Analysis of Independence Level and Financial Performance of Post-Expansion Regions

Abstract

The focus and purpose of this study are to analyze and determine the level of independence and regional financial performance after the division in several regions in West Sumatra Province. The research method used a quantitative descriptive approach. The research sample used a purposive sampling technique. The research was conducted in three Regency after the division of West Sumatra Province, Dharmasraya, South Solok, and West Pasaman Regency. Data collection techniques through observation, interviews, literature study, and documentation study. The data used are secondary, namely the Regency budget realization report (LRA) after the division of the 2014-2018 period counting the last five years. The results of the study found that post-division regional financial performance is still low, while the level of regional financial independence is still low or shows a pattern of consultative relationships. The percentage level of regional financial independence is certainly not the same and is different for each region. This research implies that local governments must be able to increase regional financial independence (through identification and utilization of potential regional assets owned) and reduce the level of dependence on the central and provincial governments.