Surabaya City Government is part of the regional government system in Indonesia which adopts a decentralized system. In line with these various regulations, regional fiscal or financial management consists of three main components, namely Regional Revenue, Regional Expenditure, and Regional Financing. This study aims to calculate the fiscal potential of the City of Surabaya for the 2017-2021 period. Furthermore, to obtain and complete optimal results, research uses a quantitative approach. The results showed that the economic growth of Syria showed good performance. However, in terms of inflation, the numbers also continue to increase. It is recommended to the Surabaya City Government that inflation control must be carried out through various policies that can increase economic growth that can improve people's welfare.
Andre Kussuma Adiputra, Andri Apriyanti, Khaula Lutfiati Rohmah
This study aims to determine the financial performance of the Karanganyar Regency Government Budget Year 2015-2017 seen from: Analysis of Regional Income Variance, Analysis of Regional Income Growth, Decentralization Degree Ratio, Regional Finance Dependency Ratio, Regional Financial Independence Ratio, Analysis of Regional Expenditure Variance, Analysis of Regional Expenditure Growth, Regional Expenditure Suitability Ratio, Regional Expenditure Efficiency Ratio, and Value For Money Concepts.
 This research is a qualitative descriptive study. The technique of collecting data used in this study is documentation techniques. The data used is Secondary Data in the form of the Karanganyar Regency Government Budget Realization Report 2015-2017.
 The results showed that the financial performance of the Karanganyar Regency Government was generally said to be good. This can be seen from: (1) Analysis of Regional Income Variance which shows the number 100.86% (2) Analysis of Regional Income Growth which shows a positive growth of 7.82% (3) Decentralization Degree Ratio which shows 16.50% ( 4) Regional Finance Dependency Ratio which shows 83.17% (5) Regional Financial Independence Ratio which shows the number 19.84% (6) Analysis of Regional Expenditure Variance below 100% on average (7) Analysis of Regional Expenditure Growth with an average 3.76% (8) Regional Expenditure Suitability Ratio The Karanganyar District Government allocates a large portion of its expenditure budget for operating expenditure, which averages 76.92%, while for capital expenditure 16.01% (9) Regional Expenditure Efficiency Ratio which shows the number 89.08% (10) Value For Money concept which shows that the realization of regional income exceeds the amount of the regional income budget. However, the degree of decentralization is still low and the level of financial dependence on the central government and regional government is still high.
The method used in this research is comparative method using quantitative. The data source used is secondary data. The results shows that the comparison between efficiency and effectivity from district / city in West Borneo Province in 2006 – 2010 has declining trend and interrelated. While local fiscal capability which is measured from government finance performance shows that its dependence is still high enough because the contribution of fund balance is still above 50%. Base on the estimation result which is regressed by using EGLS method, it is obtained the result shows that two variables from local finance performance are not significant which are PAD effectivity ratio (REPAD) and local finance dependency ratio (RKetKD), where the estimation result also shows the existence of negative relation but significant to degree of decentralization ratio (RDD). The financial performance of local government still shows dependence on the central government, therefore it must be learn to be independent.
Based on Law No. 33/2004 on the transfer of power from the central government to the local government in managing, collecting and managing the source of receipt in accordance with the potential and conditions of their respective regions or seized by fiscal decentralization. In order to realize this goal, local governments are allowed to carry out regional expansion. The purpose of the expansion is to optimize services to the community in light of the growing population development. To improve service performance, it is certainly required to have sufficient financial capabilities. In order to ensure the implementation of the implementation, the financial capabilities of each region are required, but regional autonomy often creates fiscal gaps and becomes a burden on the central government as a result of the inability to finance development carried out by local governments. Therefore, efforts are needed to improve and find alternative sources of new admissions taking into account the conditions and potential that exist in each area. On the basis of the problem, this research needs to be carried out to see if the implementation of regional autonomy has been effectively carried out in accordance with the objective of regional autonomy which is to achieve fiscal independence. The objectives of this study are (1) analyzing the financial capabilities of the expansion area and the parent region (2) analyzing how the new and parent districts receive efforts in the implementation of fiscal maturity. The data used in this study is secondary data of danalm bentum time series in the period 2009-2017 sourced from Dispenda, BPS and related agencies from 11 districts / cities in Jambi Province. Analysis of data used by nature of this study with models of fiscal decentralization degrees (FDD), Regional Spending Performance and Regional Financial Retdor. While to measure tax efforts used the Tax Ratio and Tax Capacity model.
