Abstract
In Papua province, fiscal decentralization policy had a positive impact on the potential development and regional government creativity. The effectiveness in managing regional wealth will affect to the regional revenue which can further determine the effect of fiscal decentralization and economic growth to improve on poverty. The method used is multiple linear regression analysis technique. The results showed simultaneous fiscal decentralization and economic growth has a significant effect on poverty. In partial result, the negative fiscal decentralization variable and significant fiscal decentralization on poverty means there is decreased percentage in the number of the poor people.
Highlights
Papua today is filled with paradox, on the one hand, it shows Papua has entered a new century marked by modern bureaucracy, the use of information technology, and economic activities of money which is part of the global economy
It can be seen from coefficient of X1 is - 0.072, which means that each increase in the percentage of fiscal decentralization by 1 percent, there will be a decrease in the percentage of poor people by 0,072 percent, assuming of ceteris paribus
Fiscal decentralization and economics growth are negative effects and significant to poverty, the number of fiscal decentralization fund and economics growth will be followed by poverty
Summary
The development failure in Indonesia is caused by misleading policy has an impact widening inequality of development among regions and among income groups. This situation will be constantly threatened and overshadow the process of development in Indonesia, it is vulnerable to make repeated shocks and it will cause the economic crisis, social and political that afflict most of the Indonesian nation. Papua today is filled with paradox, on the one hand, it shows Papua has entered a new century marked by modern bureaucracy, the use of information technology, and economic activities of money which is part of the global economy. There are still many people who live in traditional subsistence culture and isolated. Suwandi and Warokka (2013) stated, there is a significant relationship between fiscal decentralization and economic growth
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