Titi Darmi — Locally-Generated Revenue as A Capacity Parameters ..... JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.22 (1), May 2018, 1-13 ISSN 0852-9213 (Print), ISSN 2477-4693 (Online) Available Online at https://journal.ugm.ac.id/jkap Locally-Generated Revenue as A Capacity Parameters of New Regional Autonomy Management Titi Darmi Faculty of Social and Political Science Muhammadiyah University, Bengkulu, Indonesia [email protected] Abstract Non-human resources play a role in the implementation of the New Autonomous Region (DOB) one of which is the financial resources of the region. In order for the financial capacity of the region can be managed optimally then the appropriate method is to increase its management capacity. The study was conducted in Seluma District as the autonomy mandate of new autonomous regions. The objective of the research is to analyze the extent of the financial management capacity of Seluma Regency as a DOB provider. The research approach is done by qualitative descriptive method, data source is derived from secondary data in the form of, records of financial condition, documentation, financial report that is Report of Result of Inspection (LHP) from BPK, report of APBD realization and regulations related to financial management implementation. Primary data comes from interviews and FGDs to informants. Data analysis through data collection, data condensation, data presentation and decision making or data verification. The results show that the financial management capacity of Seluma Regency has not been done effectively and efficiently, confirmed by the following conditions: 1) the results of supervision of the implementation of the work program found many cases of TGR; 2) low PAD that only contribute 3% range to APBD; 3) financial management got WDP opinion from BPK during last 3 years. Keywords: new autonomous region, capacity, financial management Copyright © 2018, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online) 1 JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.22 (1), May 2018 --- https://journal.ugm.ac.id/jkap INTRODUCTION in the level of community welfare (Directorate The performance of the New Autonomous General of Regional Autonomy Ministry of Region (DOB) has a low performance Home Affairs, 2011). (Directorate General of Regional Autonomy of Seluma District granted a mandate by Kemendagri RI, 2011) based on the condition, Law Number 3 Year 2003 as the organizer so the Central Government undertakes a of DOB, the selection of the location of temporary suspension of the formation this study, reinforced by the unique facts of of DOB (Ministry of Home Affairs of the Seluma Regency at the age of 14, has a lagging Republic of Indonesia, 2014); (Kompas, 2015). development among the other 6 (six) DOBs in Many factors affecting the low level of DOB Bengkulu Province. The DOB performance performance are the sharing of local resources indicator is the welfare of the community by between autonomous regions and unequally looking at how high the Development Index of parent regions of both human and non-human human is (IPM), in 2013 Seluma District keeps resources (Darmi, 2017). It is urgent for the 11th place in 11 regencies / cities in Bengkulu commitment of DOB regional leaders to enable Province (BPS Bengkulu Province, 2013), in DOB to adapt to other areas (Darmi, 2016). 2015 Seluma District HDI level still occupies Nevertheless, the performance of DOB will be the lowest position of regencies / cities in felt by the public if the stakeholders prioritize Bengkulu Province (Table 1). the public interest-oriented development IPM is a standard used by the United program (Firman, 2013). Nations (UN) in measuring the success of a The policy of the formation of the region. HDI in Seluma (see table 1) is in the new autonomous regions is a wise policy lowest category compared to other regions. undertaken by the central government (Darmi, If the analysis of Bengkulu City which is the 2016) in order to accelerate the objectives of provincial capital is a border with Seluma, to the 1945 Constitution namely the welfare of go to the capital city of Seluma not exceeding the people. In addition, the mandated DOB the distance of 1 hour. The range between IPM Act can manage the potential of resources Seluma and Kota Bengkulu is significant, that is owned by the region, for the prosperity of its 13.75. To catch up from other regions, Seluma people. Establishment of new autonomous must be able to raise the HDI number each year regions (DOB) implies the full authority to at least by 0.5 points. manage regional contents in accordance with Seluma Regency is a new autonomous regional characteristics. The main purpose region resulting from the expansion of the of the establishment of new autonomous region of South Bengkulu Regency. As District regions to realize regional independence. The DOB Seluma faces various problems such as meaning of independence ie the region has the financing of government administration is the ability to