Graduate School of Development Studies A Research Paper presented by: Drisnaf Swastyardi (Indonesia) in partial fulfillment of the requirements for obtaining the degree of MASTERS OF ARTS IN DEVELOPMENT STUDIES Specialisation: Economic of Development (ECD) Members of the examining committee: Prof. Dr. Michael Grimm (supervisor) Dr. Robert Sparrow (reader) The Hague, The Netherlands August, 2008 REGIONAL INEQUALITY IN INDONESIA: Is the general allocation fund (DAU) likely to have an impact?