ANALYSIS OF THE FINANCIAL PERFORMANCE OF THE REGIONAL

REVENUE AND EXPENDITURE BUDGET OF PAPUA PROVINCE

PERIOD 2017-2021

Shofi Afifah
1*
2
Dr. Misdiyono, SE., MM., M.I.Kom.

Gunadarma University, Jl. Margonda Raya No.100, Pd. China, Beji, Depok City,
1*,2

West Java 16424, Indonesia. 

Email:

ABSTRACT
Financial performance analysis is the most appropriate method in determining
the quality of a region's budget. This study aims to analyze the Financial Performance of
BPKAD Papua Province in 2017-2021 as seen from: (1) Decentralization Ratio Fiscal,
(2) Regional Financial Independence Ratio, (3) Regional Financial Dependency Ratio
(4) PAD Effectiveness Ratio, (5) Regional Financial Efficiency Ratio.
This research is a quantitative descriptive study. This research was conducted at
the Regional Financial and Asset Management Revenue Service (BPKAD) of Papua
Province. Data collection using documentation methods. Data analysis techniques used
are descriptive quantitative with the formula: Fiscal Decentralization Degree Ratio,
Regional Financial Independence Ratio, Regional Financial Dependence Ratio, PAD
Effectiveness Ratio, and Regional Financial Efficiency Ratio The results of the analysis
show that the Financial Performance of BPKAD Papua Province is seen from
(1) The Fiscal Decentralization Degree Ratio can be categorized as very lacking,
because the average is 5.92% (2) The Regional Financial Independence Ratio is still
classified as an instructive relationship pattern because the average magnitude of this
ratio is 6.76% (3) The Regional Dependency Ratio is dependent on the central
government because the average dependence is 86.25% (4) The Pad Effectiveness Ratio
of the effectiveness of the Province's financial performance has not been effective
because the average Its effectiveness is above 100% which is 90.11%, although in 2018
it was effective with a figure of 101.34%. (5) The Regional Financial Efficiency Ratio
can be said to be less efficient because the average regional financial efficiency of
Papua Province is 90.91%.

Keywords: Local Government Financial Performance,Financial Analysis, Quantitative

Research, Ratio, Documentation Methods.

INTRODUCTION government. Regional financial

Currently, the development of public
sector accounting, especially in
Indonesia, is increasing rapidly with a
new era in the implementation of
regional financial management. The
development of a nation will not run
well without the support of the
government under it, this is of course
only the authority possessed by the local
management has a great influence on
the fate of a region because the region is
strong and able to develop or not,
depending on how to manage its
finances. Good regional financial
management will make regional assets
maintained intact.
The use of financial statement
ratio analysis as a financial analysis tool
has been widely used and applied to
commercial corporate institutions, while
in public institutions, especially local
governments, it is still very limited. In
fact, from the ratio analysis of the
financial statements, local governments
can find out about the performance of
the local government concerned and can
also be used as a reference to further
increase regional revenues. The
government in measuring its
performance, needs to understand
performance indicators as a basis for
performance appraisal, the existence of
performance indicators will help the
government in the process of making
budget decisions and in supervising the
performance of the government's
budget.
The implementation of regional
autonomy and fiscal decentralization as
stated in Law Number 22 and 25 of
1999 has given authority for local
governments to manage finances in the
context of regional development and
equity. This policy on fiscal
decentralization is believed to be able to
accelerate the development process and
reduce the development gap of each
region in Indonesia. Regional autonomy
and fiscal decentralization in Indonesia
were last regulated by Law No. 2 of
2015 concerning the Second
Amendment to Law No. 23 of 2014
concerning regional government, as
well as law number 33 of 2004
concerning financial balance between
the central government and local
governments.
Since the implementation of
special autonomy, Papua's p rovinsi has
developed so rapidly in various fields,
both regional expansion, infrastructure
development, economic development
and political development. Several
regencies in Papua Province have
continued to experience expansion since
the enactment of Law Number 21 of
2001, concerning Special Autonomy of
Papua Province. In 2005, Papua
Province consisted of 19 regencies and
1 city with 250 districts and 2,442
villages. Then in 2011, it was expanded
into 28 regencies and 1 city with 389
districts and 3,619 villages/ villages.
Yahukimo Regency has the highest
number of Districts and Villages (51
Districts and 518 Villages) and Yalimo
Regency has the least number of
Districts and Villages (5 Districts and
27 Villages).
Papua Province has several
cities, one of which is Jayapura City.
