Understand Fiscal Decentralization and the Potential Moral Hazard in Indonesia

Fiscal decentralization as a product form of political economy policy is determinant country's economic growth. However, the implementation these policies considered vulnerable due to lack transparency and accountability, so that abuse authority at local government level often occurs which causes moral hazard triggers fiscal inefficiencies. We describe search related through this research how potential for can occur in Indonesia. This type literature study using descriptive qualitative approach. The data collected results from reviews, journals, books, newspapers, documentation are relevant. After reviewing, criticizing, synthesizing representative such way, we able find several facts indicating be solution overcome inequality, on other hand it also utilized by various parties personal gain. With polarizations built authorities, has any time.