The Influence of Original Regional Income on Regional Financial Independence in Soppeng Regency 2013-2022

Abstract

The study conducted aimed to explore the correlation between local original income and regional financial independence in Soppeng Regency during the period of 2013-2022. Employing a quantitative approach, the research utilized secondary data acquired from BPKPD Soppeng Regency. Analysis was carried out through simple linear regression using the SPSS 26 application. The findings revealed that the statistical test t for regional original income yielded a value of 3.508, surpassing the table t value of 1.85955. Additionally, the significance value was calculated to be 0.08, which is greater than the commonly accepted threshold of 0.05. Consequently, the hypothesis that regional original income influences regional financial independence was rejected. In other words, the study concluded that there exists a significant relationship between local original income and regional financial independence. The implications of these results suggest that as the local original income of a region increases, its level of financial independence tends to rise as well. Conversely, a higher amount of central transfers received by the region correlates with a diminished level of independence. This highlights the importance of fostering local economic development and generating revenue internally for regions to enhance their financial autonomy. The study contributes to the understanding of the dynamics between local income generation and regional financial autonomy, providing insights that can inform policymakers and stakeholders in Soppeng Regency and similar regions. It underscores the significance of strategies aimed at boosting local revenue sources to bolster regional self-sufficiency and reduce dependency on central transfers.