Blockchain Papers

Willy Rifokto Kesuma Dharmawan, Tita Djuitaningsih, Micko Ardiansyah

No abstract is available for this record.

Dilgasa Bedada

No abstract is available for this record.

Teguh Priyono, Abdul Aziz Ahmad, Lilis Siti Badriah

Fiscal decentralization is an implementation of regional autonomy, where fiscal decentralization provides space for regional governments to develop the regional economy, including alleviating poverty by utilizing regional financial tools. The aim of this research is to analyze the influence of local revenue, balancing funds and financing funds on poverty. This research uses secondary data with time series data for the period 2007-2022. This research uses multiple regression analysis techniques (Ordinary Least Square). Based on the results of the analysis, it shows that local original income and balancing funds have a negative and significant effect on poverty. Meanwhile, financing funds have no effect on poverty in Purbalingga Regency.

Muhammad Haikal, Sirojuzilam Hasyim, Sukardi Sukardi

This study aims to investigate and analyze the impact of fiscal decentralization on per capita GRDP across provinces in Indonesia. Additionally, the research examines the influence of Regional Own-Source Revenue (PAD) on per capita GRDP across provinces in Indonesia, the effect of the General Allocation Fund (DAU) on per capita GRDP, the effect of Revenue Sharing Fund (DBH) on per capita GRDP, and the overall impact of the Specific Allocation Fund (DAK) on per capita GRDP, and the overall impact of fiscal decentralization on per capita GRDP. The study also seeks to analyze to combined effects of PAD, DAU, DBH and DAK on per capita GRDP across provinces in Indonesia. The data analysis technique employed in this research is panel data analysis. The data used are secondary data, which have been collected by data collection institutions and made available to the public. The data for this study were sourced from the Central Bureau of Statistics, the Directorate General of Fiscal Balance, Ministry of Finance of the Republic of Indonesia (DJPK Kemenkeu), as well as books, journals, and website relevant to this research. The variables include per capita GRDP, Regional Own-Source Revenue (PAD), the General Allocation Fund (DAU), the Revenue Sharing Fund (DBH), and the Spesific Allocation Fund (DAK). The result of the study indicate that during the administration of Susilo Bambang Yudhoyono (SBY), the variable PAD had no effect on per capita GRDP, the variable DBH had no effect on per capita GRDP, and the variable DAK also had no effect on per capita GRDP. Meanwhile, during the administration of Joko Widodo (Jokowi), DBH had no effect, and DAK similarly had no effect on per capita GRDP. Furthemore, the R-square value during SBY’s administration was 11,12%, which is higher compared to the 8,7% during Jokowi’s administration. This indicates that the role of PAD, DAU, DBH and DAK in influencing per capita GRDP was more pronounced during SBY’s administration. Keywords: GRDP, PAD DAU, DBH, DAK

Felly Feliza Fitri, Putu Ayu Anggya Agustina

East Lombok Regency is one of the regencies affected by the establishment of various policies from the central government, one of which is the restriction on the use of transfer funds which were previously the main source of funds for various local governments. This requires the East Lombok Regency Government to make optimal efforts to achieve independence to finance government and development activities. This study aims to analyze the financial performance of the East Lombok Regency Government as seen from the degree of independence, dependence, fiscal decentralization, and effectiveness of Regional Original Income. The data used is the realization of the East Lombok Regency Regional Revenue and Expenditure Budget for the 2020-2022 fiscal year. The study was conducted using a quantitative approach through calculations of several financial ratios, namely independence, dependence, fiscal decentralization, and effectiveness. The results show that the independence of the East Lombok Regency Government is still in the extremely low category which is supported by extremely high dependence on the central government and provincial government, as well as fiscal decentralization which is still in the less-than-ideal criteria. This is also indicated by the Regional Original Income as the main factor in supporting its independence, which has not been optimally realized.

