Analysis of Regional Financial Management Performance and Level of Regional Independence in the Era of Regional Autonomy: Case Study of Semarang City in 2009-2013

https://doi.org/10.37275/OAIJSS.v5i2.112 A B S T R A C T This study aimed to analyze the effect the financial ability of Semarang City in order to support the implementation of regional autonomy, base on Semarang Budget Realization Reported the period of 2009 -2013. A descriptive comparative analysis used to measure the performance of regional financial management and the independence level of Semarang, consist of Regional Financial Independence Ratio, Degree of Decentralization Ratio, Local Native Income (PAD), effectiveness Ratio, and the Harmony Expenditure Ratio. Based on the analysis that has been obtained, the following results: from the analysis of the ratio of the degree of decentralization can be explained that the average ratio of the degree of decentralization is 25,87% of which is in the internal level of level 25%-50%, means already have a good ability to finance region development. Average Regional Financial Capabilities (KKD) ratio is 37.79% which is in the interval 25 % -50 % means that central government intervention has begun to decrease, because the region is considered a little more able to implement region autonomy. From the analysis of PAD effectiveness is more than 100%, it can be concluded that the overall performance of local financial management and the degree of independence of Semarang area continued to improve. It can be seen from some of the financial performance ratio is the ratio of the area of financial independence, the ratio of degrees decentralization, effectiveness ratio and the ratio continues to increase harmony and good effect on the autonomy of the region


Introduction
Through decentralization policies (political and fiscal), with the issuance of Law No. 32 of 2004 on regional government and Law No. 33 of 2004 on the financial balance between the regional center, has brought significant changes to the relationship between the center and the regions. The policies that have been implemented are expected to revive the reform process at the local level and provide room for movement in politics, regional financial management, and the use of regional resources for the benefit of local communities, thereby creating a new pattern of development in the regions.
The main objective of the 2004 decentralization policy was, on the one hand, to free the central government from unnecessary burdens in dealing with domestic affairs, so that it has the opportunity to study, understand and respond to global trends and take advantage of them. At the same time, the central government is expected to be able to concentrate on the formulation of strategic international macro policies. On the other hand, with the decentralization of government authority to the regions, the regions will experience a significant empowerment process (Bahtiar Arif, 2006).

Open Access Indonesia Journal of Social Sciences
The regional government as the party entrusted with the task of carrying out the wheels of government, development, and service to the community is required to submit a regional financial accountability report to assess whether the regional government has succeeded in carrying out its duties properly or not. One of the tools to analyze the performance of local governments in managing their regional finances is to analyze the financial ratios to the APBD that have been determined and implemented .

Variable Operational
Decentralization degrees show the comparison between the amount of the original income of the region and the total revenue of the region. This ratio indicates the degree of contribution of Regional Native Income to total regional revenues. The ratio of

Method of collecting data
Data collection in the study was carried out in the following way (Nazir .2003): documentation method, namely recording, collecting, and grouping data related to research problems from secondary data sources. The analytical method to discuss the problems in this research, then an analysis of regional financial ratios is carried out with the following steps collecting data relating to the financial capacity of the Semarang City area in supporting the implementation of regional autonomy, classifying the data and information obtained as a basis for operationalization. variables measured will be presented in this study, and conclude the analysis of the data and information presented so that it can be seen how the regional financial capacity of Semarang City is in supporting the implementation of regional autonomy.

Analytical techniques
The analytical technique used in this research is a quantitative method in the form of ratio analysis.
The analysis of this ratio implemented is decentralization degree, regional financial independence ratio, effectiveness ratio and regional spending compatibility ratio (Halim, 2007).

Degree of decentralization ratio
Degree of decentralization =

100%
Regional financial independence ratio Independence ratio =

100%
Regional native income effectiveness ratio Compatibility ratio Ratio of routine expenditure to total regional spending = ℎ

100%
Ratio of development spending to total regional spending = 100% Table 1. Criteria for degree ratio of regional decentralization Source: (Halim, 2007) The calculation of the decentralization of Semarang City during 2009-2013 is included in  Ratio analysis of regional financial

Independence Regional financial independence is
showing the ability of regional finances in self-financing government activities, development and services to people who have paid taxes, user fees as a source of income needed by the region. Regional independence is shown by the size of the original regional income compared to regional income originating from other sources, such as central government assistance or loans (Halim, 2007 which is categorized as participatory, the role of the central government has begun to decrease slightly considering the level of independence close to being able to carry out regional autonomy, this is due to high PAD such as local tax revenues, income regional levies, revenue from the management of separated regional assets and other legitimate PAD.  (Halim, 2007)

Effectiveness ratio of regional original income
Ratio Effectiveness describes the ability of local governments to realize the planned regional original income compared to the target set based on the real potential of the region (Halim, 2007).
The criteria Effectiveness Regional Revenues are as shown in Table 5. While the results of the calculation of the Effectiveness of the Regional Original Income of the City of Semarang during 2009 -2013 can be included in Table 6.
The ability of the region to carry out tasks is categorized as effective if the ratio achieved is at least 1 or 100 percent. However, the higher the effectiveness ratio, the better the regional capability will be.  The average PAD Effectiveness Ratio  100%, means that the ability of regions in carrying out categorized tasks is very effective, it shows that in mobilizing the receipt of Regional Original Income in accordance with the targeted.  (Halim, 2007) (Halim, 2007). There is no definite benchmark for the ideal ratio of indirect and direct expenditures to regional expenditures, as it is strongly influenced by the dynamics of development activities and the amount of investment required to achieve the targeted growth.
The results of the calculation of the Semarang City Regional Expenditure Harmony Ratio during 2009 -2013 can be included in Tables 7 and 8. The greater the development expenditure, the greater the benefits and will increase assets/wealth and in turn will increase the routine expenditure budget.