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The central aim is to investigate how fiscal decentralization impacts corruption levels in Indonesian local governments.

Fiscal decentralization, governance, and corruption: evidence from Indonesian local governments (2010–2021)

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The central aim is to investigate how fiscal decentralization impacts corruption levels in Indonesian local governments.
Analyzed panel data from 548 district and municipal governments between 2010 and 2021.
Examined the effects of Local Own Source Revenue, Balance Funds, and budget efficiency.
Used panel regression to assess direct and moderating effects of governance.
Assessed audit reports to capture governance quality.
Local Own Source Revenue and budget efficiency are negatively associated with corruption levels.
Balance Funds show a positive correlation with increased corruption.
Governance moderates the anti-corruption effect of budget efficiency but intensifies the corruption risk linked to Balance Funds.
Robustness checks reveal distinct vulnerabilities in General Allocation Funds and Special Allocation Funds.

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This research explores the links between fiscal decentralization, governance, and corruption in Indonesia, suggesting complex interactions.

Kristanto et al. (2026) studied this question.

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This research explores the links between fiscal decentralization, governance, and corruption in Indonesia, suggesting complex interactions.