The Role of the Agricultural Sector in Increasing Regional Independence to Measure the Efficiency of Local Government Spending in Indonesia
Handani Maheresmi, Alfistia Maradidya, Herdiana Anggrasari

Universitas Pembangunan Nasional Veteran Yogyakarta

Abstract

The purpose of this research is to analyze the role of the agricultural sector in enhancing regional independence through local revenue. Higher local revenue will impact regional independence. The government is given the right and responsibility to manage their respective regions as a form of autonomy implementation, but resources have not been optimally utilized to enhance regional independence. The agricultural sector becomes the main focus in measuring regional financial performance because food needs are the most crucial necessity.
The initial step of this research is to collect data related to the research variables, namely the financial reports of Provincial Governments in Indonesia, regional gross domestic product data, and then conduct tests using SPSS to see the role of the agricultural sector in enhancing regional independence, which impacts the financial performance of local governments.
The research results show that the efficiency of spending on the agricultural sector varies across regions depending on production output. This variation is due to several factors, such as increased agricultural output and reduced production costs.
This research can contribute as a consideration for leveraging the agricultural sector as a larger and higher-quality industry, assessing a region^s capability to meet its own needs using the resources it possesses, having high competitiveness, and positively impacting the well-being of society.

Keywords: agricultural productivity- regional independence- regional financial performance- regional autonomy

Topic: Social Science