Local Financial Independence Research Articles

Analisis Kinerja Keuangan pada Pemerintah Kabupaten/Kota di Provinsi Jambi Tahun 2020-2022

This study aims to evaluate the financial performance of district/city governments in the province of Jambi during the period of 2020-2022, measured using the Degree of Decentralization Ratio, Local Financial Dependency Ratio, Local Financial Independence Ratio, Local Own Revenue Effectiveness Ratio, and Expenditure Efficiency Ratio. This research is a descriptive quantitative study that utilizes secondary data from audited Local Government Budget Realization Reports. The results show diverse patterns of financial performance: the majority of district/city governments have a Very Low Degree of Decentralization, Local Financial Independence tends to be Extremely Low with an instructive relationship pattern, Local Financial Dependency is generally high, Local Own Revenue Effectiveness is mostly Very Effective with diverse distributions, and Expenditure Efficiency is generally categorized as Efficient.

FINANCIAL PERFORMANCE ANALYSIS OF SUBANG REGENCY LOCAL GOVERMENT

The aim of this research is to assess the Financial Performance of Subang District Local Government by analyzing the Budget Realization Reports (LRA). This study adopts a quantitative descriptive approach involving calculations based on financial data obtained to address the research objectives. The research is conducted at the Subang District Financial and Asset Management Agency (BKAD). Data collection relies on the documentation method. The data analysis technique used is quantitative descriptive, employing the following formulas: (1) Budget Growth, (2) Analysis of Revenue Budget Ratios: Degree of Decentralization, Local Financial Dependence, Local Financial Independence, Effectiveness and Efficiency of Local Own-source Revenue (PAD), Effectiveness and Efficiency of Local Taxes, (3) Analysis of Expenditure Alignment: Operating Expenditure to Total Expenditure, Capital Expenditure to Total Expenditure, Direct and Indirect Expenditure, (4) Expenditure Efficiency. The results indicate that the financial performance of Subang District Government during 2015-2017 can be considered excellent. This is evident through positive revenue growth, a high degree of decentralization with an average percentage of 100%, very low local financial dependence at 0%, and high local financial independence with a delegative relationship pattern of 100%. The average effectiveness of PAD is highly effective at 122.53%, while the average efficiency is very efficient at 4.01%. The average effectiveness of local taxes is highly effective at 115.48%, while the average efficiency is very efficient at 4.22%. The analysis of expenditure alignment shows that the average operating expenditure to total expenditure is 94.15%, and capital expenditure is 5.85%, indicating insufficient attention to regional development. The average direct expenditure is 74.24%, and indirect expenditure is 25.76%. The average expenditure efficiency is 81.89%. Based on this research, for future studies, it is recommended to include additional financial statements for analysis, such as the balance sheet and income statement. Furthermore, the Subang District Government is advised to maintain its current performance.

Analisis Kinerja Keuangan Daerah Serta Pengaruhnya terhadap Belanja Modal Kabupaten Batang Hari

This research entitled "Analysis local financial performance Its Influence To Capital Expenditure Of Regency Of Batang Hari ". The purpose of the study is 1). To know and DOF, RKD And RKKD of the districts of Batang Hari region; 2). To know and analyze the influence of DOF, RKD And RKKD on capital expenditure The districts of Batang Hari. This research uses descriptive quantitative analysis method. Descriptive analysis to analyze local financial capacity and quantitative analysis to analyze the influence of local financial ability on capital expenditure. The result of analysis shows that the financial capacity of Batang Hari Regency is seen from the degree of fiscal autonomy and the ratio of regional financial independence is categorized very low as well as the regional financial dependency ratio is still very high. The degree of fiscal autonomy have significant effect on the capital spending of the local government of Batang Hari Regency, then the ratio of local financial independence and of regional financial dependency have no significant effect on the capital spending of the local government of Batang Hari Regency..

