Sebelas Maret International Conferences, The 2nd INCREDIBLE

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Comparison of People Welfare and Financial Performance Between City Governments and Districts in Java
maryono maryono

Building: Parallel Session 3
Room: A
Date: 2020-10-27 04:15 PM – 05:30 PM
Last modified: 2020-10-22



In 2019, Indonesia succeeded in making history in national development because the human development index was in the high category. This certainly shows the success of the government which is supported by all Indonesian people in building a country with the fourth largest population in the world. However, that does not mean that there are no more problems in human development in Indonesia. One of the problems that is still faced is the gap in the level of health between urban areas and rural areas. This gap is evidenced by the fact that districts or cities with a human development index fall into the very high category in Java, with 13 regions consisting of 11 cities and only 2 regencies. This is certainly evidence that illustrates how there has been a gap between urban and rural communities considering that in Java there are 113 regions consisting of 84 districts and 29 cities. Several previous studies have found that the human development index is influenced by the level of financial independence. This study aims to test whether there is a significant difference in people's welfare as measured by the human development index and regional financial performance using three parameters, namely the amount of local revenue, the contribution of local revenue to regional income and the contribution of local revenue to indirect spending. The sample in this study is all regencies and cities in Java, except for districts and cities in the Special Capital Region of Jakarta whose autonomy is only in the provincial government. This study uses secondary data obtained from the Central Statistics Agency in the form of published reports. This study finds that the people's welfare and regional financial performance between caputaen and city are statistically different.

Keywords: District Government, City Government, People's Welfare, Financial Performance.