Faktor-Faktor yang Mempengaruhi Kinerja Keuangan Pemerintah Daerah Kabupaten/Kota di Jawa Timur

Abstract

This study aims to explore and analyze the influence of Local Original Income (PAD) and capital
expenditure on the financial performance ofthe Regional Government in Regencies/Cities in East
Java Province for the period 2023. This study uses a quantitative method, with secondary data.
The population and sample in this study were 29 Regencies and 9 Cities in the East Java Province. The data collected was the Realization of the 2023 Fiscal Year APBD taken from the website
kemenkeu.go.id. Then the data was processed using the SPSS 25 application and analyzed through
a multiple linear regression model. The results of this study indicate that Local Original Income
(PAD) statistically has an effect on the financial performance of the Regional Government. While
Capital Expenditure does not affect the financial performance of the Regional Government. This
finding reflects the fairness in the structure of regional financial management, where strengthening
the capacity of Local Original Income has been proven to be a determinant of the financial
performance of the regional government. Meanwhile, Capital Expenditure will be one of the
determinants that influences regional financial performance, if used on target so that it can produce
assets that can support a region to increase its Local Original Income. However, if Capital
Expenditure cannot be utilized optimally, then Capital Expenditure will not affect Financial
Performance.

Keywords : Influence; Capital Expendicture; Local Original Income; Financial Performance; Local Government