This comparative study tries to map several aspects concerning finance relation between central and local government in both countries. The main purpose is to compare fiscal implementation through decentralization policy in the two countries, especially the case of vertical fiscal imbalance. The research focuses on vertical imbalance because it is a common problem in various countries around the world. It also occurs in Japan and Indonesia in line with fiscal implementation through decentralization policy. The analysis will be in the inter-related context of decentralization policy and fiscal decentralization.
This research aims to : (1) Analyzing the financial performance of districts/cities in the Daerah Istimewa Yogyakarta Province; (2) Analyzing the phenomena of fiscal illusions that occur in the finance of districts / cities in DIY Province. This research is based on secondary data, namely the Local Goverment Budget and Local Gross Domestic Product data sourced from the Ministry of Finance DJPK and BPS. The analytical tool used is financial independence ratio analysis, fiscal decentralization degree and panel data regression analysis. Based on the results of the analysis, it is known that the average independence ratio of the Regency / City of DIY Province is 30,38% and has a pattern of consultative relations with the central government. In the degree of fiscal decentralization, it is known that the Regency / City average is 17,35%. This means that the capacity of regional governments to manage regional finance is still lacking. In addition, there is a phenomenon of fiscal illusion in the financial performance of the Regency / City Regional Government of the DIY Province.
Fiscal decentralization is one the major component of the decentralization implementation of regional autonomy. As the new beginning in regional development and the people in managing the resources or all of the potential to the prosperity and the progress of region. Financial aspect is one of the basic criteria to find out the real capability regional government in managing their autonomy system (household system) the capability of regional government in managing their financial can be seen in APBD which describes the capability of local government in financing the activities of development task and equity in each region. The purpose of this research is to determine the financial capability of Tidore in regional autonomy especially in 2013-2017 judging by ratio of independency, decentralization fiscal degree, growth ratio. This research used observation, interview and documentation to collect the data. The data was analyzed using qualitative and quantitative data with described analysis. The result showed that the independence ratio of Tidore has been able to improve its financial capability. The degree of decentralization is still highly dependent on the central government, although it has been increasing year by year. Growth rate fluctuated this indicates the local government of Tidore is not too concerned with regional development and community welfare.Keywords: regional autonomy, ratio of independency, The degree of decentralization ratio, Growth ratio.
The research is aimed to determine and analyze: 1) the development of local revenue sources; 2) the capacity of local revenue acceptance; 3) the capacity of local revenue in financing of Palu City; 4) Financial capacity of local Palu government based on regulation of the ministry of Domestic Affairs no. 21, 2007; 5) the leve of fiscal decentralization in financing the expenditure of Palu City; 6) fiscal capacity of Palu government; 7) the capacity of the local revenue to repay local debats. This study is descriptive. Data is collected through interview, literature review, and analysis of Palu government’s financial document. The results show that: 1) the development of local revenue sources indicates that other legitimate of local revenue has the highest growth and contribution of 226.08% and 40.92%; 2) the capacity of local revenue is classified ‘deficient’; 3) the capacity of local revenue is financing expenditure is categorized ‘unable to pay the expenditure’; 4) financial capacity of local Palu government based on the regulation of The Ministry of Domestic Affairs no. 21, 2007 is categorized in ‘low’ and medium’ financial groups; 5) the leve of fiscal decentralization in financing the expenditure of Palu City is still unable to finance the local expenditure; 6) fiscal capacity of Palu government in 2011-2013 budget year in categorized ‘low’ and ‘medium’ in 2014-2015; 7) DSCR ratio shows the capacity of Palu Government to repay local debts.