Faisal Akbar Nasution

The implementation of government decentralization in Indonesia is facing regulatory problems for autonomous regions’ financing sources. Therefore, attention to regional finance is increasingly needed given that autonomous regions are required to carry out various central government interests in addition to their affairs. This leads to a split of power over financing development policy by the regional government. However, this does not mean that the local government’s financial needs must be free from the central government’s intervention. This study briefly compares financing regional autonomy in Indonesia, France, Germany and Thailand. The results show that the distribution of financial resources between the central government and regional governments is inconsistent with Article 18A section 2 of Law No.1/2022. The results also show that the provisions of various sources of taxation and levy have not met the financial needs of regions in Indonesia. Financial balance in the form of Natural Resources Production Sharing Fund from various natural resources owned by regions that only share unrenewable resources such as mining excavated materials remains unequally distributed between regions that have natural resources.

Abu Hassan Abu Bakar, Anwar Sanusi, Harsono Harsono

The issue of regional inequality has gained prominence during the era of progress, driven by the goal of promoting equitable development and enhancing the well-being of all segments of society. Papua Province is an integral part of Indonesia, and confronts intricate hurdles in addressing regional inequality. In response to these hurdles, special autonomy status and fiscal decentralization were implemented to boost regional autonomy. This study aims to scrutinize the impact of special autonomy and fiscal decentralization on regional inequality within Papua Province. The dataset used in the study spans from 2011 to 2021 and has been sourced from the Central Bureau of Statistics for Papua Province and the Directorate General of Fiscal Balance under the Ministry of Finance of the Republic of Indonesia. Multiple linear regression analysis was applied and the analytical results underscore that granting special autonomy status has exerted a noteworthy influence in diminishing regional inequality within Papua Province. Nevertheless, an unexpected finding is that fiscal decentralization has not substantially curtailed regional inequality within the region. These revelations provide a comprehensive overview of the roles played by fiscal decentralization and special autonomy in endeavors to alleviate regional inequality in Papua Province. The implications of these findings lay the groundwork for policymaking and developmental planning that foster inclusivity and sustainable progress within the Province of Papua. Keywords: special autonomy, fiscal decentralization, regional inequality

Ira Bassang, Marchelin, Marinus Ronal

This research aims to analyze the use of transfer funds in encouraging local revenue (PAD) for the North Toraja Regional Government. The data collection procedure in this research is library research and documentation. This research uses ratio analysis of the degree of fiscal decentralization and financial dependency ratio. The research results show that the average ratio of the degree of fiscal decentralization is 4,63% this means that PAD has very poor ability to finance regional development. Meanwhile, the average financial dependency ratio is 90,74% this means that the financial dependency of the North Toraja Regency area is in a very high category.

Ari Yunaida, Angga Wiranata Saputra

This study aims to determine the effect of fiscal decentralization financing sources on poverty levels. This study covers areas in Jambi Province using secondary time series data for the period 2007-2016. This study uses Multiple Regression Analysis. Fiscal decentralization financing sources of local revenue and balancing funds do not have a significant positive effect on poverty levels in Jambi Province, while other legitimate incomes have a positive and significant effect in Jambi Province from 2007-2016. The effect of fiscal decentralization financing sources (PAD, DP, PL) on poverty levels in Jambi Province is 80.2%, while the remaining 19.8% is influenced by other factors not included in this study. And there is a strong relationship between fiscal decentralization and poverty levels of 89.6%.

Eva Herianti, Amor Marundha

Purpose: The issue of income inequality in various regions of Indonesia is a significant national concern that requires immediate attention. Despite the government's efforts through fiscal decentralization policies, inequality persists. This study decisively explores the impact of fiscal decentralization and regional income inequality on regional financial performance. Design/methodology/approach: The research sample comprises 19 districts/cities in West Sumatra province, with data from 2018 to 2020 sourced from the Ministry of Finance and the Central Statistics Agency of West Sumatra Province. The analytical approach utilized in this study is the SmartPLS ver 3.2 model. Findings: The first research finding indicates that fiscal decentralization has a positive and substantial impact on regional financial performance. A second finding suggests that regional income inequality also positively and significantly affects regional economic performance. Research limitations/implications: These results enrich the perspective of Rostow's stages of economic growth model from a different standpoint. Originality/value: This study contributes to a deeper comprehension of the fields of economics, politics, and social sciences, particularly within the specific context of the province of West Sumatra in Indonesia.

