Regional Financial Independence Research Articles

Analisis Laporan dan Kinerja Keuangan Pemerintah Daerah Kabupaten Sambas

This research aims to analyze the financial performance of the Sambas Regency Regional Government for 5 years from 2017 to 2021 and test whether there are differences in the performance of the degree of decentralization, performance of regional financial independence, performance of operating expenditures, and performance of capital expenditures. The analytical tools used are financial ratios, namely liquidity ratios, leverage ratios, debt ratios, productivity ratios and operating ratios. The research uses quantitative descriptive data analysis methods. The research results show that the liquidity ratio which consists of the average current ratio is 0.82, meaning that every Rp. 1,- of current debt is guaranteed by Rp. 0.82,- of current assets; The average cash ratio is 0.35, meaning that for every Rp. 1,- of current assets, Rp. 0.35 is cash and cash equivalents; the average cash to current liabilities is 0.29, meaning the regional government's ability to immediately pay every Rp. 1.- of current debt using cash and cash equivalents is Rp. 0.29,-; The average Quick Ratio is 0.60, meaning that the local government's ability to fulfill its short-term obligations for every Rp. 1,- using cash, cash equivalents and receivables is Rp. 0.60,-; The average cash flow ratio is 2.31, meaning the ability of a Regional Government's operating cash flow to pay for every Rp. 1,- of current debt owned using operating cash of Rp. 2.31,-. The leverage ratio measured is the Short Term Debt to Long Term Debt Ratio of 1.00. The debt ratio measured is the Total Liabilities to Current Assets Ratio. The average is 1.24 and the average Current Liabilities to Total Asset Ratio is 0.05, meaning that for every R.1,- debt is guaranteed by total assets of Rp.0.05,- The productivity ratio measured is Current Assets to Total Assets Ratio . The average is 0.04, meaning that for every Rp. 1,- current assets used for operational activities is Rp. 0.04,- Quick Asset to Inventory Ratio, the average is 2.67. The operating ratios measured include the average Earning Power of Total Investment of 0.10. The average financial independence ratio is 0.11 or 11%. From the aspect of relationship patterns and level of capability, the region is in the very low category with an instructive relationship pattern. The Public Participation Level Ratio is 0.07. This ratio shows the level of public participation in paying taxes, in this case all regional tax revenues, tax revenue sharing, both central and provincial. The higher the ratio value of the level of public participation of a Regional Government, the better it will be. From the calculation results it can be seen that for every Rp. 1,- Revenue, which comes from taxes is Rp. 0.07,- Debt Service Coverage Ratio (DSCR) for the Regional Government of Sambas Regency, the average for 2017-2021 is 2.79 or still above the minimum requirement of 2.5 as regulated in PP No. 107 of 2000 concerning Regional Loans article 6 letter b. However, in 2020 the DSCR was 2.35 and in 2021 it was 1.79, which is below the minimum requirements as regulated in PP 107/2000. This condition is caused by the relatively increasing number of regional loans from year to year. So the regional government for the coming year must ensure that the DSCR is still at the minimum limit outlined by the central government because if loans continue to increase there will be concerns that the Sambas Regency Regional Government will not be able to meet mandatory spending as regulated by PP 30/2011 concerning regional loans explanation of article 15 paragraph (1) letter b.

Kemandirian Keuangan Daerah Pemerintah Kota Tasikmalaya Tahun Anggaran 2019-2022

This research aims to describe the regional financial independence of the Tasikmalaya City Government for the 2019-2022 fiscal year. Considering that the PAD of Tasikmalaya City is still at a low level in contributing to regional income in Tasikmalaya City in the 2019-2022 fiscal year compared to the element of transfer funds and the regional financial capacity of the Tasikmalaya City Government in managing all sources of local revenue is considered not optimal. This research uses a qualitative approach with a case study research design. This study uses the calculation of the ratio of regional financial independence, the ratio of the degree of fiscal decentralization, the ratio of regional financial dependence, the ratio of PAD effectiveness, and the ratio of PAD efficiency which refers to the theory of Mahmudi (2016). Data collection techniques used in this research are documentation and interviews. The results of the research show that the Tasikmalaya City Government during the 2019-2022 fiscal year has an average regional financial independence is 23.46% with an instructive relationship pattern, the average degree of fiscal decentralization is 18.20% with a category of financial capability is less, the average financial dependence is still classified as very high with a ratio is 77.96%, the average effectiveness of PAD is 98.06% with a moderately effective category, and the average PAD efficiency is 1.82% with a very efficient category.

