Judul: Impact of fiscal capacity on regional economy and sectoral poverty in Indonesia: a policy simulation analysis
Abstrak: Poverty alleviation is an important agenda of national economic development in Indonesia. In order to accelerate the achievement of economic development goals, Indonesian government has been implementing fiscal decentralization policy since 2001. The policy was successful in increasing the rate of economic growth, but the income inequality became larger so that the poverty rate and the proportion of poor people in agricultural households has been increased. The implementation of fiscal decentralization policy in Indonesia which is focused on fully shifting expenditure assignment from central government to local government has lead to higher local expenditures as local governments strategies to increase their economic growth. However, the revenue assignments authority is limited so that fiscal capacity is low. As a result, the fiscal deficit is overcome by transfer General Allocation Fund (DAU) from the central government and also the local financial structures are mostly depend on DAU. Previous studies found the flypaper effect phenomenon as greater response of local governments in the use of budget sourced from DAU than those from original local revenue (PAD). Accordingly, if flypaper effect occurred in local expenditures with no great impact on poverty reduction then great role of DAU on local financial structure could not accelerating poverty alleviation. Therefore, fiscal capacity should be increased. The objective of this study is to analyze impact of fiscal capacity increasing on fiscal performance, sectoral economic performance, sectoral poverty rates, income inequality, and proportion of poor people in agricultural households by using a model of simultaneous equations system with province and regencies aggregate panel data in 23 provinces during 2005-2011 and Two Stage Least Squares (2SLS) estimation method. The impact analysis of policy simulations is performed on historical period of 2006-2011 and forecast period of 2013-2015. Several important findings are: (1) fiscal capacity influences agriculture and infrastructure expenditures as important factors for agricultural growth and asphalt road infrastructure which further give high effects in reducing poverty rates, income inequality, and proportion of poor peopole in agricultural households; (2) fiscal capacity of local taxes is influenced by per capita Gross Domestic Regional Product (GDRP) and local private investment; (3) fiscal capacity of tax-revenue sharing is influenced by GDRP of non-agricultural sectors which are potentially increasing individual income tax (PPh) as the main source of tax revenue sharing; and (4) the alternative policies of the increasing of local agricultural and industrial expenditures larger than the increasing of trade expenditure, increasing of local portion from tax revenue sharing, and increasing of private direct investments mainly in agricultural provinces will increase fiscal capacity and give great impact on the improvement of fiscal performance, economic performance, and sectoral poverty which are indicated by higher fiscal autonomy rate, sectoral GDRP rate, and sectoral employment rate as well as lower sectoral headcount index, Gini Index, and proportion of poor people in agricultural household. Therefore, to achieve greater local economic growth, lower poverty rates, lower income inequality, and lower proportion of poor people in agricultural households as well as to achieve poverty targets on national development agenda RPJMN 2014 in the amount of 8-10 % and MDGs 2015 in the
Keyword: fiscal capacity, economic growth, income inequality, sectoral poverty

Judul: Dampak kebijakan fiskal daerah terhadap kemiskinan di Indonesia pada masa desentralisasi fiskal
Abstrak: Local government spending has been increasing from year to year during decentralization era, which the largest proportion derives from central government. Nevertheles, the economic performance, mainly poverty decrease very slowly, far from the government target in 2009. Therefore, this research has aim 1) to determine the dynamic of local fiscal, output and poverty, 2) to determine factors that affect fiscal policy, output and poverty, 3) to analyze the impact of fiscal policy on output and poverty. This study uses simultaneous equations model (SEM) to identify the factors that affect local government revenues and spending and their impact on fiscal and economic performance of regions. The result shows that government revenue is affected by GDRP, fiscal gap, and population. Government spending is affected by GDRP, revenue, and spending the previous year. Increased government revenues and spending has a positive impact on economic performance and negatif impact on poverty. Combination of spending on education and health, and agriculture provides the greatest impact to decrease poverty.
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Judul: Hydroxyapatite-Chitosan Composite Coating on Stainless Steel 316 to Improve Corrosion Resistance
Abstrak: Metals that were used in bone implantation should have good corrosion resistance that were not easily corroded when implanted into the body. Metal corrosion resistance of stainless steel 316 can be enhanced through the metal coating by hydroxyapatite-chitosan composite with composition ratio of hydroxyapatite (gram) and chitosan 3% (mL) 0.2:0, 0.2:0.1, 0.2:0.5, 0.2:1.0, and 0.2:1.5. Besides improving the corrosion resistance of metal, the presence of chitosan also maintain the position of hydroxyapatite on metal surfaces. Corrosion resistance increases with increasing amount of chitosan added and the best composition of hydroxyapatite-chitosan composite was 0.2:1.0.
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