REGIONAL FINANCIAL MANAGEMENT MANAGEMENT

(A study on the use of regional finance and its managementin the Era of Regional
Autonomy)
By
Nuradila 19179109
Siti Alma Syari 1917091
Decyinthiara 19179117
1. Introduction
The objectives of regional autonomy as indicated by Syamsi (1983, 47) are: to increase
efficiency and must be for the administration of local government especially in the
implementation of development and services to the community as well as to improve the
development of political stability and national unity. In context like this, the implementation
of regional autonomy is primarily intended to support the aspirations of the people's struggle
by prioritizing aspects of harmony and democracy. One of the requirements for an area to be
said to be an autonomous region is: the availability of separate financial sources so that they
are able to finance their homes the ladder itself. Here it is clear that an area with autonomous
status is a problem keuarigan is very decisive. According to Kaho (1982, 86) that the more
funds as a source of financing for tasks and functions. government, then do not lose
the importance of professional management factors in the use of budgets by apparatus in the
region/region or in the work units of regional agencies entrusted with the task the.
Implementation and enactment of Law No. 32 of 2004 concerning Regional Government and
Law Number 33 of 2004 concerning Balance Central and regional governments replace the
laws that have been in force before expected to encourage and facilitate the implementation
of regional autonomy, which as long as the New Order regime was in power it became mere
rhetoric (Kaho, 1997, 62). To Therefore, the regional government, hereinafter referred to as
the autonomous region, has been granted full authority by the central government to regulate
and manage regional development based on the interests and aspirations of the
community. Area Regencies/Cities, are being faced with budget problems which are a one of
the main elements of financing development and community services. Because of that It is
very necessary for local officials who are responsive and able to explore and manage
sources of regional income and expenditure so that what has been achieved is achieved
desired by society. On the other hand, Prasetyo Budi (1994, 76) explains the importance of
position regional finance: for local governments in financing various program activities:
development in the context of equitable distribution and a balanced regional growth rate and
in accordance with the financial capacity of the region, then in the general explanation of the
Law Number 32 of 2004 concerning Regional Government stated that:
1. To carry out broad, real and responsible regional autonomy, authority and ability to dig
their own finances is required, which: supported by the financial balance between the
central and regional governments as well as between provinces and districts/cities which
are prerequisites in the regional government system.
2. In the context of implementing regional autonomy, the inherent financial authority each
government authority becomes the regional authority. According to Kaho (1997, 106)
that 'An area can be referred to as an area' autonomous if it can finance the
implementation of its own household affairs. Even if an autonomous region has not been
able to fully finance household affairs,the ladder itself then at least the area should be
able to cover the shopping routinely with local revenue. This is a principle that must be
taken seriously." From various descriptions of expert views in front, it can be
emphasized that there are two meanings that can be formulated, namely:
1. Regency/City areas need to be provided with sufficient sources of financing.
2. The Regency/City area with the authority it has has the obligation find their own
source of income.
Therefore, the planning problem should be optimized and
directed at performance-based planning so that the entire decision-making process
decisions in determining general policy directions, priority scales and determining allocations
and distribution of budget use in accordance with the principles of budgetary discipline, so
that any planned revenue is a rationally measured estimate achievable for each source of
income, while the budgeted expenditure is the highest level of expenditure. Likewise with
budgeting Hat-us expenditure is supported by the certainty of the availability of internal
recipients enough juiniah. and is not allowed to carry out activities that are available or not
sufficient credit budget. In the context of spending, according to Zamroni (1992, 101) local
governments should allocate spending fairly and equitably and relatively can be enjoyed by
all community groups without discrimination, especially in the provision of services
general and it is hoped that the use of the budget as a whole is more impartial in the interests
of the community so as to be able to control the level of efficiency and
the effectiveness of the use of regional budgets, budget planning needs to be considered
clarity of goals, objectives and performance indicators to be achieved.
In addition to being faced with budget problems for spending needs
regions, Regency/City Governments are required to be able to optimize revenue
existing to finance the process of revitalizing the government, building art darts
community service is very much needed. budget planning orderly and directed and the
authorized apparatus so that every use of funds is as small as
anything can give optimal results. By taking into account the importance of controlling the
use of the budget so that Local governments can ensure the smooth implementation of local
government tasks as government administrator, development and social administrator
community, the available budget is expected to be utilized
effective, efficient, transparent and accountable. To that end, the Regency/City Government
is currently faced with the duties and responsibilities of using the budget in each unit
work in which they are located, especially those with direct responsibility for
use of local budgets.