Analysis of the Capability, Effectiveness, and Independence of Regional Financial on Gross Regional Domestic Products and Poverty in East Kalimantan

The purpose of this research is to examine and identify the direct impact of regional financial capacity, efficiency, and autonomy on the gross regional domestic product in East Kalimantan. Analyze the immediate impact of the region's financial capacity, efficacy, and independence on poverty in East Kalimantan. Examine the direct impact of the gross regional domestic product on poverty rates in East Kalimantan. analyze and evaluate how East Kalimantan's gross regional domestic product mediates the indirect effects of a region's financial capacity, effectiveness, and independence on poverty. This study employs a descriptive correlational design with a cross-sectional method. Panel data were collected from ten districts and cities between 2018 and 2022 using a time series approach. Methods for gathering data through the evaluation of literary works. Data analysis using route analysis, which incorporates multiple linear regression, in the context of economic modeling. The study's findings indicate that the region's financial capabilities have a direct and considerable impact on the Gross Regional Domestic Product (GRDP) in East Kalimantan. On the other hand, the impact of regional financial effectiveness on GRDP in East Kalimantan is both positive and statistically insignificant. Similarly, regional financial independence has a direct but statistically minor impact on East Kalimantan's Gross Regional Domestic Product (GRDP). The number of financial resources and the effectiveness of financial operations at the regional level have a direct and considerable impact on poverty rates in East Kalimantan. In contrast, establishing financial independence in a specific area has a big and detrimental impact on poverty in East Kalimantan. The Gross Regional Domestic Product (GRDP) has a substantial impact on poverty levels in East Kalimantan. The competence, effectiveness, and independence of regional finances have an impact on the Gross Regional Domestic Product, which in turn affects the relationship between regional finances and poverty in East Kalimantan.

Analysis of Financial Performance of Tegal Regency Local Government

The management and accountability in the activities of regional autonomy and local finance are regulated by Government Regulation Number 1 of 2022, which states that financial management at the regional level starts from the initial planning to the supervision of the regional finances. The success of performance improvement is deemed effective when it aligns with government regulations. Kabupaten Tegal is one of the regions whose capacity to self-finance governance, development, and public services is still reliant on transfers from the central and provincial governments. This is evident in the low Regional Financial Independence Ratio, which stands at 22.10%. Kabupaten Tegal has yet to fully implement fiscal decentralization, as indicated by the fluctuating fiscal decentralization ratio, which falls into the low category. To provide better public services, Kabupaten Tegal must optimize its Local Own-Source Revenue (PAD) potential.

Analysis of the Financial Capability of the Semarang City Regional Government over the Period 2018- 2022

Regional autonomy gives regions full authority to regulate and manage the resources they have. However, to ensure independence, effectiveness and efficiency in the management of Semarang City regional finances by the Semarang City Regional Financial Agency, it is necessary to establish clear standards or guidelines. This research aims to evaluate the regional financial capacity of Semarang City from the 2018 to 2022 Fiscal Year using various financial ratio analyzes. The analysis includes financial capability ratios (Degree of Fiscal Decentralization), financial effectiveness ratios, financial efficiency ratios, and financial independence ratios. The results of this research show that the regional financial capacity of Semarang City during the 2018-2022 Fiscal Year period, although experiencing fluctuations, still shows a level of financial effectiveness that is in the effective and balanced effective category. Even though there was a decline in 2019 and 2021, the decline did not exceed 15%, it still remains in the balanced effective category, and an increase of above 5% is also included in the effective category. Semarang City's financial efficiency in 2018-2019 is classified as inefficient with an efficiency level above 100%. However, from 2020 to 2022, there will be a change to the efficiency category with an efficiency level below 100%. Semarang City's regional financial independence, although experiencing fluctuations, remains in the delegative category. The increase in the regional financial capacity of Semarang City from the 2018 to 2022 Fiscal Year based on the Degree of Fiscal Decentralization analysis shows an increase of more than 1% each year

