KEMANDIRIAN KEUANGAN DAERAH BERDASARKAN PENDAPATAN ASLI DAERAH, DANA BAGI HASIL, PERTUMBUHAN EKONOMI

Abstract

This research aimed to find out the effect of Local-owned Source Revenue, revenue sharing fund, and
economy growth on local finance independence of districts/ cities in East Java during 2018-2020. The
research was quantitative with secondary data. The data were taken from official website of
Directorate General of Fiscal Balance, Republic of Indonesia (www.djpk,kemenkeu.go.id) and Central
Bureau of Statistic, East Java (www.jatim.bps.go.id). Moreover, the data collection technique used
purposive sampling, in which the sample was based on criteria given. In line with that, there were 114
observation data from 38 districts/cities in East Java. Since some data did not distribute normally yet.
there were 32 outlier data. In total, there were 82 data. Furthermore, the data analysis technique used
multiple linear regression with SPSS 26. The research result concluded that Local-owned Source
Revenue had a positive effect on local finance independence. On the other hand, the revenue sharing
fund did not affect local finance independence. Likewise, economy growth did not affect local finance
independence.