Published date: Oct 15 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Sustainable Economics

Pages: 531–545

DOI: 10.18502/kss.v9i29.17280

Abu Bakar .abubakarqueen@gmail.comFaculty of Economic and Business, University of Merdeka Malang, Malang, Indonesia

Anwar SanusiFaculty of Economic and Business, University of Merdeka Malang, Malang, Indonesia

Harsono .Faculty of Economic and Business, University of Merdeka Malang, Malang, Indonesia

The issue of regional inequality has gained prominence during the era of progress, driven by the goal of promoting equitable development and enhancing the well-being of all segments of society. Papua Province is an integral part of Indonesia, and confronts intricate hurdles in addressing regional inequality. In response to these hurdles, special autonomy status and fiscal decentralization were implemented to boost regional autonomy. This study aims to scrutinize the impact of special autonomy and fiscal decentralization on regional inequality within Papua Province. The dataset used in the study spans from 2011 to 2021 and has been sourced from the Central Bureau of Statistics for Papua Province and the Directorate General of Fiscal Balance under the Ministry of Finance of the Republic of Indonesia. Multiple linear regression analysis was applied and the analytical results underscore that granting special autonomy status has exerted a noteworthy influence in diminishing regional inequality within Papua Province. Nevertheless, an unexpected finding is that fiscal decentralization has not substantially curtailed regional inequality within the region. These revelations provide a comprehensive overview of the roles played by fiscal decentralization and special autonomy in endeavors to alleviate regional inequality in Papua Province. The implications of these findings lay the groundwork for policymaking and developmental planning that foster inclusivity and sustainable progress within the Province of Papua.

Keywords: special autonomy, fiscal decentralization, regional inequality

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