Journal of International Conference Proceedings (JICP) Vol.5 No.4, pp. 1-11, November, 2022 P-ISSN: 2622-0989/E-ISSN: 2621-993X https://www.ejournal.aibpmjournals.com/index.php/JICP 1 Fiscal Decentralization and Per Capita Income Convergence between Regencies/Municipalities in Java Island Rima Melati Anggraeni 1 , Moh. Khusaini 2 , Ferry Prasetyia 3 Universitas Brawijaya 1,2,3 Jl. MT Haryono No.165, Malang, 65300, Indonesia Correspondence Email: rimamelati@student.ub.ac.id ORCID ID: 0000-0001-6247-4269 ARTICLE INFORMATION Publication information Research article HOW TO CITE Anggraeni, R., Khusaini, M., & Prasteyia,F. (2022). Fiscal Decentralization and Per Capita Income Convergence between Regencies/Municipalities in Java Island. Journal of International Conference Proceedings, 5(4), 1-11. DOI: https://doi.org/10.32535/jicp.v5i4.1906 Copyright@2022 owned by Author(s). Published by JICP This is an open-access article. License: Attribution-Noncommercial-Share Alike (CC BY-NC-SA) Received: 6 October 2022 Accepted: 15 October 2022 Published: 15 November 2022 ABSTRACT The purpose of this research is to examine the likelihood of beta absolute convergence and beta conditional convergence, the impact of fiscal decentralization in terms of income and expenditure side on per capita income and data from the Central Bureau of Statistics and the Directorate General for Fiscal Balance from the years 2015-2019 are being used to speed up the convergence of per capita income in 113 different regencies and municipalities. Using fixed effect regression models, this study confirms that there are beta absolute convergence and beta conditional convergence in Java Island during 2015- 2019. It was also demonstrated that local own source revenue and the fiscal balance fund have a considerable impact on the rate of growth in per capita income, whereas personnel and capital expenditures significantly slow GDP growth and thus cut per capita income. The findings also reveal that all fiscal decentralization indicators significantly contribute to speeding up the convergence of per capita income. Based on the results of estimates, Local Government Own Source Revenue should be optimized and quality of government spending have to be improved to foster income per capita convergence between regions in Java Island. Keywords: Income Per Capita Convergence, Fiscal Decentralization Regional Inequality, Beta Absolute Convergence, Beta Conditional Convergence