2. Problem
Observing the various theoretical phenomena and general realities seen in thinking ahead,
then through the discussion of this writing, the author tries to theoretically revealing the
various problems of this study can be formulated in the problem of whether the Regional
Financial Management Management, especially the use of Regional finances and their
management in the era of regional autonomy have been carried out according to applicable
local financial regulations? To examine this problem through research theoretically by
comparing reality in general so that in the end it is expected can provide a relevant picture of
this study must be objective.
3. Theoretical Studies Regional Financial Sources
Regional Original Revenue has a very important meaning in the implementation of
regional autonomy or regional households. The position of Regional Original Income is very
determine the various possibilities for the implementation of activities to be carried out
by the area.
Regarding the importance of regional financial position, Pamudji (1980, 42)
said "Local governments will not carry out their functions effectively and
efficiently without sufficient cost to provide services and development. From
This financial statement is one of the basic criteria to know for real local capacity to manage
their own household. A relatively similar opinion was also put forward by Syamsi (1983, 5)
who said that regional finance as one indicator to find out regional ability to regulate and
manage their own household. And the opinion above seems that to organize and maintain the
house the ladder, the area requires a fee or money. Without sufficient fees, then Not only is it
impossible for regions to be able to carry out their duties and functions who are their
responsibilities in managing and managing their household and also makes the area
dependent on the central government so that the independence of the region would need to be
reviewed. To be able to have adequate finances by itself the region It also requires sufficient
financial resources. In this case the area can obtain it through several ways which according
to Alfian Lains are:
1. Regions can collect funds and taxes that have been approved by the central government.
2. Local governments make loans and third parties, money markets or banks or
through the central government.
3. Take part in the central revenue collected by the regions, for example,
percent and the central income.
4. Local governments can increase certain tax rates, for example wealth tax
or income tax.
5. Local governments can receive assistance or subsidies from the central government.

On the other hand, Kennet Davey (in Riwu Kaho, 1997) argues that sources of
Regional acceptance can be obtained through:
1. Allocation and central government
These resources are often expressed as transfers that includes several types:
a. Central Budget ( votes ) is a determination of the share of the state budget based on
on voting in the legislature, the vote is a juiniah allocated for a specific purpose involving the
government area.
b. Central assistance ( grants ) are allocations to independent regional governments
(denolved), concerning the transfer of cash to local governments that have independent
bookkeeping. Grants have several types, namely: multi-purpose assistance, single-purpose
assistance per unit (unit cost), assistance is based on a certain percentage, assistance
equalization of assistance to cover budget shortfalls ( deficiency grant ) and so on.
c. Must-have to tax, for must be received by the local government maybe related to the
amount of tax collected from the region. Must be tax submitted may be collected (pooled)
and distributed to regions according to certain formulas, unrelated (or at least not entirely)
attributed) to their geographic origin.
d. Loans are usually used to finance. Companies
development ( development corporation ).
e. Equity participation, the government receiving quality loans is expected to
operates on a semi-commercial basis and names its capital in a
self-liquidating activities, namely in an activity that should
generate profits to finance business enterprises or pay dividends.
2. Local Taxation
There are three ways that local governments can use to: get taxes are:
a. By way of distribution, taxes must be collected by the central government.
b. Local governments can collect additional taxes ( opsen surcharge ) above
a tax levied and collected by the central government. Compulsory
taxes in the region (region) they generally pay additional levies
along with taxes to the central government, which in turn pays
the opsen income to the Regional Government.
c. And. levies collected and withheld by local governments.
3. Retribution
Retribution is a levy paid directly by those who enjoy a service and is usually intended to
cover all or part of the cost of the service. For example: rent on a local-owned
house,nirrigation fees, swimming pool tickets and many others.
4. Loans
Loans by local governments can be in the form of financial disbursement from central
government as well as borrowing from other sources including agencies international credit
funds managed by the central government, banks other financial institutions or it can also be
investment private.
