The Local Government Performance in Indonesia

Rita Martini

, Kuo Keo Pisey

, Selviana Chalifah

, Kartika Rachma Sari

, Rulyanti Susi Wardhani

Yuli Antina Aryani

, Zulkifli

, and Choiruddin

Department of Accounting, State Polytechnic of Sriwijaya, Palembang, Indonesia

Enterpreneurship Development Institute, CIEDI Cambodia-India, Cambodia

Department of Accounting, Bangka Belitung University, Bangka Belitung, Indonesia

zulkifliwancik@yahoo.com, choirudd1n@yahoo.com

Keywords: Government performance, public sector.

Abstract: The provision of public services and the target of national development objective is one of the roles of local

government. Evaluation and measurement of systematic performance is needed to measure the success or

performance of a government. Local governments in Indonesia use performance evaluations of local

governments that produce local government performance (LGP) scores. However, there are still provinces

in Indonesia with moderate government performance status. This study aims to determine the influence of

regional wealth (RW), intergovernmental revenue (IR), regional size (RS), and regional expenditure (RE)

on the LGP in the Province of Indonesia during 2013-2015. Sample used in this study is purposive sampling

counted 29 provincial governments. The analytical method used is panel data regression using Fixed Effect

Model (FEM). This study proved that RW partially has a positive and significant effect on the LGP.

Meanwhile, IR, RS, and RE have no significant effect on the LGP. There is a significant influence between

RW, IR, RS, and RE on the LGP.

1 INTRODUCTION

Article 69 paragraph 1 of Law number 32 of 2014

(Indonesia, Regional Government, 2014) confirms

that regional heads must submit reports on the

implementation of local government as a form of

accountability in carrying out their government. The

reports will be used as basis for the government in

evaluating the performance of local government

operations.

Local Government Implementation Performance

Evaluation (LGIPE) is carried out by national and

regional assessment teams that will conduct research

with the government and countries in Indonesia.

There are provinces in Indonesia that have

experienced an increase or decrease in their local

government performance (Figure 1).

Source: Data processed (Home Affairs Ministerial Decree

Number 120-4761 of 2014, Number 800-35 of 2016 and Number

120-10421 of 2016).

Figure 1: National performance score of local government

in Indonesia.

0,5

1,5

2,5

3,5

ACEH

SUMATERABARAT

KEPULAUANRIAU

SUMATERASELATAN

BENGKULU

DKIJAKARTA

BANTEN

DIY

BALI

NTT

KALIMANTANTENGAH

KALIMANTANTIMUR

SULAWESIBARAT

SULAWESITENGGARA

GOROTALO

MALUKUUTARA

PAPUA

2013 2014 2015

Martini, R., Chalifah, S., Pisey, K., Sari, K., Wardhani, R., Aryani, Y., Zulkiﬂi, . and Choiruddin, .

The Local Government Performance in Indonesia.

DOI: 10.5220/0009151700002500

In Proceedings of the 2nd Forum in Research, Science, and Technology (FIRST 2018), pages 5-13

ISBN: 978-989-758-574-6; ISSN: 2461-0739

East Java, West Java, East Kalimantan, DKI

Jakarta and Central Java provinces experienced

improved performance from 2013 to 2015 for

provincial government performance appraisal with a

performance score of 3. Only East Java Province

always achieved performance with a score of 3.

Provincial government still dominated by

performance scores that have not reached a score of

3. In 2013, North Maluku and Papua Provinces

achieve performance scores in the numbers 1-1.5 the

score is very far compared to the average

Each local government has different financial

capabilities in exploring and managing financial

resources, such as exploring regional wealth seen

from Local Revenues (LR) through collection of

regional taxes and retribution and, measuring the

level of regional financial dependence from the

government or balancing funds as financial

assistance in implementing the region. Not all

provincial governments in Indonesia can finance

their regional needs by using LR, having a large

regional size based on the number of regional assets

owned by local governments and making

expenditure decisions independently according to

the actual needs of the region each.