There is an absence of a theory explaining the non-structural institutional practice of autonomous regions in Indonesia, which is part of new public management form of decentralization. This has an effect on the increasingly unfamiliar role of civil society combined agencies and governmental elements in order to assist in the delivery of public services. Yet this relatively new institutional model, able to address the issue of substantial democracy in developing countries such as Indonesia, which affects the quality of development of a region. At the praxis level, the increasing variety of challenges both domestically and internationally and the demands of fast-paced and instant society make the central government institutions overwhelmed to answer the various policy issues. What is the role of nonstructural institutions in order to participate in local governance? This research analyzes the role of 3 non-structural institutional in Semarang City such as Semarang City Bureau Management Board, Sima Polder Management Board and Town Planning Development Board of Semarang in local governance through interview, literature study and a series of observations on activities in the three of non-structural institutions during November 2016 until November 2017. The results show that the role of non-structural institutions involving various stakeholders, both civil society elements and government elements, is able to accelerate the process of public participation in the framework of urban development, to present informal communication in the context of the effectiveness of public policy socialization, policy issues that are easily identified and able to present experts who comes from diverse educational backgrounds and experiences to take an active role in providing policy solutions and alternatives. Keyword : Functional decentralization, Substantial Democracy and Non Structural Organization
In the Indonesian constitutional Autonomous Region is an elaboration of territorial decentralization. Realization in the form of the rights, powers and obligations of the region to regulate and manage its own internal affairs are based on the aspirations of the people in accordance with the legislation in force. One of the objectives scrolling regional autonomy policy in Indonesia is Democratization, empowerment and public participation. To achieve this, then the government has a policy of decentralization in stages, namely the provinces given limited autonomy, greater autonomy to the district / city and country are given genuine autonomy. Community participation is a process activities performed by individuals or in groups or communities. To unify their interest or relevance to the organization or people who join in order to achieve the objectives of society itself. This study uses descriptive qualitative research methods From the results of this study, researchers found that community participation in Jatimulya village influenced by the leadership, communication and education. The result showed that the head of the village has been carrying out its role as the leader of a well, the village government communication with the public is well established and low education affects people’s participation in development planning in the Jatimulya Villa. Dalam ketatanegaraan Indonesia Otonomi Daerah merupakan penjabaran dari desentralisasi teritorial. Realisasinya dalam bentuk hak, wewenang dan kewajiban daerah untuk mengatur dan mengurus urusan rumah tangga sendiri yang berdasarkan atas aspirasi masyarakat sesuai dengan peraturan perundang-undangan yang berlaku. Salah satu tujuan pengguliran kebijakan Otonomi Daerah di Indonesia adalah Demokratisasi, Pemberdayaan dan Partisipasi publik. Untuk mencapai hal tersebut maka pemerintah menggulirkan kebijakan desentralisasi secara bertingkat, yakni kepada provinsi diberikan otonomi terbatas, otonomi luas kepada daerah kabupaten/kota dan Desa diberikan otonomi asli. Partisipasi masyarakat merupakan suatu proses kegiatan yang dilakukan oleh perorangan maupun secara berkelompok atau masyarakat. Untuk menyatukan kepentingan atau keterkaitan mereka terhadap organisasi atau masyarakat yang bergabung dalam rangka pencapaian tujuan masyarakat itu sendiri. Penelitian ini menggunakan metode penelitian deskriptif kualitatif. Dari hasil penelitian di dapatkan bahwa partisipasi masyarakat di Desa Jatimulya di pengaruhi oleh kepemimpinan, komunikasi dan pendidikan. Dari hasil penelitian diperoleh bahwa kepala Desa telah melaksanakan perannya sebagai pemimpin dengan baik, komunikasi pemerintah Desa dengan masyarakat terjalin dengan baik dan rendahnya pendidikan masyarakat mempengaruhi partisipasi dalam perencanaan pembangunan di Desa Jatimulya
The decentralized system of the Indonesian government to give jobs to the region to carry out development in the area in response to the various regional development policy. Offend public policy perspective the role of government and stakeholders. The focus of the stakeholders in this research is student organizations. This study aims to investigate the model student political movement in advocating for policies in the autonomous region in the province of North Sumatera. The method of investigation used to answer research questions using a mixed methods design sequential exploratory through collaboration grounded theory approach and surveys. Data gathering using depth interview and survey techniques used to test the hypothesis that emerged from the research results at the earliest. The study population is groups of student movement organizations in the province of North Sumatra with a set of samples of the four groups of organizations active student movement at the University of Sumatera Utara. The findings of this study describe a group of student movement organizations in conducting policy advocacy stages tend stalled at the stage of political socialization in advocating policies and limitations in order to maximize the level of policy advocacy in the parliament lobby.
