Research Article
Development of DKI Jakarta Regional Fiscal Capacity in 2014-2019
@INPROCEEDINGS{10.4108/eai.5-8-2020.2301220, author={Milla Sepliana Setyowati and Aldy Widiarto and Indriani Indriani}, title={Development of DKI Jakarta Regional Fiscal Capacity in 2014-2019}, proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2020}, month={10}, keywords={local governments local own-source revenue regional fiscal capacity}, doi={10.4108/eai.5-8-2020.2301220} }- Milla Sepliana Setyowati
Aldy Widiarto
Indriani Indriani
Year: 2020
Development of DKI Jakarta Regional Fiscal Capacity in 2014-2019
ICBAE
EAI
DOI: 10.4108/eai.5-8-2020.2301220
Abstract
The implementation of regional autonomy as a form of strengthening the local economy is by giving regional governments authority to regulate and manage their own matters related to regional government and community interests in accordance with applicable laws and regulations. To improve regional economic capacity, local governments must be able to maximize their regional income. Sources of regional income come from Local Own-source Revenue (LOR), the balancing fund, and other legal PAD. Regional Fiscal Capacity (RFC) is an indicator of each region's financial capacity that reflects the independence of a region. The higher the regional KFD, the more independent the area is from the Balancing Fund provided by the central government. This study aims to analyze the development of the regional financial capacity of DKI Jakarta province in 2014-2019 based on the PMK formula and fiscal capacity theory. This research is a descriptive study that uses a qualitative approach. Regional Fiscal Capacity is strongly influenced by the realization of Regional Revenue. In 2014-2019, DKI Jakarta had the highest Regional Fiscal Capacity Index (RFCI) in Indonesia. This explains that DKI Jakarta is quite independent of the Balancing Fund provided by the Central Government.
