Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara
2022: JTAKEN Vol. 8 No. 1 June 2022

Factors Determining Low Regional Financial Independence: Financial Autonomy and Degree of Decentralization

Frida Agustina (Public Finance Department, Institut Pemerintahan Dalam Negeri, Indonesia)
Agus Joko Pramono (Badan Pemeriksa Keuangan RI)
Bahrullah Akbar (Public Finance Department, Institut Pemerintahan Dalam Negeri, Indonesia)
Alma'arif Alma'arif (Government Management Department, Institut Pemerintahan Dalam Negeri)



Article Info

Publish Date
28 Jun 2022

Abstract

This study aims to assess the Tulang Bawang Regency's fiscal independence and determine the factors that affect it. This study used the data of the 2015-2019 Statement of Budget Realization of Tulang Bawang Barat Regency and primary data from interviews. The research method applies a qualitative approach with an inductive methodology using several financial ratios such as the effectiveness of Local Own-source Revenue management, the ratio of the degree of decentralization, the ratio of regional financial dependence, and the ratio of regional financial independence. Based on the results, the ratio of regional financial independence shows an average of 1.54%, within the 0-25% interval, and classified under the shallow criteria. It may be inferred that regional financial independence in meeting its funding needs for the administration of government affairs is still very low. The regional financial dependence ratio shows an average of 85.99%, categorized as a very high dependency. The calculation of the ratio results proves that the local own-source revenue of Tulang Bawang Barat Regency is still low. Furthermore, a large number of mandatory spending from the central government and national budgeting politics causes the regional financial independence of Tulang Bawang Barat Regency to become low.

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Journal Info

Abbrev

TAKEN

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Jurnal Tata Kelola & Akuntabilitas Keuangan Negara with registered number ISSN 2460-3937 (print), ISSN 2549-452X (online) is a scientific journal published by Directorate of Research and Development, The Audit Board of Republic of Indonesia (Badan Pemeriksa Keuangan RI). This journal was first ...