dc.description.abstract | The development of regional autonomy in general was not a linear with the financial
condition of East Java Province which is less supported by funding sourced from local
revenue (PAD). Therefore, the area required to manage the development of the region
independently. This gives rise to consequences for the fulfillment of fiscal independence and
freedom in collecting local revenues.
The purpose of this study was to analyze the independence with economic indicators
include: local revenue contribution to total local revenues, Routine Capability Index, and the
ratio of Regional Financial Capability. In the era of regional autonomy is expected to
become self-sufficient in the management of the authority which is marked by the growing
strength of the fiscal capacity or local revenue. Meanwhile, the area was given assistance
from the central government in the form of matching funds. However, the initial goal is to
realize the autonomy of local fiscal capacity is strong in supporting the creation of regional
autonomy. The theory used in this study is the theory of the regional financial capacity
including the regional financial theory, the theory of regional autonomy and fiscal
decentralization.
Results from this study explains that the measurement of the proportion of the
contribution of local revenue (PAD), Routine Capability Index (IKR) and regional financial
capacity (KKD) ratio shows that the average number proportion of local revenue
contribution, IKR and KKD ratio in the East Java is very low. So that, the level of
independence in East Java is very low. | en_US |