Rent-seeking Practices in the Budget Policymaking Processes at Local Government: Case Studies in Indonesia
Abstract
ABSTRACT
This paper tries to analyze and utilizes qualitative document content analysis as a means of understanding rent- seeking practices in fiscal policymaking processes. This study revealed that rent-seeking practices in fiscal policymaking in Malang City, Malang Regency, and Batu City, Indonesia, involved the practices of bribery, corruption, collusion, lobbying, negotiation, and transactional politics between regional leaders, bureaucrats, private actors, and political brokers. Rent-seeking practices trough informal policymaking have a strong positive correlation to corruption. It shows that corruption resulted from rent-seeking practices in fiscal policymaking in Malang City, Malang Regency, and Batu City. Transactional politics, negotiations, bribery, collusive relations, and lobbying were also involved in rent-seeking, ultimately resulting in corruption. Therefore, the new thesis of this research is that transactional relations, negotiation, collusion, bribery, and political lobbies between regional heads, bureaucracy, parliamentary politicians, brokers, and businessmen trigger corruption in the formulation of regional budget policies. This research confirms that the practices of rent-seeking take place through informal budget policy formulation, such a transactional relations, negotiation, collusion, bribery, and political lobbies that result in acts of corruption in budget policies.
Keywords: Informal policymaking, fiscal politics, local government, corruption, budget policy
ABSTRAK
Artikel ini mencoba menganalisis dan menggunakan analisis konten dokumen kualitatif sebagai sarana untuk memahami praktik rent-seeking dalam proses pembuatan kebijakan anggaran. Studi ini mengungkapkan bahwa praktik rent-seeking dalam pembuatan kebijakan anggaran di Kota Malang, Kabupaten Malang, dan Kota Batu, Indonesia, melibatkan praktik penyuapan, korupsi, kolusi, lobi, negosiasi, dan politik transaksional antara pemimpin daerah, birokrat, aktor swasta, dan pialang politik. Praktik rent-seeking melalui pembuatan kebijakan informal memiliki korelasi positif yang kuat dengan korupsi. Hal ini menunjukkan bahwa korupsi dihasilkan dari praktik rent-seeking dalam pembuatan kebijakan anggaran di Kota Malang, Kabupaten Malang, dan Kota Batu. Politik transaksional, negosiasi, penyuapan, hubungan kolusi, dan lobi juga terlibat dalam rent-seeking, yang pada akhirnya mengakibatkan korupsi. Oleh karena itu, tesis baru dari penelitian ini adalah bahwa hubungan transaksional, negosiasi, kolusi, penyuapan, dan lobi-lobi politik antara kepala daerah, birokrasi, politisi parlemen, pialang, dan pengusaha memicu korupsi dalam perumusan kebijakan anggaran daerah. Penelitian ini menegaskan bahwa praktik rent-seeking terjadi melalui perumusan kebijakan anggaran informal yaitu hubungan transaksional, negosiasi, kolusi, penyuapan,dan lobi-lobi politik yang mengakibatkan tindakan korupsi dalam kebijakan anggaran.
Kata kunci: Pembuatan kebijakan informal, politik anggaran, pemerintah daerah, korupsi, kebijakan anggaran
Keywords
Full Text:
PDFReferences
Adi, P. H. (2018). Rent-Seeking Behaviore in Local Government Budget Indonesia [Victoria University]. https://doi.org/http://vuir.vu.edu.au/37844/
Angelopoulos, K., & Economides, G. (2008). Fiscal Policy , Rent Seeking , and Growth under Electoral Uncertainty : Theory and Evidence from the OECD. Canadian Journal of Economics /, 41(4), 1375–1405. https://doi.org/https://about.jstor.org/terms
Arias, E. D. (2018). Criminal organizations and the policymaking process. Global Crime, 00(00), 1–23. https://doi.org/10.1080/17440572.2018.1471990
Arifin, T., & Purnomowati, N. H. (2017). Government Expenditure, Political Cycle & Rent Seeking. International Journal of Business and Society, 18(3), 461–468.
Asher, S., & Novosad, P. (2019). Rent-Seeking and Criminal Politicians : Evidence from Mining Booms ∗.