Fiscal decentralization is a form of financial autonomy provided by the central government to local governments. The existence of a fund transfer for the regional government is funding in the implementation of government functions and carrying out the function of security while the source of income is expected to be from locally-generated revenue. But in reality, fiscal transfers are the primary source for local governments to finance local expenditures. The research used data from 2013-2018 and used the quantitative research method using the panel regression method. The result of this study indicates that of the three models used, total expenditure, education sector public expenditure, and health sector public expenditure, the flypaper effect occurs. This result has the effect that each increase in the balanced fund will encourage total expenditure, education sector public expenditure, and health sector public expenditure. The increase in public expenditure is expected to improve public services, which in turn can improve the welfare of the people in the districts and cities in the North Sumatra Province.
The consequence of the implementation of regional autonomy is that the regions must have their own abilities to implement government affairs and regional development. There is some research on the financial performance of the area but is still done in a partial autonomic region only. This research compares the financial performance between the autonomic regions of the expansion and the parent area. Based on this, study aims to compare the financial performance of the parent regency and the expanded district. In this study financial performance is measured based on Regional Financial Independence (KKD) rastio, Fiscal Decentralization Degree (DDF) ratio and the Regional Financial Effectiveness Ratio (EKD). Overall, secondary data are used, namely the realization of Regional Original Revenues (PAD), PAD targets, Balancing Funds, Loan Funds, and Regional Expenditures. To answer the research problem, the data is processed using ratio analysis. The results showed that the Regional Financial Performance measured by the ratio of KKD and DDF in the parent regency was still higher than the KKD and DDF in the expanded districts. Both the parent district and the expanded districts of KKD and DDF are included in the Instructive category. The role of the central government is still very dominant in regional financing. In general, the expanded district EKD ratio was very effective while the parent district EKD ratio was generally included in the quite effective category. The financial performance of the regional results is better than the parent region due to the existence of autonomous regions to promote maximum income sources.
This study aims to analyze the influence of fiscal decentralization, dynastic poltical, and total violation of internal control system on accountability of financial reporting of district/city governments moderated by performance variable at District/City Government in Indonesia in 2013-2015. This study used secondary data obtained through the website of BPK RI, the Ministry of Finance, and the Ministry of Home Affairs. The sample in this study was selected based on the purposive sampling method, so as many as 190 samples were obtained, with details of 95 main samples namely district / city governments that were indicated dynastic politics in Indonesia in 2013-2015 and 95 comparative samples namely district /city governments that were not politically indicated dynasty in Indonesia in 2013-2015. Testing the hypothesis in this study using multiple linear regression with MRA (Moderated Regression Analysis), so there are 2 models in the study. The data collected was analyzed first by testing the classical assumptions, then testing the hypothesis was carried out with the SPSS 26.0 test tool. Based on the results of the study it can be concluded that partially the dependent variable on the central government, dynastic politics, and the number of violations of the internal control system has a significant negative effect on the accountability of local government financial reporting, while the variables of regional independence and financial effectiveness do not affect the financial reporting accountability of local governments. Furthermore, the performance variable is able to moderate the effect of dependence on the central government on the accountability of local government financial reporting, but is unable to moderate the influence of regional independence and dynastic politics on the accountability of local government financial reporting
Teuku Muhammad Iqbal Chaira, Sya’ad Afifuddin, Prawidya Hariani R.S
Aceh is a province in Indonesia which is located on the northern tip of the island of Sumatra and is the westernmost province in Indonesia. There is one problem that is never resolved properly, namely poverty. Where the level of poverty in Aceh is very high, especially after the tsunami in 2004 which destroyed almost 80% of the capital of Aceh Province with many economic systems operating there. Aceh Province is one of the provinces that has a poverty rate higher than the national poverty level. This research is a mini quantitative research, which aims to estimate and analyze the relationship between variables that have been determined to answer the problem formulation. The data presented is panel data wherein the study uses cross section data, the data studied are more than one; and time series, the time collected in different years simultaneously. The data that will be examined are Regencies / Cities in Aceh Province and the time of research collected is 2015 to 2018 published by the Ministry of Finance of the Republic of Indonesia (KEMENKEU RI) and the Central Statistics Agency (BPS). The variables to be observed are the variables that will be influenced by poverty and special autonomy funds.