Analysis of The Effect of Original Local Government Revenue, Central Transfers and Legitimate other income on Financial Independence of Regency/City of North Sumatra Province and Central Java Province with Implementation Expenditure Efficiency as a Moderating Variable

The level of local financial independence is one of the indicators of regional financial success in carrying out regional autonomy and improving the quality of services in the regions. This study aims to determine and analyse the effect of local original income, central transfers and Legitimate other income on the level of Local financial independence in the regency/city governments of North Sumatra and Central Java provinces in 2010-2019. This study will also examine the variables for the application of spending efficiency, which are used as moderation variables in the study. This study used the object of the Regency/City Government of North Sumatra and Central Java Provinces. The type of data used is secondary data with the hypothesis test used is multiple linear regression analysis and interaction moderation variable test with the help of STATA software. The results of this study show that original local government revenue has a significant positive effect on the level of local financial independence, and central transfer has a significant negative effect on the level of local financial independence. In contrast, legitimate other incomes do not have a significant effect on the level of local financial independence. The results of this study also show that spending efficiency cannot moderate each of the influences of local original income, central transfer and legitimate other income to the level of financial independence of the region. Keywords: Original Local Government Revenue, Central Transfer, Legitimate other income, Expenditure Efficiency and Level of Local financial independence

ANALYSIS OF FINANCIAL INDEPENDENCE RATIO IN MAMUJU REGENCY

The local autonomy policy has given very broad authority to regulate local government. To implement local government, adequate finance is required. This research aims to analyze the financial independence ratio of the Mamuju Regency Government for the 2015-2019 Fiscal Year. To find out the level of local independence ratio is to compare the local revenue with financial assistance provided by the central government, provincial governments, and loans. The research method used is qualitative research with an inductive approach. Data collection techniques are carried out through interviews and documentation. Interviews were conducted to 5 (five) informants using snowball sampling technique. The data that has been collected is then analyzed through data reduction, data presentation, and drawing conclusions. The results showed that the ratio analysis of local financial independence was 7.18% in the Very Low category. As for the inhibiting factors for the low ratio of financial independence, namely the lack of planning, the lack of use of technology, and the low competence of employees. With regard to these conditions, local governments should increase local revenue by optimizing local tax and levy revenues by making special applications to facilitate the collection of local taxes and levies, as well as innovating related to the development of Local Owned Enterprises in accordance with local potential.

The Development of Bali's Cocoa Industry through the Hexagon Model for Local Economic Development (LED): Sorga Chocolate Factory

Local Economic Development (LED) is the foundation for maintaining the national economic cycle and supporting local financial independence. In addition to its tourism sector, Bali has potential in the cocoa industry. In 2009, Bali had 12,850 hectares of cocoa land. Balinese cocoa is also famous for its taste and fermentation quality. Unfortunately, the cocoa industry still has several challenges, such as cocoa farmers being comfortable with the value chain formed by the world's largest cocoa companies, Indonesian cocoa's renowned mixed and low-quality cocoa; access to buyers; different prices between farmers, wholesaler, and lead firms; productivity consistency and quality in the upstream sector; and climate change. This research will examine the cocoa industry in Bali using the Hexagon Model for LED and also analyze the upstream-downstream process of the Balinese cocoa industry. The objective of this article is to examine how the Hexagon model for LED in the Balinese cocoa industry can further activate local economic activities and form a resilient and sustainable local economy. The local government has established regulations for the protection of cocoa farmers in collaboration with Kalimajari and Udayana University, however, optimization in implementing the regulations still need to be done, especially in the government sector

The Effect of Capital Expenditures and General Allocation Funds on Local Financial Independence Through Local Revenue as an Intervening Variable in Districts and Cities in North Maluku Province

This study aims to examine the effect of capital expenditure and general allocation funds on local financial independence, either directly or mediated by local revenue. The population is the APBD Realization Report from website of Director General of Local Government Matching Grant. The samples are the document of APBD Realization Report for Regency / City Governments in North Maluku Province for 2015-2019. Data are collected from 2015-2019 District and City Government APBD Realization Reports in North Maluku Province, BPK RI Audit Results Reports and website http://www.djpk.kemenkeu.go.id/ . The collected data is analyzed by multiple regression analysis and path analysis. The analysis found four findings. First, the General Allocation Fund partially has no effect on Local Financial Independence. Second, Capital expenditure partially does not affect on local financial independence. Third, the General Allocation Fund indirectly has a significant effect on Local Financial Independence through Local Revenue. Forth, Capital expenditure indirectly has a significant effect on Local Financial Independence through Local Revenue. DOI: 10.7176/DCS/11-4-03 Publication date: April 30 th 2021