Formation of new autonomous regions are meant to promote effective governance, by reducing the span of control of the previous more extensive area, improving the quality of public services, increasing the wealth of the local people, setting the fiscal balance between central and local government, increasing employment and capital inflow. However, the formation process of North MusiRawas as a new autonomous region took 11 years since proposed in 2002 until signed by the central government in 2013. This paper argues that the factors behind the long delay were mainly political factors, instead of administrative. Administrate, the region is eligible to be established as a new autonomous region. This study uses the NVivo Program as a tool for conducting primary and secondary data analyzed from direct interviews, meeting results and statements from related parties. From the research results obtained that the political process, however, involves a series of events in its history that generated constraints for establishing North MusiRawas as a new autonomous region. The historical facts include leadership contest between Governor of South Sumatera and Regent of MusiRawas, conflict over control of the natural gas resource in Suban 4, central government's moratorium policy to new autonomous region formation, leadership change, and internal conflict within the social movement to demand autonomy among local people. It argued in this paper that absence of political network and lack of organization of social mobility to demand freedom allows the recurring events that created constraints to the political process of establishing North MusiRawas as a new regency. The absence of political network to elites in the regional and national levels complicate the political communication to pursue autonomy. It explains why the conflict between Governor and Regent can halt the proposal. Weak organization of social movement allowed internal strife and complicated the resource mobilization to achieve the political goal.
Abstract This study aims at identifying the main obstacles to optimizing the provision of public services to the districts in the island areas and to discussing the prototype model of asymmetric decentralization in providing public services to the island areas. This study was conducted in three districts of small islands at the Tual city of Maluku province namely the districts of Kur Island, South Kur Island, and Tayando Tam island. The data were collected through triangulation of sources and methods. The informants were selected based on consideration of the position and competence of the required information. The methods were the in-depth interview, observation, documentation, and the Focus Group Discussion (FGD). The results showed that there were three main obstacles in providing public services to the districts in the island areas. Firstly, the partial authority of Mayor of Tual city had not given yet to the Head of Districts based on the Article 226 of Law No. 23 in 2014 about Regional Government. Secondly, the transportation for the islands was inadequacy and the natural conditions were challenging that obstructed the mobility of citizens to access the service center and it was difficult for officers to reach people who want to be served. Thirdly, the lack of resources (human resources, funds, and facilities) in some districts at the island areas. To overcome those problems, specific autonomous was required by island province that concerned different treatment settings to the districts within the island areas namely the expansion of authority, the increase in the position, and the development of resources and the organizational capacity and districts management.
This paper gives an overview of the implementation of the constitution laws such as the embodiment of the political will of the Central Government, but in practice occur various obstacles. The model has become divided in 3 (three), namely: the bottleneck in the autonomous region, of good Governance and capacity building in implementing Regional Autonomy. The Government of the provinces, counties and cities should implement the values of good Governance, such as strategic vision, transparency, responsiveness, fairness, consensus, effectiveness and efficiency, accountability, freedom of Assembly and participation, rule of law, democracy, in cooperation with community organizations, our commitment to the market, and commitment to environment and decentralization. Some elements of capacity development in order to realize a good Governance can be seen from some of the items, the first development of the vision and mission of regional and provincial government institutions/district/city. Second, the institutional development of the Government of the province/district/city. Third, the development of a network of Government provincial/district/city. And fourth, the development and utilization of the environment of the Government of the province/district/city.
"Trash, Cities, and Politics" describes Indonesia's ADIPURA, an environmental program begun in the mid 1980s to focus on waste management, cleanliness and sanitation, and green spaces. The paper discusses the program within the larger context of Indonesia's urbanization and its environmental consequences, from the time of the New Order up to today's decentralization era. The essay describes ADIPURA's continuity and evolution, with respect to central and local governments, law enforcement, financing, and community and private sector participation. It also provides specific data from more than 300 cities, and presents statistics to reveal trends and disconnects and to examine the program's successes and failures. For example, the study found that the program's incentives are inadequate, given Indonesia's regional autonomy and decentralization; that government ministers' credibility may be too weak to encourage municipalities' participation and compliance; and that the program comprises an unmanageable number of targets and is excessively expensive to administer, especially the inspections. The study concludes that ADIPURA is potentially useful to clean up cities, but needs to be overhauled, modernized, and coordinated with other government policies, and further transformed to eliminate actual and potential corruption and manipulation.
