Total revenue per capita

The capacity of a local government to provide “good” public services to its people depends on several things. These include: i) the amount of money it has to spend (its’ total revenue), ii) the number of people for whom the services are being provided, and iii) its’ effectiveness in managing its expenditures to meeting identified needs. Leaving the management issue aside, we can see which local government areas in Indonesia have a high (and low) capacity to provide services by comparing their revenues on a per capita basis. ‘Revenue per capita’ can also be seen as a measure of the supply of resources available to a local government (counted by the number of rupiah in its budget) compared to the demand for resources (the number of people) in that area. If the rupiah per capita amount is large for an area (or the resource supply is high relative to demand) then the government in that area should be able to provide better services than if the amount was small.

the map

How much revenue per capita does your area of interest have?

The following map shows the revenue per capita for each Kabupaten in 2010. By pointing the cursor to the local government area of interest to you can see how much revenue per capita it received and how it compares with other areas. You can also make comparative assessments by looking at the data in the table below the map. Does your area have a high or low capacity to provide services compared to neighbouring areas? And how does it compare to the national average?

How much revenue per capita do local governments have on average?

In 2010, the average revenue per capita among local governments (Kabupaten and Kota together) was around 3.3 million rupiah. However, the amounts varied a lot from one area to another. As can be seen from the following table the average revenue per capita of the 10 Kabupaten with the highest revenues (Rp. 26.5 million) was more than 40 times the average revenue per capita of the 10 Kabupaten with the lowest revenues (Rp. 0.6 million). This is a huge difference and one must ask why do some areas have much more in revenue than others?

Revenue per capita, 2010, Local Government Area averages

Average Revenue Per Capita (Rp. Million)

All areas 10 areas with lowest per capita revenue 10 areas with highest per capita revenue
Local Governments












Frequently asked questions

Where do local government revenues come from?

The money each subnational government gets to spend in any given year comes from various sources. By far the largest share of revenue comes from the Central Government (actually provided as a series of transfer payments by the Ministry of Finance (MoF). However, local governments also raise some money themselves (this source is called Own Source Revenue –see related indicator map) – and they sometimes get money from other sources too (such as, Foreign aid).

Fiscal transfers from the Central Government (see related indicator map) are provided through a number of separate mechanisms. When grouped together several of these, namely: DAU (Dana Alokasi Umum _General Allocation Fund , DBH (Dana Bagi Hasal – Revenue Sharing Fund) and the DAK (Dana Alokasi Khusus) are collectively known as Dana Primbangan. Dana Primbangan underpins the fiscal transfer system, however, there are other types of transfer payments to regions and these have been proliferating in number more recent years: DPPID (Dana Penguatan Infrastruktur dan Prasarana Daerah -Funds for accelerating the improvement of regional infrastructure) and the DPID (Dana Percepatan Infrastrucktur Pendidikan – Funds for accelerating the improvement of educational infrastructure) are but two examples. For more information see …… (give link to an authoritative source which describes these transfer)

How is the amount of revenue that an area gets actually determined?

As stated above most local government revenue (in fact, 80% in 20xx –check and give reference) comes from the Central Government. But understanding exactly how the Central Government determines the amount of money to be given to a local government is often regarded as being a mystery, even among experts. This is partly because of the variety of complex mechanisms that comprise the formal transfer system. The complexity is but one reason behind the lack of transparency. However, it is also because there are informal processes (open to influence by the “budget mafia”) by which additional funds are transferred to some areas. As may be seen from reports of court proceedings these informal (or illegal) processes can involve secretly agreed money transfers that may benefit the givers of the funds as well as the receivers.

Seknas Fitra’s Views

Money should follow function

We believe that the revenues available to Local Governments fall far short of their needs in meeting the functions expected of them. We also believe that the situation could be greatly improved if the Central Government allocated a greater share of their revenues to local governments than they do at the moment. Expressed in a few words, we say that “money should follow function”. What does this mean?

Really we are talking about the functions of the different levels of government: namely the Central, Provincial and Local Governments (the last of which include both the Regencies (Kabupaten) and Municipalities (Kota)). Most revenues available for these three levels of government are collected by taxing households and businesses and in Indonesia most of these taxes are collected by the Central Government. The Central Government then redistributes the money in various ways. This includes the monies allocated to central government ministries as well as those allocated by the two lower levels of government referred to above. Over the period 2006-2012 the share of total central government revenues transferred to the regional governments (both to Provincial and Local Level governments) has been in the range of between 31%-34%. We believe this share is far too small and that it should be progressively raised to much higher levels (perhaps 50% or more) of all central government revenues.

But the effectiveness of subnational governments a concern

Whilst we hold concerns with the adequacy of local government budgets, vis a vis their responsibilities, we remain very concerned about the capacity of local governments to spend their monies effectively. This concern is founded on our research which has shown that many local governments are poor in executing their responsibilities. One important aspect of this failure is the low level of transparency in budget processes. Give link to more recent Kinerja study reports. Thus with a greater devolution of funds we recommend that much more emphasis on monitoring and reporting on programs aims, expenditures and outcomes would also be needed.

Data: Sources and notes

The data for each area used for this indicator comes from two sources. The total revenue data for each area is sourced from the Ministry of Finance budget information website (see These data can be accessed by reference to the webpage “Data Series”, and to the link “Dana Perimbangan”, Realised Budget 2010, and then Sheet 1 , Permentdagri 13. The population data was sourced from Indonesia’s 2010 population census (see

Missing data: there is 1 Kabupaten (namely: Kab. Nduga in Papua) for which budget data was not available.

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