Khubbi Abdillah

The study aims to determine the magnitude of the potential for regional income and independence arek region in East Java Province in 2017 – 2021, by calculating the Location Quotient analysis, the degree of fiscal decentralization, and the regional fiscal capacity index. The results of the LQ calculation show that Batu City has the highest LQ in other service sectors. Analysis of the highest degree of fiscal decentralization and regional fiscal capacity index is owned by Surabaya City. The research results recommend that local governments need to optimize their economic potential as a source of tax revenue, increase local own-source revenue (PAD) so that they’re not dependent on transfers from central government, and increase regional capabilities by expanding a new tax base to finance government spending.

Taufik Hidayat

Capital expenditure is part of regional expenditure which is used to budget expenditures made in the context of procuring fixed assets and other fixed assets which have a useful life of more than 12 (twelve) months, are used in local government activities and is a regulated minimum capitalization of fixed assets. in regional regulations. Factors that affect capital expenditure include the influence of general allocation funds (DAU), regional original income (PAD), and regional government financial performance as a source of financing as well as the measurement of regional financial performance in the implementation of capital expenditure both for the smooth running of government affairs and for improving facilities and infrastructure public. Financial performance in this study is proxied by the independence ratio, the PAD effectiveness ratio, the degree of fiscal decentralization, and the dependency ratio. The purpose of this study was to examine the effect of general allocation funds (DAU), regional original income (PAD), and local government financial performance on capital expenditure. This research is quantitative using SPSS version 26 software. It uses secondary data with data collection techniques using the documentary method. It uses a total sampling technique so that 81 samples consisting of 27 District and City Governments in West Java Province are obtained for the period 2019–2021. The results found that PAD and DAU partially significantly affected capital expenditure. Regional Government Financial Performance in the form of Dependency Ratio and Fiscal Decentralization Ratio partially has a significant effect on capital expenditure. Meanwhile, the Regional Government's Financial Performance in the form of the Independence Ratio and the PAD Effectiveness Ratio partially have no impact on Capital Expenditures.

Dylla Sukma Yennita, Nini Surmarni

This research aims to analyze the Financial Performance of the Regional Government of Agam Regency for the 2018-2022 Fiscal Year when viewed based on: (1) Fiscal Decentralization Degree Ratio, (2) Regional Financial Independence Ratio, (3) PAD Utilization Ratio, (4) Efficiency Ratio Regional Finance, (5) Harmony Ratio. This research is quantitative descriptive research carried out at the Regional Finance and Heritage Agency of Agam Regency. This research uses documentation to collect information. Using quantitative descriptive information analysis methods with the formula for Degree of Fiscal Decentralization Ratio, Regional Financial Independence Ratio, PAD Effectiveness Ratio, Regional Financial Efficiency Ratio, and Harmony Ratio.   The research results show that the financial performance of the Agam Regency regional government is not good. This can be seen in the results of the analysis (1) The ratio of the degree of fiscal decentralization is categorized as very low with a percentage of <15%. (2) The ratio of regional financial independence has an instructive relationship pattern because it is categorized as very low with an interval of <15%. This is because the role of the central government still dominates. (3) The PAD efficiency ratio is within the criteria of being quite efficient with criteria of 90% - 99%. (4) The regional financial efficiency ratio is quite effective with an average of 92.30%. (5) The harmony ratio based on surgical expenditure is considered good with an interval of 50% - 100% when compared to capital expenditure with an interval of 0% - 50%, so it can be said that regional governments are still not paying attention to regional development.   Keywords: Regional Financial Performance, Degree of Fiscal Decentralization Ratio, Regional Financial Independence Ratio, PAD Effectiveness Ratio, Regional Financial Efficiency Ratio, Harmony Ratio  

Romoaldus Smayuni Nai

An important implication of regional autonomy is fiscal decentralization where regions have the authority to regulate and manage their own affairs including regional financial management but the increasing needs of the regions cause the financing of government and development programs/activities to also be greater so that the Central Government is stricter in matters of Transfers to Regions and autonomous regions including Sikka Regency must be independent through Regional Original Revenue (PAD) but the slow development and public services in Sikka Regency in 2023 due to low PAD caused by low Regional Taxes which only contribute 67.34% and Regional Retributions which only contribute 50.77%. This Policy Paper aims to achieve the target of Local Tax and Local Retribution fulfillment in 2024 and develop policy recommendations to achieve the target. A quantitative approach is used to analyze the percentage of Local Tax and Local Retribution achievements in the PAD Structure of the Sikka Regency APBD in 2023. In-depth interviews with civil servants of the Regional Revenue Agency to identify challenges and perceptions related to the PAD management process were also conducted. The results of the analysis show the low realization of local taxes and levies in Sikka Regency with contributing factors including potential PAD not yet well recorded or fully collected, ineffective local tax and levy collection systems and poorly recorded taxpayer and levy databases. To overcome this, the policy recommendation is the Sikka Regent Regulation on the Technical Guidelines for the implementation of local tax and levy management as well as efforts to pick up the ball on tax and levy collection to the community.

