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Analysis of Fiscal Equalisation Funds and Local Financial Autonomy in West Tanjung Jabung Regency

  • 1*,2,3 Universitas Jambi

* Corresponding Author: Muhammad Teja

Open Access
DOI
https://doi.org/10.59431/ijer.v6i2.854
Published
Pages
654–661

Issue

Vol. 6 No. 2 (2026)

Indonesian Journal Economic Review (IJER)
June

Abstract

This study aims to analyze the development of balancing funds, the structure of balancing funds, and the level of regional financial independence in Tanjung Jabung Barat Regency during the 2020 to 2024 period. This study uses a descriptive quantitative approach with secondary data obtained from the Regional Revenue and Expenditure Budget (APBD) Realization Report published by the Directorate General of Fiscal Balance (DJPK), Ministry of Finance of the Republic of Indonesia. The analytical methods used include development analysis, contribution analysis, and regional financial independence ratio analysis. The results show that balancing funds remain the main source of regional revenue, with an average contribution of 87% to total regional revenue. The structure of balancing funds is dominated by Revenue Sharing Funds (DBH) and General Allocation Funds (DAU), while the average regional financial independence ratio is only 8%, which is categorized as very low. These findings indicate that Tanjung Jabung Barat Regency still has a high level of dependence on central government transfers. Therefore, efforts are needed to optimize Regional Original Revenue (PAD) to increase fiscal capacity and strengthen regional financial independence.

Keywords

Balancing Funds Regional Financial Independence Fiscal Dependency Regional Revenue West Tanjung Jabung Regency

How to Cite

Teja, M., Zulfanetti, & Edy, J. K. . (2026). Analysis of Fiscal Equalisation Funds and Local Financial Autonomy in West Tanjung Jabung Regency. Indonesian Journal Economic Review (IJER), 6(2), 654–661. https://doi.org/10.59431/ijer.v6i2.854

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Author Biographies

  • Muhammad Teja, Universitas Jambi

    Local Finance Program, Faculty of Economics and Business, Universitas Jambi, Jambi City, Jambi Province, Indonesia.

  • Zulfanetti, Universitas Jambi

    Local Finance Program, Faculty of Economics and Business, Universitas Jambi, Jambi City, Jambi Province, Indonesia.

  • Jaya Kusuma Edy, Universitas Jambi

    Local Finance Program, Faculty of Economics and Business, Universitas Jambi, Jambi City, Jambi Province, Indonesia.

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Copyright (c) 2026 Muhammad Teja, Zulfanetti, Jaya Kusuma Edy

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