Local Government Financial Performance Research Articles

Asymptotic Significance Test on Financial Performance in Papua Province Government

Purpose: This study analyses the financial performance of Papua Province's regency and city administrations from 2015 to 2021 in terms of regional independence, dependency, and harmony. Theoretical framework: Every local government should consistently, somewhat, equitably, and democratically enhance the services it provides to the community. The effectiveness of controlling these potentials can also be used to gauge the local government's financial performance. The regional budget serves as the government's indicator for assessing its capacity to finance the execution of development initiatives. Design/methodology/approach: Uses secondary archive data (APBD) retrieved from the DJPK database for the years 2015-2021. Various assessments, including the dependency ratio, the independence ratio, and the harmonization ratio, are used to evaluate the financial success of the previous years. The Asymptotic Significance with Kolmogorov-Smirnov test is used to determine the difference in financial performance. Findings: (1) Papua Province's financial performance between 2015 and 2021 shows that the ratios of independence are still deficient (below 25 percent) with the relation pattern with the central government in the instructional category, that regional dependency still revolves in very high criteria, and that the harmonization ratio is an average of 22.40 percent, with a perception of higher than national level 5-20 percent. (2) From 2015 to 2021, there is no substantive distinction between the regency and city's financial performance in the province. Research, Practical & Social implications: The imperative for in-depth research on regional financial performance in Indonesian provinces are linked to other variables such as regional loans or government policy that makes loans one of the regional sources of income. Improve the amount and quality of human resources in regional financial management, which naturally alters the regional financial management system. Originality/value: To improve the region's financial performance, the local government must increase local income through polling business more intensively and effectively. Local governments must establish more income targets with projections, modify rules relating to PAD improvement activities, and identify new PAD sources.

Pengaruh Pendapatan Asli Daerah dan Belanja Modal Terhadap Kinerja Keuangan Pemerintah Daerah Tingkat II di Provinsi Jawa Timur Periode 2018 – 2022

The emergence of the Covid-19 virus in 2019 caused an economic crisis for all regions in Indonesia. So an appeal was issued to prevent the occurrence of Covid-19. However, this implementation has affected various sectors, especially the economic sector. East Java Province is one of the provinces affected by the Covid-19 pandemic, so that the economy in East Java Province has experienced a decline. The purpose of this study was to determine the effect of Regional Original Revenue and Capital Expenditures on the Financial Performance of the Level II Regional Government of East Java Province for the 2018-2022 Period. The research methodology uses a quantitative research methodology, the sample used uses saturated sampling. Data analysis in this study used descriptive statistical analysis with Patrial Least Squares (PLS) software. The results of this study are that regional original income has a significant effect on local government financial performance and capital expenditure has no significant effect on local government financial performance.

Declining financial performance of local governments in Indonesia: An empirical study during Covid-19

This research focuses on assessing the financial performance of Regency/City Governments in Central Java Province after refocusing their budget during the COVID-19 pandemic in 2021. Budget Refocusing is a government policy to cope with the impact of the COVID-19 pandemic. This policy certainly has an impact on the financial performance of local government. The calculation process to measure the financial performance of local government using formulas adopted from the research and development section of the Ministry of Home Affairs as well as the Faculty of Social and Political Sciences, Gadjah Mada University, and applied in previous research to calculate financial ratios such as the local government fiscal decentralization, local government financial dependency, regional original income (PAD) effectiveness, and capital expenditure ratios. The results showed that 71.43% of local governments have financial capability in the less category, 62.86% in the moderate category, and 45.71% have a PAD effectiveness ratio in the very effective category. Moreover, the average capital expenditure ratio for the governments was found to be 11.47%.

Pengaruh Leverage, Jumlah Penduduk dan Umur Pemerintah Daerah terhadap Kinerja Keuangan Pemerintah Daerah: Studi Empiris pada Kabupaten/Kota Provinsi Sumatera Barat Periode 2016-2020

This study aims to determine the effect of leverage, population and age of local government on local government financial performance. The population in this study is Regency/City in West Sumatra Province in 2016-2020. This study uses secondary data. The sampling technique used the total sampling method with a sample of 19 districts/cities with a period of 5 years. This study uses multiple linear regression analysis on hypothesis testing. The results showed that the leverage and age of the local government had a positive and significant effect on the financial performance of the local government. While the population has a negative and significant effect on the financial performance of local governments.

