1999 was the beginning of a new era of regional autonomy marked by the enactment of Law Number 22 Year 1999 on Regional Government. Central Government decentralized some authorities to local governments. It results the rights and obligations of local governments to regulate and manage their own households. The decentralization followed by transfer of authority in field of financial management. Local governments have the right to design their own policies in order to achieve state objectives, including policies in financial management. Local governments come to have their own programs and activities in accordance with the conditions of their respective regions. Different programs and activities from each region caused differences in budget allocations. This situation raises the variability of financial condition of each local government. On the other hand, in managing their finances local governments have to obey the regulation, to realize efficient, economical, transparent and accountable financial management..
In line with this, information on the financial condition of local government has become important, especially for stakeholders. In addition, the demand for transparent financial management becomes urgent in realizing good governance. However, the awareness rate of local governments to manage healthy and transparent finances is still low.
Given the importance of information on financial condition and transparency in local government financial management, it is necessary to calculate the local government financial condition and the level of transparency of local financial management. The calculation of financial condition is intended to describe the financial condition of local government based on measurable and comprehensive indicators and can illustrate the comparability of financial condition among local government. This calculation allows the local government to know the local financial condition as well as the comparison with other regional governments. Thus, local governments will be motivated to manage their local finances healthier and not just oriented to BPK opinion. Meanwhile, transparency level calculation results able to provide information to local governments that motivate local governments to continue improving transparency of local financial management.
“Maksi KeuDa” Index is a regional financial index consisting of two categories, namely the Regional Financial Condition Index and the Regional Financial Management Transparency Index. Stat Planet is an application that allows readers to learn details about the local financial index.
Follow the instructions to use the Stat Planet app (Indeks MaksiKeuda):
- Download “MaksiKeuda” Index Application
- Extract the application database file (winrar 5.xx) to the local computer
- Open folder Application Database.
- Clicl DBSIAKD.exe
- Choose menu MAKSIGAMA INDEKS KEUDA-KAB/KOTA or MAKSIGAMA INDEKS KEUDA-PROPINSI