Interregional Distribution Bias of Public Expenditure in Indonesia during The New-Order-Era Regime

抄録

Interregional disparity is a current issue in Indonesia, but the solution has not touched the ground of the reason. This d-model (or disparity model) is a simple model that offers an alternative quantitative device to recognize the emergence of disparity based on a set of causes. The model emphasizes on repercussion between public and private sectors based on regional characteristics assumed as natural rich region and industrial region. The results shows that imposing higher tax improves all targets of development measurements, however based on the characteristics of the model it is suggested that the structural changes is needed especially for the long run.