There are several studies related to the local

government performance in Indonesia, especially in

terms of the association between local government

characteristics and financial performance

(Mustikarini & Fitriasari, 2012), (Kusumawardani,

2012), (Sudarsana & Rahardjo, 2013),

(Rustiyaningsih & Immanuela, 2014), (Artha,

2015), (Sedyaningsih & Zaky, 2015), (Meilina &

Hapsari, 2016), (Setyaningrum & Martani, 2018).

Previous studies have found that the size of local

government, local government wealth, and level of

dependency on central government have positive

effects on performance (Nugroho & Prasetyo, 2018).

Mustikarini & Fitriasari, 2012 conducted

research using wealth variable that had an influence

on government performance. The results of these

studies are similar to the results of research

conducted by (Meilina & Hapsari, 2016). In contrast

to (Sudarsana & Rahardjo, 2013) conducted research

with wealth variable by showing that wealth does

not affect government performance. A study using

the balancing fund variable, namely there was no

influence between balancing funds and government

performance (Rustiyaningsih & Immanuela, 2014).

Regional expenditure variable that did not

significantly influence the performance of local

governments (Mustikarini & Fitriasari, 2012).

The difference the local government ability is

assumed to have an influence on the performance of

the local government in managing its finances and

the results of previous research encouraged

researcher to re-examine the influence of regional

wealth, intergovernmental revenue, regional size and

regional expenditure on the performance of local

government provinces in Indonesia. This study aims

to determine the partial and simultaneous effect of

regional wealth, intergovernmental revenues,

regional size, and regional expenditure on the local

government performance in Indonesia.

Overall, this paper begins with a brief

explanation of the problem and the research context

that is described in the introduction. After that, it is

followed by an explanation of the theoretical

framework used, research method, evaluation results

and discuss the findings research. The final section

of this paper explains the conclusions, implications,

and suggestions for further research.

2 LITERATURE REVIEW AND

HYPOTHESIS DEVELOPMENT

2.1 Stewardship Theory in Public

Sector

The grand theory used in this research is that

Stewardship theory, views management (local

government) as a party that can be trusted to act as

well as possible for the public interest or

stakeholders, for the interests of the principal

(community and government). Stewardship theory

describes a situation or condition in which

management is not motivated by individual goals but

rather prioritizes the interests of the organization

(Davis, Schoorman, & Donaldson, 1991).

The theory assumes that there is a strong

relationship between organizational satisfaction and

success. Organizational success describes

maximization utility of principals and management

groups. The utility maximization of this group will

ultimately maximize the interests of individuals

within the group of organizations.

2.2 Local Government Performance

(LGP)

Home Affairs Ministerial Regulation number 73 of

2009 (Indonesia, Procedures for Implementing

FIRST 2018 - 2nd Forum in Research, Science, and Technology (FIRST) – International Conference

Performance Evaluation for Regional Government

Ministerial Regulation, 2009) reveals that the

performance of regional administration is the

achievement of the implementation of regional

government affairs as measured by input, process,

output, results, benefits and/or impacts. The LGP is

measured using Key Performance Indicators for the

operationalization of evaluations on general aspects

agreed upon by policy makers are key performance

indicators that reflect the successful implementation

of governmental affairs which include alignment and

effectiveness of relations between regional

government and the government and between

regional government in the framework of developing

regional autonomy, harmony between local

government policies and government policies,

effectiveness of relations between local government

and Parliament, effectiveness of decision making

processes by Parliament along with follow-up

implementation of decisions, adherence to

government regulation, transparency in utilization of

allocation, disbursement and absorption of General

Allocation Fund (GAF), Special Allocation Fund

(SAF) and sharing of funds, effectiveness and

transparency of collection of sources of LR, regional

loan, and regional assets, effectiveness of planning,

preparation, implementation of administration,

accountability and regional government budget and

new breakthroughs/innovations in the administration

of regional governance.

The performance of the regional government will

be followed up by conducting a Local Government

Performance Evaluation (LGPE). LGPE is a

systematic process of collecting and analyzing data

on the performance of regional governance, the

ability to implement regional autonomy, and the

completeness of aspects of governance in newly

formed regions.

