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.
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.
The financial performance of the Kupang Regency regional government is important information in making regional financial management policies. One tool for analyzing local government financial performance is by analyzing financial ratios. This research aims to analyze the fiscal independence of the Kupang Regency regional government in 2017-2021. This research is a case study research conducted at the Regional Financial and Asset Management Agency. Data collection using interviews and documentation The results of the research show that the degree of fiscal decentralization over the five year period (2017-2021) is on average 7.5% and Fiscal Independence is on average 6.52% which based on the criteria is categorized as very low This means that regional financial capacity to finance its activities is still very lacking and is dependent on the central government.
This paper takes issue with the regulation of the central government's financial balancing funds to regional governments in the context of regional autonomy which was just passed under Law 1/2022. The research method used is normative legal research, a method with the aim of dissecting all laws and regulations to find solutions to juridical problems. The results of the research show that Law 1/2022 has provided guidelines for local governments in managing regional finances. This regulation provides a basis for the Central Government to transfer funds to Regional Governments in the form of General Allocation Funds (DAU), Special Allocation Funds (DAK), Special Autonomy Funds, Privileges Funds, and Village Funds. There are still problems with the synergy of laws and regulations, especially with regard to the rigid percentages for calculating transfers of these funds to each regional government with special autonomy. However, on the other hand, the use of special autonomy funds and privilege funds is measurable because the management of these funds must refer to the national development plan and have performance targets.
 Keywords: State Finance, Fiscal Decentralization, Financial Relations Act
 
 Ringkasan
 Tulisan ini mengambil permasalahan tentang pengaturan dana perimbangan keuangan pemerintah pusat kepada pemerintah daerah dalam rangka otonomi daerah yang baru saja disahkan berdasarkan UU 1/2022. Metode penelitian yang digunakan yaitu penelitian hukum normatif suatu metode dengan tujuan membedah segala peraturan perundang-undang untuk menemukan solusi atas persoalan yuridis. Hasil penelitian menunjukan UU 1/2022 telah memberikan pedoman bagi pemerintah daerah dalam melakukan pengelolaan keuangan daerah. Peraturan ini memberikan dasar bagi Pemerintah Pusat untuk melakukan transfer dana kepada Pemerintah Daerah berupa Dana Alokasi Umum (DAU), Dana Alokasi Khusus (DAK), Dana Otonomi Khusus, Dana Keistimewaan, dan Dana Desa. Masih terdapat permasalahan sinergis peraturan perundang-undangan khususnya berkaitan dengan presentase rigid penghitungan transfer dana tersebut ke tiap pemerintahan daerah dengan otonomi khusus. Namun disisi lain penggunanaan dana otonomi khusus dan dana keistimewaan menjadi terukur oleh sebab pengelolaan dana-dana tersebut wajib mengacu pada rencana pembangunan nasional dan memiliki target kinerja.
 Kata Kunci: Keuangan Negara, Desentralisasi Fiskal, Undang-Undang Hubungan Keuangan
Wehara Mariana Sigar, David Paul Elia Saerang, Sonny Pangerapan
The aim of this research is to find out whether clarity of budget targets and decentralization have a partial and simultaneous effect on local government performance. This hypothesis was tested using the t test and f test. The research sample consisted of 31 employees, namely ASN in the Secretariat sector, Legal and Personnel Sub-Section, and Planning and Finance Sub-Section, and the Head of the Department of Industry and Trade. The research method uses a questionnaire with Likert scale measurements. The analytical method used is multiple linear regression analysis where the data analysis process is carried out using SPSS version 26 computer technology. The results of this research show that clarity of budget targets has a positive and significant effect on local government performance, while partial decentralization has no effect on performance. local government; Furthermore, clarity of budget targets and decentralization simultaneously influence regional government performance.