ANALYSIS OF THE FINANCIAL PERFORMANCE OF THE KUPANG CITY REGIONAL GOVERNMENT

Purpose: The implementation of regional government is based on the principle of regional autonomy. The implementation of local government is also marked by the change in the system from centralization to decentralization which is directed at accelerating the realization of the welfare of the Indonesian people. Therefore, each region is required to be more independent in managing and managing its government affairs, including in managing regional finances. One of the vital cycles in regional financial management is reporting carried out at the end of each accounting period, in the form of local government financial reports (LKPD). LKPD can be used as a means of conducting performance analysis so that it can increase the role of financial reports themselves. Therefore, the author will conduct more in-depth research to determine the performance of the Kupang City Regional Government over the last 5 years.
 Design/methodology/approach: This research uses a quantitative descriptive approach. The data collection method will be carried out with documentation. The data is a Budget Realization Report contained in the BPK Audit Results Report for 2018-2022.
 Findings: The data is then analyzed using financial ratio analysis in the form of regional financial independence ratios, regional financial dependence ratios, degree of decentralization ratios, ratios of effectiveness of regional original income, ratios of regional financial efficiency, harmony ratios and growth ratios. The results of the study stated that the role of the central government was more dominant in financing the administration of the Kupang City regional government, the financial dependence of the local government on the center in the form of transfer income during the last 5 years was very high, the percentage of local original income was less when compared to the total income, the effectiveness of regional original income during The last 5 years have been quite effective. local governments need quite large funds and even increase yearly as long as they finance government operations, but capital expenditures are decreasing yearly. On the other hand, revenue growth from 2018 to 2022 tends to decrease, while the growth in operating expenditures and capital expenditures has fluctuated over the past 5 years. Therefore, the Regional Government of Kupang City is expected to maximize the revenue potential in the region. This is to reduce the dominance of the central government in financing the implementation of the Kupang City Regional Government.
 Paper type: Research Paper

ANALYSIS OF THE FINANCIAL PERFORMANCE OF ORIGINAL LOCAL GOVERNMENT REVENUE OF KLATEN

This study aims to discover the financial performance of the Original Local Government Revenue (Indonesian: Pendapatan Asli Daerah, abbreviated PAD) of the Klaten Regency Local Government from 2018 to 2022. This study is quantitative and descriptive. Data analysis was performed using the independence ratio, effectiveness ratio, and contribution ratio. The results show the financial performance of the PAD of the Klaten Regency is very low. It is seen from the regional financial independence ratio from 2018 to 2022 that has a percentage of 17.57% with the pattern of instructive relationships. The PAD effectiveness ratio from 2018 to 2022 shows very effective criteria because the revenue exceeds 100% with a percentage of 115.11%. The PAD contribution ratio from 2018 to 2022 shows moderate criteria because it has a percentage of 25.00%. In addition, there are still several obstacles to increasing PAD experienced by the Klaten Regency Local Government. Based on the results of this study, the researchers give some recommendations, namely optimizing sources of PAD that have not been developed well, digitizing the payment system, promoting Local Government Owned Enterprises directly to the public through social media, and putting efforts to minimize obstacles to increasing PAD.

Analysis Of Financial Performance Of The Regional Government Of Lumajang District For The 2020-2022 Budget Year

This research intends to evaluate the financial performance of the Lumajang Regency Regional Government for the 2020-2022 period. The research approach is quantitative descriptive using secondary data from the 2020-2022 Lumajang Regency APBD. The financial performance of the Lumajang Regency Regional Government in terms of the average figure for the Degree of Fiscal Decentralization Ratio of 15.18% is in the Low category, the Regional Financial Independence Ratio of 17.91% is in the Very Low category with an Instructive relationship pattern, the Financial Dependency Ratio The regional level is 84.82% which is categorized as high level of dependency, the PAD Effectiveness Ratio is 105.64% with the categorization of Very Effective, the Regional Financial Efficiency Ratio is 98.96% which is classified as Less Efficient, and the Capital Expenditure Ratio is still 10.99%. meets standards that are in the range of 5-20%. Based on these findings, it can be concluded that overall the financial performance of the Lumajang Regency Regional Government has not yet reached optimality. However, the calculation results show that there is an increase in financial performance every year

The Effect of local government size, wealth, balancing funds, capital expenditures, employee expenditures and budget financing surplus (SILPA) on regional financial independence in regency/city governments in North Sumatra province

