Which Local Government Financial Management is More Qualified, Jakarta or Surabaya?

Abstract

This study aims to describe and analyze descriptively with a regional financial statement analysis approach. The outline of the purpose of this study is to determine and compare the superiority of regional financial management performance of DKI Jakarta Provincial Government and City Government in terms of 1) regional financial independence ratio, 2) effectiveness ratio, 3) efficiency ratio, 4) harmony ratio and 5) growth ratio. The results of the analysis show that the financial performance for Independence shows a score of 22 while the Regional Government of Surabaya is only 13. The activity ratio shows that the Regional Government of Surabaya is better than the Regional Government of DKI Jakarta with a score of 29 versus 19. For efficiency in using finance, the Regional Government of DKI Jakarta is better than Surabaya with a ratio of 17. comparison 9. Meanwhile, the compatibility ratio shows that the local government of Surabaya is much better than DKI Jakarta with a comparison of 25:13 and from a growth perspective, it shows that the growth in five years of the local government of Surabaya is far above the regional government of DKI Jakarta