An Analysis of Financial Performance of the Puncak Jaya Regency Government

Abstract

This research aimed to figure out the financial performance of the Puncak Jaya Regency Government in the period of 2014–2018. This research is both quantitative and qualitative. Primary data were collected from interviews, while secondary data were from literature and the 2014–2018 budget realization reports of the Puncak Jaya Regency Government. The data analysis techniques used consisted of analyses of the decentralization ratio, local financial self-sufficiency ratio, locally generated revenue effectiveness ratio, and local financial efficiency ratio. The research results show that the fiscal decentralization ratio was meager and that the locally generated revenue had a deficient ability to fund local development. The self-sufficiency ratio was still below the local financial standard due to the Puncak Jaya Regency Government's inability to improve its locally-generated revenue. According to the effectiveness ratio, the overall targeted and realized locally generated revenues were declared ineffective. Nevertheless, the locally generated revenue was found efficient, in which case the Puncak Jaya Regency Government managed its expenditure according to the revenue available.