This study aims to determine the effect of Local Government Size, Wealth, Balance Fund, Capital Expenditure, Employee Expenditure, and Budget Financing Surplus (SILPA) on Regional Financial Independence at Regency/City Governments in North Sumatra Province. The population of this study were 33 regencies/cities in North Sumatra Province with a total sample of 28 regencies/cities in North Sumatra Province for the period 2020-2022 based on purposive sampling and using secondary data. The data analysis technique used is descriptive statistics, classical assumption test, multiple linear regression analysis then hypothesis testing. The results prove that partially, Capital Expenditure and Employee Expenditure have a significant positive effect on Regional Financial Independence, while Balance Funds have a significant negative effect on Regional Financial Independence. Local Government Size, Wealth and Budget Financing Surplus (SILPA) have no effect on Regional Financial Independence. Simultaneously, all independent variables have an influence on Regional Financial Independence.

Analisis Rasio Keuangan Untuk Menilai Kinerja Keuangan Pemerintah Kabupaten Jombang Tahun Anggaran 2014 – 2018 (Studi Kasus Di Pemda Kabupaten Jombang)

Financial performance analysis in this study is an assessment process regarding the level of progress in achieving the implementation of work/activities of the Regional Government in the financial sector by using tools in the form of financial ratios which consist of: Analysis of Regional Financial Independence Ratio, Analysis of Regional Financial Dependency Ratio, Analysis of Effectiveness of Original Income Ratio Regions, Regional Financial Efficiency Ratio Analysis, Activity Ratio Analysis, Growth Ratio Analysis and Proportion Analysis The purpose of writing this final project is to determine the financial performance of the Government of Jombang Regency in the 2014-2018 Fiscal Year. The data used are primary and secondary data obtained through interviews, observation and literature study. The data obtained were analyzed using quantitative descriptive analysis methods. After analyzing, it can be concluded that the financial performance of the Jombang Regency Government shows the average regional financial performance which is still unstable. Where the results of calculations every year are still experiencing numbers up and down. This is because the Government of Jombang Regency has not been optimal in managing the wealth of available regional resources. However, on the side of revenue achievement, Jombang Regency has demonstrated its ability to achieve Regional Original Revenue beyond the set targets.

Analysis of Regional Financial Independence and Effectiveness in North Buton District

This research aims to determine and analyze the regional financial independence and effectiveness of North Buton Regency. This research was quantitative. The technique of data collection in this research used secondary data by collecting a summary report on changes to the North Buton Regency Government's Regional Revenue and Expenditure Budget (APBD). The data analysis technique used a descriptive approach. The research results showed that the North Buton Regency Government was aware that it was still dependent on receiving transfer funds from the central government such as the General Allocation Fund and Special Allocation Fund so that it was hoped that it could maximize the potential for local revenue from the regional tax and levy sector to finance regional expenditure, especially capital expenditure, as evidenced by effectiveness analysis results based on APBD data from 2016 to 2020

INFLUENCE OF GENERAL ALLOCATION FUND, SPECIAL ALLOCATION FUND, AND CAPITAL EXPENDITURE ON FINANCIAL PERFORMANCE OF LOCAL GOVERNMENT

The goal of the research is to ascertain how capital expenditures, special allocation funds, and general allocation funds affect government financial performance as evaluated by regional financial independence. Through capital expenditure, special allocation funds, and general allocation fund, local governments can build infrastructure that will provide long-term benefits, provide services to the public, and develop regional investments. The Minister of Finance of the Republic of Indonesia in 2021 highlighted the very low realization of the regional government budget reports. The data used is the Financial Reports of the Regional Government, namely the budget as well as realization report, transfer to the region and village fund report, and regional government budget reports from Regencies and Cities of North Sumatra Province for 2017-2022. The population is 33 regencies aswell as cities in North Sumatra, with a total sample size of 198. Panel data regression using saturated sample approaches is the analytical approach used. Measurements for capital expenditures, special allocation funds, as well as variable general allocation funds are made using realized values represented in rupiah. This research also provides an international perspective to show that general allocation funds and capital expenditure have a significant positive influence on local government financial performance, and special allocation funds have a significant negative influence on local government financial performance.