2.3 Regional Wealth (RW) and LGP

The economic wealth of a municipality is to a large

extent dependent on the income level of its citizens

(Cohen, 2008). Personal income is an important

measure of citizens’ ability to pay taxes. A high

level of personal income generally means higher

property, sales and business taxes. Thus, the

affluence of a municipality is expected to be

positively related to its capacity to generate

revenues. A local authority with wealthy citizens is

able to levy, at least theoretically, higher local taxes

and charge higher prices for the services rendered.

This prospect is also expected to be positively

related to its asset turnover; the invested capital

would and generate more revenues.

LR was a very appropriate variable to indicate

that a high LR affected wealth (Nugroho &

Prasetyo, 2018).Wealth is the ability to full fill need.

According to Minister of Home Affairs Regulation

number 13 of 2006 (Indonesia, Guidelines for

Regional Financial Management, 2006) states that

the LR is divided according to the type of income

which consists of regional taxes, regional

retributions, separated wealth management results,

other legal revenue

Research on wealth was carried out by

(Mustikarini & Fitriasari, 2012) which revealed that

LR had a significant positive effect on the

performance of local governments. The results of

these studies are in line with (Meilina & Hapsari,

2016) by proving that LR has a significant positive

effect on the performance of local governments.

There is a difference as evidenced by (Sudarsana &

Rahardjo, 2013) that the wealth of local

governments does not affect the performance of

local governments.

Based on above arguments, the hypothesis

proposed in this research is as follows:

: Regional wealth affect local government

performance.

2.4 Intergovernmental Revenue (IR)

and LGP

IR as budget transfers from central government and

federal government to local governments (Halim,

2012). In Indonesia, balancing fund is in the form of

IR which is a transfer from central government to

local government for maintaining fiscal balance

between the central government and regional

governments including of tax share/non tax share,

GAF and SAF.

The fiscal gap that occurs between the

government and the regions and between regions can

be reduced by the existence of a balance fund.

Balancing funds are also used to increase regional

capacity in exploring regional economic potential

(Nugroho & Prasetyo, 2018). The high percentage of

balancing funds shows that local governments are

not independent in managing their income and can

lead to lower assessment of performance

accountability because the high percentage of

The Local Government Performance in Indonesia

balancing fund indicates if the government is unable

to plan and run programs/activities to optimize LR.

Previous research using the balancing fund

variable (Tama & Adi, 2018) is requiring that the

level of dependence on the government has a

positive effect on the performance of local

governments. The research was supported by

(Mustikarini & Fitriasari, 2012) which revealed that

the high balancing fund received would have an

impact on the better service of the local government

to the community so that the performance of the

regional government would increase.

Based on above exposure and previous research,

the following hypothesis is summarized:

: Intergovernmental revenue affect local

government performance.

2.5 Regional Size (RS) and LGP

The size of local government can be seen from how

much total assets it has. The main purpose of the

work program established by the local government is

to provide the best service to the community

(Sudarsana & Rahardjo, 2013). In providing the best

service must be supported by good assets too.

Therefore, very adequate resources and facilities are

needed to provide optimal service. Thus, the greater

the size of the region is marked by the large amount

of assets of the regional government, it is expected

that the performance of local governments will also

be higher.

In Indonesia, size of regional government is

measured by amount of regional government assets

which has influence to financial performance

(Nugroho & Prasetyo, 2018). Large regional size in

the government will facilitate operational activities

which will then facilitate the provision of adequate

community services. In addition to the convenience

in the operational field, which will facilitated the

provision of fluency in obtaining LR for regional

progress as evidence of improved performance

(Kusumawardani, 2012).

This opinion is supported by research conducted

by (Mustikarini & Fitriasari, 2012) and (Tama &

Adi, 2018) requiring that the size of local

government has a significant effect on the

performance of local governments. The variable size

has also positive and significant impact on the

financial independence of local government (Siregar

& Pratiwi, 2017).

Based on above exposure and previous research,

the following hypothesis is summarized:

: Regional size affect local government

performance.

2.6 Regional Expenditure (RE) and

LGP

According to Republic of Indonesia Law number 32

of 2014 Article 1 (Indonesia, Regional Government,

2014) describes regional expenditure as all regional

obligations that are recognized as a deduction of net

worth in the period of the relevant fiscal year. Home

Affairs Ministerial Regulation number 13 of 2006

(Indonesia, Guidelines for Regional Financial

Management, 2006) expenditures consist of: indirect

expenditure is budgeted expenditure not directly

related to the implementation of programs and

activities. Indirect expenditures consist of: employee

expenditure, interest, subsidies, grants, social

assistance, profit sharing, financial assistance, and

unpredictable expenditure. Direct expenditure is

budgeted expenditure directly related to the

implementation of programs and activities.