Auriol, E., & Flochel, T. (2015). Public Procurement and Rent-Seeking : The Case of Paraguay.
Bardhan, P., & Mookherjee, D. (2012). Political Clientalism and Elite Capture: Theory and Evidence from West Bengal, India. In Working paper. http://emlab.berkeley.edu/users/webfac/bardhan/papers/clientcapaug2012.pdf
Basri, H., & Nabiha, A. K. S. (2014). Accountability of Local Government: The Case of Aceh Province, Indonesia. Asia Pacific Journal of Accounting and Finance, 3(31), 1–14. http://accounting.feb.ui.ac.id/apjaf/pub/pub5/1 - ACCOUNTABILITY OF LOCAL GOVERNMENT.pdf
Bazely, P., & Richards, L. (2013). The NVivo Qualitative Project Book. In Journal of Chemical Information and Modeling (Vol. 53, Issue 9). https://doi.org/10.1017/CBO9781107415324.004
Berenschot, W. (2018). The Political Economy of Clientelism: A Comparative Study of Indonesia’s Patronage Democracy. Comparative Political Studies, 51(12), 1563–1593. https://doi.org/10.1177/0010414018758756
Berenschot, W., & Mulder, P. (2019). Explaining regional variation in local governance : Clientelism and state-dependency in Indonesia. World Development, 122, 233–244. https://doi.org/10.1016/j.worlddev.2019.05.021
Butt, S. (2014). Corruption and Law in Indonesia. In Corruption and Law in Indonesia. https://doi.org/10.4324/9780203584729
Dadang Asriyadi. (2019). Praktek Demokratisasi oleh Pengusaha dalam Perspektif Rent-Seeking Behaviour. Mimbar Administrasi FISIP UNTAG Semarang, Volume 15 No. 19 April 2019, 15(19), 1–10.
Dorotinsky, W., & Pradhan, S. (2007). Exploring Corruption in Public Financial Management. In J. E. Campos & S. Pradhan (Eds.), The Many Face of Corruption: Tracking Vulnerabilities at the Sector Level (Vol. 6, Issue 2, p. 103). Word Bank.
Fan, C. S., Lin, C., & Treisman, D. (2009). Political decentralization and corruption: Evidence from around the world. Journal of Public Economics, 93(1–2), 14–34. https://doi.org/10.1016/j.jpubeco.2008.09.001
Farhan, T. (2018). The Politics of Budgeting in Indonesia. In University of Sydney (Vol. 50, Issue 5).
Flick, U. (2009). An Introduction To Qualitative Fourth Edition. SAGE Publications, 506.
Hadiz, V. R. (2004). Decentralization and democracy in Indonesia: A critique of neo-institutionalist perspectives. Development and Change, 35(4), 697–718. https://doi.org/10.1111/j.0012-155X.2004.00376.x
Hayakawa, H., & Venieris, Y. P. (2017). The Invisible Hand of Rent Seeking : Capitalism , Democracy , and the Budget Deficits. Journal of Reviews on Global Economics, 6, 380–394.
Heydemann, S. (2004). Networks of privilege in the middle east: The politics of economic reform revisited. In Networks of Privilege in the Middle East: The Politics of Economic Reform Revisited (Issue March, pp. 1–334). https://doi.org/10.1057/9781403982148
Hillman, A. L. (2013). Rent seeking. The Elgar Companion to Public Choice, Second Edition, November, 307–330. https://doi.org/10.4337/9781849802857.00032
Jamie S. Davidson. (2015). Indonesia’s Changing Political Economy Governing the Roads. Cambridge University Press.
Jaya, W. K. (2005). Dysfunctional Institutions in the case of local elite behaviour in decision-making about local government budgets in Indonesia. Jurnal Ekonomi Dan Bisnis Indonesia, 20(2), 120–135.
Jones, D. S. (2013). Procurement reform in the Philippines: The impact of elite capture and informal bureaucracy. International Journal of Public Sector Management, 26(5), 375–400. https://doi.org/10.1108/IJPSM-05-2013-0068
Katz, E., & Rosenberg, J. (2020). Rent-Seeking for Budgetary Allocation : Preliminary Results for 20 Countries. In Springer (Vol. 60, Issue 2).
