Promoting Development Agencies as One of the Approach to Overcome Regional Disparity in Indonesia

Abstraksi

Indonesia’s economic performance as one of the most dynamic economies in Asia has attracted a lot of attention on global and regional scope. In fact, the government has been taken a major role in the economic development of Indonesia, with the coherency in national and sub-national system on their respective levels. Meanwhile, regional disparity has become one of the major challenges for national economic development with the profundity of structural regional disparity over a decade. Development agency tool which is implemented by many developed or developing countries in order to eliminate the regional imbalances is an important factor especially implementation of regional plans and policies. This agency has been established with the objective to promote potential regional development and reducing regional disparity. This study seeks to address and investigate the potential of the local economic experience of Indonesia, with specific focus on development agencies and their impact on the economic development and overcome regional disparity with the numerical and analytical data provided to support the evidence. The statistical analysis is used to support such evidence. Finally, based on the findings, the study ambitions are to draw general lessons about promoting development agencies as prominent actor for local economic development and bring valuable lesson to reduce regional disparity in Indonesia.