According to Luigi Laurens Derosario
Berwulo et al (2017) in a study entitled
Analysis of Local Income of Jayapura
City shows that the highest
independence rate is still at 18%, this
shows that although the original income
of the Jayapura city area continues to
grow positively every year, this has not
promised independence because
regional income from the central
government's budget allocation is still
very large.
Based on the background
discussed earlier, the author sets the
limitation of the problem only on the
Budget Realization Report (LRA) of
regional revenue and expenditure in
Papua Province for the 2017-2021 fiscal
year measured by financial ratios,
namely the decentralization degree
ratio, regional financial independence
ratio, regional financial dependence
ratio, regional original income
effectiveness ratio (PAD) and regional
expenditure efficiency ratio.
This study aims at the financial
performance of Papua Province based
on the ratio of fiscal decentralization,
analyze the financial performance of
Papua Province based on the ratio of
regional financial independence,
analyze the financial performance of
Papua Province based on the regional
financial dependence ratio, analyze the
financial performance of Papua
Province based on the effectiveness
ratio and analyze the financial
performance of Papua Province based
on the regional expenditure efficiency
ratio.
REVIEW THE LIBRARY
Based on the results of research
from Jullita in 2013, it shows that
empirically the competence of
government officials, the application of
financial tability accounts and
compliance with laws and regulations
affect performance accountability The
difference is the location and time of the
research. The performance of income
has not been effective, this can be seen
from the smaller amount realized with
the budgeted. As for the effective
performance of spending, this can be
seen from the small budget realized
from what has been budgeted so that the
Southeast Minahasa Regency
Government makes savings and has an
impact on the existence of a surplus
SILPA (Daling 2013).
From the results of the analysis
of regional financial ratios by Agustina.
A (2013) it can be concluded that in
general the performance of regional
financial management and the level of
regional independence of Malang city
continue to improve. This can be seen
from several regional financial
performance ratios, namely the ratio of
regional financial independence, the
effectiveness ratio and the efficiency
ratio.
The results of research from
Dharmawati (2016) show that the
Financial Performance of the
Banyuwangi Regency Government is
good. However, based on the low
independence ratio and the level of
dependence on external assistance is
still high, the effectiveness ratio shows
that the realization of PAD revenues has
exceeded the set budget.
During 2013-2015 the Asmat
Regency Local Government made good
use of the budget where the realization
of the expenditure that had been carried
out by the Asmat Regency Regional
Government was smaller than the
planned Budget. From several analyses
that have been carried out by the Asmat
Regency Regional Government, it has
shown positive results in spending
performance. However, local
governments are more concerned about
where spending on public interest
should be increased. Katik and Pinatik
(2016)
The results of the study on the
Independence Ratio of East Java
Province were ranked first with an
average score of 69.64%. In the average
effectiveness ratio above, it can be seen
that there are several provinces that are
included in the fairly effective criteria,
namely the province of Southeast
Sulawesi with an average effectiveness
ratio of 98.77% and Bengkulu with an
average effectiveness ratio of 97.77%.
In the Efficiency ratio, the province that
is ranked first is DKI Jakarta province
with an efficiency ratio of 94.67%
including the less efficient category.
This Spending Harmony Ratio shows
that the balance between spending is not
the same. It is evident from the Province
Highest Indirect Expenditure Ratio
which is higher than the Highest
Province in the Direct Expenditure
Ratio. From the map of financial
capabilities in the quadrant method, it
can be seen that in 33 provinces there
are still many in quadrant III compared
to other quadrants. It can be seen that
the share is higher while the growth is
lower. Muthmainnah (2016).
The test results from
Rachmawati (2021) show that DAK and
PAD have a significant positive
influence on the allocation of capital
expenditures. However, the DAU did
not have a significant positive influence
on the allocation of capital
expenditures. The results of research
from Huler (2021) can be concluded
that d ana general allocation and
regional original income simultaneously
have a positive and significant influence
on regional expenditure, d ana general
allocation has a positive and significant
influence on regional expenditure and
the original regional expenditure has a
positive and insignificant influence on
regional expenditure
The results of this study show
that the Financial Ratio of the South
Sorong Regency Government, as seen
from the Efficiency Ratio and Growth
Ratio, is said to be good and efficient.