Nanda Rahmatul Putra, Aldri Frinaldi, Lince Magriasti
Supporting Local Revenue in Fiscal Decentralization and Regional Development (The Study in The Departement of Revenue at Provinsi Sumatera Barat). Regional governments are required to be able to regulate and manage their own households broadly and thoroughly based on applicable regulations and to develop and increase Local Own Revenue. This is in accordance with Law No. 32 of 2004 concerning regional government, in the framework of implementing regional autonomy. This study aims to identify, describe and analyze the role of local revenue in supporting fiscal decentralization and regional development. This study used a qualitative research method with a descriptive approach. The analytical method used is the interactive Miles and Huberman method. It can be concluded that the Regional Original Revenue of West Sumatra Province has a degree of fiscal decentralization which is categorized as sufficient. The level of dependency that is not so high indicates an adequate contribution to development financing in the West Sumatra Provincial government
The purpose of this research is to find out and analyze the government's financial performance in the Fifty Cities Regency Finance Agency in 2017-2021 by using the ratio of degrees of fiscal decentralization, the ratio of independence, the ratio of PAD effectiveness, the ratio of efficiency, and the ratio of activity.The object of this research is the Budget Realization Report obtained from the Fifty Cities District Finance Agency, the type of data used is quantitative data in the form of a report on the realization of the Fifty Cities District budget for 2017-2021. Data sources are primary data and secondary data. Data collection techniques are observation, documentation, literature studies and interviews.The results of the study show that based on data analysis and discussion that has been carried out the government's financial performance at the Lima Puluh Kota Regency Financial Board seen from the Ratio of the Degree of Fiscal Decentralization and the Ratio of Regional Financial Independence are still in the "very less" category, the Effectiveness Ratio is in the "effective" category, the Ratio Efficiency in the "less efficient" category was only "efficient" with a percentage of 70% in 2018, the Activity Ratio in operating expenditures was in the "good" category, and in capital expenditures it was in the "bad" category.
 
 Keywords: Analysis, Financial Performance, and Government
This study aims to determine the extent to which the influence of the degree of decentralization ratio, the ratio of regional financial independence and the SiLPA financing ratio can affect the capital expenditure allocation of district/city governments in West Sumatra. Data analysis used multiple linear regression analysis. Based on partial testing, 1) it is found that the ratio of the degree of decentralization has a significant positive effect on the allocation of capital expenditure in districts/cities in West Sumatra Province. 2) The ratio of regional financial independence has a positive effect on the allocation of capital expenditures in districts/cities of West Sumatra Province. .3) finance in the form of the ratio of SiLPA financing rates has a positive and significant influence on the allocation of capital expenditures in districts/cities in West Sumatra Province.
This study aims to discuss the history, purpose, and reality of decentralization of financing management in local government, as well as analyze the conflict of corruption of education funds in Indonesia and formulate solutions. The method used is a literature study with descriptive analysis techniques. It describes the analysis of data evidence from official government websites and from the results of other parallel studies to find new discussions and experiences to formulate solutions that are much more relevant to the current bureaucracy. The results of this study explain that local government corruption cases after decentralization are the highest of other government agencies, and the source of funds that is the strongest possibility of this practice is the education sector. The education budget continues to soar every year, but the progress of educational development still needs to grow. With the political payback concept, the corruption chain is increasingly difficult to break. As time goes by, the barriers to education seem unchanged. In this case, the DPRD is required to oversee the process of distributing education funds from the central ministry to local governments, the mass media must be more transparent, and the need for anti-corruption education from an early age to form an attitude of responsibility and discipline, this anti-corruption education needs to be given repeatedly, especially for political contestants.
<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>
The research aimed to analyze the performance of regional income, expenditure budget, and budget performance of revenue and expenditure at the Regional Finance Board of Pamekasan Regency during 2013-2016. In this descriptive quantitative research, data source was the Regional Expenditure's financial performance by considering the Budget Realization Report's information (Laporan Realisasi Anggaran/LRA). The analysis involved a three-step analysis, variance analysis, growth of regional expenditure, and suitability analysis of regional expenditure. The research reveals that most of the periods studied experience more expected differences, amplified with the target budget realization revenue from 2013-2016 has an average rate of 100,05%. The degree of decentralization of Kabupaten Pamekasan shows an average of 24,16%, which is considered below the percentage criteria of Original Local Government Revenue (OLGR) to Total Revenue Area (Total Pendapatan Daerah/TPD) ranging from 0,00-10,00%. Revenue Financial Performance District Pamekasan experiences an increase in Financial Performance Revenue, which is indicated by a positive growth rate of 8,29%. The level of dependency of Pamekasan Regency in 2013-2016 is very high, indicated by the average Local Financial Dependency Ratio above 50%. The results suggest that there is a dependence of the Pamekasan Government on central government or provincial government. The surplus occurs due to the intensification and extensification of original local growth revenue in the form of taxes, levies, and other income.