5. Company (Business Entity)
Local governments can also obtain revenue and operations commercial enterprises for
production processing, as a private source net income is basically a kind of levy levy will be
achieved levy it with the intention of making a profit to finance businesses others, not just
operating their own companies. From various thoughts about the source of regional revenue
as seen In advance it can be said that these sources can be classified into two, namely:
regional revenues from the central government, and regional revenue originating from the
region itself or regional original income. Regional taxes and levies which are components of
income sources
regional originality is always expected by each region to experience an increase from
year to year as additional funds for the area to be able to used to finance various needs that
have been determined by the region, including financing their routine activities. In
connection with that, the things that determine and need to be obtained are: attention
according to Davey (1988) are:
1. The relationship between the allocation of functional responsibilities and the delegation of
resources
a source of acceptance that also includes a balance between tasks and
the resource.
2. Regional levels of authority set up in the respective management
tasks and resources.
To manage Regional Original Revenue, local governments need a government agency or
organization that is responsible for management so that various sources of income, especially
those originating and elements of local revenue sources that are excavated can be developed
optimally. The institution or organization in question is the Regional Revenue Service
(Dispenda) which at the provincial level is called the Provincial DISPENDA and is
Regency or municipal level is called DISPENDA Regency/City. To achieve the goals of the
organization, the mission and mandate of the organization is an important component where
both are interrelated with each other other. To increase revenue receipts, regional financial
capacity in financing the administration of government and regional development. With
Thus, the Dispenda is the technical implementing element of the regional government in the
field of income that is and is responsible to the Regent/Regent. Whereas its mandate is related
to its duties and functions, namely in addition to supervising regional financial resources that
have been delegated to the agency, as well as a coordinator and other related agencies and
institutions in regional levies.

Regional autonomy given to local governments has become a determination

Central government. In terms of implementing regional autonomy, the government
regions must be ready to accept the burden and responsibility of
submitted to be implemented in accordance with the demands of the local community
including
responsibility for the affairs that are handed over to be carried out in accordance with
local community demands including responsibility for managing resources
and the available funds so that the region is really ready for human resources
as well as financial sources to finance its implementation.
Based on this fact, the Regional Revenue Service is required to
must be able to improve its performance, because if not then failure
the implementation of regional autonomy is inevitable, at least the impression will be visible
low quality of service to the community. For that in measuring performance
public organizations should be linked with stakeholders in addition to
productivity achieved.
Therefore, there are often difficulties in measuring the performance of public organizations
which according to Dwiyanto (1995:1) partly arises because of the goals and missions
Public organizations are often not only very vague but also multi-faceted
dimensions. Public organizations have far more stakeholders and
complex than private organizations. Stakeholders and public organizations often
have conflicting interests. As a result, the size
The performance of public organizations in the eyes of stakeholders is also different.
Lanvine (1990) still in Dwiyanto (1995, 6) suggests three concepts
in measuring the performance of public organizations, namely Responsiveness
( responsiveness )
refers to the alignment between the program of service activities provided by the
public organizations with the needs and desires of society. Responsibility
( responsibility ) explains the extent to which the implementation of the activities of the
public organization is carried out
carry out according to administrative principles and regulations and policies
organization, the performance is judged to be better. And Accountability refers to
how much the activities and activities of public organizations are subject to the officials
elected by the people (people's representatives).
In this concept, the performance of public organizations is considered good if all
whether or not most of the activities are based on efforts to meet
hopes and desires of the people's representatives. More organizational follow-up
Based on the hopes and aspirations of political officials, the performance of the public
organization is assessed
better.
Performance, in principle, relates to: First, the input aspects
or its resources ( resources ), such as (1) employees (HR); (2)
budget; (3) facilities and infrastructure; (4) information; and (5) organizational culture.
The second relates to the management process (1) planning; (2)
organizing; (3) implementation; (4) budgeting; (5) supervision; (6) evaluation.
In addition to these internal factors, it is also necessary to pay attention to the following
aspects:
external environment that directly or indirectly affects performance,
such as political, economic, socio-cultural, and technological conditions, as well as parties
who
related to providing inputs, for example taxpayers, policy makers, and
etc. Each of the above aspects has the same potential to emerge as a factor
dominant factors that affect organizational performance, both those that have a positive effect
nor negative. Furthermore, to identify the strategic issues faced
by the organization based on the organization's mandate and mission as well as internal
factors
and external factors faced by the organization, we need a strategic management, to formulate
strategies in order to manage issues the strategic.
