Financial Performance of The Province of Riau Archipelago in The Context of The Degree of Independence, Degree of Dependence, and Fiscal Decentralization
Abstract
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%.
Keywords
Full Text:
PDFReferences
Andriani, R. N. R., & Wahid. N.N. (2018), The Effect of local own-source revenue and fiscal balance on regional financial independency (study case of Tasikmalaya municipality in 2006-2015). Jurnal Akuntansi, 13(1), 30-39.
Anwar, M. L. (2016). The Influence of DAU, DAK, PAD on the economic growth and poverty (The Municipality of Manado of 2001-2013). Jurnal Berkala Ilmiah Efisiensi, 16(2).
Bangga, W, (2017). State and Regional Financial Administration.
Badan Pemeriksa Keuangan. (2020). Fiscal Independency Review Report.
Candra, D., Ratnawati, V., & Mutia, Y. (2018). The Analysis of Local Financial Capacity: Comparison Study of Regencies/Municipalities in the Province of Riau and Riau Archipelago). Jurnal Ekonomi, 27(2), 146-159.
Christia, A. M., & Ispriyarso, B. (2019). Fiscal Decentralization and Regional Autonomy in Indonesia. Lawh Reform, 15(1), 149.
Efendi, E., Erni, F. H., & Nurul, H. (2020). The Analysis of Factors influence the Local Own-Source Revenue of the Local Government of the Regency of Padang Pariaman. (Doctoral dissertation, Universitas Bung Hatta).
Fathah, R.N. (2017). Financial Ratio Analysis for Performance Appraisal at Gunung Kidul District Government. Ebbank, 8(1), 33-48.
Febiandani, R., & Suseno. D. A. (2016). The analysis of local financial independence and local dependence on the unemployment and poverty. Economic Development Analysis Journal, 5(2), 217-225.
Halim, A. (2013). Local financial accounting (ed.3) Koran. Penerbit Salemba.
Hunter, J. S. H. (1977). Federalism and fiscal balance: a comparative study. Australian National University Press for Research on Federal Fiscal Relations.
Panjaitan, T. D., & Hutauruk, R. H. (2022). The Development of Creative Economy in the Autonomy Area of Batam. Journal of Law and Policy Transformation, 6(2), 85-92.
Ifrizal, Darmawanis & Sulaiman. (2014). The influence of investment towards the local own-source revenue as well as its impact on the local capacity in funding staff expenses (A study on the local government of regencies/municipalities in the Province of Aceh). Jurnal Akuntansi, 3(2), 33-41.
Indonesia. (2021). Middle Term Development Plan. https://ppid.kepriprov.go.id.
Junaidi, L.D., & Anan M. (2021). The analysis of financial performance ratio of the municipality of Medan of the financial year of 2014-2018. Ekonomis: Journal of Economics and Business, 5(2), 385-391.
Mahmudi, M., & Sallama, N.I. (2010). Local financial management. Jakarta: Erlangga.
Mahsun, M. (2006). The Measurement of public sector performance. Yogyakarta: BPFE.
Mantra, A., Yintayani, N. N., Ardina, C., & Susilawati, N. L. N. A. S. (2019). Factors Influencing Local Own-Source and Its Impact on the Local Financial Independence. Jurnal Bisnis dan Kewirausahaan, 15(3), 185-194.
Manao, H. (2007). Auditing Philosophy. Pusdiklat BPKP.
Mardiasmo, D., & MBA, A. (2009). Public sector accounting. Yogyakarta: Andi.
Law No. (25). of 2002 about the Establishment of Riau Archipelago Province.
Law No. (13). of 2003 on State Finance Keuangan Negara.
Law No. (32). of 2004 about Local Government.
Law No. (33). Tahun 2004 about the Fiscal Balance of the State and Local Government.
Paat, D. C., Koleangan, R. A., & Rumate, V. A. (2019). The Influence of Local Own-Source Revenude (PAD), Balance Expenses on the Economic Growth and Its Impact on the Poverty in the Municipality of Bitung). Jurnal Pembangunan Ekonomi dan Keuangan Daerah, 18(4).
Putri, Z. E. (2015). The Analysis on the Influence of Local Own-Source Revenue (PAD), General Allocation Fund (DAU) and Inflation towards the Economic Growth in the Regencies/Municipalities of the Province of Central Java. Esensi: Jurnal Bisnis dan Manajemen, 5(2).
Pekei, B. (2016). The concept of and analysis on the effectiveness of financial management in autonomy era. Penerbit Taushia.
Prastiwi, T., Arfan, M., & Darwanis, D. (2016). The Level of Independence, Effectiveness, and Efficiency of Regional Finances of the Provincial Government of Aceh after the Revision of the Law of Regional Autonomy, Buletin Ekonomi Jurnal Manajemen, Akuntansi Dan Ekonomi Pembangunan. 14(1), 79-84.
Sari, I., Asaari, M., & Hidayah, I. S. N. (2021, December). The Analysis of Financial Performance of the Local Government of the Municipality of South Tangerang of 2010-2019. In Prosiding Seminar Nasional & Call for Paper STIE AAS (pp. 408-425).
Sartika, N. (2019). The Analysis of Local Financial Ratio to Assess the Financial Performance of the Municipality of Meranti Archipelago. Inovbiz: Jurnal Inovasi Bisnis, 7(2), 147-153.
Sulianti, S., & Ika, S. R. (2012). The comparison of the financial performance of DI Yogyakarta before and after regional autonomy. Jurnal Bisnis dan Ekonomi, 3(2), 123-138.
Sulistyo, A. T. (2018). The analysis of financial performance of the provincial government of East Kalimantan, reIndonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijakan Publik, 3(1), 43-59.
Tamboto, L., Morasa, J., & Mawikere, L. (2014), The analysis of local financial capacity in the regional autonomy era in the Regency of South East Minahasa. Jurnal Riset Ekonomi, Manajemen, Bisnis, Dan Akuntansi, 2(2).
Tianto, R. (2022). The Influence of the Number of Work Force and Investment towards the Local Own-Source Revenue. Jurnal Samudra Ekonomi Dan Bisnis, 13(1), 113-124.
Ulfagustiani, T. D. (2019). The Influence of the Number of Tourtists as well as Fees and Charges Given to the Society for Services Given in Tourism Objects towards the Local Own-Source Revenue of the Tourism Division of the Municipality of Sukabumi (A Study Case of Tourism Object of Cipanas-Cisolok) (Doctoral dissertation, Universitas Muhammadiyah Sukabumi)).
Utami, D. N., & Indrajaya, I. G. B. (2019). The Influence of Local Own-Soruce Revenue (PAD) on the Economic Growth and Social Welfare in the Province of Bali. E-Jurnal EP Unud, 8(10), 2195-2225.
Wertianti, I. G., & Dwirandra, A. A. N. B. (2013). The Influence of Economic Growth towards the Capital Expenses with PAD and DAU as the Moderation Variables. E-Jurnal Akuntansi, 4(3), 567-584.
Zukhri, N. (2020). Financial Performance of Bangka Belitung Archipelago in terms of the Degree of Independence, Dependence and Fiscal Decentralization. Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijakan Publik, 5(2), 143-149.
DOI: https://doi.org/10.17509/tjr.v5i1.46729
Refbacks
- There are currently no refbacks.
The International Journal Business Review (The Jobs Review) is licensed under a Creative Commons Attribution-ShareAlike 4.0
View My Stats