POLICY IMPLEMENTATION FOR REGIONAL REVENUES MANAGEMENT TOWARD REGIONAL BUDGET’S EMPOWEREMENT IN SOUTH KALIMANTAN

Abstract

Purpose – The purpose of this article is to explore the law/regulation aspects by enactment of Law No 22 of year 1999 replaced by Law No 32 of year 2004 concerning regional government and Law No 25 of year 1999 replaced by Law No 33 of year 2004 concerning The Fiscal balance Between The Central Government and The Regions, and implications of these policies that has been taken by central and regional government since 1999 until this time being that has shown the financial performance of regional budget as representative regional budget’s empowerement of regional government in South Kalimantan. Design/methodology/approach – A research is undertaken of the annual reports of Province/Municipalities/Cities as regional government in South Kalimantan for the period 2008-2010, Evaluation of fiscal decentralization’s impact in the accounting performance measures (financial ratios from regional budget) toward empowerement of regional budget.. The analysis of the findings is informed by: every stage in public policy process that can be taken by province as autonomous region and at the same time as administrative area and by municipalities/districts and cities as real autonomy based on specific consideration. Findings – The survey reveals considerable diversity of public policy prosess, in-consistency, and dominant decision by political power from central government point of view than substances form in enactment of Law (UUD 1945) in the implementation of the policies, the dominant decision from central government in according to realization for transferred funds, from internal regional governments indicate that receiving for regional origin revenues are not fit with the sources of potency locally, as instances of low for amount of regional origin revenues or regional own revenues and inequality and in proportion to transferred funds brought obout low self-sufficient ratio, low decentralize degree ratio, and high regional finance dependency ratio in regional budget. The implementation of policies in fiscal decentralization is depicted as a “political power from central government against the transactional decision from regional government, which in the policy implementation need transformational decision exactly for the next public policy process. Originity/value – The study questions are the reliability and usefulness of the values of information that reported, with implications for the accountability of the regional government especially for budgeting teams of regional government in South Kalimantan as well as the for accounting profession in the comparatively of public sector’s domain. Keywords : Regional budgets, policy implementation, fiscal decentralization, regional revenues, financial ratios, Regional Budget’s empowerement.