Radical decentralization reform works or does not work for reducing communal conflict is still debatable. This study examines the linkage between decentralization policy and communal conflict in Indonesia. Two measurement of decentralization: administrative decentralization, and fiscal decentralization is examined. Data come from the Village National Census (Podes) 2003-2014 (N=301.974). Results of twolevel logit regression show that fiscal decentralization not significantly associated with reducing communal conflict. The findings suggest that decentralization work for reducing communal conflict through better capacity of local bureaucrats rather than through financing capacity in delivering public services and district proliferation policy
The purpose of this study is to analyze the financial performance optimization in Karanganyar regency government by using financial ratio indicators of the budget for Fiscal Year 2013-2015. The research method using the case study method in Karanganyar district administration, the type of data used quantitative and qualitative data, the data source used secondary data. Data collection methods used documentation. The method used descriptive quantitative method to measure financial performance with financial ratios. In conclusion that: 1) The results of the analysis of the ratio of the degree of fiscal decentralization Karanganyar years 2013 to 2015 show in 2013. The ratio of Degree of Fiscal Decentralization on Local Government Karanganyar of 9,81%. In 2014 decreased to 9,76%, the next year increased to 11,21% occurred in the category less. 2) The results of the analysis of the dependency ratio Karanganyar years 2013-2015 show financial dependence is relatively low. 3) The results of the analysis of the ratio of local financial independence in 2013 to 2015 showed Karanganyar Karanganyar financial capability is still relatively very low and relationship patterns including patterns instructive relationship where the role of central government is more dominant than the independence of local government (areas that are not capable of implementing regional autonomy), 4) The results of the analysis of effectiveness ratio of PAD Karanganyar years 2013 to 2015 show that the effectiveness of the Local Government Finance Karanganyar in 2013 and 2014 is quite effective, and 2015 was very effective. 5) The results of the analysis of regional spending efficiency ratio Efficiency Ratio Regional Shopping Karanganyar years 2013-2015 as very efficient for intervals of less than 10% efficiency. Keywords: financial ratios, financial performance of local government
AbstractSince the enactment of Law No. 12 Year 2008 on the second Amendment to the Law Number 32 Year 2004 on Regional Government, as an interpretation of Article 18 , to bring new changes in governance in the region. This law has fundamentally changed the practices of government, one of which is related to the position, duties and functions of the District. The main changes was in the definition of the township itself besides the other changes such as the shape of the organization, financing, personnel appointments, logistics fulfillments and accountability,. Previously, the District was an administrative region in the context of the work environment that organizes the implementation of tasks in the area of public administration. While according to the Law No. 12 of 2008, Article 126 Section 3, the District is the district/city in the context of the principle of decentralization. That is, if used within the framework of the principle of deconcentration district, it is one of the administrative area, in addition to national, provincial, district and municipality, as well as administrative city. At the present time the Districts is the working area of the districts of the region. However, districts are not a territory, it is a service areas.Keywords: Delegation of authority, Head of District, Regional Government
Abstrac : In order to implement regional autonomy based on Law No. 22 of 1999, that the granting of autonomy to the local city / county is based on the principle of decentralization in the form of autonomy, real, and responsible. Granting authority on the basis of the principle of decentralization, causing all fields are left to local governments in the implementation of an autonomous basically become the authority and responsibility of local city and county governments fully, both concerning the determination of policy, planning, implementation, monitoring, control, and evaluation. This study aimed to describe the factors that affect the implementation of regional autonomy and decen-tralization in the provision of recommendations for the implementation of decentralization in au-tonomy. The results showed that there are four variables that can explain the performance of the implementation of decentralization in the regional autonomy in the city / county, namely managerial aspects, aspects of Human Resources organization, aspects of bureaucratic culture, and ethics of public service. Keyword: decentralization, regional autonomy
This paper examines decentralisation and distribution of access to primary school in Indonesia. Data come from Indonesia National Socio Economic Survey 2014, and statistic reports from Ministry of education, Ministry Of Finance, and General Election Commision. Descriptive statistic is used to describe spatial distribution of decentralization in primary education system and distribution of primary education access. The results show there are districts disparities in decentralization of primary education system and primary education access especially between district within Java islands and Papua islands. The results highlight the need to improving decentralization performance to achieve universal primary education in Indonesia, particularly within districts outside Java islands. Improving bureaucracy capacity particularly teachers is important to improve decentralization performance in primary school access.
