Analysis of Financial Performance of Regional Governments in Indonesia: A Case Study in Bekasi City, 2015-2017

Abstract-This study aims to analyze the performance of financial management in the regional revenue management of Bekasi City for the period 2015-2017 based on financial ratios. The financial ratios used include the ratio of independence, the degree of decentralization, the
effectiveness of PAD, the ratio of operating expenditures to total expenditures, the ratio of capital expenditures to total expenditures and the efficiency of spending ratios. The data required in this study are secondary data, so the data collection techniques used are library research in the form of documentation and interviews. The results showed that the performance of financial management in managing regional income was generally considered quite good. This is evidenced by the independence ratio with participatory criteria and the degree of decentralization reaching 90%. The performance of financial management in managing regional expenditure in Bekasi City is generally said to be good. This is evidenced by the regional expenditure compatibility ratio, it can be said that the Bekasi City government allocates a large part of its spending budget for operating expenditures an average of 70.13% compared to an average capital expenditure of 29.81%, the efficiency of regional spending shows an average of below 100% namely 92.91%.

Keywords:Financial Performance, Regional Original Income, Realization of Regional Financial Statements.