REGIONAL DEVELOPMENT BUDGET AND DEVELOPMENT PERFORMANCE (COMPARATIVE STUDY BETWEEN RIAU AND WEST SUMATERA PROVINCES OF INDONESIA)
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Institusion
Universitas Padjadjaran
Author
Muhammad, Irwan
Subject
Datestamp
2021-11-23 00:00:00
Abstract :
Abundant natural resources will provide a huge revenue source as a development budget for the region to carry out the regional development. Public welfare as the development goals could be improved through various development activities. Riau Province enjoys significantly bigger regional development budget relative to other provinces through DBH or Revenue Sharing Fund being endowed with abundant natural oil resources. This study aims to examine the influence of Riau’s bigger regional budget upon the consequential development result. A comparative analysis between Riau and West Sumatera Provinces is attempted following the development logical framework. Several development indicators will be employed namely GRDP, Percapita GRDP, Economic Growth rate, HDI, Poverty rate and Unemployment rate. Hypothesis testing is done by using the Independent Sample t-Test (SPSS 13). The results show that Riau Province is not significantly superior in all of the indicators. Implications of the study which can be used are the findings that could be taken as a consideration for the stakeholders not to ignore “inappropriateness,†“inefficiency†and/or “ineffectiveness†in selecting and carrying out the development activities due to weaknesses in the development management of the province. Furthermore, it needs to pay more attention to the natural resource transformation and reinvestment into the public sector in order to improve the quality of infrastructure and human resource.
Abundant natural resources will provide a huge revenue source as a development budget for the region to carry out the regional development. Public welfare as the development goals could be improved through various development activities. Riau Province enjoys significantly bigger regional development budget relative to other provinces through DBH or Revenue Sharing Fund being endowed with abundant natural oil resources. This study aims to examine the influence of Riau’s bigger regional budget upon the consequential development result. A comparative analysis between Riau and West Sumatera Provinces is attempted following the development logical framework. Several development indicators will be employed namely GRDP, Percapita GRDP, Economic Growth rate, HDI, Poverty rate and Unemployment rate. Hypothesis testing is done by using the Independent Sample t-Test (SPSS 13). The results show that Riau Province is not significantly superior in all of the indicators. Implications of the study which can be used are the findings that could be taken as a consideration for the stakeholders not to ignore “inappropriateness,†“inefficiency†and/or “ineffectiveness†in selecting and carrying out the development activities due to weaknesses in the development management of the province. Furthermore, it needs to pay more attention to the natural resource transformation and reinvestment into the public sector in order to improve the quality of infrastructure and human resource.
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