Abstract
This research is intended to examine the influence of fiscal decentralization on corruption case in Indonesia. Research population are regencies/municipalities throughout the province in Indonesia, employing secondary data from Dirjen Perimbangan Keuangan Pemerintah Daerah and Transparency International Indonesia (TI- Indonesia) within the period of 2004, 2006, 2008, and 2010. Data analysis is conducted by using path analysis with AMOS program software. The results of this study indicate that, fiscal decentralization has a negative and significant effect on Corruption Perception Index (CPI). The higher the fiscal decentralization, the more higher the corruption is in Indonesia. Keywords: fiscal decentralization, corruption
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