CORRUPTION PERCEPTION INDEX AND LOCALLY GENERATED REVENUE: HAVE THEY GOTTEN BETTER OR WORSE? CASE STUDY IN 10 MAJOR CITIES IN INDONESIA
Rofikoh Rokhim, Ruri Eka Fauziah Nasution, Asiah Muchtar, Wahyudi Thohary

Rofikoh Rokhim
Universitas Indonesia

Ruri Eka Fauziah Nasution
Durham University

Asiah Muchtar
Sciences Po

Wahyudi Thohary
Transparancy International

Abstract

One possible indicator for measuring the local governments- corruption eradication performance in Indonesia is the Corruption Perception Index (CPI) published by the Transparency International Indonesia (TII). This paper attempts to provide an overview of CPI scoring trends for 10 cities (Medan, Padang, Bandung, Semarang, Surabaya, Banjarmasin, Pontianak, Makassar, and Manado). Two different periods are assessed in this research: 2004-2010 and 2014-2016. By using a descriptive analysis approach, this research finds that Banjarmasin, Padang, and Manado are the top three cities with the highest average CPI scores in 2004-2010. Meanwhile, Pekanbaru, Pontianak, and Manado are the three lowest-scoring cities. In 2014-2016, several cities such as Surabaya and Pontianak have a significant increase in their CPI scores, placing Banjarmasin, Surabaya, and Pontianak in the top three. On the other hand, the average CPI scores of several cities such as Padang, Makassar, and Manado significantly decline. In addition, this research also maps the central allocation funds for local governments and the Locally-Generated Revenues (PAD) against the levels of corruption. As a matter of fact, the regions with the smallest allocations tend to have higher CPI scores. Further, the regions with higher CPI scores also have higher Locally-Generated Revenues. However, these findings lack empirical evidence due to limited data.

Keywords: Corruption, decentralization, Corruption Perception Index (CPI).

Topic: Finance

Link: https://ifory.id/abstract-plain/m9zhLdF3WR2H

Web Format | Corresponding Author (Ruri Eka Fauziah Nasution)