Regional Autonomy in Order To Realize Implementation of Good Local Government
Keywords:
Regional Autonomy, Decentralization, Economic GrowthAbstract
This study examines the impact of decentralization on economic growth in Indonesia, which began after the 1998 reform. The shift from a centralized to a decentralized governance system is regulated through various laws, including Law No. 22 of 1999, which was later amended. The objective of this research is to explore how regional autonomy can simplify investment procedures and maximize regional potential for the welfare of the people. The method used is a qualitative approach with comparative descriptive analysis. The results show that decentralization affects not only the relationship between different levels of government but also between the state and its citizens. Factors such as savings, investment, and demographics influence economic growth, supported by the capacity of local governments and appropriate policies. Fiscal decentralization can support economic growth if implemented well, with innovation being key to more effective and sustainable resource management. Collaboration between the government, society, and the private sector is essential to achieve these goals.