Analisis Kemandirian dan Kemampuan Keuangan Daerah serta Pengaruhnya Terhadap Pertumbuhan Ekonomi Kabupaten/Kota di Provinsi Sumatera Selatan

Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central goverment. However, in practice, there are still many areas that rely on the assistance central finance for their regional development. The purpose of this study was to determine the level of development of local independence and financial ability as well as effects on economic growth in regency and city in the Sumatera selatan Province year 2008-2018.this research takes place in regency and city in the sumatera selatan province. While the data used in this research is financial data and economic growth 2008-2018 in the sumatera selatan province. Methods of data analysis in this study there are two kinds, the first is the ratio of local independence and the ratio of local financial ability. Secondly, to investigate the influence of independent variables on the dependent variable used multiple linear regression analysis tool. According to analysis result have been obtained as follows. The ratio of local financial independence of regions indicated by the ratio of the average rate so low, still be between 0%-25%. According the ratio of local financial ability of regions averages between 0%-10% which is low. Local self-reliance has positive and significant on economic growth. Regional financial capability have positive but not significant effect on economic growth in regency and city in the sumatera selatan province.

PENGARUH PENDAPATAN ASLI DAERAH, DANA PERIMBANGAN, DANA OTONOMI KHUSUS DAN TINGKAT KEMISKINAN TERHADAP TINGKAT KEMANDIRIAN KEUANGAN DAERAH DI KABUPATEN/KOTA PROVINSI ACEH

ABSTRACT This study aims to examine the effect of Regional Original Revenue, Balancing Funds, Special Autonomy Funds, and poverty levels on the level of local financial independence. The research data used is a combination of cross section with time series in 23 regencies / cities in Aceh Province during 2013-2018, obtained from the Budget Realization Report (LRA) issued by the Directorate General of Fiscal Balance of the Ministry of Finance (DJPK Ministry of Finance). The data analysis method used is Panel Data Regression with the help of Eviews 9. The results of this study prove that the Regional Original Revenue has a positive and significant effect on the level of regional financial independence, while the balance funds and special autonomy funds have a negative and significant effect on the level of regional financial independence. The poverty does not significantly influence the level of regional financial independence. Keywords : Regional Original Revenue, Balancing Fund, Special Autonomy Funds, Poverty Levels and Financial Independency Ratio

Key elements of local government transparency in new public governance

Transparency is a challenge for public administration reforms for now and beyond towards modern and better governance. The economic crisis that occurred has led to a large erosion of public confidence in the effectiveness of government financial management. This study aims to analyze the key elements of local government transparency in new public governance. The research data was obtained through financial reports on local government websites. The sample selection technique used purposive judgment sampling and yielded a total of 262 local governments in Indonesia. The analytical method used is logistic regression analysis. The results showed that key elements, reflected by the local government size and local financial independence ratio, had a significant influence on the implementation of internet financial reporting, while audit opinions do not have a significant effect. This is due to changes in public perception of the quality of audit opinions provided by the Audit Board. This study emphasizes that local governments that receive a fair or unfair audit opinion cannot prove with certainty that the local government has performed good or poor financial management. Audit opinions obtained by local governments do not always facilitate the publication of financial statements on their official websites.

PENGARUH PENDAPATAN ASLI DAERAH (PAD) DAN DANA PERIMBANGAN TERHADAP KEMANDIRIAN KEUANGAN PEMERINTAH DAERAH

Local Financial Independence has become one of the main factors to determine whether a local government has optimizing their Local Original Revenue earnings or still depend on their Transfer Revenue, particularly Fiscal Funds from state government, to implement their governance. The purposes of this research are to study the effect that the Local Original Revenue has against Local Financial Independence, to study the effect that the Fiscal Funds has against Local Financial Independence, and to study the effect that both Local Original Revenue and Fiscal Funds have against Local Financial Independence. The data analyzing, methods such as Multiple Linear Regression, F-test and t-test were used to study the effect both independent variables have against the dependent variable. The findings of the study indicate that Local Original Revenue had a positive effect against Local Financial Independence, Fiscal Funds had a negative effect against Local Financial Independence, and Local Original Revenue and Fiscal Funds simultaneously had effect against Local Financial Independence.

