Dataset on macroeconomic indicators and fiscal decentralisation indices' variables in Central Java Province, Indonesia

Macroeconomics data was collected through the Central Statistics Agency (BPS) Central Java Province for the thirty-five regencies and municipalities in Central Java Province from 2017 to 2021. The Fundamental index of fiscal decentralisation (FFDI) and Enhanced index of fiscal decentralisation (EFDI) were adapted from [1] and corresponding datasets matched to fiscal data from the Central Java province government. The data sources and indices' calculation methodologies were described in detail. The resulting indices, together with labour participation rate, as well as foreign and domestic investment data were analysed in a panel data analysis model with Gross Regional Domestic Product as the outcome variable. The collected data enables researchers and policy-makers to update observations on the impact of Indonesia's 'Big Bang' fiscal decentralisation on economic growth in a province with above-average growth rate but which had experienced significant challenges arising from the Covid-19 pandemic. This is in light of previous research findings which found that the Indonesian decentralisation has had mixed outcomes due to institutional and fiscal capability limitations within the local governments. The detailed sources and steps to obtain the required data and calculate the FFDI and EFDI enables researchers to apply the indices in providing updated observations on the impact of fiscal decentralisation on various socioeconomic phenomenon.