Muhammad Khaerul Umam, Eny Rochinda, Rahcmad Budi Suharto

This research aims to analyze the financial management performance of the Balikpapan City Regional Government using income variance analysis, degree of decentralization ratio, independence ratio, income growth ratio, efficiency analysis, effectiveness analysis, capital expenditure ratio, and operational expenditure ratio in the Balikpapan City Government for the budget year 2016 to 2022. The data used is secondary data contained in the Audit Results Report of the Republic of Indonesia Financial Audit Agency Representative of East Kalimantan Province for 2016 to 2022. Static analysis in this study uses descriptive quantitative methods. The observation period from 2016 to 2022 shows that income variance analysis is the best average achievement of 101.20%; the degree of decentralization ratio with an average achievement of 29.48%; independence ratio to average achievement is 42.87%; local original income ratio with an average achievement of 5.87%; total regional income ratio to average achievement is 4.50%; the efficiency level ratio with an average achievement of 96.80% is declared less efficient; the effectiveness level ratio with an average achievement of 108.43% was declared less effective, the capital expenditure ratio with an average achievement was 72.58%; operational expenditure ratio with average achievement of 25.98% Keywords: Local Finance; Financial Performance; Financial Ratio

Dewi Ernita

. This study aims to determine the effect of fiscal decentralization on poverty both partially and simultaneously. It examines factors influencing fiscal decentralization, namely Regional Original Income (PAD), balancing funds, and regional expenditures. The data used in this research are secondary data obtained from the official website of the Directorate General of Fiscal Balance or the Ministry of Finance (DJPK). Based on the discussion results, the conclusions drawn are: 1) There is no significant effect of Regional Original Income on poverty, as evidenced by the t-value of -5.721 < t-table 2.131. 2) There is no significant effect of balancing funds on poverty in Jambi Province, as evidenced by the t-value of 1.399 < t-table 2.131. 3) There is a significant effect of regional expenditures on poverty in Jambi Province, as evidenced by the t-value of 6.22 > t-table 2.131. In conclusion, Regional Original Income and balancing funds do not have a significant effect on poverty, while regional expenditures have a significant effect on poverty in Jambi Province.

Rozi Beni

After the relocation of the National Capital to the Nusantara, Jakarta has a new role as the National Economic Center and Global City. This new role also becomes the basis for maintaining Jakarta's special status as the National Capital. Jakarta's new role and special authority are outlined in the Jakarta Special Regional Law (JSR Law). As a special region, Jakarta also has special authority. At the conceptual level, the regulation and management of Jakarta's special authority apply the types of administrative decentralization, political decentralization, and fiscal decentralization. Furthermore, in addition to changing its role as the National Economic Center and Global City, the JSR Law also regulates Jakarta's special authority covering several specific aspects in the fields of government affairs, institutions, personnel and regional finance. Jakarta's special role and authority must be carried out based on the relationship between authorities involving the central government, the JSR provincial government, and local governments in the agglomeration area. In its implementation, the JSR Law is expected to be an effective legal instrument to welcome the new era of Jakarta after the relocation of the National Capital. Not only to meet the legislative target stipulated in the National Capital Law, the law regulating Jakarta as the National Capital must be amended no later than February 24, 2024, so that the regulation of Jakarta's special authority is relatively limited and 'it is what it is' compared to the major role it must play as the National Economic Center and Global City.