The purpose of this study is to find out in detail how the ability of local revenues to finance regional expenditures. the object in this study is the government of West Sumba Regency. The type of data used is secondary data and primary data. Secondary data was obtained from BPS NTT, while primary data was obtained from the research location, namely the West Sumba Regional Development Planning Agency. This study used data analysis techniques using four financial ratio analysis, namely: the ratio of the degree of fiscal decentralization, the ratio of regional financial independence, the ratio of PAD effectiveness, and the ratio of financial efficiency. Regional. Based on regional financial analysis with 4 ratio calculations, it shows that from 2017-2021 the ratio level is less and very effective.

 The quality of the Maluku Province's financial performance is measured by the degree of decentralization ratio showing the low financial performance of the Maluku Province in 2017-2021 out of a total count of eleven city districts. If you calculate the total average value of the degree of decentralization ratio for 2017-2021 Maluku Province is 4.09%. This figure illustrates that the quality of Maluku Province's financial performance is very low in the 2017-2021 period. The financial independence ratio of Maluku Province is instructive with the average percentage of districts/cities below 25%, meaning that Maluku Province's dependence on central government assistance is quite large for financing regional development. The regional financial effectiveness ratio of Maluku Province is in the category of ineffective regional financial performance. Of the eleven regencies/cities of Maluku Province, only five regencies/cities are categorized as effectively balanced, but the 2017-2018 period is not complete for the 2017-2021 period. The accumulative total analysis shows that Maluku Province is classified as an ineffective regional financial province.
 Keywords: Quality of financial performance; Maluku Province.
This article describes the role and importance of the investment climate in the economic development of the country, the content of the Investment Program for 2021-2023, sources of centralized financing of investments in fixed assets in the Republic of Uzbekistan, decentralized sources of financing. issues such as reforms in attraction, investments made by international financial institutions were considered and recommendations were made.
Paulus Israwan Setyoko, Denok Kurniasih, Shadu Satwika Wijaya
The pandemic has resulted in changes to public policy, particularly in public budgeting. This is the case not only at the central level but also at local and village government levels. The challenge of changing public policy also occurs in the fiscal policy sector. Village governments are required to reallocate their budgets for activities to handle the pandemic and post-pandemic economic recovery. Hence, this article aims to describe changes in village government budgeting policy changes from the perspective of punctuated equilibrium in public policy studies. The data in this study were obtained through focus group discussions and secondary data collection. The study found that the political equilibrium of a policy cannot last forever. Policy changes occur if there is a change in the agreement between policy-making actors. Public policy changes have so far been understood to occur slowly and gradually. However, this article proves that it can occur drastically and within a short period of time. Keywords: fiscal decentralization, local autonomy, policy change, public finance, punctuated equilibrium public policy, rural local government budget
The Economic growth of Central Java Province from 2015 to 2018 experienced a slowdown compared to other provinces in Java. One of the main focuses on improving the economy is fiscal decentralization which is manifested in the form of village funds. This is in line with one of nine development priorities for the next five years agendas, or so- called Nawacita, namely to develop Indonesia from the periphery by strengthening regions and villages within the framework of a unitary state. The village funds data from the Ministry of Finance shows that Central Java Province receives the largest village funds each year, but this does not necessarily increase economic growth in the recipient districts. In addition to the economic growth policy, the government also plans through investment and government spending. The purposes of this study are to determine the effectiveness of the village fund budget and the effect of the realization of village funds, capital expenditure, goods and services expenditure, and the level of open unemployment on economic growth. The method used in this study is the panel data regression analysis method with the research locus of 29 districts receiving village funds in Central Java Province from 2015 to 2018. The results of the study using the selected panel data regression model that is the Fixed Effect Model FGLS SUR show that all independent variables influence significantly to economic growth (GRDP). The variable realization of village funds and goods and services expenditure has a significant positive effect, while the variable realization of capital expenditure and the variable open unemployment has a significant negative effect on economic growth (GRDP).
