Indonesia?s Health Decentralization: an Initial Evaluation Assessing Allocative Efficiency on Indonesia?s Health Budget

[[abstract]]Indonesia has enacted fiscal decentralization for six years. The first three years is a critical time for the continuance of this program. If it is considered less beneficial than the program will be likely to be suspended or dissolved. Important policy questions whether decentralization leads to more or less public/preventive health expenditure allocation, and whether local governments are effective in the provision of health care service. This study systematically examines these questions using data set on government health expenditure that are provided by the Indonesia?s Department of Health combined with secondary data from Indonesia Bureau of Statistic and Indonesia?s Demographic and Health Survey. The results show that local health expenditures decreased after devolution even though we could not assure whether it has any effect on children immunization coverage