Analisis Kinerja Keuangan Pemerintah Provinsi Kalimantan Timur Sebelum dan Selama Pandemi Covid-19

The Covid-19 pandemic that swept across the globe had a significant impact on Indonesia's economy. The purpose of this study is to compare the East Kalimantan Provincial Government's financial performance prior to and during the Covid-19 pandemic. The East Kalimantan Provincial Government's audited financial statements for the 2019 and 2020 fiscal years served as the secondary data for this descriptive quantitative study. Literature review was used as the data collection in this study. The East Kalimantan Provincial Government's overall financial performance in dealing with the Covid-19 pandemic is shown by the analysis of local government financial performance using financial ratios. The East Kalimantan Provincial Government has been able to maintain financial stability and maximize local revenue despite several financial aspects that have decreased and need to be improved, such as the efficiency of financial management, a more balanced allocation of expenditures between operational and capital, and regional growth that has decreased as a result of Covid-19.

ANALYSIS OF REGIONAL REVENUE AND EXPENDITURE BUDGET FOR KEDIRI REGENCY DURING THE COVID-19 PANDEMIC

The existence of the Covid-19 pandemic has had an impact on all economic sectors including the financial performance of local governments. Regional financial analysis is a tool that can be used as a benchmark to assess the extent to which local government performance is managing its finances. Regional ability to manage finances is described in the form of APBD which directly or indirectly reflects the ability of local governments to finance the implementation of governmental tasks, development and community social services. The purpose of this study was to determine the financial management performance of the Regional Government of Kediri Regency based on the analysis of financial ratios in the Kediri Regency APBD. This research is a data series research, namely the Realization of APBD data for 2020 to 2022 in Kediri Regency. The analysis used is normative juristic with a descriptive approach case study method. The analysis tools used are tax ratio, per capita tax, regional fiscal space, regional dependency ratio, ratio of personnel expenditure to total regional expenditure, ratio of capital expenditure to total regional expenditure, ratio of capital expenditure to population, ratio of financial aids expenditure to total regional expenditure, idle funds, growth ratio, effectiveness ratio, and efficiency ratio. From the results of the analysis it is known that the majority of APBD performance during the Covid-19 pandemic had fluctuations.

Financial Performance of Local Governments Before and After Refocusing and Budget Reallocation Policy for Handling Covid-19 In Indonesia

The pandemic of COVID-19 requires all levels of government to take action under a broad context of economic uncertainty and social pressures. In Indonesia, a policy of refocusing and reallocating the budget is implemented as a regional government action to overcome the impact of Covid-19. The purpose of this research is to examine the impact of refocusing and budget reallocation policies on the fiscal health of Indonesian municipalities in the wake of the Covid-19 outbreak. The sample in this study uses districts and cities in Indonesia. The Regional Government Financial Reports for 2018 and 2019 represent the pre-refocusing and budget reallocation years, then 2020 and 2021 as the years and post-refocusing and budget reallocation. Using the independence and effectiveness ratios, the results demonstrate that pre- and post-refocusing and budget reallocation regional governments differed significantly in their financial performance. The efficiency ratio, however, shows no change between the pre-and post-refocusing and budget reallocation.