The purpose of this study is to test and analyze the influence of fiscal decentralization on development performance in Indonesia using the structural equation model approach. The data uses panel data, from 34 provinces and in 2015-2019 sourced from the Ministry of Finance of the Republic of Indonesia and the Central Bureau of Statistics (BPS). Data analysis using structural equation model approach with the help of Smart-PLS 3.3.3 software. The outer model evaluation results concluded that all indicators of fiscal decentralization variables and economic development performance variables are valid. The most powerful indicator reflecting the latent variable of fiscal decentralization is the ratio of regional income and economic development performance is an indicator of economic growth. The results of the evaluation of the inner model found that fiscal decentralization performance has a positive and significant influence on development performance. The existence of fiscal inequality among provinces in Indonesia causes uneven ratios of capital expenditures and public incomes as seen from the low indicator in reflecting decentralization of fiscal and economic performance
North Central Timor Regency is one of the regencies in the border region of the Republic of Indonesia-Timor Leste. This region is still categorized as an underdeveloped region with a fairly high percentage of poverty. The most reliable source of regional revenue comes from potential regional taxes and levies. Therefore, the purpose of this study is to determine the regional financial performance when viewed from the ratio of regional financial independence, the ratio of regional financial dependence and fiscal decentralization. Some of the variables used for data analysis needs are the value of PAD, Balancing Funds and Capital Expenditures from 2001-2018 obtained from the publications of the Central Statistics Agency. The results showed thatRegional financial capacity seen from the regional financial independence of North Central Timor Regency in financing its regional needs in the context of implementing regional autonomy is still low and dependence on other regions through the central government is very high.
This study aims to analyze the effect of the Village Fund on poverty alleviation and improvement of basic infrastructure services for drinking water and sanitation in districts and cities in Indonesia. The need for evaluation of the Village Fund policy is a consequence of the implementation of fiscal decentralization to villages based on Law no. 6/2014. This policy has implications for an increase in transfer funds to villages of more than IDR 329 trillion cumulatively. Theoretically, fiscal decentralization to villages should improve public services and accelerate poverty reduction through local preferences matching and more efficient allocations. This research was a quantitative study using path analysis to test the hypotheses. Data were obtained from BPS and the Ministry of Finance for all districts/cities receiving Village Fund. The results show that The Village Fund had a significant effect on poverty reduc-tion nationally, although its contribution was very small, and the effect was not significant in districts/cities with low fiscal capacity. The Village Funds had an effect on increasing drinking water but not significant, on the other hand, it had a significant effect on districts/cities with medium or low fiscal capacity with low poverty rate. The Village Fund had an effect on improving sanitation but it was not significant nationally or in all districts/cities. The Village Fund for drinking water had no significant effect on poverty reduction nationally and for all districts/cities. The Village Fund for sanitation had no effect on poverty reduction nationally or in all districts/cities but it had an effect on districts/cities with low fiscal capacity and poverty rate even though it was not significant. The implementation of the Village Fund policy needs to consider the fiscal capacity and diversity of regional characteristics in order to make the effectiveness of the Village Fund more optimal.
After the amendment, Regulation Number 25 of 1999 concerning Financial Balance between the Center and the Regions, but after the amendment of Regulation Number 33 of 2004 concerning Financial Balance between the Center and the Regions, the allocation of asset adjustments has moved to the dispersion of some normal assets in the area . The issue studied is where regional finance can increase and find sources of income which are expected to complement its independence as a result of the implementation of decentralization guidelines as adopted by the 1945 Constitution. The exploration technique used is essential literature studies, selected regulations and materials. tertiary legal materials, and the examination carried out is subjective standardization. With the issuance of the regulation on Fiscal Balance between the Center and the Regions after the amendment, it shows very large results for the implementation of provincial independence, considering that regional supporting sources are generally not solely based on PAD (Regional Revenue) results, but the regions also have different sources of initial funding from the regions, formerly only enjoyed by the central government.