This objective is to examine the original income of the region for sustainable regional development in Indonesia, using normative legal research. Regional government finance is a very decisive factor in the administration of regional government. The financial capacity of a region is determined by the existence of a source of regional income and its level of lucrative. The level of a local source of revenue is determined by the extent to which the basis for imposing taxes is responsive to inflation, population growth and economic growth. Generally in developed countries that implement decentralization policies tend to give greater authority to the regions to manage sources of revenue that are lucrative. On the other hand, in developing countries, financial resources are controlled by the central government. Local governments only manage financial resources that are less potential.
This study aims to assess the financial performance of Padang City Government using Financial Ratio Analysis of Regional Budget for the Fiscal Year 2014 – 2018. Type of research is descriptive qualitative with case study approach. The processed data is the budget Report of Padang City Government for Fiscal Year 2014 – 2018 were obtained from the internet publication on the official website of the financial management board and regional property of Padang City. The analysis used to analyze the regional financial performance is financial analysis by calculating the ratio of independence, Degree of Fiscal Decentralization, Ratio of Efficiency and Ratio of Expenditure Congruence. While the analysis used to analyze the Ability of Regional Finance is to calculate the Share and Growth, Map of Regional Finance Capability and, Based on the calculation and analysis of the Regional Financial Performance can be concluded that the pattern of the region’s autonomy level relationships in Padang City is instructive criteria. Degree of Fiscal Decentralization is still lacking, but the Ratio of Efficiency is also not efficient. The ratio of Expenditure Congruence shows the balance between expenditures is not balanced. Based on the calculation and analysis of the Regional Financial Capability can be concluded, that the condition of the financial ability of Padang City is still not ideal. Share and Growth calculation results, the position of Padang City in quadrant III
Endang Indartuti, V. Rudy Handoko, Handoko Wirawan, Uthe Ch
At the beginning of the reform era in Indonesia brings changes to the structure of the Government System in the regions, especially villages. This condition is marked by the transition from a change of the new order era with a centralized regime towards a reform era, a new and more open regime with decentralization. The wind of reform is carried over to the latest regulation (Law No.6 of 2014). This law seeks to restore village autonomy based on its origins and customs as a process of restoring state confidence in the village. On the other hand, to fulfill its political promise, the provision of village funds as a source of village income that aims to make the village independent shows that this law is still the same with the previous one, that in the village there is still supra village power. Village funds make all forms of implementation and management of village finances must be used in accordance with the village financial system. The existence of this system makes the village authority no longer in accordance with the principles of village autonomy, that village autonomy is in accordance with its origins and customs. Giving village autonomy with financial management through the Village Financial System (SISKEU) is felt that the portion of creativity and space for the village is limited. This triggers a lack of courage of the village officials to take the initiatives in making policies for a better village development. This situation is experienced by all villages in Indonesia, such as Pekarungan Village. This study uses a qualitative research method. The key informant is a Former Head of Pekarungan Village for 2 consecutive periods (1991-2006). He understands very well the changes in the laws governing the village. The result of the research shows that based on the principles of Kartohadikusumo's autonomy, autonomy can be implemented if there are inherent rights in the village, namely: "(1) the right to own territory with legal boundaries; (2) the right to elect and appoint the head or assembly of the village administration; (3) the right to administer and govern the village households; (4) the right to own and manage village assets and finance; (5) the rights to own village land; (6) the right to collect local taxes. Without the inherent rights mentioned above, autonomy is difficult to be implemented ".Based on the effectiveness of success in achieving the goals set and the relationship between the expected results and the results achieved, there are some rights that are not exercised as they should. In connection with village rights in Law No. 6 of 2014 concerning Villages, (1) the village regulates and manages community interests based on the origin, customs, social, and cultural values of the village community; (2) the village determines and manages its institution; and (3) the village receives sources of income, including village funds. All sources of village income, such as the Village Cash and village financial management, must be based on the village SISKEU as determined by the government bureaucracy. Keywords: Evaluation, Village Autonomy DOI: 10.7176/PPAR/10-6-08 Publication date: June 30th 2020
