What is the Contribution of Local Original Revenue to Regional Financial Independent?

Sari, Purnama; Garvera, R. Rindu; Sihabudin, Aan Anwar

doi:10.21776/ub.jpas.2018.003.02.4

Cited by 10 publications

(15 citation statements)

References 9 publications

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“…In its implementation, the regional government is demanded to have greater financial independence. The ratio of regional financial independence can be done by increasing the realization of regional revenues, such as those from PAD (Ruliana, 2015; Sari et al, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

How Contribute and the Growth of Regional Original Income? A Typology Empirical

Wijaya¹,

Darma²,

Pusriadi³

2020

IJARAFMS

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Section: Literature Reviewmentioning

confidence: 99%

How Contribute and the Growth of Regional Original Income? A Typology Empirical

Wijaya¹,

Darma²,

Pusriadi³

2020

IJARAFMS

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“…Some literature provides clues as to why the implementation of decentralization in a region can complement the effect of local own revenue in increasing its local financial independence. This condition was preceded by the implementation of the regional autonomy system in Indonesia in 2001, and has given a greater role to the government and regional economic actors in managing their development independently (Sari, Garvera, & Sihabudin, 2018;Akbar, Brata, Herlina, Prawiranegara, & Prabowo, 2019;Suci & Asmara, 2014). This system arises due to demands from the community due to uneven development in various regions.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…To realize an independent and sustainable development, the regional government must be supported by strong finance (Kurniawan, Militina, & Suharto, 2017;Nurulita, Arifulsyah, & Yefni, 2018;Syamsudin, Cahya, & Dewi, 2015;Inggrid, 2006). In order to meet development funding and governance implementation, it can be obtained from sources of local revenue (Sari, Garvera, & Sihabudin, 2018;Akbar, Brata, Herlina, Prawiranegara, & Prabowo, 2019). If a region can maximize its local own revenue then its dependence on finance from the center will decrease (Akbar et al, 2019;Kustianingsih, Muslimin, & Kahar, 2018).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…One of the advantages of decentralization is that local governments have the authority to manage finances independently (Sari et al, 2018;Sujarwoto, 2017;Kuai, Yang, Tao, Zhang, & Khan, 2019), which among others is to explore all the resources they have to increase local revenue (Akbar et al, 2019;Lestari, Dali, & Abdullah, 2016;Novalistia, 2016). Of course, it must be supported by the implementation of high-quality decentralization by regional leaders and their apparatus.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…Furthermore, data on local financial independence is represented by a percentage comparison between local own revenue and total regional revenue (eg, used by Andriani & Wahid, 2018;Sari et al, 2018;Lestari et al, 2016;Puspitasari & Salisa, 2017) , including revenues from central government transfers given to the Ciamis government for 5 years. If the results of these comparisons increase, we can be sure that their local financial independence will increase.…”

Section: B Datamentioning

confidence: 99%

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Local Own Revenue, Decentralization and Local Financial Independent