The higher the regional expenditure reflects the

higher level of service provided to the community.

Furthermore, the increasing services provided will

also affect the high performance of local

governments. However, there are differences in the

results of research conducted by (Sudarsana &

Rahardjo, 2013) which proves that regional

expenditure does not affect the performance of local

governments. This is supported by (Meilina &

Hapsari, 2016).

Based on above exposure and previous research,

the following hypothesis is summarized:

: Regional expenditure affect local government

performance.

2.7 RW, IR, RS, and RE and LGP

The description of each variable has been explained

in the previous hypothesis. Based on the description

that has been explained, the variables used in this

study were also used in previous studies. Previous

research that has been proven by researchers, it is

known that the independent variables used

significantly influence.

Based on the description above, the research

hypothesis is formulated as follows:

FIRST 2018 - 2nd Forum in Research, Science, and Technology (FIRST) – International Conference

: Regional wealth, intergovernmental revenue,

regional size and regional expenditure affect

the local government performance.

3 RESEARCH METHODOLOGY

The population in this study consists of all local

government in Indonesia. The provinces that were

used as sample were 29 with 3 years budgeted.

Purposive sampling was used to select the sample,

with the criteria of the provincial government that

has a score and status for the implementation of

Regional Government Performance in 2013-2015,

and has complete financial information data.

Financial information data was presented in the

Budget Realization Report and Balance Sheet in

2013 to 2015.

This study used regression analysis with panel

data, and the equation as follow:

LGP = α + β

RW + β

IR + β

RS + β

RE + ε

Notes: LGP = LGIPE score; RW = total own-source

revenue divided by total revenue; IR = total transfer

revenue divided by total revenue; RE = total non-

routine expenditure (expenditure other than

employee expenditure) divided by total expenditure.

Data analysis techniques in this study use

statistical tools Eviews 10.

4 RESULT AND DISCUSSION

4.1 Result

4.1.1 Multiple Linear Regression Analysis

After selecting the panel data regression model, the

chosen fixed effect model in this study. Regression

results are using the fixed effect model method

obtain the regression equation as follows:

LGP = -12.01+0.74RW–0.53IR–0.29RS+0.08RE +

Based on the Fixed Effect regression model,

shows the value of the correlation coefficient

obtained from the adjusted R

value of 0.7262 means

the change in RW, IR, RS and RE have a correlation

or relationship performance of provincial

government implementation of Indonesia of 72.62

percent while the remaining 27.38 percent is

explained by other factors that are not observed or

examined in this study.

4.1.2 Hypothesis Testing

F-Test Result.

The F-statistic test is basically used

to determine whether the variables of RW, IR, RS

and RE simultaneously affect performance of

provincial government implementation of Indonesia.

Decision will be taken by looking at the probability

of F-statistics. The probability value (F-statistic) is

0.00 where the probability value is smaller than the

value of α = 0.05 that can be concluded that the

variables of RW, IR, RS and RE simultaneously

have an influence on LGP of Indonesia.

T-Test Result. Partial testing aims to see the

difference between each independent variable by

using the t-test, which is a test conducted to

determine or not significantly from the wealth, the

level of regional finances, the size and cost. The

partial test results are presented t-statistic is greater

than 0.05, H

is accepted, which means that there are

no properties. Whereas if prob. T-statistic) is smaller

than 0.05, H

is rejected, which means there is a

significant difference.

This study prove that RW has a significant

influence on the LGP. The IR does not significantly

influence the performance of regional government.

Size of the provincial government in Indonesia has

no effect on the LGP. Regional expenditures made

by the provincial government in Indonesia have no

effect on the LGP.



4.2 Discussion

4.2.1 The Impact of RW on LGP

Proven regional wealth has a significant influence on

local government performance of Indonesia. Local

government wealth has positive effects on local

government performance (Setyaningrum & Martani,

2018). The wealth of a regional government is

proxied by the amount of local revenue. LR is one

source of revenue that has local government sourced

from contribution of society consisting of local

taxes, regional retribution and other revenues aimed

at financing regional development so that it will

impact on community services. When an area has

large local revenue and is always increasing every

year, then the area has been able to maximize the

ability of the region and reflect the state or economic

capacity that is good and stable. However, when an

The Local Government Performance in Indonesia

area has difficulty in maximizing LR sources, there

will be unstable economic problems. If the LR

received is greater, then it can be said that the high

level of society participation in paying regional taxes

and levies. This will increase the motivation of local

governments in improving the quality of service to

the society. Good quality public services will reflect

the performance of a good local government.

The large amount of LR must be accompanied by

a high performance of regional government

performance which is also seen from the LGIPE

which results in local government performance

scores. This is evidenced by the DKI Jakarta

Province and East Java Province having a large

number of the LR influencing the received

performance score, which is very high with a range

of 3-4 while North Maluku Province receives a low

LR also has an impact on the performance score of

the local government compared to other provincial

governments.

The average LR that has been received by the

provincial government in Indonesia is classified as

good in optimizing or exploring the potential wealth

of each region. The high number of LR proves that

the government has played an active role in

improving the performance of the implementation of

the provincial government in Indonesia.

4.2.2 The Impact of IR on LGP

Hypothesis 2 in this study was rejected, balancing

funds are the proceeds from tax and non-tax funds,

special funds, and funds sourced from the central

government to finance regional administration

needs. Tax and non-tax revenue sharing funds are

the revenue sharing from taxes that have been

obtained from the country's natural resources. Tax

and non-tax revenue sharing funds are one of the

benchmarks to see the performance of regional

government.

The greater the area that receives funds for tax

results and Income Tax as well as natural resources

derived from waste, gas, natural gas and others. This

will affect what has been done in the region. It was

proven by the performance score which stated that

the provincial governments of DKI Jakarta and East

Java benefited for very high funds.

Unlike the special funds and funds used by the

government, these funds are government taxes to

assist in the administration of government with

certain considerations and calculations. Balancing

funds are also used to fund tasks, decrease

provisions and burdens.

Regional governments are not active in

collecting funds that are used for costs that are

greater than optimal. If this condition continues, the

local government will always influence which will

affect the performance produced by the regional

government. This will affect the performance of

government, supported by the very high

performance required by local governments by the

provincial governments of DKI Jakarta and East

Java.

Not only provides funds that can be used for

governance, but more balancing funds in the context

of regional government costs that will be used at the

end of the fiscal year. A higher refund will cause a

deficit that must be closed with a balance fund. The

development of the above hypothesis explains why

there is no greater influence.

4.2.3 The Impact of RS on LGP

Hypothesis 3 in this study was rejected. Accrual-

Based Government Accounting Standards of PSAP

01 in paragraph 66 state that future economic

benefits embodied in affiliate assets are the potential

to contribute, both directly and indirectly, to

government operational activities, which are

branches of expenditure for local governments.

Provisions that allow people who can benefit from

local government. However, the results of this study

are large or small the total assets used by local

governments in Indonesia cannot be accessed as a

factor that influences the LGP.

The cause is the provincial government in

Indonesia who are unable to utilize and manage

assets that allow you to provide income to the local

government (Nugroho & Prasetyo, 2018). Large

amounts of assets are not sufficient to contribute to

local government employees if not supported by

good management by the local government.

The ability to manage assets is needed so that

companies can provide maximum results for the

government concerned. The results of a system that

will be calculated for the performance carried out by

the regional government.

4.2.4 The Impact of RE on LGP

Hypothesis 4 in this study was rejected. The most

dominant component of regional expenditure issued

FIRST 2018 - 2nd Forum in Research, Science, and Technology (FIRST) – International Conference

by the provincial government in Indonesia is the

expenditure of goods and services. Expenditures of

goods and services carried out by the local

government are aimed at improving services to the

community which have an impact on improving the

performance of local governments. However, in

reality the regional governments that make greater

expenditures on goods and services do not affect the

performance of local governments (Nugroho &

Prasetyo, 2018) and (Martini, et al., 2019).

It caused by limited local government financial

capacity and high community demands for

accountability for government performance require

local governments to spend goods and services

efficiently and effectively. Through the process of

spending goods and services, local governments are

required to avoid waste. The process of spending

goods and services in local government institutions

is more directed at accelerating absorption and the

budget is measured based on the amount of

realization of goods and services expenditure

compared to the selection of types of goods or

services needed by the local government. Often,

these purchases are made so that the available funds

can be disbursed, without considering whether the

goods and services purchased can be useful in

supporting the performance of local governments.

As a result, the amount of goods and services

that are not so important can be excessive while

other items that are needed are not sufficiently

available. The Directorate General of Regional

Financial Development states that goods and

services spending is often carried out by local

governments such as: motor vehicle maintenance,

printing/copying, building/parking rental, vehicle

rental mobility, heavy equipment rental, office

equipment and equipment rental, food and drinks,

clothing and official attributes, work clothes, special

clothing and certain days, official travel, official

travel, transfer of duties focused more on what is

needed by the apparatus rather than the needs of the

community (http://keuda.kemendagri.go.id, 2013).

4.2.5 The Impact of RW, IR, RS, and RE on

LGP

RW, IR, RS, and RE have a significant effect on the

performance of provincial government

implementation of Indonesia. It is proven by the

results of the study that the probability value (F-

statistic) is 0.0000 where the probability value is

smaller than the value of α = 0.05.

Performance measurement is used to measure the

accountability of public institutions in terms of use

of resources, innovation, and public service quality

(Globadian & Ashworth, 1994) in (Martini, Sari, &

Wardhani, 2015) and (Setyaningrum & Martani,

2018). The result of this study in line with

(Rustiyaningsih & Immanuela, 2014) which prove

the size, LR, and regional expenditure have a

simultaneous influence on the performance of local

government. (Meilina & Hapsari, 2016) proved that

a simultaneous influence between LR, regional

spending and the level of government dependence

on LGP.

This confirms that the provincial governments in

Indonesia have been able to improve the

performance of the implementation of local

governments by fulfilling and managing regional

wealth, the level of regional financial dependence,

regional size, and regional expenditures owned

effectively and efficiently. It is evident from the

research results that there is a contribution of 72.62

percent that has been given from the independent

variable to the dependent variable.

5 CONCLUSIONS

Management of regional wealth, the level of

regional financial dependence, regional size, and

regional spending effectively and efficiently for the

benefit of local governments to better and/or

maximize development in order to improve service

to the community will have an impact on the high

performance of local governments that have been

carried out. Provision of good services to the

community in the operational activities of local

governments can be one of the drivers of the high

performance status of local government operations.

This study prove that wealth has a significant

influence on the performance of the local

government due to the large number of LR received

has illustrated of the performance carried out by the

local government in exploiting or extracting the

region's original income.

This study revealed too intergovernmental

revenue does not significantly influence the

performance of regional government because the

provincial go vernment in Indonesia is still

dominated by general allocation funds from the

central government so that the regional government

does not play an active role in obtaining its income.

The Local Government Performance in Indonesia

Regional size of the provincial government in

Indonesia has no effect on the performance of the

regional government because the amount of assets of

the regional government is not a major factor in

measuring the performance of the regional

government but management of the asset

management carried out by the local government.

Regional expenditures made by the provincial

government in Indonesia have no effect on the

performance of local governments due to the

realization of goods and services expenditures that

are still dominant compared to capital expenditure or

personnel expenditure which will have an impact on

improving the performance of local governments for

community services.

ACKNOWLEDGEMENTS

This research is based on work supported by State

Polytechnic of Sriwijaya, Indonesia. The author

thankfully acknowledges scientific discussion with

our colleagues from State Polytechnic of Sriwijaya,

Indonesia. The authors would like to acknowledge

the anonymous reviewers at the IC FIRST 2018

for their feedback on an earlier version of the

paper, and also thank to the two anonymous

reviewers who provided feedback as part of this

journal's review process.

REFERENCES

Artha, R. D. (2015). The effect of local government

characteristic and the audit finding of BPK to local

government performance (emperical study in the

government of districts/cities in NTB province).

Journal of InFestasi, 11 (2), 214-229.

Cohen, S. (2008). Identifying the moderator factors of

financial performance in Greek Municipalities.

Financial Accountability & Management, 24 (3),

0267-4424.

Davis, J. H., Schoorman, F. D., & Donaldson, L. (1991).

Toward a Steawardship Theory of Management.

Academy of Management Review, 5 (1), 20-47.

Globadian, A., & Ashworth, J. (1994). Performance

measurement in local government - concept and

practice. International Journal of Operations and

Production Management, 14 (5), 35-51.

Halim, A. (2012). Local of Financial Accounting. Jakarta:

Salemba Empat.

http://keuda.kemendagri.go.id. (2013, December 11).

Belanja Modal Pemda Harus Capai 30 Persen. .

http://keuda.kemendagri.go.id/artikel/detail/41-

belanja-modal-pemda-harus-capai-30-persen .

Indonesia: Direktorat Jenderal Bina Keuangan.

Indonesia. (2006). Guidelines for Regional Financial

Management. Home Affairs Regulation number 13 of

2006. Indonesia.

Indonesia. (2009). Procedures for Implementing

Performance Evaluation for Regional Government

Ministerial Regulation. Home Affair Ministerial

number 73 of 2009 about Procedures for

Implementing Performance Evaluation for Regional

Government Ministerial Regulation . Indonesia.

Indonesia. (2014). Regional Government. Republic of

Indonesia Law number 32 of 2014 about Regional

Government . Indonesia.

Kusumawardani, M. (2012). The effect of size, wealth,

legislative size, leverage on local government financial

performance in Indonesia. Accounting Analysis

Journal, 1.

Martini, R., Sari, K. R., Somadi, T., & Karma, I. W.

(2019). Financial independence of the South Sumatra

Regional Government. Advances in Social Science,

Education, and Humanities Research , 354, 360-364.

Martini, R., Sari, K. R., & Wardhani, R. S. (2015).

Analisis penerapan good university governance

melalui efektivitas pengendalian intern dan komitmen

organisasional. Simposium Nasional Akuntansi 18.

Medan: Ikatan Akuntan Indonesia.

Meilina, Z. D., & Hapsari, D. W. (2016). The influence of

the regional government and the results of the BPK

audit on the regional government performance.

eProceeding of Management, 3.

Mustikarini, W. A., & Fitriasari, D. (2012). The effect

local government characteristic and BPK audit

findings to districts/cities government performance in

Indonesia 2007. National Accounting Symposium XV

Indonesian Accountant Charterd. Banjarmasin: Ikatan

Akuntan Indonesia.

Nugroho, R. T., & Prasetyo, N. E. (2018). The influence

of local government characteristic to the financial

performance of local government in districts/cities in

East Java. Assets - Accounting and Education Journal,

7 (1), 27-34.

Rustiyaningsih, S., & Immanuela, I. (2014). Factors that

affect the local government performance. Widya

Warta Universitas Katolik Widya Mandala Madiun,

XXXV (02).

Sedyaningsih, P., & Zaky, A. (2015). The influence of

local government characteristic and BPK audit

findings to local government performance (study in

regency governance in South Sulawesi 2009 – 2012).

Student Scientific Journal FEB UI .

Setyaningrum, D., & Martani, D. (2018). Determinants of

local government performance in Indonesia. Advances

in Economis, Business and Management Research

(AEBMR), 55, 1-12.

Siregar, B., & Pratiwi, N. (2017). The effect of local

government characteristics and financial independence

on economic growth and human development index in

Indonesia. Journal of Management and

Entrepreneurship, 19 (2), 65-71.

Sudarsana, H. S., & Rahardjo, S. N. (2013). The influence

of local government characteristic and BPK audit

FIRST 2018 - 2nd Forum in Research, Science, and Technology (FIRST) – International Conference

finding tp local government performance (study at

regency/cities government in Indonesia). Diponegoro

Journal of Accounting, 2 (4), 1-13.

Tama, I. G., & Adi, P. H. (2018). Effect of regional head

characteristics, government size, and audit findings on

regional financial performance. Journal of Accounting

Perspective, 1 (1).

The Local Government Performance in Indonesia