IRSA-BKF Paper Awards on Inter-Governmental Budget Transfers and Local Creative Financing Programs

Eligible Topics

Research paper topics that will be considered for this award should discuss an issue related to the impact of budget transfers from central to local governments, particularly the Special Autonomy Fund, and local creative financing programs on regional infrastructure development and regional economic growth. Such topics could be, but are not limited to:

  1. The roles of inter-governmental budget transfers in improving regional standard minimum services across Indonesia;
  2. The effectiveness of the Special Autonomy Fund in accelerating regional development
  3. The impacts of infrastructure development on strengthening regional competitiveness and economy;
  4. Local government creative financing schemes in strengthening medium-term regional fiscal sustainability;
  5. Local government creative financing programs and regional human capital development and poverty alleviation

The award

The selected papers will receive Rp. 2,000,000.- per paper and an opportunity to present at the IRSA-BKF special session on Inter-governmental Budget Transfers and Local Creative Financing Programs. In addition, the authors will be given the option to have their works published in the BKF-MOF accredited journal, Kajian Ekonomi dan Keuangan ( or in the IRSA Book Series on Regional Development.


Regional development spearheaded the escalation of national productivity and competitiveness. It is suspected that slow regional infrastructure development aimed at reducing inequality among regional public services in the early 2010s has slowed the growth of welfare in the country.

Since 2015, the Indonesian government has committed to accelerating regional infrastructure development by gradually increasing the allocated annual budget. More funding was given to the Transfers to Regions and Village Fund (TKDD) allocations for infrastructure, which consisted of Physical Special Allocation Funds, Village Funds, dditional Infrastructure Funds for Papua and Papua Barat Provinces as well as a minimum allocation of 25% General Transfer Fund (DTU) for infrastructure development. These allocations are expected to be managed effectively by local governments for developing infrastructure and encouraging sustainable economic development in regions.

There are, however, several main issues surrounding developing regional infrastructure. First is the ability of regional governments to allocate and effectively spend funding from their budget towards infrastructure development for improved public services. For example, local governments have been encouraged to allocate at least 20% of their budget for education and 10% for health services. Despite this spending policy, many regional governments have failed to do so and thus have been unable to effectively spend their budgets to improve regional public services.

The second main issue is that, despite increases in the central government budget for infrastructure, it is understood that this budget is not sufficient to finance regional infrastructure development. A financing scheme combining funding from the central government, local government and private sectors is necessary to develop regional infrastructure. It is expected that regional governments would lead initiatives to develop this kind of financing scheme. Up until now however, limited initiatives exist among local governments to do so.

In order to gather information and feedback on the better implementation of fiscal decentralization policies, Universitas Syiah Kuala, IRSA and BKF-MOF are collaborating to invite scholars to submit papers on issues related to the impact of budget transfers from central to local governments, particularly the Special Autonomy Fund, and local creative financing programs on regional infrastructure development and economic growth.

How to Apply?

All papers related to the topics mentioned above that are submitted to be presented at the 15th IRSA International Conference by 22 July 2019 will be considered for these IRSA-BKF Paper Awards. Four papers will be selected as winners. The papers should be presented at the Conference and all the terms and conditions of the IRSA Conference will apply to all applicants; i.e. paying registration fee etc.


  • Deadline for submitting an abstract: 1 April 2019
  • Deadline for submitting the full paper: 22 June 2019
  • Notification of Winners: 23 July 2019


Extended paper abstract of up to 1,000 words should be submitted online via by 1 April 2019. It should consist of background, purpose and potential contributions, data and methodology, results, conclusion and keywords. An example of an extended abstract can be seen here. Abstracts as well as the full paper must be submitted in English.