Determinasi Penyerapan Anggaran Kabupaten/Kota di Indonesia: Transparansi dan Kondisi Keuangan

Abstrak

This study aims to examine the effect of regional financial management transparency and regional financial condition on budget absorption within regency and city local governments in Indonesia. Each variable in this study is measured based on the Regional Financial Management Index (Indeks Pengelolaan Keuangan Daerah/IPKD) assessment published by the Domestic Policy Strategy Agency (BSKDN) of the Ministry of Home Affairs of the Republic of Indonesia. The population of this study comprises all regencies and cities across Indonesia. The sampling technique employed is saturated sampling, wherein the entire population is utilized as the sample. Panel data regression is used as the analytical method. The findings indicate that regional financial management transparency has a positive and significant effect on budget absorption. Furthermore, regional financial condition also demonstrates a positive and significant impact on budget absorption. Based on these findings, it is recommended that regency and city local governments in Indonesia enhance their financial management transparency and financial condition scores, as these factors play a crucial role in stimulating optimal budget absorption.