Analysis of the Regional Financial Performance in Banten Province's Regencies and Cities for Efficiency and Effectiveness

Abstract

Efficiency and effectiveness of financial management is needed to finance
implementation of government tasks. The formulation of the problem in this study are:
1) How is the performance government-based financial management efficiency level of
regional finance in Banten? 2) How is the government's financial performance based on
the level of financial effectiveness in Banten. This study aims: 1) To analyze the
government's financial performance based on the efficiency level of regional financial
management in Banten, 2) To analyze the government's financial performance based on
the level of financial effectiveness in Banten during 2015-2018. This type of research is
descriptive quantitative research. It is using regional financial ratio analysis methods
and non-parametric methods Data Analysis Envelopment (DEA) assuming Variable
Return to Scale (VRS) output-oriented. Based on the analysis of the efficiency level of
regional financial performance in districts and cities in Banten Province using ratio
analysis, Efficiency financial management of regencies and cities in Banten, there are
two local governments that can be categorized as quite efficient, namely: Lebak
Regency and Pandeglang Regency. Based on the analysis of the level of effectiveness
there are 7 districts and cities that are very effective and only Cilegon is included in the
effective category. Financial management efficiency level regions using the DEA
method with an intermediation approach, assuming VRS and output-oriented
individually showing the results that there is no area that gets a score maximum
efficiency reaches 100%.