Proceedings of the 1st Tidar International Conference on Advancing Local Wisdom Towards Global Megatrends, TIC 2020, 21-22 October 2020, Magelang, Jawa Tengah, Indonesia

Research Article

Analysis of Independence Level and Financial Performance of Post-Expansion Regions

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  • @INPROCEEDINGS{10.4108/eai.21-10-2020.2311898,
        author={Boni  Saputra and Hidayatul  Fajri and Pratiwi  Nurhabibi},
        title={Analysis of Independence Level and Financial Performance of Post-Expansion Regions},
        proceedings={Proceedings of the 1st Tidar International Conference on Advancing Local Wisdom Towards Global Megatrends, TIC 2020, 21-22 October 2020, Magelang, Jawa Tengah, Indonesia},
        publisher={EAI},
        proceedings_a={TIC},
        year={2021},
        month={11},
        keywords={regional financial independence regional financial performance regional original income (pad)},
        doi={10.4108/eai.21-10-2020.2311898}
    }
    
  • Boni Saputra
    Hidayatul Fajri
    Pratiwi Nurhabibi
    Year: 2021
    Analysis of Independence Level and Financial Performance of Post-Expansion Regions
    TIC
    EAI
    DOI: 10.4108/eai.21-10-2020.2311898
Boni Saputra1,*, Hidayatul Fajri1, Pratiwi Nurhabibi1
  • 1: Universitas Negeri Padang, Indonesia
*Contact email: bonisaputra@fis.unp.ac.id

Abstract

The focus and purpose of this study are to analyze and determine the level of independence and regional financial performance after the division in several regions in West Sumatra Province. The research method used a quantitative descriptive approach. The research sample used a purposive sampling technique. The research was conducted in three Regency after the division of West Sumatra Province, Dharmasraya, South Solok, and West Pasaman Regency. Data collection techniques through observation, interviews, literature study, and documentation study. The data used are secondary, namely the Regency budget realization report (LRA) after the division of the 2014-2018 period counting the last five years. The results of the study found that post-division regional financial performance is still low, while the level of regional financial independence is still low or shows a pattern of consultative relationships. The percentage level of regional financial independence is certainly not the same and is different for each region. This research implies that local governments must be able to increase regional financial independence (through identification and utilization of potential regional assets owned) and reduce the level of dependence on the central and provincial governments.