Model of Regulatory Consistency of Local Government Capital Equalisation in Regional Development Banks

Abstract

The objective of this study is to analyze the implementation of competitive advantages of local government equity participation in Regional Development Banks for the October 2020 period in the category of commercial banks based on business activities. The research aims to develop an optimal implementation model for regional equity participation in Regional Development Banks, which should be integrated with the planning and budgeting system and regional development priorities. This study utilizes a qualitative approach to provide an accurate description of the process analysis. Direct data sources from 27 highly competent informants in regional equity participation in the Regional Development Banks of Bengkulu Province and Central Sulawesi Province were used. The research process involved a series of questions and procedures, and data collection typically occurred in participant settings. The data analysis was conducted inductively, progressing from specific to general themes. According to the study results, although 25 Regional General Treasurers serve as Regional Financial Management Officials and employ a low-cost strategy, only 20 of them (80% of informants) believe that the implementation of this strategy provides a competitive advantage. The remaining 5 Regional General Treasurers did not express an opinion. According to five regional financial management officials, the Bengkulu Regional Development Bank and the Central Sulawesi Regional Development Bank are not currently implementing cost-saving strategies in their capital participation processes. This information was reported by 20% of the informants.