog.