975 Int. J S up. Chain. M gt Vol . 9, No. 1, Februa ry 2020 Supply C hain S trategy for I mplementing F iscal D ecentralization and its E ffect on R egional P erformance in N orth S umatera P rovince, I ndonesia Sirojuzilam 1* , Edo Billy Andri Turnip 1 , Jumadil Saputra 2 1 Faculty of Economics and Business, Universitas Sumatera U tara, Medan, Indonesia 2 Department of Economics, Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu, 21030 Kuala Nerus, Terengganu, Malaysia 1
[email protected] Abstract - The purpose of this study is to invest igate the implemented by the central authority has been supply chain strategy for implementing fiscal transformed int o a re gional authority and implemented decentralization and its effect on regional performance by regions autonomously. Today, one of the most which consists of financial equalization capabilities and prominent issues in discussing the economy of a region regional development in North Sumatera province, is the issue of regional performance/ gross regional Indonesia. A secondary data collected from the Central domes tic product [1 - 4] . Bureau of statistic North Sumatera which consist of 33 The enactment of this Law provides a n oppo rtunity for regencies/cities in North Sumatera province for the the region to explore the economic potential and period of 2011 - 2015 and analyzed using panel regression improve its financial performance in order to realize analysis by assisting EVIEWS 10.0. This study applied regional self - reliance. Unequal distribution of natural the Williamson index to id entify the effect of fiscal resources and original local government revenue to decentralization of financial capability via the General autonomous regions, requires a sou rce of local revenue Allocation Fund (DAU) budget per capita and Gross that can reduce the fiscal imbalance.