Title:
GOVERNMENT POLICIES IN REGIONAL FINANCE AND ASSET MANAGEMENT IN REGIONAL AUTONOMY IMPLEMENTATION IN THE PROVINCE OF BALI, INDONESIA

Authors:
I Wayan Sumarajaya, Made Kembar Sri Budhi, I Nyoman Mahaendra Yasa, Ida Ayu Nyoman Saskara, Indonesia

Abstract:

Indonesia is a unitary state that gives autonomy to the regions, including the Province of Bali. So that regional autonomy can develop properly, the independence of regional finance is one of the indicators. Regional financial independence will be better if the Local Own-Source Revenue is higher. Therefore increasing Local Own-Source Revenue becomes a necessity in an effort to increase regional financial independence. The increase in Local Own-Source Revenue can be done by intensifying and extending the existing sources of original income and extracting new sources of income in accordance with the potential of a region. One of the potential sources of Local Own-Source Revenue is the optimization of the use of assets given the balance of funds from the center will be smaller and the role of taxes as a source of local revenue will be reduced according to the demands of the community. Therefore it is necessary to examine the effect of government policies, management and social capital moderation on optimizing the use of assets and regional financial independence. This research is a survey research conducted on regional apparatus organizations in Bali Province. Data were collected through a questionnaire and then analyzed using the SEM-PLS technique. The results showed that the direct influence between government policies, asset management, optimization of asset utilization, asset management, and regional financial independence had a positive and significant effect. Whereas social capital is proven to not moderate the effect of optimizing the use of assets on regional financial independence.