The main challenge in political decentralization in Indonesia is how local government fulfil human rights by maximizing available resources. These challenges are constructed in situations where demands for the fulfilment of human rights are limited by local government budgetary conditions. While in the Human Rights Principle, Resource limitations are not a strong reason to delay the fulfilment of Human Rights, due to the obligation of progressive realization of the fulfilment of human rights. This study is entitled Legal Analysis of the Implementation of the Principle of Progressive Realization Obligations in the Management of regional finances, trying to answer several legal issues, namely; first, how is the position of the Principle of Progressive Realization Obligations in the management of regional finances; second, how to Implement Progressive Realization in the Management of regional finances; third, fulfilment of human rights in ideal regional financial management in the future. The author limits in this paper the specific ESC rights; The Right to Food, the Right to Housing and social welfare. To answer the above, the authors chose 4 regions as the object of research, namely the Bangka Belitung Archipelago Province, South Kalimantan Province, Malang City, Denpasar City and Palu City. There are a number of important things in this research that produce uncertainty in fulfilling human rights in the regions. And finally, it is necessary to improve regulations at the national and regional levels in an effort to fulfil human rights. Keywords : Obligations of Progressive Realization, Regional Finance, Fulfilment of Human Rights. DOI: 10.7176/JLPG/100-06 Publication date: August 31 st 2020
Local fiscal autonomy of Bogor Regency is still low, due to the low contribution of local own revenue to total local revenues. This fact has implications for the high local financial dependence on fiscal transfer from the central government, so that the Bogor Regency government is not yet autonomous in financing local development programs. This research aims to obtain rational knowledge about the effects of fiscal decentralization implementation and indirect local tax management on local fiscal autonomy. The research used a descriptive method with a qualitative approach, so that it can explain data and information obtained from observation, interview, and focus group discussion. The research concludes that the prospect of raising local fiscal autonomy is determined by the accuracy of fiscal decentralization implementation and the effectiveness of indirect local tax management. The accuracy of fiscal decentralization implementation requires the central government policy in the assignment of taxes and revenue sources to local government must be commensurate with the assignment of expenditure responsibilities to local government. The effectiveness of indirect local tax management requires that local government efforts to increase indirect local tax revenues must precisely determine the increase of revenue targets according to the results of econometric analysis of Gross Domestic Regional Product (GDRP) on certain sectors, improving the ability of local tax apparatus, and improving the obedience of indirect local taxpayer.
ABSTRAKEra desentralisasi dengan dikeluarkannya UU No. 23 Tahun 2014, masih memiliki permasalahan mendasar jika dilihat pada aspek hubungan antar pemerintah (intergovernmental relationship). Salah satu masalah yang mengemuka dari adanya sebab tersebut ialah terkait alih fungsi kewenangan bidang pendidikan. Dengan adanya UU No 23 Tahun 2014, pengelolaan pendidikan tingkat SMA, SMK, MA dan SLB dialihkan kepada Pemerintah Provinsi Jawa Barat, hal ini melahirkan berbagai masalah seperti kebijakan sekolah gratis yang sudah berjalan di tingkat Kabupaten/Kota berbenturan dengan kebijakan pusat, permasalahan dalam pelaksanaan manajemen pendidikan, sulitnya pengendalian dikarenakan jarak yang jauh antara sekolah dengan pusat Pemerintah Provinsi. Tujuan penelitian adalah untuk menganalisis dan mendeskripsikan pelaksanaan desentralisasi pengelolaan pendidikan Sekolah Menengah Umum oleh Pemerintah Provinsi Jawa Barat. Jenis penelitian ini ialah deskriptif dengan pendekatan kualitatif. Hasil dari penelitian ini memperlihatkan bahwa dalam aspek pembiayaan masih ditemui adanya ketimpangan pendistribusian dana bantuan, pada aspek efektifitas dan efisiensi manajemen pendidikan yang kurang, pada aspek retribusi kekuasaan terkait alih kelola kewenangan berjalan dengan baik serta didukung oleh kekuatan politik yang ada, adanya peningkatan aspek kualitas pendidikan di lingkungan Sekolah Menengah Umum, pada aspek inovasi pelaksanaan pendidikan, telah melahirkan beberapa produk inovasi pendidikan di tingkat SMU di Jawa Barat. ABSTRACT The era of decentralization with the issuance of Law No. 23 of 2014, still has fundamental problems when viewed in aspects of intergovernmental relationships. One of the problems that arose from the existence of these causes was related to the transfer of authority in the field of education. With the Act No. 23 of 2014, management of education at the high school, vocational, MA and SLB levels was transferred to the West Java Provincial Government, this gave birth to various problems such as free school policies that had been running at the district / city level in conflict with the central policy, problems in implementation education management, the difficulty of controlling due to the great distance between the school and the center of the Provincial Government. The purpose of the study was to analyze and describe the implementation of decentralized management of secondary school education by the Government of West Java Province. This type of research is descriptive with a qualitative approach. The results of this study indicate that in the aspect of financing there is still an imbalance in the distribution of aid funds, in the aspect of effectiveness and efficiency of education management that is lacking, in the aspect of power levies related to the transfer of authority management runs well and is supported by existing political forces, an increase in the quality aspects education in the High School environment, in the aspect of innovation in the implementation of education, has given birth to several educational innovation products at the high school level in West Java.