The implementation of regional autonomy within the framework of decentralization is a complex and continuous work . In the early stages of decentralization , there is a transfer of various types of authority from the center to the various institutions , especially institutions subnational governments . After the transfer of authority will then be followed by the transfer of financing , documents and facilities . After the completion stages passed , does not mean the work has been completed . It appears a series of new challenges related to the ability of isntitusi who obtained the transfer of authority to manage it properly . Without good management , decentralization is precisely that for democracy , effectiveness , efficiency and fairness can not be achieved . It would appear the sources of inefficiency , ineffectiveness and new injustices in areas that can be a trigger for a second series of multidimensional crisis
As a fiscal policy within the framework of regional autonomy, the allocation of DAU is an act that very important. It was meant to address financing capability gap between regions. The reason is because the DAU is the largest component of balance funds, namely the lack of 26% of the net domestic income in the state budget the amount of DAU scheme is not limiting, because it can only grow with the size of the authority delegated to the regions. DAU legal standing as a regional income in the financial relationship between the center and the regions based on the principle of autonomy is as a subsidy coming from the state revenue in the state budget that is allocated to local revenue in the budget based on fiscal decentralization. Keywords: General Allocation Fund, autonomy, regional autonomy
This research aims to understand the effect of policy implementation through Law No. 18 of /997 to the performance of local government finance. The case study is Pemalang regency. Contrary to the assumed policy goals, this research shovrs that during 2 years of its implementation in Pemalang the local original income (PAD) has virtually decreased. Although the nominal budget of the local government has increased, the PAD has contributed less. In effect, the policy has resulted in the decline of local government income from local taxation and charges, the overall fiscal effort and the degree of fiscal decentralization. It is recommended that the current policy problem should be addressed by determining the target of local taxes and charges with the real local potentials. The local government has to focus on the effective and efficient taxes that are linked to the local development budgets and the local gross domestic product.
<p class="Bodytext50"><em>Regional autonomy that has long been the aspiration of the people had been executed after successfully fought for reform. After implemented, which should be considered is whether the regional autonomy that has been running for 4 yaers really can fullfil people's needs and create welfare for the people. We all know that the purpose of the existence of local government is creating public service. Public services must be created with the creative way through many aspect include regional financial management strategies. By using four independent variables: financing ability, mobilize funds ability, regional government independence, level of fiscal decentralization, and the level of flaypa per effect, researcher tested the role of regional autonomy by linking it to the influence of these four independent variables on the variable of public service expenditure allocation. By using a chow test resulted in a finding that the local government system and the personnel in the four years of implementation of regional autonomy tend looks not ready in achieving the vision of regional autonomy. Anotherfinding is that in general, regional autonomy has a role in improving the influence of financial management aspects on the allocation of expenditure on public services.</em>
This study aims to determine the ratio of rgional finance dependency and in dependency in Sigi district . This study is categorized as a descriptive quantitative research. This study was conducted to obtain the data and information about the regional financial management in Sigi district . This study was conducted in 2014 with the observation period between 2009 and 2013. The data collection was conducted by applying observation, interviews, literature and documentation. Then, it was analyzed by several methods, include: 1) the regional finance dependency ratio is calculated by comparing the amount of regional revenue with total revenues budget without subsidies, and 2) the regional finance independency ratio is calculated by comparing the amount of regional revenue with devided by the budget balance of the Central Government as well as the Province. The result of this study concluded that: 1) The average level of Sigi Region financial dependence on the sentral government during the period of fiscal years from 2009 to 2013 was amounted to 27,05%. When classified according to the criteria of assesment of the level of financial dependence of the central government area is the province with the level of Region Financial Dependence Medium, and 2) The average level of Sigi Regional financial independence area during the period of 2009 to 2013 fiscal years was 1,58%. Therefore, it was categorized as low level of regional financial independency based on the criteria of independence. It is also note that therefore, this district has a high dependency on the central government grants through the balance of funds in implementing regional autonomy and fiscal decentralization during the period of survey .
