SPENDING QUALITY OF LESS DEVELOPMENT REGION AND THE IMPACT ON DEVELOPMENT PERFORMANCE
Abstract
To reduce the level of less development region in Indonesia, special efforts are needed, one of which is through quality spending. The quality of spending can be measured through several variables, namely regional expenditure priorities, timeliness, allocation of expenditure, accountability and transparency, and effectiveness. This study aims to identify indicators that reflect these variables, and their effects on development performance. The data used are secondary data, namely Regional Government Implementation Evaluation (EPPD) data, APBD and their realization, BPK Opinion, Poverty, Unemployment, Gini Index, Economic Growth Rate, GRDP/Capita, and Human Development Index (HDI) during 2010-2018. The research objects are all underdevelopment areas in Java. The analytical method used is quantitative descriptive analysis techniques using Structural Equation Modeling (SEM). The results of the study show that out of 28 less development region expenditure quality indicators in Java, there are 19 indicators capable of reflecting expenditure quality indicators. The quality of less development region spending on Java reflected by its indicators is also able to influence development performance, which can reduce poverty and increase the Human Development Index (HDI).
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