Meanwhile, when viewed from the
Decentralization Ratio, the
Independence Ratio and the Capital
Expenditure Harmony Ratio are still
very lacking. This is because local
governments are still dependent on the
central government and also the
exploration of potential and
management of natural resources is still
very lacking and is accompanied by a
portion of regional expenditures whose
funds are partly allocated for capital
expenditures that are considered less
Matching. Ngangi and Murni (2017).
Based on the results of the
financial ratio analysis by Duri (2021)
diperoleh Ko the contribution of PAD to
regional revenues of Jayapura City
shows that the higher the contribution of
PAD the average ratio of
decentralization degrees from 2011 to
2017 is 11.56 percent. But it is still in
the very low category. The dependence
ratio of the Jayapura City Government
to the Central Government is decreasing
but is still in the high category due to
the dominance of central transfer
income in
regional revenues.
RESEARCH METHODS
The object of research in this
writing is to analyze the report on the
Realization of the Regional Revenue
and Expenditure Budget of Papua
Province for 5 years, namely 2017 –
2021. The type of data used in this study
is quantitative data where this data is in
the form of data analyzed in the form of
data on the Regional Revenue and
Expenditure Budget (APBD) of Papua
Province for 2017-2021. The source of
data used in the study is secondary data,
where data is obtained in the form of
documentation data in the form of
Budget Reports and Realization of
Regional Revenues and Expenditures of
the Papua Provincial Government for
2017 - 2021 which is obtained from the
official website of the Papua Provincial
Financial and Asset Management
Agency (https://bpkad.papua.go.id) and
through the official website of the
Directorate General of Financial
Balance (www.djpk.kemenkeu.go.id).
Collection obtains relevant data
so that it can be analyzed, it is necessary
to collect data using the documentation
method, where the data used in this
study is collected by studying the
documents or data needed, followed by
recording and counting to obtain the
data information needed in the study.
The trick is to collect data that has been
taken from the official website of the
Regional Financial and Asset
Management Agency of Papua Province
and the official website of the
Directorate General of Financial
Balance, followed by analyzing the
Papua Province APBD data using ratio
benchmarks. It needs to be understood
from this study so that this research runs
according to what is expected, namely
there are various elements that are the
basis of this study, namely the Fiscal
Decentralization Degree Ratio, ACCOUN BUDGET
Regional Financial Independence Ratio, T 2017 2018
Regional Financial Dependency Ratio, 0.000 0.000
Regional Original Income Effectiveness Shopping 51.559.20 53.086.71
Ratio, and Regional Expenditure Area 0.000 0.000
Efficiency Ratio. Surplus/ (1.450.320 (1.580.520
The analytical technique used in (Deficit) .000) .000)
this study is a quantitative approach in Regional 3.366.700. 2.459.840.
the form of numbers and then analysis is Financing 000 000
carried out using calculations according Net 3.366.700. 2.459.840.
to the formula contained in the theory. Financing 000 000
Descriptive analysis is carried out Remaining
according to the steps, namely: More
collecting data related to research, Financing
studying the data obtained, obtaining 1.916.380. 879.320.0
of the
the data obtained, analyzing the 000 00
Relevant
Financial Performance of Local Year's
Governments, then making conclusions. Budget
The analysis technique used is to Source : Self-Processed Data
calculate several financial ratios sourced
from APBD data, as follows: Table 2
1. Fiscal Decentralization Degree Papua Provincial Budget for 2019-
Ratio 2021
2. Regional Financial Independence (In thousands of Rupiah)
Ratio
3. Regional Financial Dependency ACCOU BUDGET
Ratio NT 2019 2020 2021
4. Regional Financial Effectiveness Regional 54.477.8 54.475.6 50.993.0
Ratio Revenue 00.000 30 10
5. Regional Financial Effectiveness Pad 2.755.27 2.972.57 3.627.40
0.000 0.000 0.000
Ratio
48.506.7 43.554.4 45.460.5
TKDD 50.000 70.000 70.000
RESULTS AND DISCUSSION Other 3.215.78 7.948.59 1.905.04
The following is the 2017-2021 Income 0.000 0.000 0.000