Pengaruh Pendapatan Asli Daerah Dan Dana Perimbangan Terhadap Belanja Modal Dan Tingkat Kemandirian Keuangan Daerah

This study aims to determine the effect of regional original income and balance funds on capital expenditure and the level of local financial independence in district and city governments in Riau Province. The population in this study were all districts and cities in Riau Province from 2010-2018. The sample in this study is a total sampling technique, where the entire population is sampled. The number of districts and cities in Riau Province is 12 districts and cities. analysis conducted using Structural Equation Modeling (SEM). the results of this study indicate that regional own-source revenue and balancing funds have a significant effect on the level of regional financial independence while capital expenditure is not proven to mediate the relationship between regional own-source revenue and the balancing fund with the level of regional financial independence.

Analisis Kemandirian dan Kemampuan Keuangan Daerah serta Pengaruhnya Terhadap Pertumbuhan Ekonomi Kabupaten/Kota di Provinsi Sumatera Selatan

Abstract Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central goverment. However, in practice, there are still many areas that rely on the assistance central finance for their regional development. The purpose of this study was to determine the level of development of local independence and financial ability as well as effects on economic growth in regency and city in the Sumatera selatan Province year 2008-2018.this research takes place in regency and city in the sumatera selatan province. While the data used in this research is financial data and economic growth 2008-2018 in the sumatera selatan province.Methods of data analysis in this study there are two kinds, the first is the ratio of local independence and the ratio of local financial ability. Secondly, to investigate the influence of independent variables on the dependent variable used multiple linear regression analysis tool. According to analysis result have been obtained as follows. The ratio of local financial independence of regions indicated by the ratio of the average rate so low, still be between 0%-25%. According the ratio of local financial ability of regions averages between 0%-10% which is low. Local self-reliance has positive and significant on economic growth. Regional financial capability have positive but not significant effect on economic growth in regency and city in the sumatera selatan province.Key word: local goverment, local finance, local independence

Local Financial Performance and Its Impact on Border Community Welfare

The capability and creativity of financial management conducted by the foremost and outermost local governments should support the orientation of the central government in developing the nation border areas. It needs to be carried out to able to accelerate the development of the areas and to implement regional autonomy policy and fiscal decentralization nowadays. Accordingly, this research aims to discover the local financial performance in Indonesian outermost and foremost areas based on the various calculating indicators. This research also intends to reveal the local financial independence impacts of outermost and foremost areas on their people’s welfare. The analysis results indicate that most of the outermost and foremost local governments in Indonesia possess a very low financial independent ratio. Those areas still prioritize their government expenditure to fulfill the indirect purchase which is not paying attention to develop their areas. Overall, the financial performance of those areas until now does not contribute a real impact on improving the border people’s welfare.

ANALISIS KINERJA KEUANGAN DAERAH KABUPATEN/KOTA DI PROVINSI KALIMANTAN SELATAN TAHUN ANGGARAN 2013-2017

The aim research (1) to know local financial performance with ratio of fiscal decentralization degree, local financial independent, effectiveness of PAD, local finance efficiencey and growth PAD regencies/municipalities in South Borneo province 2013-2017, (2) to know business sector which contributed in PDRB. Technical analysis data is descriptif analysis. The result research showed : by average fiscal decentralization degree ratio 9 regencies still very less and 4 regencies/cities less, 7 regencies low, average local financial independence 4 regencies still very low, 7 regencies low and 2 municipalities enough independence, average effectivene PAD ratio almost all of regencies/municipalities very effective except Banjarmasin municipality are effective, average local financial efficiency ratio 9 regencies/municipalities less effecient and 2 regencies enough efficient, while Banjarbaru municipalities inefficient, growth PAD ratio is positive. Keywords: fiscal decentralization degree ratio, local financial independence ratio, effectiveness of PAD ratio, local financial efficiency ratio, PAD growth ratio.

Education Expenditure in Aceh Local Governments An Empirical Evidence from Aceh

This study aims to examine the effect of Local Financial Independence, Last Year Budget Balance, LGs Size, and Local Revenue Growth on Education Expenditure by using data from districts and cities in Aceh for 2011-2015. The results of the study show that the Local Financial Independence and the Previous Budget Fund have a negative effect on the Education Expenditure, while the other two variables have no effect.

