Proceedings of the 1st International Conference on Finance Economics and Business, ICOFEB 2018, 12-13 November 2018, Lhokseumawe, Aceh, Indonesia

Research Article

Review of Regional Finance of Government of Regency and City in West Sumatera Province

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  • @INPROCEEDINGS{10.4108/eai.12-11-2018.2288773,
        author={Halkadri  Fitra},
        title={Review of Regional Finance of Government of Regency and City in West Sumatera Province},
        proceedings={Proceedings of the 1st International Conference on Finance Economics and Business, ICOFEB 2018, 12-13 November 2018, Lhokseumawe, Aceh, Indonesia},
        publisher={EAI},
        proceedings_a={ICOFEB},
        year={2019},
        month={10},
        keywords={city; independence ratio; regency; regional finance},
        doi={10.4108/eai.12-11-2018.2288773}
    }
    
  • Halkadri Fitra
    Year: 2019
    Review of Regional Finance of Government of Regency and City in West Sumatera Province
    ICOFEB
    EAI
    DOI: 10.4108/eai.12-11-2018.2288773
Halkadri Fitra1,*
  • 1: Faculty of Economic Universitas Negeri Padang, Padang, Indonesia
*Contact email: halkadri.feunp@gmail.com

Abstract

This study aims to see the regional financial independence in 12 regencies and 7 cities in West Sumatera Province in the period 2012 to 2016. The data used are secondary data that is the realization of local revenue, total regional revenues, revenue transfer from the central government, others legitimate regional revenue as well as regional loans obtained from the Directorate General of Fiscal Balance at the Ministry of Finance of the Republic of Indonesia. This research is categorized into quantitative descriptive research so that it can give an explanation about the condition of regional financial independence. The results showed that the average ratio of financial independence of regency and municipal governments in West Sumatera Province is in very low category with value of 8.43% and has an instructive relationship pattern. For the district government, which has the highest ratio of regional financial independence in 2012 is Dharmasraya District and in 2013 to 2016 is Tanah Datar regency. As for the city government, starting from 2012 until 2016, the highest ratio of financial independence is obtained by the city of Padang. To improve the regional financial independence ratio, district and city governments are expected to optimize the components of local revenue, build better and more innovative local financial management systems and maintain sustainable regional investment conditions.