Papua Provincial Budget in Table 1 and Shopping 56.057.4 56.057.4 52.772.4
Table 2; Area 60.000 60.000 30.000
Surplus/ (965.460 (1.581.8 (1.779.4
Table 1APBD of Papua Province for (Deficit) .000) 30.000) 20.000)
2017-2018 (In thousands of Regional
2.492.60 325.300. 3.837.49
Financin
Rupiah) g
0.000 000 0.000
Net
BUDGET 2.492.60 325.300. 3.837.49
ACCOUN Financin
0.000 000 0.000
T 2017 2018 g
Regional 50.108.88 51.506.19 Remaini
ng More
Revenue 0.000 0.000 Financin
Pad 2.740.150. 2.431.380. 1.527.14 (1.256.5 2.058.07
g of the
0.000 30.000) 0.000
000 000 Relevant
TKDD 41.738.50 43.997.71 Year's
Budget
 Data Source: Self-Processed Year 2019-2021 (In thousands of
Rupiah)

ACCOU BUDGET
NT 2019 2020 2021
Regional 53.256.3 47.604.5 32.509.4
Revenue 00.000 20.000 80.000
Pad 3.496.50 2.711.06 2.511.01
0.000 0.000 0.000
48.130.9 42.803.2 26.928.7
TKDD 40.000 50.000 60.000
Other 1.628.86 2.090.21 3.069.71
Income 0.000 0.000 0.000
Table 3
Shoppin 51.993.3 47.564.2 44.492.7
Realization of the Papua Provincial g Area 30.000 70.000 80.000
Budget Surplus/ 1.262.97 40.250.0 (11.983.3
Year 2017-2018 (In thousands of (Deficit) 0.000 00 00.000)
Rupiah) Regional
4.999.51 4.331.05 3.826.11
Financin
0.000 0.000 0.000
g
ACCOUN BUDGET
Net
T 2017 2018 4.999.51 4.331.05 3.826.11
Financin
0.000 0 0.000
Regional 49.263.02 52.194.75 g
Revenue 0.000 0.000 Remaini
Pad 2.480.750. 2.385.380. ng More
Financin
000 000 g of the
6.262.48 4.371.30 (8.157.19
TKDD 43.046.28 46.641.41 0.000 0.000 0.000)
Relevant
0.000 0.000 Year's
Other 3.735.990. 3.167.960. Budget
Income 000 000 Data Source: Self-Processed
Shopping 49.176.39 51.086.73
Area 0.000 0.000 Fiscal Decentralization Degree Ratio
Surplus/ 86.630.00 1.108.020. The Fiscal Decentralization Degree
(Deficit) 0 000 Ratio can be calculated by;
Regional 3.351.590. 1.122.130.
Financing 000 000
Net 3.351.590. 1.122.130. Source: Mahmudi 2016:140-142
Financing 000 000 This ratio shows the degree of
Remaining contribution of PAD to the total receipts
More of the region. The results of the
Financing calculation of the Fiscal
3.438.220. 2.230.150. Decentralization Degree Ratio can be
of the
000 000 seen in table 5 below :
Relevant
Year's Table 5
Budget Calculation of the Ratio of Degrees of
Data Source: Self-Processed Fiscal Decentralization
Fiscal Year 2017-2021
Table 4
Realization of the Papua Provincial
Budget
 Source: BPKAD Papua Province
(processed)
Based on the calculation results
in the table above, it can be seen that the
Financial Performance of BPKAD
Papua Province when viewed from the
Fiscal Decentralization Degree Ratio
can be categorized as Very Lacking.
Starting in 2017, the Fiscal
Decentralization Degree Ratio at
BPKAD of Papua Province was 5.04%.
In 2018 it decreased to 4.75%, the
following year it increased to 6.75%.
There was another decline in 2020 to
5.69%, but there was a decrease in 2021
to 7.72%. Although it has increased in
the last year, it can be said that the
financial capability of BPKAD in Papua
Province is still very lacking, because it
is still on an interval scale of 00.01-
10.00%.
Regional Financial Independence
Ratio
The Regional Financial Independence
Ratio (RKKD) can be calculated using
the following formula:
Source: Mahmudi (2010:142)
The results of the calculation of
the Regional Financial Independence
Ratio can be seen in table 6 below;
Table 6
Calculation of BPKAD Regional
Financial Independence Ratio
Papua Province Fiscal Year 2017-
2021
Data Source: BPKAD Papua Province
(processed)
Based on the calculation results
in table 4.6 above, the financial
capability of BPKAD Papua Province is
still very low and the relationship
pattern includes an instructive
relationship pattern where the role of
the central government is more
dominant than the independence of local
governments (regions that are unable to
carry out regional autonomy). The value
in 2017 where the value was 5.76% and
the lowest value in 2018 was 5.11%. In
2019, it experienced an increase of
7.26%, while it experienced a decrease
in 2020 of 6.33% and in 2021 it had the
largest increase which showed a figure
of 9.32%. This shows that the level of
regional dependence on assistance from
external parties (especially assistance
from the central and provincial
governments) is still low even though in
2021 it has increased significantly.
