10.56857 DETERMINASI KINERJA PEMERINTAH DAERAH PROVINSI ACEH

Indonesia

Abstract

The capacity of local government can be seen from the performance achievements have been carried out in one period. The performance achievements that have been achieved are very dependent on the budget which is reflected in the established budget planning. The budget programs determined is very dependent on the strength of the regional government to determine how to implement all the programs being implemented so that it directly correlates with the performance obtained. This research aims to investigate how local governments are able to utilize regional finances efficiently in order to achieve good performance. The research sample was all local governments in Aceh Province. The data used is the Audit Results Report (LHP) by the Financial Audit Agency (BPK) starting from 2017-2021, with a Linear Data Panel Regression analysis model. The findings of the research results show that in general the regional government in Aceh Province still does not show the maximum level of independence, both in terms of financial capacity and financial independence from the central government, even though basically the total regional financial capacity has an influence on regional financial efficiency. This condition shows that regional governments in general in Aceh have begun to be careful in using their budgets, but they have not been  yet on target or in other words, regional governments have been still weak in formulating potential regional strengths. Therefore, regional governments must have strategies and strengths to obtain Regional Original Income (PAD) as a symbol of regional strength, but on the other hand, regional expenditure management is also very determining in encouraging performance achievement. Through effective and efficient spending management, it is believed that maximum results will be achieved. Therefore, the importance of managing regional expenditure which originates from regional income is very important as a reference in assessing regional financial efficiency.

Keywords: Regional financial capacity, regional financial independence, Regional Original Income (PAD), Regional Expenditures, Regional Financial Efficiency.