Local governments’ expenditures efficiency on human development and poverty

After the decentralization policy has been effectively implemented in 2001 in Indonesia, the authority has been shifted from the central government to the local governments. Local governments now become the cutting edge of economic developments. The purposes of this policy are (1) to reduce the fiscal gaps among the local governments, (2) to provide better and more efficient public goods and services, and (3) to bring the government closer to the people (Siddik, in Abimanyu & Megantara 2009).