Regional Financial Dependency Ratio
This ratio is formulated according to
Mahmudi (2010:142) as follows:
Source: Mahmudi (2010:142)
The results of the calculation of
the Regional Financial Independence
Ratio can be seen in table 7 below :
Table 7
Calculation of BPKAD Regional
Financial Dependency Ratio
Papua Province Fiscal Year 2017-
2021
Data Source: BPKAD Papua Province
(processed)
Based on the results of the
calculation, it can be seen that
Financial Performance seen from the
Regional Financial Dependency Ratio
of Papua Province can be categorized as
very high, namely in 2017 it was
obtained at 87.38%, then in 2018 it was
obtained at 89.36%, in 2019 it was
obtained by 81.78%, in 2020 it was
obtained by 89.91%, and in 2021 it
was obtained by 82.38% This indicates
that the Papua Provincial Government
has a very high financial dependence
on the Central Government.
PAD Effectiveness Ratio
The Pad Effectiveness Ratio can be
calculated using the following formula:
Source: Mahmudi (2010:142)
The results of the calculation of the
PAD Effectiveness Ratio can be seen in
table 8 below:
Table 8 Calculation of BPKAD PAD
Effectiveness Ratio
Papua Province Fiscal Year 2017-
2021
Data Source: BPKAD Papua Province
(processed)
Based on the calculations in
table 8 above, it can be seen that the
Financial Effectiveness of BPKAD for
Papua Province in 2017, 2019, 2020,
and 2021 is not effective, because the
value obtained is still below 100%,
namely 98.31%, 97.76%, 87.39 , and
63.75%. For 2018, it has been effective
because the value obtained has been
more than 100%, namely 101.34%
Regional Expenditure Efficiency
Ratio
The results of the calculation of PAD
Efficiency Ratio can be seen in table 9
below:
Table 9
Calculation of BPKAD Regional
Expenditure Efficiency Ratio
Papua Province Fiscal Year 2017-
2021
Data Source: BPKAD Papua Province
(processed)
Table 3 explains that this ratio is useful
to determine the ability of the
government to measure the level of
budget savings made by the
government. Based on the results of the
calculation of the efficiency value in
2017 of 95.38%, the efficiency value in
2018 of 96.23%, the efficiency value in
2019 of 93.78%, the efficiency value in
2020 of 84.85%, the efficiency value in
2021 of 84.31%. If viewed from 2017
to 2021 the efficiency value is less than
100%, then budget savings are running
well or efficiently.
Discussion
Fiscal Decentralization Degree Ratio
Table 4.5 shows that the Papua
Province PAD from 2017 to 2021 has
decreased and increased. In 2017 the
Papua Province PAD amounted to Rp
2,480,750,000,000.00 or 5.04% of the
total revenue. Decreased in 2018 to Rp
2,385,380,000,000.00 or 4.75% of total
revenue. In 2019 the Papua Province
PAD increased to Rp
3,496,500,000,000.00 or 6.57% of total
revenue. In 2020, it decreased to IDR
2,711,060,000,000.00 or 5.69% of total
revenue. Then in 2021 it experienced an
increase of IDR 2,511,010,000,000.00
or 7.72% of total revenue. The total
regional income of Papua Province from
2017 to 2021 has increased and
decreased. Starting from 2017, the total
regional revenue was Rp
49,263,020,000,000.00. Experienced an
increase of 4.36% or to Rp
52,194,750,000,000.00 in 2018. In 2019
the total regional revenue of IDR
53,256,300,000,000.00 increased by
1.99% from the previous year, then the
following year in 2020 experienced a
decrease of 11.81% or to IDR
47,604,520,000,000. In 2021, it also
experienced a significant decrease of
46.43% or to IDR
32,509,480,000,000.00.
Based on the calculation results
in table 5, it can be seen that the
Financial Performance of BPKAD
Papua Province when viewed from the
Fiscal Decentralization Degree Ratio
can be categorized as Very Lacking.
Starting in 2017, the Fiscal
Decentralization Degree Ratio at
BPKAD of Papua Province was 5.04%,
down to 4.75% in 2018. In 2019, the
Ratio of Degrees of Fiscal
Decentralization in BPKAD of Papua
Province was 6.57%. In 2020 it
decreased to 5.62%, but there was an
increase in 2021 to 6.65%. Although it
has increased in the last year, it can be
said that the financial capability of
BPKAD Papua Province is still very
lacking, because it is still in the interval
scale of 00.00-10.00%.