This study aims to determine the financial performance of the South Solok district government from 2014 to 2018 using data that has been audited by the Indonesian Supreme Audit Board. The data analysis technique is done by using quantitative descriptive method by performing calculations on financial statement data using 10 indicators. The results showed that the ratio of regional financial independence was 8.04% with the category of independence very less, the ratio of regional financial dependency was 91.18% in the very high dependency category, the degree of decentralization of regional finance was 7.32% with the category of the degree of decentralization very less, variance total revenue of Rp -11,434,995,893 in the unprofitable category, growth of total revenue realization of 5.45% in the good category, the effectiveness ratio of total income of 98.57% is in the effective category, the effectiveness ratio of PAD is 102.13% is in the category very effective, the ratio of realization of operating expenditure to realization of total expenditure was 69.04%, the ratio of realization of capital expenditure to realization of total expenditure was 30.77%, and the ratio of efficiency of total expenditure in 2014 to 2018 was 92.75% in the less category efficient.
Fiscal decentralization is a form of delegated authority of the central government to local governments in matters of financial management. Local governments are given the authority to explore potential sources of local revenue in accordance with applicable regulations. Submission sources of revenue for local governments in the region should ideally be able to encourage selffinance its expenditure. Minimum local governments are able to finance expenditures of local government employee nevertheless remains dependent on central government transfers, it is shown by the local government is still dependent on the balance of funds by the central government through the DAU, DAK and other legal equalization funds. This study aims to determine the level of regional dependency on the central government decentralization era during his journey in the past 10 years (2001-2011). The sample in this study are some regencies/districts and cities in the Province of West Java. The results showed that the degree of independence of local government is still low, which means dependence on the central government is still high. Some areas even shows for local income can not afford to finance recurrent expenditure.
The objective of this study is to analyse the phenomenon of flypaper effect in Aceh after the implementation of fiscal decentralization. Data used in the study were panel data covering all 23 district/municipalities in Aceh from 2011 to 2013. Pooled Least Square was utilized. The results of this study revealed that ownsource revenue, sharing revenue, special allocation funds, general allocation funds, and special autonomy funds are statistically significant variables and have a positive relation to regional spending. It was proven that flypaper effect has occured in Aceh as the coefficient of the own-source revenue variabel was smaller than that of sharing revenue variabel. This implied that Aceh has been dependent on the national government in term of regional financing. Based on descriptive analysis, provinces having dominant share of tertiary sector to their regional gross domestic products show fiscally independent. In order to achieve fiscal independence, the phenomenon of flypaper effect could be overcomed by shifting the economic structure from the primary and secondary to the tertiary sectors of the economy. In doing so, the contribution of own-source revenue to regional spending outweigh intergovernment transfer funds from national government.
Regional autonomy as the beginning of decentralization has the urgency to be implemented for the progress of the State. Regional financial institutions often occur collusion triangles with regional heads so that they do not guarantee the implementation of good regional government because of the management of sub-optimal regional assets. The need for maximizing the functions of regional institutions so that regional assets can be managed for regional progress evenly. The absence of special regulations regarding the management of regional finance is a problem because it still uses state financial laws so that the recommendations that the authors recommend in the form of optimizing regional financial institutions in managing regional assets and the existence of special regulations that regulate in detail the management of regional assets. The method used in this study is a normative juridical legal research method. Keywords: Institutional Function, Regional Finances, Regional Assets
Keren Kezia Rejoice Adlin Mamangkey, Hendrik Manossoh, Heince R. N. Wokas
This study aims to determine how the development of regional financial capability in the North Sulawesi provincial government from its level of independence, level of dependency, decentralization ratio, and financial growth. The main characteristic of the region's ability to organize its government is the ability in its finances to finance the administration of the regional government. This type of research is qualitative research. Descriptive method is an analytical method used in this thesis research, that is every data - data obtained, analyzed based on theories relevant to the problem to be discussed to obtain the results of the analysis which is then concluded and provides advice. The results of descriptive analysis of the North Cellebes Province LRA APBD data show that from 2014 to 2018, the Regional Original Revenue development is still lacking, has not experienced a significant increase because Transfer Funds still dominate the Regional Revenue of North Cellebes Province. The conclusion is that there has been an improvement even though it is lacking, but based on the calculation of the financial ratios the Financial Ability is still in the near-able valuation.