Analisis Kinerja Keuangan Pemerintah Daerah Dan Pengaruh Pendapatan Asli Daerah, Dana Perimbangan, Dan Sisa Lebih Pembiayaan Anggaran Terhadap Belanja Modal

<p align="justify">This study aims to determine the financial performance of the Districts/Cities Governments in Jambi Province with the Regional Financial Independence Ratio and the Degree of Regional Financial Decentralization. As well determine the effect of Original Local Government Revenue (PAD), Balancing Funds and Financing Surplus on the Capital Expenditure in Districts/Cities in Jambi Province. This study is a quantitative descriptive research and quantitative research. The data used in this study is quantitative data with documentation techniques. The sample for this research is 11 districts/cities in Jambi Province on the official website of the Directorate General of Fiscal Balance. This study uses the Descriptive Analysis Method using ratios was used to financial performance of the Districts/Cities Governments in Jambi Province and Multiple Linear Regression Analysis with the help of SPSS version 25 was used to determine the effect of Original Local Government Revenue (PAD), Balancing Funds and Financing Surplus on the Capital Expenditure in Districts/Cities in Jambi Province. The results showed that the financial performance of the Districts/Cities Governments in Jambi Province, in terms of Regional Financial Independence Ratio, was categorized as very low and the Degree of Regional Financial Decentralization Ratio, it was categorized as very less. The results of testing the effect of PAD, Balance Fund and SILPA variables on Capital Expenditure show that PAD has no effect on Capital Expenditure, Balance Fund has no effect on Capital Expenditure, SILPA has an effect on Capital Expenditure.</p><p><strong>Keywords</strong>: Local Government Financial Performance, PAD, Balancing Fund, SILPA</p>

Peran Sinyal Keuangan pada Anggaran Pendapatan dan Belanja Daerah terhadap Kinerja Pemerintah Daerah

This research aims to allocate the APBD made and planned by the Regional Government to improve the performance of the Regional Government, especially in terms of regional welfare and development. The research population is 34 provinces in Indonesia in 2019-2021. This study uses several independent variables, namely regional wealth, regional size, and capital spending to examine the relationship between the dependency variables proxied by local government performance. The study used quantitative methods with multiple regression analysis using the IBM SPSS 25 statistical test tool. The results showed that regional wealth, regional size, and spending capital had no effect on regional government performance.
 Keywords: APBD; Local Government Financial Performance; Regional Wealth; Local Goverment Size; Capital Expenditures

Pengaruh Ukuran Pemerintah Dearah, Belanja Modal, Dana Perimbangan, Dan Pendapatan Asli Daerah Terhadap Kinerja Keuangan Pemerintah Daerah Kota/Kabupaten Di Provinsi Bali

This study aims to examine the effect of the size of the local government, capital expenditures, balancing funds and local revenue (PAD) on the financial performance of local governments in the province of Bali for the period 2017 to 2020.The population in this study is all regencies/cities of the province consisting of nine regencies. in the Province of Bali. The nine objects were observed for five periods (2017-2020). The sample used is 36 districts in the province of Bali. By using the saturated sampling method. Data obtained through the LRA report and balance sheet using non-participant observation methods as data collection which will later be processed so that it does not require a questionnaire (list of questions). from the research results it is reflected that the increasing size of government will have an impact on decreasing financial performance. Capital Expenditures have no relation to Financial Performance measures. Balancing Funds are negatively related to Financial Performance. PAD does not directly affect Financial Performance.

Determinansi Kinerja Keuangan Pemerintah Daerah

This study aimed to determine the effect of capital expenditure and accrual directors on financial performance in Aceh local government. The research method used is a quantitative approach using secondary data. The data analysis method used in this research is multiple linear regression. The population in this study were all districts/cities in Aceh Province, totalling 23 City Districts, with the observation year taken being 2017-2019. From 23 samples with three years of observation, 69 observations were obtained. The results showed that capital expenditure affects the financial performance of local governments. However indicates that local governments make capital expenditures appropriately and effectively, so this can improve the financial performance of local governments. Accrual directors affect the financial performance of local governments. However, by using an accrual accounting system, directors can better evaluate the financial performance of local governments.