Regional Expenditure Analysis Standard
The regional budget is essentially one of the tools to improve public services and community
welfare in accordance with the objectivesn broad, real and responsible regional
autonomy. Thus, the APBD must truly reflect the needs of the community by
attention to the potential and diversity of the region. Expenditure analysis standard (SAB) is
one component of society that must be developed as a basis for measuring financial
performance in preparation of the APBD with a performance approach. SAB is the standard
for analyze the budget used in a program or activity to produce a certain level of service in
accordance with the needs of the community.SAB is used to assess the fairness of the
workload and costs of each program or program activities that will be used by the work unit
during one fiscal year. Evaluation on the proposed expenditure budget is associated with the
level of service that will be achieved through programs or activities. (anonymous, 1985) In
order to prepare the draft APBD, SAB is a standard or useful guide for assessing the fairness
of workloads and costs to an activity planned by each work unit. SAB in terms of noodles
used to assess and determine program plans, expenditure activities most effective in
achieving performance. Fairness assessment based on SAB related to the reasonableness of
the cost of a program or activity being assessed based on the relationship between the planned
cost allocation and the level of performance achievement relevant program or
activity. (anonymous, 1985).
Strategic Planning and Regional Budget Planning
Strategic planning is a process. As a process, planning This determines what an organization
wants in the future and how to achieve it. How big is the role of strategic planning? so that it
cannot be delegated. (Bastian Indra, 2006) Strategic planning is a plan of action about how a
organization wants to achieve the desired goals. Noodle planning appears as
reaction to the increasing number of structural and economic, regional and global
environment, as well as the widespread uncertainty, complexity and situation of the external
environment.Thus, this planning must be oriented to the external environment.
Positioning and strategic planning is more about short term planning
medium and not long term planning. Strategic planning is not the same as a system of
planning, drafting programs and budgeting, however, strategic planning is related to
the budgeting process, in the sense of explaining the desired goals and objectives.
This begins by first making a strategic policy about the vision. (Bastian
Indra, 2006) Environmental changes that occur, both at the global, national and international
levels
3 areas need to be anticipated and faced by the regions with a number of steps and policies
responsive to changes that occur. In this hat, the role
strategic planning is very important. Therefore, strategic planning can

referred to as a method that deals with environmental complexities that are often
closely related to the interests of the organization.
The regional planning and budgeting process is usually influenced by
environment consisting of internal and external factors. Strategy in realizing
This planning and budgeting also follows the problems that occur, namely:
Internal strategy and External strategy. In the process of regional government noodles
requires integration between human resource expertise and other resources
to respond to environmental demands. good strategic
Internal or External.
In the explanation of PP No. 20/2004 regarding the government's work plan,
In order to achieve the intended results the budgeting and planning system must
create an enabling environment by
characteristics:
a. Linking planning and budgeting to decision making
to ensure that the planning of policies, programs and activities has been
considering budget constraints by ensuring that costs are appropriate
with what to expect.
b. Provide a media/forum for alternative policies to compete with one another
each other. This is very important for the growth of support at this stage
implementation later.
c. Increase capacity and willingness to make adjustments to priorities
re-allocation of resources.
D. Conclusion.
Based on the must and theoretical discussion, it can be concluded that
the use of regional financial administration at the Regency/City Secretariat office
especially in that it has been carried out in accordance with the principles of general analysis
and expenditure analysis
regional finance. Thus, it can be emphasized that the regional finances that are
So far, it has been managed by the apparatus responsible for the financial sector
take place as expected or in line with administrative provisions
applicable financial management or local financial management that has been managed
effectively, efficiently, transparently and accountably.
In addition, support for the obedience of government officials who are responsible for
the financial sector within the Regional Secretariat has been going well, the article
serial guards obey the work in accordance with the applicable time provisions.
Likewise, employees show obedience in carrying out their duties and
responsibilities in the use of regional financial administration in accordance with the
provisions of -
principles of general analysis and analysis of regional financial expenditures. As well as
quality and results
the work achieved by the guard has been running positively, because it must be
the quality of the employees' work is in line with expectations. Where is the quality of the
results
jobs have increased significantly because they have the ability
adequate