Suchergebnisse

One of the consequences in the implementation of local government autonomy in financial sector is the provision of financial resources by central government for local government in the form of balancing fund. A number of previous researches have found that some local government are still highly tied to such a kind of fund. The other symptom is the allocation of a big budget for regular expenses especially in human resources, while budgets for capital or development expenses are low. On the other hand, people's demand on the availability of better public facilities and infrastructure is getting higher. This makes local government have to learn every option to find alternative financial resources.This research has an objective to analyze the capability of Malang Municipal Government in the local financing, in finding proper financial alternatives in using the financial funds as well as the impacts on the financial performance. Analyzing the financial purposes and the available alternative financial resources, this research concludes that Malang Municipal Government can get local loan for financial resource. This research also recommends some points: first, Malang Municipal Government should act as a facilitator in the re-invention process towards entrepreneural government which has ability to raise its revenue and revenue generate. Second, to guarantee the effectiveness of fund management and to raise people participation, Malang Municipal Government needs to create a Unit of Financial Fund Management. Third, in order to enhance the quality of financial report as well as its transparence and accountability, Malang Municipal Government has to to apply the Government Accounting Standard properly and consistently.