According to the description and
calculations in table 5, it can be seen
that it is concluded that the Ratio of
Degrees of Fiscal Decentralization for
five years in the Papua Provincial
Government is still Very Lacking
because it is still on the interval scale of
0.00% - 10.00% and this means that
PAD has a Very Less ability to finance
regional development. This happens
because pad in Papua Province is still
relatively small when compared to total
regional income. In addition, public
participation and awareness to pay
regional taxes and levies is still very
lacking, causing PAD to not have a big
role in financing regional development
in Papua Province.
Regional Financial Independence
Ratio
Table 6 shows that the Papua
Province PAD from 2017 to 2021 has
decreased and increased. In 2017 the
Papua Province PAD amounted to Rp
2,480,750,000,000.00 or 5.76% of the
total revenue. It decreased in 2018 to Rp
2,385,380,000,000.00 or 5.11% of total
revenue. In 2019 the Papua Province
PAD increased to Rp
3,496,500,000,000.00 or 7.26% of total
revenue. In 2020, it decreased to IDR
2,711,060,000,000.00 or 6.33% of total
revenue. Then in 2021 it experienced a
decrease in the number of figures,
namely IDR 2,511,010,000,000.00, but
the percentage increased by 9.32% of
total revenue.
Based on the calculations in
table 6, it shows that income or
assistance from external parties in this
case assistance from the provincial
government and from the central
government always increases. In 2017 it
was Rp. 43,046,280,000,000.00, then in
2018 it increased by 7.71% or Rp.
46,641,410,000,000.00. In 2019 it was
IDR 48,130,940,000,000.00 or an
increase of 3.09% from the previous
year, then decreased by 12.45% or to
IDR 42,803,250,000,000.00 in 2020. In
2021, it again experienced a significant
decrease of 58.95% or to IDR
26,928,760,000,000.00. For the increase
in income from external parties, this
increased due to an increase in the posts
of the equalization fund from the central
government such as: Tax Revenue
Sharing Fund, Non-Tax Profit Sharing
Fund, General Allocation Fund (DAU),
and DAK (Special Allocation Fund) in
2018, 2019, 2020 and 2021.
Based on the calculation results
in table 6, the financial capability of
BPKAD Papua Province is still very
low and the relationship pattern includes
an instructive relationship pattern where
the role of the central government is
more dominant than the independence
of regional governments (regions that
are unable to carry out regional
autonomy). There has been an increase
or decrease from 2017 to 2021. Starting
in 2017 the Independence Ratio was
5.76%, then fell to 5.11% in 2018. In
2019 the Independence Ratio was
7.26% then decreased in 2020 by
6.33%. In 2021 there was an increase to
9.32%. When viewed from year to year,
the pattern of financial independence is
still classified as an Instructive
relationship pattern because it is still
classified as an interval of 0% - 25%
where the role of the central
government is more dominant than the
regional government itself. According
to the description above, it can be
concluded that the Regional Financial
Independence Ratio for five years in the
Papua Provincial Government has an
average independence is still relatively
low and in the category of financial
capability is lacking with an Instructive
relationship pattern, namely the role of
the central government is still very
dominant compared to regional
governments, this can be seen from the
Regional Financial Independence Ratio
is still classified in the interval 0% -
25%. The low independence ratio has
resulted in the regional financial ability
of Papua Province in financing the
implementation of government and
regional development is still very
dependent on assistance from the central
government.
So the Financial Independence
of BPKAD Papua Province as a whole
can be said to be very low, this
illustrates that the level of regional
dependence on external sources of funds
is still very high. Regions have not been
able to optimize PAD to finance their
regional development. Public awareness
and participation in the payment of
taxes and levies is also one of the things
that causes the PAD produced by the
Papua Provincial Government to be few
and cannot be relied on to finance the
implementation of government and
development. In addition, it is also due
to differences in the amount of loans
and assistance from the center and total
income in each region and the
realization of expenditure in each
region. To overcome this, local
governments must be able to optimize
revenues from their existing revenue
potential. The initiative and willingness
of local governments are needed in an
effort to improve PAD, for example the
establishment of potential sector
BUMDs.