Muhammad Izzul Haq, Syamsuddin Syamsuddin

ABSTRACTIn decentralization, local governments are required to be able to manage their respective fiscal resources, including capital expenditures. high economic growth in a region will ideally increase regional revenues and at the same time increase capital expenditure on the regional government. The purpose of this study is to examine the role of economic growth in moderating the influence of Local Own Revenue (Pendapatan Asli Daerah-PAD), General Allocation Funds (Dana Alokasi Umum-DAU), Special Allocation Funds (Dana Alokasi Khusus-DAK), and Remaining Budget Financing (Sisa Lebih Pembiayaan Anggaran-SILPA) on capital expenditure in Regencies/Cities. in Central Java Province. This research is quantitative using moderated regression analysis (MRA) which was processed with Eviews software version 10. Empirically, in 175 samples consisting of 35 Regency/City Regional Governments in Central Java Province in 2017-2021 it was found that without being moderated economic growth DAU has a positive effect on capital expenditure. Meanwhile PAD, DAK, and SILPA had no positive effect. The existence of economic growth is able to strengthen the influence of PAD and SILPA on Capital Expenditures. However, it was unable to strengthen the influence of the DAU and DAK on capital expenditure.Keywords: Capital Expenditure; Economic Growth; Regional Income ABSTRAKDesentralisasi menuntut pemerintah daerah untuk mampu mengurus sumberdaya fiskalnya masing-masing, termasuk di dalamnya pembelanjaan modal. tingginya pertumbuhan ekonomi suatu daerah idealnya akan meningkatkan penerimaan daerah dan sekaligus meningkatkan pembelanjaan modal. Tujuan dari penelitian ini adalah untuk menguji peran pertumbuhan ekonomi dalam memoderasi pengaruh dari Pendapatan Asli Daerah (PAD), Dana Alokasi Umum (DAU), Dana Alokasi Khusus (DAK), dan Sisa Lebih Pembiayaan Anggaran (SILPA) pada belanja modal pada Kabupaten/Kota di Provinsi Jawa Tengah. Penelitian ini bersifat kuantitatif dengan moderated regression analysis (MRA) yang diolah dengan software Eviews versi 10. Secara Empiris, pada 175 sampel yang terdiri dari 35 Pemerintah Daerah Kabupaten/Kota di Provinsi Jawa Tengah tahun 2017-2021 ditemukan hasil bahwa tanpa dimoderasi pertumbuhan ekonomi DAU berpengaruh positif pada belanja modal. Sementara itu PAD, DAK , dan SILPA tidak berpengaruh positif. Adanya pertumbuhan ekonomi mampu memperkuat pengaruh PAD dan SILPA pada belanja modal. Namun tidak mampu memperkuat pengaruh DAU dan DAK pada belanja modal.Kata Kunci: Belanja Modal; Pendapatan Daerah; Pertumbuhan Ekonomi

Ledy Jeane Liline, Khaeril - Khaeril

The Maluku Province, like many other regions in Indonesia, still heavily relies on transfers from the central government to finance its expenditures. This dependency can limit fiscal autonomy and the region's flexibility in managing its budget according to local needs.This study aims to examine the impact of Regional Original Revenue (PAD), Transferred to the regions (TKD) on the Fiscal Independence of Maluku Province. Research Methods Applied quantitative research. With a literature review and description of the financial statements of the Maluku Provincial Budget Realization during the year period (2018-2022), and analyzed with several formulas on Fiscal Independence and Regional Independence Index.The results of the study show that: (1) The degree of fiscal decentralization of the Maluku Provincial Government during 2018-2022, is still "lacking" and "adequate". (2) The Maluku Provincial Government's Fiscal Independence Index during 2018-2022 is at the level of "not yet independent" and "towards independence".

Widiya Avianti

The government provides financial assistance to regions in the form of intergovernmental transfers from the State Budget (APBN) to support decentralisation policies, used to finance regional needs, such as infrastructure development and public services. The aim is to improve the welfare of the local population and enhance local autonomy in decision-making, financial management, and reduce fiscal disparities between the central and local governments, as well as between different regions. The central government delegates sources of financial revenue to the regions to be managed effectively and efficiently, including through regional own-source revenues (PAD), to support regional autonomy and fund its tasks and functions. This qualitative research aims to test and analyse: (1) The effect of local own-source revenue (PAD) effectiveness on fiscal decentralisation in the region. (2) The effect of local own-source revenue (PAD) growth on fiscal decentralisation in the regions. (3) The effect of effectiveness and growth of local own-source revenue (PAD) on fiscal decentralisation in the region. The object of research is the PAD Realisation Report of Purwakarta Regency from 2018 to 2022. The sample consists of five reports, namely the PAD report for the 2018-2022 period. There are three points from the results of this study: (1) PAD effectiveness has no significant influence on fiscal decentralisation in the region (significance value 0.216 > 0.05); (2) PAD growth has no significant influence on fiscal decentralisation, (significance value 0.216 > 0.05); PAD effectiveness and growth have no significant influence on fiscal decentralisation, (significance value 0.385 > 0.05).

