ANALYSIS OF REGIONAL FINANCIAL INDEPENDENCE INDRAGIRI HULU DISTRICT 2019-2023

Abstrak

The level of independence of a region can be seen from the region's ability to manage its finances. This study aims to determine regional financial independence in Indragiri Hulu Regency. Therefore, an analysis is needed to measure the financial independence of a region using data on Regional Original Revenue (PAD), Total Regional Revenue and Transfer Revenue of Indragiri Hulu Regency in 2019-2023. The analytical tools used are the analysis of the Degree of Decentralisation Ratio, the Regional Financial Dependency Ratio and the Regional Financial Independence Ratio. The results of the analysis of the Decentralisation Degree Ratio are 7.61% with very poor criteria, meaning that the local government has not been able to take advantage of Regional Original Revenue (PAD) to finance regional autonomy. The Regional Financial Dependency Ratio is 82.15% with very high criteria, meaning that local governments still have dependence on the central government. The Regional Financial Independence Ratio is 9.26% with very low criteria and instructive relationship patterns, meaning that the central government is more dominant than local government independence and the regions are considered unable to implement regional autonomy.