Fiscal Capacity Clustering of Local Goverment in Indonesia (Empirical Evidence of Fiscal Imbalance in Eastern Indonesia and Western Indonesia)

DOI

10.2991/assehr.k.220301.084How to use a DOI?

Keywords

Fiscal Capacity Index (IKFD); Local Governments

Abstract

The purpose of this research is to cluster provincial and districts or cities governments in Indonesia based on PMK Number 120 PMK-07-2020 about Regional Fiscal Capacity Maps. The index value is obtained from the income variable, predetermined income, and certain expenditures. The analytical tool used is Microsoft Excel Data Filters and Formulas. The research sample consisted of 34 provinces and 508 districtss/cities in Indonesia. The data are clustered into Eastern Indonesia and Western Indonesia. The number of provinces in eastern Indonesia is 13 provinces and 185 districtss or cities, while the number of provinces in the western Indonesia is 21 provinces and 323 districts or cities. The value of IKFD is very low and low in Eastern Indonesia as many as 10 provinces, Western Indonesia 7 provinces. Medium IKFD value in Eastern Indonesia as many as 2 provinces, Western Indonesia 6 provinces. The IKFD value is high in Eastern Indonesia as many as 1 province, in Western Indonesia 13 Provinces. Very high IKFD values are not found in Eastern Indonesia, in Western Indonesia 4 provinces. Low and very low IKFD values in Eastern Indonesia are 131 districts or cities, in Western Indonesia there are 122 districts or cities. The medium IKFD value in Eastern Indonesia is 34 Districts or Cities, Western Indonesia 92 Districts or Cities. High and very high IKFD values in Eastern Indonesia are 20 districts or cities, Western Indonesia 109 districts or cities. Very low and low IKFD values are mostly found in Eastern Indonesia, on the contrary, medium, high and very high IKFD values are mostly in Western Indonesia. Low Fiscal Capacity indicates a horizontal imbalance between local governments in East Indonesia and Western Indonesia.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Muhammad Kadafi
AU  - Ratna Wulaningrum
AU  - Venti Eka Satya
PY  - 2022
DA  - 2022/03/04
TI  - Fiscal Capacity Clustering of Local Goverment in Indonesia (Empirical Evidence of Fiscal Imbalance in Eastern Indonesia and Western Indonesia)
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science 2021 (iCAST-SS 2021)
PB  - Atlantis Press
SP  - 511
EP  - 515
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220301.084
DO  - 10.2991/assehr.k.220301.084
ID  - Kadafi2022
ER  -