Local Government Financial Performance with a Value For Money Approach: Evidence from Jayapura Indonesia

The objective of this study is to evaluate the financial performance of the Jayapura City Education and Culture Office through the utilization of the Value for Money approach, which has three primary components: economy, efficiency, and effectiveness. This study is a descriptive research conducted to examine the financial performance of programs and activities within the Jayapura City Education and Culture Office. The study specifically focuses on analyzing the budget targets and actual outcomes as reported in the Jayapura City Education and Culture Office's Government Agency Performance Accountability Report (LAKIP) for the periods of 2019 and 2020. The employed methodology for data analysis is quantitative descriptive analysis, which aims to assess several dimensions of economy, efficiency, and effectiveness. The present analysis is based on research findings about the performance of the Jayapura City Education and Culture Office in three specific programs. These programs include the Nine-Year Compulsory Education Program, the Improvement Program for the Development of Performance and Financial Reporting Systems, and the Procurement, Improvement, and Repair of Educational Facilities and Infrastructure Program. The findings of this study offer a comprehensive analysis of the financial performance of the Jayapura City Education and Culture Office, thereby serving as a valuable point of reference for enhancing and advancing future projects.

ANALISIS DAMPAK PANDEMI COVID-19 TERHADAP KINERJA KEUANGAN DAERAH

The COVID-19 pandemic is an outbreak of an infectious disease originating from the SARS-Cov-2 virus. As the virus grows, it causes various problems in various areas of life in society. The impact felt was so real with the cases of high death rates, unstable economy and other problems. The government, which has an obligation to make people's welfare take various policies to overcome this problem. From policy making, surely, it intersects with state finances which will ultimately affect the financial performance of the government itself. The purpose of this research is to determine the impact of the COVID-19 pandemic on the financial performance of local governments. The method used in writing this article is a qualitative method in the form of a literature review. The data obtained comes from secondary data, namely in the form of indirect retrieval via Google Scholar, Sinta and several articles that support the concept of the theme ranging from 2017-2022. The results of this study show that there have been changes in Indonesia's economic quarter and the regional budget experienced a minus number. Even so, the influence of the Covid-19 pandemic did not have a significant impact on the financial performance of local governments in several regions in Indonesia.

The Impact of Regional Original Income, Capital Expenditure, and Economic Growth on the Financial Performance of Local Governments in the Surakarta Residency from 2015 to 2020

The Impact of Regional Original Income, Capital Expenditure, and Economic Growth on the Financial Performance of Local Governments in the Surakarta Residency from 2015 to 2020

Factors Influencing Local Government Financial Performance

This study aims to examine: The effect of local revenue, balancing funds, and capital expenditures on the financial performance of local governments. The population in this study were all local governments in West Sumatra Province, which consisted of 19 regencies and cities. The sample in this study amounted to 19 districts/cities. The data analysis techniques are descriptive statistics, multiple regression analysis, classical assumption test, hypothesis test, and R square test. The results showed that: regional income has a negative effect, the balanced fund has no effect, and capital expenditure has no impact on the financial performance of local governments.

Determinant Factors of Local Government Financial Performance (Using Financial Condition Dimension as Indicator)

The Research purpose is to examine the effect of determinan factors, which include government size, Intergovernmental revenue, capital expenditure, Population, and local tax revenue in influencing the local government financial performance with financial condition as proxy. The study Population is district and city government in Central Java The sample was taken by using purposive sampling technique, so we have 105 observation units. Data analysis used panel data multiple regression analysis with Eviews 12. The results showed that governmental size, capital expenditure and local tax revenue have a positive significant effect on the financial performance of local governments. Meanwhile, intergovernmental revenue and population negatively affect the financial performance of local governments. There is a negative effect of population due to the growth of population is not proportional to the improvement in regional financial conditions, thus reducing financial performance.

PERAN TAX EFFORT PADA PENGARUH FLYPAPER EFFECT DAN FISCAL STRESS TERHADAP KINERJA KEUANGAN DAERAH KABUPATEN/KOTA DI PROVINSI ACEH

This study was to analyze of the significant effect or not of the effect of flypaper and financial stress on the financial performance of local governments with tax effort as a moderate variable. The data for this research were obtained from the DJPK in the form of the Regional Revenue and Expenditure Budget Achievement Report (APBD) as well as the supporting data in the form of the Revenue and Expenditure Budget. Regional budgets (APBD) and supporting data in the form of the Regional Revenue and Expenditure Budget (APBD). The GDP for Aceh Province is derived from the BPS in the Regency/City during the 2012-2021 period. Data analysis method was used is regression panel data with Eviews12 software. This study result was indicate that the flypaper effect has, in part, significant negative on local financial performance. Fiscal stress has a partially not significant negative on regional financial performance. Tax effort has a partially significant positive on regional financial performance. Tax effort can moderate the relationship between the flypaper effect on financial performance and then tax effort can moderate the relationship between the fiscal stress on financial performance of districts/municipalities in Aceh province.