DETERMINAN KINERJA ANGGARAN BELANJA PENDIDIKAN PADA KABUPATEN/KOTA DI ACEH

The purpose of this research is to examine the determinants of the Education Budget Performance in Aceh, namely Local Financial Independence, Last Year Budget Balance, Government Size, and Local Revenue Growth using data from districts and cities in Aceh for year 2011-2015. The results of the study show that Local Financial Independence and Last Year Budget Balance has a negative effect on Education Budget Performance, while the other two variables have no effect.

PENGARUH PENDAPATAN ASLI DAERAH (PAD), DANA ALOKASI UMUM (DAU) DAN DANA ALOKASI KHUSUS (DAK) TERHADAP TINGKAT KEMANDIRIAN KEUANGAN DAERAH KABUPATEN BANYUWANGI TAHUN PERIODE 2012 – 2016

ABSTRACTThe purpose of this research is to know whether there is influence of Local Original Income (PAD), General Allocation Fund (DAU) and Special Allocation Fund (DAK) to the level of Financial Independence of Banyuwangi Regency year 2012 - 2016 either partially or simultaneously. The population in this research is Banyuwangi Regency using secondary data in the form of Budget Realization Report (BRR) of Banyuwangi Regency in 2012 - 2016. Hypothesis testing in this research use multiple linear regression with t test, F test and coefficient of determination. The data that have been collected is analyzed first by testing the classical assumption then hypothesis tested by SPSS 20.0. Based on the research results can be concluded that the partial variable PAD has a significant effect, while the variable DAU and DAK have no significant effect on the level of regional financial independence. Simultaneously, PAD, DAU and DAK variables significantly influence the level of local financial independence. Keywords:Local Own Revenue, General Allocation Fund, Special Allocation Fund and Local Financial Independence Level.

Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum dan Dana Alokasi Khusus terhadap Tingkat Kemandirian Keuangan Daerah pada Kabupaten Banyuwangi Tahun 2012 - 2016

The implementation of regional autonomy is not only focused on central grants in the form of balancing funds. The regions can be self-sufficient to take care of their own households including local financial independence by utilizing and utilizing, and managing the potentials in the regions in order to improve public services to the community and regional development. The purpose of this research is to know whether there is influence of Local Original Income (PAD), General Allocation Fund (DAU) and Special Allocation Fund (DAK) to the level of Financial Independence of Banyuwangi Regency either partially or simultaneously.
 The population in this research is Banyuwangi Regency using secondary data in the form of Budget Realization Report (BRR) of Banyuwangi Regency in 2012 - 2016. Hypothesis testing in this research use multiple linear regression with t test, F test and coefficient of determination. The data that have been collected is analyzed first by testing the classical assumption then hypothesis tested by SPSS 20.0.

THE EFFECT OF CAPITAL COST AND GENERAL ALLOCATION FUND TO THE REGIONAL FINANCIAL INDEPENDENCE IN BANDUNG CITY GOVERNMENT

To measure the region in the field of finance performance, the level of Regional Financial Independence was used. The level of Regional Financial Independence was indicated by the size of the Local Original Income when compared with regional income derived from other sources. Several areas in West Java Province have a phenomenon where local revenues increase but local financial independence decreases. The purpose of this study is to discover the quantity of Cost of Capital, General Allocation Fund and Level of Regional Financial Independence in Bandung City during the year 2010–2016. In addition to that, it is also meant to comprehend the effect of Cost of Capital and General Allocation Fund to the level of Regional Financial Independence both simultaneously or partially. The research method used was multiple regression analysis by comparing the research variables namely Cost of Capital and General Allocation Fund as independent variable with the Regional Financial Independence of Bandung city area as dependent variable. The results of this study signify that Cost of Capital and General Allocation Funds have a significant effect on the city government's Regional Financial Independence. It illustrates that Cost of Capital and General Allocation Fund are able to become predictor variable to improve Regional Financial Independence. Partially the Cost of Capital has a positive influence on the level of regional autonomy while the general allocation fund has a negative effect on the level of local financial independence.