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Fiscal Health in Local Government Based on Soft System
The purpose of this paper is to identify problems and construct a conceptual model related to the local fiscal health condition. The local fiscal health condition is highly dependent on many factors, indicating that local finance is a complex, systemic and unstructured process. The main emphasis in this research is that the researchers attempt to explore the problem situation with the interpretive and naturalistic approach toward the local fiscal health condition and to study, understand, and interpret the meaning of phenomenon. This study uses a soft system methodology (SSM) that is a systemic approach to describe unstructured issues with a structured approach. The successful conceptual model constructed in this research is the survival mechanism of revenues and expenditures model. The results of this study indicate that the main problem of fiscal health condition is from both revenues and expenditures. Revenues problem is indicated by the low local fiscal independence, while expenditures problem is by the high indirect personnel expenditures. The location taken as the unit of analysis was Bondowoso Regency, East Java, Indonesia with the consideration that Bondowoso Regency is one of the four underdeveloped regencies in East Java Province.
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The Trade-offs Budget of Archipelagic Local Government in Indonesia
This paper discusses the analysis of local government financial capacity for equitable development in its territory. Autonomy requires local governments to improve their abilities in various matters, such as organizational, financial, and political. Financial capacity is the key to achieving local government performance. Limited financial capacity results in an imbalance in the distribution of development. Budget allocations meet complicated conditions to maintain equitable development in all territories. The local government within the Indonesian archipelago faces great challenges to minimize regional disparities. "Success to the successful" (Kim & Anderson, 1998) is an archetype that illustrates this reality. Local government budgets behave in trade-offs, between the mainland and the islands area negating each other in their allocations. Affirmations in one area result in weaker allocations in other areas. The dilemma is that local governments are committed to eliminating regional disparities but are not supported by adequate financial capacity. Low financial capacity causes a monopolistic pattern. If an entity leads, then the entity will be easier to continue to lead and improve its performance, while other entities remain underdeveloped.
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THE BARRIERS TO ORGANIZATIONAL REFORM IN LOCAL GOVERNMENT: CASE STUDY IN THE SPECIAL REGION OF YOGYAKARTA
The purpose of this research is to describe and analyze the obstacles in organizational reform in the Special Region of Yogyakarta. The method in this research uses qualitative methods and data analysis uses spiral analysis techniques. The results show that there are several obstacles related to organizational factors, namely: the problem of limited communication between superiors and subordinates, especially the Governor of DIY and the head of the OPD. For the divisional inhibiting factor in the DIY Regional Government in carrying out organizational reforms, the OPD head in responding to ideas from the DIY Governor in some ways is still slow. The functional factor that becomes an obstacle is the implementation of cross-agency government culture that has not run optimally. Keywords: Barriers, Organizational Reform, Culture, DIY.
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