Linawati Linawati

The research aims to analyze the development of fiscal autonomy in supporting the economic growth of the Kediri City Government. Fiscal autonomy shows a region's ability to finance its finances independently, so that dependence on the central government is increasingly minimal. With increasingly strong fiscal autonomy, it will of course support regional economic growth. This research is quantitative research, with descriptive methods. Research data is in the form of secondary data, collected using documentation techniques. The research results show that the degree of fiscal decentralization of the Kediri City Government from 2017 to 2020, and in 2022 is at very low criteria, while in 2021 it will increase at low criteria. There is an increase in the level of fiscal decentralization which is also balanced with economic growth in 2021. The increase in the degree of fiscal decentralization is influenced by PAD revenues and their main components, namely regional taxes and levies. The Kediri City Government must continue to strive to increase its fiscal decentralization. Efforts that may be made by the Kediri City Government to increase its fiscal autonomy, namely by exploring and increasing the potential for PAD revenue, for example developing a regional tax and levy revenue system, continuing to be active in coaching and auditing taxpayers to increase tax compliance, increasing taxpayer data collection. , giving appreciation or rewards to compliant taxpayers, as well as providing support to the real sector to produce goods and services.

Bambang Santoso Haryono, Tommy Anggriawan, Drasospolino, I Gede Eko Putra Sri Sentanu · 5 authors

Recent studies reported that the implementation of local budgeting in the context of fiscal decentralization policy had no significant contribution in increasing rural community welfare. This study therefore evaluated the local budgeting policy implemented in Indonesia through Village Fund (VF) policy as well as examining the mediating role of local community empowerment. This investigation used crossectional data from 399 respondents from villages in Indonesia. The measures used in this study involved villagers' perception about policy and implementation of village fund, the success of rural welfare and local community empowerment. PLS-SEM was used to test the hyphoteses. The result of this study evidences that perceived of VF usage measured by perceived infrastructure development and perceived basic social services, except for perceived VF usage in rural economic development, have less significant impact on rural community welfare. Moreover, perceived involvement of community empowerment has minimum contribution on perceived rural community welfare. This study provides an understanding of paradox existing in the perceived role of local community empowerment in mediating the effect of local finance budgeting on rural welfare which is still rarely studied particularly in developing countries like Indonesia.

Annisa Alfiani, Diah Armeliza, Hafifah Nasution

This study aims to analyze the financial performance of the local government in managing the Regional Revenue and Expenditure Budget (APBD) of Bogor Regency, as well as to examine the supporting and inhibiting factors affecting such performance. The object of this research is the Bogor Regency Local Government. This study employs both secondary and primary data using a descriptive quantitative approach. The results indicate that the financial performance of the Bogor Regency Government during the period 2017–2022, measured using the decentralization degree ratio, falls into the “moderate” category, as it has not yet been able to fully finance governmental activities independently. The expenditure harmony ratio suggests that government spending has not been fully oriented toward capital or development expenditure. Furthermore, the regional dependency ratio remains very high, indicating strong reliance on central government transfers. However, the regional independence ratio is categorized as “moderate,” reflecting a gradual reduction in dependence on central government assistance. The effectiveness ratio of local own-source revenue (PAD) is optimal, demonstrating the government's ability to mobilize revenue in accordance with planned targets. The efficiency ratio indicates successful cost control in revenue collection, while both revenue and expenditure growth ratios show positive trends. Supporting factors for financial performance include improved employee competence, enhanced public service delivery, and better coordination with the central government, particularly regarding financial information systems and digital public services. Meanwhile, inhibiting factors include limitations in human resources, suboptimal financial administration systems, and the fact that PAD has not yet become the primary source of regional revenue.

Eka Nova, Supriyadi Supriyadi, Kumba Digdowiseiso

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.