Sari

Muzaki

Mulyatini

et al. 2019

jmi

Self Cite

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The regional autonomy system provides an opportunity for regions in the territory of Indonesia to utilize their sources of income independently so that the implementation of development in the regions does not only rely on finance from the central government. In this study, we are of the opinion that regions that are able to optimize their local own revenue will have an impact on increasing local financial independence. Local financial independence is the ability of a region to finance development in its area. Our other opinion assumes that the relationship between localown revenue and the local financial independence can be strengthened by the implementation of decentralization. With good decentralization, local governments are more transparent in providing all information to the public, can increase accountability because public services are getting closer, local governments can take strategic decisions, improve fiscal management, improve economic growth and market security. The new contribution of this study is related to the literature of the merging of the relationship between local own revenue, decentralization, and local financial independence that was built through Moderated Regression Analysis (MRA) evidence in one of the regions in Indonesia, namely Ciamis. The results of the study show that regional local own revenues influence local financial independence. Meanwhile, decentralization which is proxied using local government expenditures is able to strengthen the relationship of local own revenues to local financial independence. So it can be concluded that the effective implementation of decentralization is able to encourage an increase in regional income that comes from its own sources to realize financial independence in the region. Keywords—Decentralization, Local Financial Independent, Local Own Revenue. Abstrak Sistem otonomi daerah memberikan kesempatan kepada daerah-daerah di wilayah Indonesia untuk memanfaatkan sumber-sumber pendapatannya secara mandiri agar pelaksanaan pembangunan di daerah tidak hanya mengandalkan keuangan yang berasal dari pemerintah pusat. Dalam studi ini, kami berpendapat bahwa daerah yang mampu mengoptimalkan pendapatan asli daerahnya akan berdampak terhadap meningkatnya kemandirian keuangan daerah. Kemandirian keuangan daerah adalah kemampuan suatu daerah dalam membiayai pembangunan di daerahnya. Pendapat kami lainnya menganggap bahwa hubungan pendapatan asli daerah dengan kemandirian keuangan daerah dapat diperkuat oleh pelaksanaan desentralisasi yang baik. Dengan desentralisasi yang baik maka pemerintah daerah lebih transparan dalam memberikan semua informasi kepada publik, dapat meningkatkan akuntabilitas karena pelayanan publik menjadi lebih dekat, pemerintah daerah dapat mengambil keputusan yang strategis, meningkatkan manajemen fiscal, meningkatkan pertumbuhan ekonomi dan keamanan pasar. Kontribusi baru dari studi ini adalah menyangkut literature penggabungan hubungan antara pendapatan asli daerah, desentralisasi, dan kemandirian keuangan daerah yang dibangun melalui Moderated Regression Analysis (MRA) bukti pada salah satu daerah di Indonesia, yaitu Ciamis. Hasil studi menunjukan bahwa pendapatan asli daerah berpengaruh terhadap kemandirian keuangan daerah. Sementara itu desentralisasi yang diproksi menggunakan pengeluaran pemerintah daerah mampu memperkuat hubungan pendapatanasli daerah terhadap kemandirian keuangan daerah. Jadi dapat disimpulkan bahwa pelaksaksanaan desentralisasi yang efektif mampu mendorong peningkatan pendapatan daerah yang berasal dari sumber-sumbernya sendiri untuk mewujudkan kemandirian keuangan di daerah. Kata kunci—Desentralisasi, Kemandirian Keuangan Daerah, Pendapatan Asli Daerah.

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Assessing Local Tax Contributions to Local Own Revenue: Evidence in One Region in Indonesia

Akbar

Brata

Herlina

et al. 2019

accounting, auditing, information

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<p><em>The purpose of this study is to analyze the size of the contribution of local taxes to the Ciamis Regency local own revenue. In this study, the formula for the ratio of local tax contribution to local own revenue was formulated. The research method used is a descriptive method with a quantitative approach. Measurement of contributions of local taxes on local own revenue is drawn from the local own revenue structure which consists of local taxes, regional levies, separated regional wealth results, and other legitimate regional income. The results of the study show that the contribution of local taxes to local own revenue is in the very low and low category, because during the 2013-2015 fiscal year the figure was below 26%, while in the 2016-2017 fiscal year it reached a number of 26% -50%. The low contribution of local taxes to local own revenue is due to restaurant taxes stipulated through regional regulation No. 5 of 2011, namely the imposition of a 10% tax on each transaction with consumers is still a lot of rejection from most restaurant managers, with the reason of fear of a decline in consumers.</em></p>

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What is the Contribution of Local Original Revenue to Regional Financial Independent?

Cited by 10 publications

References 9 publications

How Contribute and the Growth of Regional Original Income? A Typology Empirical

How Contribute and the Growth of Regional Original Income? A Typology Empirical

Local Own Revenue, Decentralization and Local Financial Independent

Assessing Local Tax Contributions to Local Own Revenue: Evidence in One Region in Indonesia

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