Kostiuchenko, T. (2014). Civic and Political Connections between Ukrainian Governing Elites : Opportunities for Lobbying.
KPK. (2019). Tindak Pidana Korupsi Berdasarkan Profesi/Jabatan. https://acch.kpk.go.id/id/statistik/tindak-pidana-korupsi/tpk-berdasarkan-instansi
Lambsdorff, J. G. (2002). Making corrupt deals: Contracting in the shadow of the law. Journal of Economic Behavior and Organization, 48(3), 221–241. https://doi.org/10.1017/cbo9780511492617.007
Lambsdorff, J. G. (2018). Corruption and Rent-Seeking. Springer, 113(1), 97–125.
Ma’arif, S. (2011). ”Rent Seeking Behaviour” dalam Relasi birokrasi dan Dunia Bisnis. Natapraja. https://doi.org/10.21831/jnp.v0i0.3264
Macintyre, A., Mcleod, R., Mcmillan, J., Naughton, B., & Raza, R. (2000). Funny Money: Fiscal Policy, Rent-seeking, and Economic Performance in Indonesia. In Cambridge University Press, Cambridge.
Montambeault, F., & Goirand, C. (2016). Between collective action and individual appropriation: The informal dimensions of participatory budgeting in Recife, Brazil. Politics and Society, 44(1), 143–171. https://doi.org/10.1177/0032329215617467
Rebecca Rumbul, Parsons, A., & Jen Bramley. (2018). Elite Capture and Co-optation in Participatory Budgeting in Mexico City. IFIP International Federation for Information Processing 2018, 8654, 103–114. https://doi.org/10.1007/978-3-662-44914-1
Rubin, T. S. (2019). The Politics of Public Budgeting. Urban Affairs Review, 27(3), 470–481.
Salahudin, Nurmandi, & Jainuri. (2017). Is There Civic Groups Participa- tion in Budget Planning ? A Study Budget Planning in Malang City , Indonesia. 8(2).
Trantidis, A., & Tsagkroni, V. (2017). Clientelism and corruption : Institutional adaptation of state capture strategies in view of resource scarcity in Greece Clientelism and corruption : Institutional adaptation of state capture strategies in view of resource scarcity in Greece. November. https://doi.org/10.1177/1369148117700658
Wallmeier, F., Helmig, B., & Feeney, M. K. (2019). Knowledge Construction in Public Administration: A Discourse Analysis of Public Value. Public Administration Review, 79(4), 488–499. https://doi.org/10.1111/puar.13005
Widanarto, A. (2017). Praktek Rent Seeking : Budaya Korupsi Baru Di Kalangan Politisi Dan Birokrasi Indonesia. Jurnal Politikom Indonesia, 2(2), 1–13.
Widanarto, A. (2019). Praktek Rent Seeking : Budaya Korupsi Baru Di Kalangan Politisi Dan Birokrasi Indonesia. Mimbar Administrasi FISIP UNTAG Semarang, Volume 15 No. 19 April, 15(19), 1–13.
Wong, S. (2010). Elite Capture or Capture Elites? Lessons from the “Counter-elite” and “Co-opt-elite” Approaches in Bangladesh and Ghana. Development, 1–18.
Yandra, A., Nasution, S. R., Harsini, H., & Wekke, I. S. (2018). Mainstreaming Regional Budget (APBD): Issues and Challenges in Riau Province in 2015. Politik Indonesia: Indonesian Political Science Review, 3(1), 1–18. https://doi.org/10.15294/jpi.v3i1.11510
Yusri, A. (2019). Rent seeking dalam proses perizinan perumahan bersubsidi di kota bandar lampung. Universitas Lampung.
DOI: http://dx.doi.org/10.31000/jgcs.v6i1.5849
Article Metrics
Abstract - 1288 PDF - 801Refbacks
- There are currently no refbacks.
Copyright (c) 2022 Journal of Government and Civil Society
![Creative Commons License](http://i.creativecommons.org/l/by-sa/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal of Government and Civil Society is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License .