Abstract

This study is conducted to inquire some relevant information concerning to the readiness of the sub national governments (SNGs) in supporting the implementation of SJSN (Sistem Jaminan Sosial Nasional—National Social Security System) in the 2014. Concern on the SNGs capacity to support SJSN mostly stems from the reportedly SNGs’ poor performance in managing their financial resources which in turn are envisaged to create adverse effects on local social indicators (such as: poverty rate, literacy rate, school enrollment ratio, etc.).

This study aims to provide quantitative and qualitative evidences concerning the relation between: (i) SNGs’ fiscal capacity and social indicators performance; (ii) the capacity to execute the budget and the social indicators performance; and (iii) the ability to execute budget with the type of revenue obtained by the SNGs. For that, descriptive, correlation and econometric analyses are conducted by using all SNGs data on budget and social indicators during the period of 2007-2010, as well as household data of SUSENAS (National Socio Economic Survey) 2005 and 2011. In addition, this study utilizes the household data to examine the impact of the national and SNG’s social assistance programs on the access to the healthcare and educational facilities.

The qualitative analyses are done based on the field survey conducted in the 11 selected SNGs (3 provinces and 8 districts in Java and Sulawesi), which attempts to analyze the regulation, administrative procedure, program feature and program sustainability related of social security programs in the decentralization context.

Keywords: social security, social service delivery, decentralization, Indonesia