Indonesia Conference Directory

Many parties believe that there is a relationship between fiscal decentralization and the level of corruption in the regency/city. The objective of this research is to examine influence of fiscal decentralization on level of corruption regencies/cities in Indonesia. This research also uses control variables, namely the General Allocation Fund (DAU) of the regency/city, the age of the regency/city, and the location of regency/city. The population of this study is all regencies/cities in Indonesia. Data sources using secondary data. The research sample was selected using the purposive sampling method. Hypothesis testing uses multiple regression analysis. The statistical test results show the level of significance of fiscal decentralization to level of corruption is 0.016 smaller than the significance level of 0.05 (5%). These results prove that the existence of fiscal decentralization has a significant influence on the level of corruption in Indonesia. The statistical results of the control variables show that the significance level of regency/city DAU is 0.081, regency/city age is 0.221 and regency/city location is 1.282. This means that DAU, age, and location of the regency/city have no significant influence on the level of corruption regencies/cities in Indonesia.