Collaboration Model Between Stakeholders in Optimizing Regional Budget Allocation as a Strategy to Reduce Poverty and Inequality

Abstract

Objective: This research aims at composing a model for sharpening regional budget allocation as a strategy to reduce poverty and inequality in Central Java. Method: This research applied mixed methods consisting of quantitative and qualitative analysis. The data used are primary data from key persons selected by purposive sampling. The data were collected by Focus Group Discussion (FGD) and questionnaires. This research used Mactor Analysis (Matrix of Alliances and Conflicts Tactics, Objectives and Recommendations) as the analysis method. Results and Discussion: The results of research indicate that stakeholders with the strongest influence are Regional Economic Bureau of Kebumen, Regional Development Planning Agency of Pati Regency, and Regional Development Planning Agency of Banyumas Regency. Viewed from the relationship among actors and objectives, banking is an actor with the strongest support for the objective of increased access to capital and financing for small and medium enterprises. Research Implications: The application of clean technology will increase the production efficiency and then will increase the economic output. This research contributes to the development of global policies that drive the balanced and environmentally-friendly growth in the whole world. Originality/Value: Theoretically, this research enriches the literature on local budget management and provides new insights into how fiscal strategies can be integrated with social objectives, especially in the context of regions with diverse socioeconomic characteristics.