Abstract
With the advent of Law No. 22 years 1999 set an authority and responsibility from central government to local government and UUNo.25 1999 governing financial between the center and regions, especially in the District city in East Java n local resources and reduce dependence of the center.This study aims to determine the independence of the Regency / City in East Java analysis used is qualitative analysis, the analysis that are explained in the description or in the form of sentences and quantitative analysis, namely analysis using formulas and definite analysis. Quantitative analysis includes the analysis of the degree of fiscal decentralization determine the level of independence of regional and sectoral economic potential in the District East Java so that it can determine the level of fiscal independence and economic potential of the region. Results are expected to be used i pattern of the relationship between the central government and the government in the district / city in East Java as well as the formula right policy for future economic development.From this research it is known that the city of Surabaya has a degree of fiscal autonomy for PAD at 48% of revenue while the region Gresik on the degree of fiscal autonomy degree enough and Sidoarjo district in degrees, please. There are 32 regions in the East dijawa degree of fiscal independence of each very less independent, meaning of Balance Funds as well as from centers of poropinsi
Highlights
Reforms that began several years ago in Indonesia have penetrated into all aspects of life
Changes to the governance driven by a variety of public demands for more democratic government; demanding a change in the central government in order to give authority to local governments to manage their own regions, including the division of revenues between the central government and the regions (Devy Octaviana S, 2013: 1)
According to Kurniawan (2006), the adoption of Act No 22 of 1999 on Regional Government and Law No 25 of 1999 on Financial Balance between Central and Regional is a major step eagerly awaited by the region
Summary
Reforms that began several years ago in Indonesia have penetrated into all aspects of life. Namely the relationship between the central government and local governments. According to Kurniawan (2006), the adoption of Act No 22 of 1999 on Regional Government and Law No 25 of 1999 on Financial Balance between Central and Regional is a major step eagerly awaited by the region. The birth of this legislation is expected to be a cornerstone of the acceleration and the distribution of economic growth in the regions, which have perceived the existence of disparities in development between the center and regions. The law further enhanced by the issuance of Law No of 2004 on Regional Government and Law No of 2004 on Financial Balance between the Central Government and Local Government
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