This article attempts to capture the power developed in an area aftermath of reformation era in 1998 marked by implementing autonomous region or decentralized. Power in The New Order Regime, that was The Centralistic changed with the emergence of the local political elite that affirming their power by various sources of capital. By having a more open space for local figures to snatch the seat of power at the local level in the county, political competition then became closer in social community base level. Those who have a culture of social capital, networks and other social networking might be easier to perform. No exception figure of “Kiai” head of Islamiccommunity originating from habitus religious activities and education in boarding school and other community social activities. In Bangkalan regency Habitus-based Political Elite Kiai boils down to descendants of the BaniKholildiasporic in various organizations either initiating Community-Social Organizations, political parties and legislative Institutions and Executive. The method used in this research is descriptive-qualitative structure of Agency Bourdieu's approach with data mining using in-depth interviews and technical documentation. The end result of this thesis was to see that the political and Dynastic Politics Breeds successfully built by RKH Fuad Amin during his leadership in two periods, ten years later continued by the winning of his son MakmunIbnuFuad with a majority of votes 93,47 percent. After his main rival who is also a descendant of BaniKholil, namely KH Imam BuchoriKholil failed to follow the contestation elections directly. In contestation elections in Bangkalan Regency, the ability of the group or Political Actor in using sources of capital and symbolic power in a society is still very effective in managing their Paternalistic room practices.In the analysis of Structure-Agency Bourdieu's perspective, social space and social groups who control it are the products of a historical struggle continuously updated for contested or won as well as establish dominance in power.
Background: The role of regional government in decentralization period is very important to the health sector particularly in financing. This is because health is one of the sectors that was decentralized. Minimum service standard is the obligatory responsibility for the region that is the right of every citizen at a minimum level, and one of many basic services is Maternal and Child Health programs. Objectives: To asses the financing sufficiency for Maternal and Child Health Programs based on Minimum Service Standard cost calculation and the effectivity of financing for Maternal and Child Health programs to achieve program’s objectives and goals. Methods: This research is a descriptive study conducted in Nunukan in 2013 with quantitative data. Sufficiency analysis is done by calculating the cost of Maternal and Child Health program to the result of cost calculation based on Minimum Service Standard. Performance effectivity of the Maternal and Child Health Programs was analyzed by the achievement of Minimum Service Standard according to the national indicator target and Maternal Mortality and Infant Mortality to the target of RPJMN of 2010-2014. Results: The cost of Maternal and Child Health program that was available was Rp. 2.530.038.761, and the calculation result of the cost based on Minimum Service Standard at Rp. 3.707.719.364, thus there was fund deficit about Rp 1.177.680.603. The percentage of MCH programs financing by the central government was still hight that was about 75%. There are financing MCH programs for direct activities amounted to 74%, and indirect activities amounted to 26%. The financing performance of MCH program was not effective yet to achieve the target of national Minimum Service Standard indicator and maternal mortality was still high at 173 per 100.000 life birts and infant mortality at 14 per 1000 live births. Conclusion: The financing of MCH programs was not sufficient to perform activities in MCH programs, as there was fund deficit about Rp 1.177.680.603. There was high financing dependency to the central government at 75% because of the low regional government commitment to financing priority programs such as MCH programs.
Regional autonomy policy basically is a delegation of authority from the central government to the local government to regulate and manage its own government and society according to their local needs and capacity. The policy was companied by the delegation of authority to regulate and manage regional finance through the fiscal decentralization. The capability of regional finance is the ability of regional government in improving local own source revenue (PAD) that leads to the independence of regional finance which is measured by fiscal decentralization. The aim of this study is to analyze the development of local government of Sanggau regency’s financial ability. The method used in this study is descriptive study. The data source used secondary data. The data collection techniques used in this study consists of: (1) ratio degree of fiscal decentralization, (2) ratio of independence, (3) ratio routine of capability index. Based on the results of analysis, showed that: (1) the capability rate of regional finance in the government of Sanggau regency for 5 (five) fiscal years viewed by the degree of fiscal decentralization is still very low. It showed by the proportion rate of local own source revenue (PAD) 3.85% (very low), proportion rate of BPHP 6.31% (very low), and proportion rate of donations 73.62% (very low). It is showed that regional finance is still depends on central government. (2) The independence ration of regional finance showed development of fluctuation with the average rate 4.38% (very low). It shows that the capability of regional finance of Sanggau regency’s government in funding all of the activities is still depends on other sources beside PAD. (3) The ratio routine of capability index showed development of fluctuation with the average rate 5.3% (very low). It shows that the routine capability of Sanggau regency’s government I funding all of the activities is still depends on other sources beside PAD. It means that PAD has the low capability in funding its routine expenses. Keyword; Local Financial Capacity, Ratio Degree of Fiscal Decentralization, Ratio of Independence, Ratio Routine of Capability Index