Regional Financial Dependency Ratio
Table 7 shows that the Papua
Province PAD from 2017 to 2021 has
decreased and increased. In 2017 the
Papua Province PAD amounted to Rp
49,263,020,000,000.00 or 87.36% of the
central government assistance. It
experienced an increase in 2018,
namely to Rp 52,194,750,000,000.00 or
89.36% of central government
assistance. In 2019 the Papua Province
PAD decreased to Rp
53,256,300,000,000.00 or 81.78% of the
central government assistance. In 2020,
it increased to IDR
47,604,520,000,000.00 or 89.91% of
central government assistance. Then in
2021 it experienced a decrease in the
number of figures, namely IDR
32,509,480,000,000.00 from central
government assistance.
Based on the calculations in
table 7, it shows that income or
assistance from external parties in this
case assistance from the provincial
government and from the central
government always increases and
decreases. In 2017 it was Rp.
43,046,280,000,000.00, then in 2018 it
increased by 7.71% or Rp.
46,641,410,000,000.00. In 2019 it was
IDR 43,554,470,000,000.00 or
decreased by 7.09% from the previous
year, then decreased by 1.76% or to
IDR 42,803,250,000,000.00 in 2020. In
2021, it again experienced a significant
decrease of 58.95% or to IDR
26,928,760,000,000.00.
With an average dependency
rate of 86.25 percent, it can be said that
in the 2017-2021 period, the level of
regional financial dependence in Papua
Province is in the category of a very
high level of dependence.
PAD Effectiveness Ratio
Based on the calculations in
table 4.8, it can be seen that the
effectiveness of the Financial PAD of
BPKAD of Papua Province in 2017 was
98.31%, in 2018 it was 101.34%, in
2019 it was 97.76%, in 2020 it was
87.39%, and in 2021 it was 63.75%.
The effectiveness of Papua Province's
financial performance for 2017, 2109,
2020, and 2021 is not effective because
its effectiveness is still below 100%. For
2018, it has been Effective because the
value obtained is already more than
100%.
According to the description and
calculation results in table 8, the
Effectiveness of Financial Performance
of Papua Province is still not effective
because the average effectiveness is
below 100%, which is 89.71%. This is
because revenues from the local tax and
levy sector are less than previously
budgeted. The Papua Provincial
Government can also be said to have not
performed optimally in terms of
realizing the planned PAD.
Regional Expenditure Efficiency
Ratio
Based on the calculations in
table 9, it is also known that the average
Regional Financial Efficiency of Papua
Province from 2017 to 2021 is 90.91%
or can be said to be Inefficient. In 2017
the efficiency ratio was 95.38%, then in
2018 it was 96.23%, in 2019 it was
93.78%, in 2020 it was 84.85%, and in
2021 it was 84.31%.
The average Regional Financial
Efficiency of Papua Province which is
still classified as Inefficient because the
average ratio of 90.91% is due to the
fact that the total regional expenditure is
still greater than the regional income,
especially in 2020 and 2021. Although
in 2020 and 2021, the Papua Provincial
Government has been able to reduce its
expenditure compared to what was
previously budgeted, the amount of
income it earns is still small in amount
when compared to its regional
expenditure so it can be said that the
performance of the Papua Provincial
Government in this case is still poor
because it has not been able to reduce
the amount of regional expenditure. In
the future, it is hoped that the Papua
Provincial Government can minimize
the amount of expenditure by adjusting
its income. So that in the future there
can be an increase in the efficiency of
regional spending.
CONCLUSIONS AND
SUGGESTIONS
Conclusion
Based on the results of the data
analysis that has been described,
conclusions can be drawn that the
Financial Performance of BPKAD of
Papua Province when viewed from the
Fiscal Decentralization Degree Ratio
can be categorized as Very Lacking.
The Financial Performance of BPKAD
of Papua Province when viewed from
the Regional Financial Independence
Ratio is still very low and the
relationship pattern includes the pattern
of instructive relations. The Financial
Performance of BPKAD for Papua
Province, when viewed from the
Regional Financial Dependence Ratio, it
is known that the financial dependence
of BPKAD for Papua Province in 2017
and 2021 is still very dependent on the
government. The Financial Performance
of BPKAD Papua Province when
viewed from the Pad Effectiveness
Ratio, it can be seen that the financial
effectiveness of BPKAD Papua
Province is still ineffective. The
Financial Performance of BPKAD
Papua Province when viewed from the
Regional Financial Efficiency Ratio is
known that the average regional
financial efficiency of Papua Province
from 2017 to 2021 is less efficient.