 Keywords: Policy, Regional Finance, Post Reform
One form of the implementation of regional autonomy is the existence of autonomy in the aspect of regional financial management which is called fiscal autonomy. Fiscal autonomy is the delegation of responsibilities and the distribution of power and authority for decision-making in the fiscal sector, which includes both revenue and expenditure aspects. Fiscal decentralization is linked to the duties and functions of local goverment in providing public goods and services. This study aims to analyze the degree of fiscal decentralization in Southeast Sulawesi Province in 2016-2020.The degree of fiscal decentralization is a measure of the ability of local goverment in order to increase Local Own Revenue which is used to finance development in Southeast Sulawesi Province. This is study uses secondary data. The analytical tool used in this study is quantitative analysis, namely the analysis of the degree of fiscal decentralization, namely the ratio between Regional Original Income and Total Revenue Regional. The results showed that the degree of fiscal decentralization of Southeast Sulawesi Province in 2016-2020 fluctuated with an average 0f 25,25% so it could be said that it was still in the moderate category.
Riau Archipelago is one of the provinces established in the regional autonomy era. The province is enforced to well manage its local own-resources in realizing regional autonomy. This study is aimed at analyzing the degrees of independence, dependence, and fiscal decentralization of the province. Through the ratio analysis, it is expected that this study can give some references to the Provincial Government taken as the subject of the study, i.e. related to decision making aimed at increasing its regional independence as well as decreasing the dependency towards the Central Government. This study uses the Report on Local Government Finances of the Province of Riau Archipelago for the financial year of 2014-2020 as the research data. This study uses quantitative descriptive analysis method based on the local government finance ratios including regional financial independence ratio, regional financial dependence ratio, and regional fiscal decentralization ratio. This study shows that from regional independence aspect, the financial performance of the province is in medium fiscal capacity (55.84%) with participative relational pattern. Based on the degree of regional dependence aspect, it is in very high category (64.17%) while due to regional fiscal decentralization degree, its regional financial performance is in good category with an average of 35.69%.
Fiscal decentralization gives local governments the authority to use revenues to finance local expenditure, one of which is expenditures intended to improve the quality of human development. This study aims to analyze the effect of Local Own Source Revenue (PAD), Special Allocation Funds (DAK), and Surplus of Budget Financing (SiLPA) on the Human Development Index (IPM) through capital expenditure on districts/cities in North Sumatra. This study uses panel data consisting of time series data for 2015-2019 and cross section data for 33 districts/cities in North Sumatra. Hypothesis testing is done by multiple linear regression and path analysis. The results of the study proved that DAK and SiLPA have a positive impact on capital expenditures, while PAD has no impact on capital expenditures. Meanwhile, PAD and DAK directly have a significant positive effect on HDI, while SiLPA has no effect on HDI. In addition, PAD, DAK, and SiLPA indirectly have no significant effect on HDI through capital expenditure.
In the era of decentralization, each autonomous region in Indonesia has the capacity and ability to determine the direction of development goals in accordance with the conditions of their respective regions, including managing regional financial resources to achieve national development goals in their regions. Fiscal decentralization is intended to balance the pace of development between regions so that there is no longer a dichotomy of developed and underdeveloped regions because each region has the opportunity to independently finance development in its region according to its regional potential. Law Number 23 of 2014 concerning Regional Government opens wide opportunities for regions to run their government by utilizing available resources in their regions and relying a little on central government assistance. For this reason, the Regional Government tries to use its regional revenue sources as well as possible to finance the ongoing government process. Financial performance ratio analysis is an attempt to assess regional financial performance in order to fulfill the elements of accountability for good governance. This study will discuss the ratio of regional financial performance associated with the ability of the region to finance development in Bondowoso Regency. The analytical method used is an analysis of regional financial performance which includes aspects of the effectiveness ratio, efficiency ratio, independence ratio, activity ratio, and growth ratio. Bondowoso Regency's financial performance during the 2016-2020 period can be said to be overall good in terms of effectiveness ratios and efficiency ratios. The independence ratio still shows the proportion of transfer receipts from the provincial/central government is still greater than the original regional income. The activity ratio illustrates that revenue is still more used to finance operational expenditures compared to capital expenditures (providing infrastructure). Infrastructure financing can use funds sourced from General Allocation Funds, Special Allocation Funds, Regional Loans, government collaboration with business entities, and funds sourced from CSR companies in Bondowoso Regency.