Abstract
Revenue-sharing is an oil-producing region allocation is used as the working area of mining. Along with fiscal decentralization and greater regional autonomy lately, the revenue sharing should be used in order to increase the prosperity of oil and gas producing regions through APBD revenue. This study aims to determine the effect of profit sharing funds in the upstream oil and gas industry in Indonesia on the regional budget. This research is associative explanative. Data collected through interviews, questionnaires, observation and literature study. Data were analyzed descriptively, tested assumptions, estimated through path coefficients and confirmatory factor analysis. After that the model is interpreted and modified. The results show that the effect of revenue sharing funds on the regional budget is significant. The greater the revenue sharing funds, the greater the APBD producing regions.
Highlights
In addition to contributing revenues to the state, the oil and gas industry is a significant contributor to PAD for oil and gas producing regions, and is an opening frontier region
This paper aims to determine whether the revenue sharing funds obtained by oil and gas producing regions have a significant influence on the Regional Revenue and Expenditure Budget (APBD)
Revenue sharing has a significant effect on the APBD of the Oil and Gas Producing Regions
Summary
In addition to contributing revenues to the state, the oil and gas industry is a significant contributor to PAD for oil and gas producing regions, and is an opening frontier region. Oil and gas exploration is mostly done in remote areas and once oil and gas is discovered, the area develops. Law Number 33 of 2004 concerning central and regional financial balances, has set the amount of allocation for each producing region as the following: Number. After Regulations of PKPD Type of Income Centr al Pro p Distri ct Other. Regulati ons Special Autono my Act. Available Online: https://dinastipub.org/DIJEMSS
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