Suggestion
For subsequent researchers who
will conduct the same research, it is
hoped that they will go deeper into the
financial performance of local
governments by using more ratios so
that the results of their research can be
more reliable and accurate than the
research by this author. In addition, this
research was only conducted in one of
the Papua Provinces. It is hoped that
further research will conduct research in
a wider scope of this study.
BIBLIOGRAPHY
Abdul Halim & Sham Kusufi. 2012.
Public Sector Accounting :
theory, concepts and
applications. Salemba Empat :
Jakarta
Abdul, H., & Muhammad, S. K. (2012).
Theory, Concept and
Application of Accounting
Abdul Halim. 2007. Public Sector
Accounting: Regional Financial
Accounting. Jakarta : Salemba
Empat.
Abdul Halim & Sham Kusufi. 2017.
Concept Theory and
Applications of Public Sector
Accounting. Jakarta: Salemba
Empat.
Haryanto, J. (2018). Analysis of
Regional Financial
Independence (Case Study:
Banten Province 2011-2015).
Innovation, 15(1), 1-10
Cashmere. (2012), Financial Statement
Analysis. Jakarta : PT. King
Grafindo Persada.
Mahmudi. (2010). Analysis of Local
Government Financial
Statements Second Edition.
Yogyakarta : UPP STIM YKPN.
Mardiasmo. (2002). Regional Financial
Autonomy and Management.
Yogyakarta: Andi Publishers.
Mardiasmo. (2006). Public Sector
Accounting. Yogyakarta: Andi
Publishers. Fahmi, Irham. 2011.
Financial Performance Analysis.
Bandung : Alfabeta.
Mahmudi. 2010. Regional Financial
Management. Jakarta : Erlangga
Publishers
Mardiasmo. 2019. Analysis of Local
Government Financial
Statements. Fourth Edition.
Mahmudi. (2019). Local Government
Financial Statement Analysis
Book. STIM YPKN Publishers
Mahmudi (2015), Public Sector
Performance Management
Second Edition.Yogyakarta:
UPP STIM YKPN. Public
Sector. Jakarta: Salemba Empat.
Mahmudi. 2016. Lapoan Analysis of
Local Government Finance.
Third Edition, Yogyakarta: UPP
STIM YKPN.
Manek, M., & Badrudin, R. (2016). The
effect of local income and
equalization funds on economic
growth and poverty in East Nusa
Tenggara Province. Business
Review, 17(2), 81-98.
Nordiawan, Deddi and Ayuningtyas
Hertianti 2010. Public Sector
 Accounting. Jakarta: Salemba Law Number 17 of 2003 concerning
Empat Publishers. State Finance, the function of
Law of the Republic of Indonesia APDB Law No. 22 of 1999
Number 32 of 2004 concerning concerning Local Government.
Local Government. Law No. 25 of 1999 concerning
Pandjaitan, M. F., Tommy, P., & Untu, Financial Balance between the
V. N. (2018). Analysis of the Central and Regional
financial performance of the Governments
manado municipal government Law of the Republic of Indonesia
area in 2011-2016. EMBA Number 23 of 2014 concerning
Journal: Journal of Economic Local Government
Research, Management, Lawnumber 33 of 2004 concerning
Business and Accounting, 6(3). financial balance between the
Poyoh, C. M., Pure, S., & Tulung, J. E. central government and local
(2017). Analysis of Revenue and governments
Expenditure Performance of the Wahyuddin, W., & Sugianal, N. (2017).
Tomohon City Regional Lhokseumawe City Government
Financial Agency. EMBA Financial Performance Analysis.
Journal: Journal of Economic Journal of Accounting and
Research, Management, Finance, 5(1), 51-60.
Business and Accounting, 5(2)
Pramita, Puput Risky. 2015. "Ratio
Analysis to Assess the Regional
Financial Performance of
Kebumen Regency in 2009-
2013". Faculty of Economics,
University of Yogyakarta
Rahmayati, A. (2016). Financial
Performance Analysis of
Sukoharjo Regency Government
for Fiscal Year 2011-2013. Eka
Cida, 1(1).
Sujarweni (2017). Analysis of Financial
Statements; Theory,
Application, and Research
Results, Yogyakarta: Pustaka
Baru Press.
Sukirno, Sadono. 2012.
Macroeconomics Theory
Introduction Third Edition.
Jakarta: Rajawali Pers. Sukirno,
Sadono. 2011. Macroeconomics
Theory Introduction Third
Edition. Rajawali Pers, Jakarta
Mankiw N,Gregory, et al. 2012,
Introduction to
Macroeconomics. Jakarta:
Salemba Empat.