Improving managerial aspects

Oct 13, 2025 by windailys.com 148 views

The Effect of Government Size, Prosperity, Legislative Size, Central Government Transfer Fund, and BPK Audit Findings on the Performance of the District/City Government in Indonesia

Introduction

The performance of local governments in Indonesia is a crucial aspect of the country's development. The effectiveness and efficiency of regional governments in managing resources, providing public services, and ensuring financial accountability have a significant impact on the overall well-being of the community. However, the factors that influence the performance of local governments are complex and multifaceted. This study aims to explore the effect of several key factors, including government size, government prosperity, legislative size, transfer funds from the central government, and audit findings of the Supreme Audit Agency (BPK), on the performance of district/city governments in Indonesia.

Background

The performance of local governments in Indonesia is often measured through effectiveness in the management of resources, public services, and financial accountability. The size of the government and prosperity can provide an overview of the potential for allocation of resources, but other factors such as good leadership, transparency, and community participation also play a major role in determining performance. The central government transfer fund is also an important factor, as it can provide financial support to local governments to implement development projects and provide public services. However, the effectiveness of this fund in improving the performance of local governments is still a topic of debate.

Methodology

This study uses a multiple linear regression analysis model to examine the effect of government size, government prosperity, legislative size, transfer funds from the central government, and BPK audit findings on the performance of district/city governments in Indonesia. The analysis is based on secondary data, which was processed using SPSS software. The selection of samples was done through the purposive sampling method to ensure the relevance of the data used. A total of 47 districts/cities in Indonesia were selected for the study.

Results

The results of the study showed that the size of the government, government prosperity, legislative size, and transfer funds from the central government did not have a significant influence on the performance of the district/city government in partially. This indicates that although these factors are important elements in the structure of government, they do not always contribute directly to improving the performance of local government. Conversely, the BPK audit findings show negative effects on government performance, which can be interpreted that the problems found in the BPK audit can have a negative impact on the effectiveness and efficiency of regional government.

Discussion

The findings of this study have several implications for the performance of local governments in Indonesia. Firstly, the results suggest that the size of the government and prosperity are not sufficient to guarantee good performance without the support of strong managerial aspects and integrity in financial management. This highlights the importance of good leadership, transparency, and community participation in determining the performance of local governments. Secondly, the negative effect of BPK audit findings on government performance suggests that local governments need to increase accountability and transparency in financial management to encourage better performance.

Conclusion

In conclusion, this research confirms that despite structural factors such as government size and important transfer funds, they are not enough to guarantee good performance without the support of strong managerial aspects and integrity in financial management. Therefore, efforts to improve the performance of local governments in Indonesia must include a variety of wider aspects, such as good leadership, transparency, and community participation, to ensure sustainable development.

Recommendations

Based on the findings of this study, the following recommendations are made:

Improving managerial aspects: Local governments need to improve their managerial aspects, including good leadership, transparency, and community participation, to ensure effective and efficient management of resources and public services.
Increasing accountability and transparency: Local governments need to increase accountability and transparency in financial management to encourage better performance and reduce the negative impact of BPK audit findings.
Developing a comprehensive development plan: Local governments need to develop a comprehensive development plan that takes into account the needs and aspirations of the community, and ensures the effective allocation of resources and public services.
Strengthening the role of the central government: The central government needs to strengthen its role in supporting local governments, including providing financial support and technical assistance, to ensure the effective implementation of development projects and public services.

Limitations

This study has several limitations, including:

Sample size: The sample size of 47 districts/cities in Indonesia may not be representative of the entire country.
Data quality: The quality of the data used in this study may be affected by the accuracy and completeness of the secondary data.
Model specification: The multiple linear regression analysis model used in this study may not capture the complex relationships between the variables.

Future Research Directions

Future research directions include:

Examining the effect of other factors: Future studies can examine the effect of other factors, such as good governance, corruption, and community participation, on the performance of local governments in Indonesia.
Developing a more comprehensive model: Future studies can develop a more comprehensive model that takes into account the complex relationships between the variables and the context of local governments in Indonesia.
Conducting a case study: Future studies can conduct a case study of a specific district/city in Indonesia to examine the effect of government size, prosperity, legislative size, transfer funds, and BPK audit findings on the performance of local governments in a more detailed and nuanced manner.
Frequently Asked Questions (FAQs) on the Effect of Government Size, Prosperity, Legislative Size, Central Government Transfer Fund, and BPK Audit Findings on the Performance of the District/City Government in Indonesia

Q: What is the main objective of this study? A: The main objective of this study is to explore the effect of several key factors, including government size, government prosperity, legislative size, transfer funds from the central government, and audit findings of the Supreme Audit Agency (BPK), on the performance of district/city governments in Indonesia.

Q: What is the significance of this study? A: This study is significant because it provides insights into the factors that influence the performance of local governments in Indonesia. The findings of this study can inform policy decisions and help improve the performance of local governments in the country.

Q: What is the methodology used in this study? A: This study uses a multiple linear regression analysis model to examine the effect of government size, government prosperity, legislative size, transfer funds from the central government, and BPK audit findings on the performance of district/city governments in Indonesia. The analysis is based on secondary data, which was processed using SPSS software.

Q: What are the key findings of this study? A: The key findings of this study are that the size of the government, government prosperity, legislative size, and transfer funds from the central government do not have a significant influence on the performance of the district/city government in partially. Conversely, the BPK audit findings show negative effects on government performance.

Q: What are the implications of this study? A: The implications of this study are that local governments need to improve their managerial aspects, including good leadership, transparency, and community participation, to ensure effective and efficient management of resources and public services. Local governments also need to increase accountability and transparency in financial management to encourage better performance and reduce the negative impact of BPK audit findings.

Q: What are the limitations of this study? A: The limitations of this study are that the sample size of 47 districts/cities in Indonesia may not be representative of the entire country. The quality of the data used in this study may also be affected by the accuracy and completeness of the secondary data. The multiple linear regression analysis model used in this study may not capture the complex relationships between the variables.

Q: What are the future research directions? A: Future research directions include examining the effect of other factors, such as good governance, corruption, and community participation, on the performance of local governments in Indonesia. Future studies can also develop a more comprehensive model that takes into account the complex relationships between the variables and the context of local governments in Indonesia.

Q: What are the recommendations of this study? A: The recommendations of this study are that local governments need to improve their managerial aspects, including good leadership, transparency, and community participation, to ensure effective and efficient management of resources and public services. Local governments also need to increase accountability and transparency in financial management to encourage better performance and reduce the negative impact of BPK audit findings.

Q: What are the policy implications of this study? A: The policy implications of this study are that the central government needs to strengthen its role in supporting local governments, including providing financial support and technical assistance, to ensure the effective implementation of development projects and public services. The central government also needs to improve its oversight and monitoring of local governments to ensure that they are performing effectively and efficiently.

Q: What are the future challenges for local governments in Indonesia? A: The future challenges for local governments in Indonesia include improving their managerial aspects, including good leadership, transparency, and community participation, to ensure effective and efficient management of resources and public services. Local governments also need to increase accountability and transparency in financial management to encourage better performance and reduce the negative impact of BPK audit findings.