Ilham Maulana Saud, Eka Asterina, Gisti Fairuz Trisha
Research aims : To analyze the effect of local taxes, regional retribution, special allocation fund, and area size on the allocation of capital expenditure with economic growth as a moderating variable in the regency/city Governments in Indonesia from 2016 to 2017. Design/Methodology/Approach : This study used secondary data obtained through the website of the Ministry of Home Affairs, Ministry of Finance, and Audit Board of the Republic of Indonesia. Based on the purposive sampling method, a sample of 565 regencies/cities in Indonesia was obtained. The hypothesis testing in this study used Moderated Regression Analysis. Research findings : Based on the results of the study, it could be concluded that partially the local tax variables, special allocation fund, and area had a positive and significant effect on capital expenditure allocation. In contrast, regional retribution variables did not affect capital expenditure allocation, and economic growth could moderate the effect of local tax on capital expenditure allocation, but unable to moderate the effect of regional regional on capital expenditure allocations. Theoretical contribution/Originality : This research proved the theory of fiscal federalism in the relationship to fiscal decentralization, such as local taxes, economic conditions, public services, and public welfare. Moreover, this study enriched the literature on the application of the theory of stewardship in government agencies. Practitioner/Policy implication : Regional governments in regencies/cities in Indonesia are expected to explore the potential of their regions better so that they can improve the steward function to the community. Research limitation/Implication : The research period was relatively short; due to the availability of data only from 2016 to 2017, many research data were outliers. Future research is expected to renew the observation period and change the intervening model, as well as add other variables related to capital expenditure, such as General Allocation Funds (DAU), Revenue Sharing Funds (DBH), population numbers, Budget Surplus (SILPA) and others.
This research aimed to examine the effect of capital expenditure on performance growth of local finance with Local-owned Source Revenue as intervening variable. While, performance growth of local finance was measured by local independence, local mobilization, fiscal decentralization grade, local finance dependance, local effectiveness and its growth ratio of Local-owned Source Revenue. The population was 29 districts and 9 cities in East Java. Moreover, the research was quantitative. Furthermore, the instrument used sensus. Additionally, the data were secondary which taken from Budget Realization Report of Local Budget during 2014-2018. In addition, the data analysis technique used Partial Least Square with significant rate of 5% and using WarpPls 6.0. The research result concluded capital expenditure had positive effect on Local-owned Source Revenue. Likewise, Local-owned Source Revenue had positive effect on performance growth of local finance. On the other, capital expenditure had negative effect on performance growth of local finance.Keywords: capital expenditure, local-owned source revenue, finance performance, budget realization report
Policy tools are the mechanism by which policy ideas and policy goals are transformed into specific policy actions, the bridge connecting goals and results, and the necessary path for policy implementation. The choice of policy tools will be affected by multiple factors such as policy environment, policy objectives, policy objects, governance structure, and tool characteristics. And constructed a policy tool selection model. Based on this theory, it analyzes the selection of policy tools for characteristic towns in the fields of planning, comprehensive development, operation, investment and financing. The article believes that the policy tools that can be used in the planning stage of characteristic towns are: deregulation, decentralization, families and communities, social organizations, public participation, contract outsourcing, etc. The policy tools that can be used in comprehensive development are: deregulation, financial allocation, contract outsourcing, public-private partnership, etc. The policy tools that can be used during the operation phase are: regulation and deregulation, franchising, privatization, user payment, government purchases, social forces, and public participation. The policy tools that can be used in investment and financing are: bonds, funds, product crowdfunding, financial leasing, PPP financing, etc.
