Improving Local Financial Performance for Sustainable Regional Economic Development in the Regencies and Municipalities of Jambi Province

Authors

  • Faradilla Herlin Universitas Muhammadiyah Jambi, Jambi, Indonesia
  • Wella Sandria Universitas Muhammadiyah Jambi, Jambi, Indonesia
  • Endah Trikurniasih Universitas Muhammadiyah Jambi, Jambi, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i2.875

Keywords:

Local Government Financial Performance, Fiscal Decentralisation, Dapel Index, Sustainable Development

Abstract

This study aims to identify the dominant factors influencing local government financial performance and to formulate improvement strategies. Nine regencies and cities in Jambi Province were selected as a sample using a quantitative explanatory approach through panel data regression and Dapel Indept analysis. Given that the implementation of regional autonomy requires regencies and cities to finance development independently, with a minimum target of 30% of Local Own-Source Revenue (PAD). However, during the 2017–2022 period, the average Fiscal Decentralisation Degree (DDF) across all regencies and cities in Jambi Province was only 9.46% (classified as very low). The Fixed Effects Model was identified as the most appropriate model. The results indicate three significant variables: Special Allocation Funds (prob. 0.0496), regional economic growth (prob. 0.0189), and the performance of regional enterprises (prob. 0.0300). Consequently, improving regional financial performance requires an integrated strategy focused on strengthening economic growth, optimising regional enterprises, and maximising the utilisation of the Special Allocation Fund.

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Published

2026-06-09

How to Cite

Herlin, F., Sandria, W., & Trikurniasih, E. (2026). Improving Local Financial Performance for Sustainable Regional Economic Development in the Regencies and Municipalities of Jambi Province. Greenation International Journal of Economics and Accounting, 4(2), 181–194. https://doi.org/10.38035/gijea.v4i2.875

Issue

Vol. 4 No. 2 (2026): Greenation International Journal of Economics and Accounting (May - June 2026)

Section

Articles

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Copyright (c) 2026 Faradilla Herlin, Wella Sandria, Endah Trikurniasih

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