Comparison of Fiscal Decentralization in Indonesia, the Philippines, and Thailand

Fiscal decentralization is a crucial element in regional fiscal autonomy, but its effectiveness is highly dependent on fiscal transfer policies and the fiscal capacity of each region. This study aims to analyze the effectiveness of fiscal decentralization in Indonesia, the Philippines, and Thailand and its impact on regional fiscal autonomy. This study used qualitative methods with comparative analysis of fiscal policies and content analysis of policy documents. Data was obtained through literature studies, in-depth interviews with fiscal officials and related academics, and analysis of fiscal data from official sources. The study results indicate that regional dependence on central fiscal transfers is still very high, especially in regions with low fiscal capacity. In Indonesia, although there is a fairly large fiscal transfer scheme, inter-regional inequality is still a major challenge. The Philippines strongly depends on the Internal Revenue Allotment (IRA), which tends to be less flexible in supporting regional needs. Meanwhile, in Thailand, political challenges have also influenced the implementation of fiscal decentralization policies. The implications of these findings indicate that reform of the performance-based fiscal transfer system is needed to improve the effectiveness of fiscal decentralization. In addition, diversifying regional revenue sources through strengthening local taxes and levies is a strategic step in strengthening fiscal independence. Transparency and accountability in regional budget management also need to be improved to encourage fiscal efficiency. This study recommends policies that are more adaptive to regional needs and strengthen fiscal capacity to reduce dependence on central transfers and encourage more sustainable regional economic growth.