Analisis Kinerja Keuangan Pada Anggaran Pendapatan Dan Belanja Daerah (APBD) Kabupaten Kebumen

Measuring financial performance is very important in assessing the accountability of local governments in managing local finances. The development of government financial performance can affect the community, because the greater the ability of a region to explore regional potential, not only to provide funds for the implementation of governance and regional development, but also to realize maximum services for the community. In analyzing the financial performance of local governments, it can be done by looking at the performance of the Budget Realization Report (LRA). This study aims to analyze the financial performance of the local government of Kebumen Regency in 2017-2021 based on the Ratio of Degrees of Fiscal Decentralization, Regional Financial Dependence, Regional Financial Independence, Effectiveness of Regional Original Revenue and Efficiency of Regional Original Income. The analysis technique used is quantitative descriptive. The data used is secondary data in the form of Kebumen Regency APBD and LRA reports for 2017 – 2021 obtained from the official website of www.djpk.kemenkeu.go.id. The results of this study show the financial performance of the local government of Kebumen Regency in 2017 – 2021 based on the Fiscal Decentralization Degree Ratio with an average of 15.09%, based on the Regional Financial Dependence Ratio with an average of 23.49%, based on the Regional Financial Independence ratio with an average of 64.59%, based on the average Regional Original Revenue Effectiveness ratio of 117%, and based on the Regional Original Revenue Efficiency ratio with an average of 98.87%.

Analisis Pengaruh Rasio Kemandirian Keuangan Daerah dan Pertumbuhan Ekonomi Terhadap Indeks Pembangunan Manusia Di Kabupaten Tanah Bumbu, Kotabaru dan Tanah Laut Periode (2010-2020)

The purpose of this study is to analyze how the Regional Financial Independence Ratio, Economic Growth, and Human Development index of Tanah Bumbu, Kotabaru, and Tanah Laut have an effect on the Tanah Bumbu, Kotabaru, and Tanah Laut and analyze how the Economic Growth affects the Human Development Index in of Tanah Bumbu, Kotabaru, and Tanah Laut. This study uses regional financial independence, linear panel data regression, classical assumption test, and hypothesis testing. The results of this study indicate that the ratio of regional financial independence partially has a significant adverse effect on the Human Development Index (HDI); the test results show that the probability count is 0.0549>0.05. Meanwhile, economic growth partially has a significant positive effect on the human development index (HDI). The test results show that the probability value of count is 0.0033<0.05.

The Effect of Corporate Social Responsibility and Tourism Development on Regional Development in Berau Regency

The aim of the research is to test the truth of regional development theories, namely firm location theory and new economic geography theory, as well as functional development theory, with the research object being the PT company. Berau Coal in Berau district, East Kalimantan province. It recommends the results of research, namely the corporate social responsibility program and tourism development, towards regional development in Berau Regency, East Kalimantan Province. The method used in this research is a quantitative research method. Multivariate analysis is used in analyzing research, involving variables in a number greater than or equal to three variables. WarpPLS is mutivariate-based and can analyze structural equation modeling (SEM). The results of the research show that PT Berau Coal's corporate social responsibility (CSR) program has a positive and significant effect on regional development. The tourism development that has been carried out has been proven to have a positive and significant effect on regional financial independence. The existence of the tourism industry in Berau district has increased regional development. Regional financial independence will become more independent if the contribution of regional original income (PAD) to funding regional development is greater.

The Effect of Regional Original Income, Balancing Funds and Financing Revenue on Regional Financial Independence with Regional Asset Management as an Intervening Variable

This research aims to examine and analyze the influence of Regional Original Income on Regional Asset Management in the Pamekasan Regency Government, the influence of Balancing Funds on Regional Asset Management in the Pamekasan Regency Government, the influence of Regional Financing Revenue on Regional Asset Management in the Pamekasan Regency Government, and the influence of Regional Asset Management towards Regional Financial Independence in the Pamekasan Regency Government. The population includes 42 Regional Work Units with a total population of 295 people. Meanwhile, the total sample taken was 127 people. Data analysis in this research was carried out using the Structural Equation Model (SEM) method. The software used for structural analysis is SPSS AMOS 24. The research results show that Regional Original Income has a positive and significant effect on Regional Asset Management, Balancing Funds has a positive and significant effect on Regional Asset Management, Financing Revenue has a positive and significant effect on Regional Asset Management, and Regional Asset Management has a positive and significant effect on Regional Financial Independence.