Abstract Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central goverment. However, in practice, there are still many areas that rely on the assistance central finance for their regional development. The purpose of this study was to determine the level of development of local independence and financial ability as well as effects on economic growth in regency and city in the Sumatera selatan Province year 2008-2018.this research takes place in regency and city in the sumatera selatan province. While the data used in this research is financial data and economic growth 2008-2018 in the sumatera selatan province.Methods of data analysis in this study there are two kinds, the first is the ratio of local independence and the ratio of local financial ability. Secondly, to investigate the influence of independent variables on the dependent variable used multiple linear regression analysis tool. According to analysis result have been obtained as follows. The ratio of local financial independence of regions indicated by the ratio of the average rate so low, still be between 0%-25%. According the ratio of local financial ability of regions averages between 0%-10% which is low. Local self-reliance has positive and significant on economic growth. Regional financial capability have positive but not significant effect on economic growth in regency and city in the sumatera selatan province.Key word: local goverment, local finance, local independence
The regional autonomy system provides an opportunity for regions in the territory of Indonesia to utilize their sources of income independently so that the implementation of development in the regions does not only rely on finance from the central government. In this study, we are of the opinion that regions that are able to optimize their local own revenue will have an impact on increasing local financial independence. Local financial independence is the ability of a region to finance development in its area. Our other opinion assumes that the relationship between localown revenue and the local financial independence can be strengthened by the implementation of decentralization. With good decentralization, local governments are more transparent in providing all information to the public, can increase accountability because public services are getting closer, local governments can take strategic decisions, improve fiscal management, improve economic growth and market security. The new contribution of this study is related to the literature of the merging of the relationship between local own revenue, decentralization, and local financial independence that was built through Moderated Regression Analysis (MRA) evidence in one of the regions in Indonesia, namely Ciamis. The results of the study show that regional local own revenues influence local financial independence. Meanwhile, decentralization which is proxied using local government expenditures is able to strengthen the relationship of local own revenues to local financial independence. So it can be concluded that the effective implementation of decentralization is able to encourage an increase in regional income that comes from its own sources to realize financial independence in the region. Keywords—Decentralization, Local Financial Independent, Local Own Revenue. Abstrak Sistem otonomi daerah memberikan kesempatan kepada daerah-daerah di wilayah Indonesia untuk memanfaatkan sumber-sumber pendapatannya secara mandiri agar pelaksanaan pembangunan di daerah tidak hanya mengandalkan keuangan yang berasal dari pemerintah pusat. Dalam studi ini, kami berpendapat bahwa daerah yang mampu mengoptimalkan pendapatan asli daerahnya akan berdampak terhadap meningkatnya kemandirian keuangan daerah. Kemandirian keuangan daerah adalah kemampuan suatu daerah dalam membiayai pembangunan di daerahnya. Pendapat kami lainnya menganggap bahwa hubungan pendapatan asli daerah dengan kemandirian keuangan daerah dapat diperkuat oleh pelaksanaan desentralisasi yang baik. Dengan desentralisasi yang baik maka pemerintah daerah lebih transparan dalam memberikan semua informasi kepada publik, dapat meningkatkan akuntabilitas karena pelayanan publik menjadi lebih dekat, pemerintah daerah dapat mengambil keputusan yang strategis, meningkatkan manajemen fiscal, meningkatkan pertumbuhan ekonomi dan keamanan pasar. Kontribusi baru dari studi ini adalah menyangkut literature penggabungan hubungan antara pendapatan asli daerah, desentralisasi, dan kemandirian keuangan daerah yang dibangun melalui Moderated Regression Analysis (MRA) bukti pada salah satu daerah di Indonesia, yaitu Ciamis. Hasil studi menunjukan bahwa pendapatan asli daerah berpengaruh terhadap kemandirian keuangan daerah. Sementara itu desentralisasi yang diproksi menggunakan pengeluaran pemerintah daerah mampu memperkuat hubungan pendapatanasli daerah terhadap kemandirian keuangan daerah. Jadi dapat disimpulkan bahwa pelaksaksanaan desentralisasi yang efektif mampu mendorong peningkatan pendapatan daerah yang berasal dari sumber-sumbernya sendiri untuk mewujudkan kemandirian keuangan di daerah. Kata kunci—Desentralisasi, Kemandirian Keuangan Daerah, Pendapatan Asli Daerah.