finance regional development. still very dependent on central and provincial This means that regions given autonomous government subsidy. The above description is mandates have a good independence in the a common thread that should occur but not in process of implementing development and accordance with the existing reality / empirical have no dependence on financing development data (das sollen / das sein). The purpose and by the central government. In addition, DOB objectives of the study to analyze the extent organizers are able to increase / strengthen of financial management capacity of new regional institutions that directly impact on autonomous regions in Seluma District. the quality of development, the basic services that are directly felt by the community. The Implementing DOB success of new autonomous regions is reflected The main task of DOB organizers is to carry out the mandatory and optional affairs 2 Copyright © 2018, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online) Titi Darmi — Locally-Generated Revenue as A Capacity Parameters ..... Table 1. IPM of district/city in Bengkulu Year 2015 No autonomous regions Index score 1 Bengkulu Selatan 68,57 2 Rejang Lebong 67,51 3 Bengkulu Utara 67,46 4 Kaur 64,47 5 Seluma 63,41 6 Mukomuko 65,77 7 Lebong 64,72 8 Kepahiang 65,45 9 Bengkulu Tengah 64,68 10 Kota Bengkulu 77,16 Source: BPS Provinsi Bengkulu, 2015 mandated by the Regional Autonomy Law governments to finance the implementation of and Law Number 23 Year 2014 on Regional development tasks. Government. The mandatory functions of DOB is required to be able to finance the autonomous operator are to carry out the local government. This capability reflected basic services such as the implementation the level of dependence of new autonomous of education, health, housing and others, funding on central government transfers. concerning the basic needs of the community, This means that the new autonomous regions while the obligatory functions of non basic have smaller proportions and Local Revenue services (affairs of choice) is an affair organized (PAD) should be a substantial contribution to in cooperation between the Regency and the portion of local revenue sources. PAD is a the Province in order to dig leading sectors benchmark as well as an indicator of success of DOB, for example, tourism, agriculture, in the implementation of DOB (Mardiasmo, plantations and others (Darmi, 2017). 2004). The formation of DOB is seen as an PAD optimization is significantly appropriate strategy to respond to community influenced by organizational culture, demands and as a strategy to strengthen the organizational performance that culminates regional economy in order to strengthen the in apparatus performance (Darmi, 2013). national economy (Mardiasmo, 2004). In the Increasing the performance of the apparatus implementation of DOB, the stakeholders as a rare and the effort that needs to be done are required to run the wheels of government so that the financial capacity of the region, efficiently and effectively, able to encourage financial management can be done effectively community participation in development, and and efficiently. Increasing the source of PAD improve equity and justice by developing all the can also be done by increasing the number potential of the region. The success of the new of objects and subjects of taxes and or other autonomous regions can not be separated from regional levies that are considered to have the the financial capacity of the regions which is potential to be a source of PAD. one of the important indicators in implementing PAD indicates how high the economic the new autonomous regions. growth of the community (Asnariza & Hamzah, The ability of the new autonomous 2014), the intervention of the Regional regions to carry out such affairs reflects how to Government still plays an important role manage their finances. Financial management in supporting the economic growth of the of DOB is contained in the Regional Budget community. Without a concrete economic (APBD), which describes the ability of local development program from the Local Copyright © 2018, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online) 3 JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.22 (1), May 2018 --- https://journal.ugm.ac.id/jkap Government, it is difficult for regions to Local government financial management progress in the economic field (Muhammad capacity can be interpreted as an effort to build Mujtaba Habibi, 2015). Areas that can be used organizations, systems, partnerships, people as indicators in the economic growth of the and processes correctly to run a particular community, for example: the development agenda or plan (Brown & Cloke, 2004). The of the agricultural sector, the development of result, will be useful, and have a positive mining and energy sector, the development impact. In the context of local government of industrial sectors, the development of the financial management capacity, the capacity is tourism sector, and others.