Penilaian Akuntabilitas Keuangan Sektor Publik untuk Menilai Kinerja Keuangan Pemerintah Kota Bandar Lampung

Regional autonomy policies implemented by local governments have a significant impact on their financial management efficiency. It is important to create competitiveness based on principles appropriate to the potential and unique characteristics of each region. Assessing regional financial performance is critical, especially in the context of high-quality accountability principles, including thorough evaluation of regional financial performance measures. This study uses a quantitative descriptive method, focusing on analyzing regional financial ratios. The data used comes from secondary sources, specifically the Bandar Lampung City Budget Achievement Report from 2019 to 2021. The research results show that the regional financial performance of Bandar Lampung City, if evaluated based on the regional financial independence ratio, is ranked at advisory level. However, the original regional income (PAD) efficiency ratio shows inefficiency in managing this source of income. In addition, the regional financial efficiency ratio shows that the level of efficiency has not yet reached the optimal level. PAD, gross income, and operating expenditure growth rates trended negatively, while capital expenditure growth rates trended positively.

The Influence of Expenditure Capital Level, Regional Dependence Level and Independence Level on Growth of The Regional Human Development Index

The goal of this study is to determine the relationship between the human development index and the quantity of regional capital investment, the degree of regional dependence, and the degree of regional financial independence. The Human Development Index (HDI) is the dependent variable, whereas the degree of regional financial independence, the degree of regional financial interdependence, and the degree of capital spending are independent factors. The panel data analysis in this study makes use of the fixed effect model (FEM) methodology. The results show that the degree of regional financial dependence, degree of regional financial independence, and degree of capital investment all considerably and favorably influence the Human Development Index (HDI). It partially depicts how the degrees of regional financial dependence, financial independence, and capital spending have a significant and beneficial impact on the Human Development Index (HDI).

Political Communication Realization of Sragen Regent in the 2nd Period of the Second Year (2020/2022)

This research focuses on the realization of political communication delivered by the Sragen Regent during the campaign at the 2020 Sragen regent election democratic party. Political communication is basically political messages containing the Regent's vision and mission, political communication is a political promise demanded by the community to be realized by the Regent of Sragen. The realization of the Regent's vision and mission is outlined in the main performance indicators of Sragen Regency. The realization of the Sragen Regent's political communication is important to continue to be monitored by the community so that the benefits can be felt by the people of Sragen Regency. This type of research is descriptive qualitative. Data collection methods are interviews and documentation. Data types are primary and secondary data, to analyze data using interactive models. The results of this research are the realization of the Sragen Regent's political communication for the second period of the second year 2022, namely: 1. Human Development Index (expected length of school, average length of school, life expectancy, gender development index, predicate of child-friendly district) target 74.25 % realization 74.65% achievement level 100.54 % 2. Bureaucratic Reform Index (Regency performance accountability predicate, community satisfaction index, level of regional financial independence, SPBE index) target 60.59% realization 60.36 achievement level 99.62%. 3. Growth (per capita income, realized value of capital investment, score on food expectations) target 4.29% realization 5.76% achievement level 134.27%. 4. Poverty rate (reducing poverty rate) target 12.28%, realization 12.94%, achievement level 94.63%. 5. Open unemployment rate (labor force participation rate) target of 4.37%, realization of 4.69%, achievement rate of 92.68%. 6. Environmentally Friendly Infrastructure Index (infrastruktus index. Environmental quality index) target 72.49% realization 73.80% achievement level 101.81%.

The Influence of Regional Financial Independence and Government Spending on Economic Growth and Poverty

This study aims to determine the effect of Regional Financial Independence and Government Expenditure on Poverty and Economic Growth in Kalimantan Island in 2012. The data used in this study is secondary data in the form of Regional Financial Independence, Government Expenditures, Poverty Levels, and Economic Growth in the Province Central Kalimantan, West Kalimantan, East Kalimantan and South Kalimantan. The analytical method used in this study is multiple regression analysis. The results of the first model analysis state that regional financial independence has a negative and insignificant effect on poverty, and government spending has a significant effect on poverty. While the results of the second model analysis are regional financial independence and government spending have a significant effect on economic growth.