Intervening Alokasi Belanja Pada Pengaruh Kinerja Keuangan Terhadap Pertumbuhan Ekonomi Pemerintah Daerah Jawa Tengah

This study aims to examine and analyze the effect of local government financial performance as measured by the independence ratio, dependency ratio, degree of decentralization, PAD effectiveness ratio, degree of BUMD contribution and debt to income ratio on capital expenditure allocation and economic growth. As well as to examine and analyze the effect of local government financial performance as measured by the independence ratio, dependency ratio, degree of decentralization, PAD effectiveness ratio, degree of BUMD contribution and debt to income ratio on economic growth to mediated capital expenditure allocation.
 This research is a correlational study with a causal relationship, namely to examine the effect of regional financial performance on economic growth through the allocation of capital expenditures as an intervening variable. The sample in this study was 35 Regency / City Governments in Central Java. The data analysis technique used path analysis with SEM (Structural Equation Modeling).
 The results showed (1) Financial independence, financial dependence and the degree of BUMD's contribution did not have a direct effect on the allocation of capital expenditures. The degree of decentralization, the effectiveness of PAD and the debt to income ratio have a direct and significant effect on the allocation of capital expenditures. (2) Financial independence, degree of decentralization and effectiveness of PAD have a direct effect on economic growth. Financial dependence, degree of BUMD’s contribution, debt to income ratio and capital expenditure allocation do not have a direct and significant effect on economic growth. (3) Capital expenditure allocation mediates the effect of the degree of decentralization, the effectiveness of PAD and the degree of BUMD's contribution on economic growth. However, the capital expenditure allocation does not mediate the effect of financial independence, financial dependence and the debt to income ratio to economic growth.

Pengaruh Ukuran Pemerintah Daerah, Leverage Dan Dana Perimbangan terhadap Kinerja Keuangan Pemerintah Daerah (Suatu Kajian Studi Literatur Manajemen Keuangan Daerah)

Writing previous and appropriate scientific papers has an important role for writing subsequent scientific papers, especially regarding the influence of each variable or other variables. This scientific paper reviews the subject of a literature study on factors that affect local government financial performance, namely the size of local government, leverage, and balance funds. This scientific work is written by researchers so that they can determine hypotheses in determining hypotheses that result in variables so that they are useful for subsequent writing. The results obtained, such as: 1) The size of the local government has a positive and quite important impact on the financial performance of the local government; 2) Leverage has a positive and significant impact on the financial performance of local governments; 3) Balancing funds have a positive and significant impact on the financial performance of local governments; 4) The size of the local government, leverage, and balance funds have a positive and crucial effect simultaneously on the financial performance of the local government.

THE INFLUENCE OF REGIONAL ORIGINAL REVENUE, GENERAL ALLOCATION FUNDS, SPECIAL ALLOCATION FUNDS, REGIONAL GOVERNMENT SIZE, AND AUDIT OPINION ON THE FINANCIAL PERFORMANCE OF REGIONAL GOVERNMENTS IN CENTRAL JAVA IN 2013-2016

This study aims to determine various factors that affect local revenue, general allocation funds, special allocation funds, local government measures, and audit opinions on the financial performance of local governments. The research used is a quantitative study with population of districts / cities in Central Java during 2013-2016. The technique used for the sample is purposive sampling, there are 35 districts / cities. The data analysis technique used in this study is multiple linear regression analysis. The results of this study that the Regional Original Revenue has a positive effect on the financial performance of local governments, General Allocation Funds have a significant negative effect on the financial performance of local governments, Special Allocation Funds have a significant positive effect on the financial performance of local governments, regions, Audit Opinion has no significant positive effect on the performance of local government.