This article aims to explain the relationship between decentralization and corruption in Indonesia. In doing so, this article uses Indonesian data at the provincial level, using a Poisson model with an endogenous covariate model. Indonesia's new Fiscal Decentralization Law 2022 begins to be implemented this year. The legislation makes many remarkable technical changes. Our study concludes that fiscal decentralization has a significant effect on economic performance with a lag of years, implying that public budgeting will be, DOI: 10.1108 FS-05-2018- ID: 158667867. The implications of fiscal decentralization and fiscal governance on economic capacity and community well-being article Purbadharmaja2019TheIO, title The implications of fiscal decentralization and fiscal governance on economic capacity and community, The effect of decentralization and free trade agreements on regional disparities in a developing economy: the case of Indonesia, 1993-2005 International Journal of Urban 1During this period, Indonesia decentralized in several dimensions - administrative, fiscal and political - more or less simultaneously. Most administrative and fiscal decentralization was introduced in a “big bang” manner, while the process of political decentralization took place gradually and,