Since January 1, 2001 regional financial governance policy of regency/city experienced a paradigm shift. One of the goals of local financial reforms is creating good local governance.
With this change, most of the authority of the central government has shifted to local government, particularly government of regency/city. Although based on good governance principles, in practice, financial reforms meet challenges and constraints.
In the analysis of Ir. Joko Budianto, M.M, many factors influence regional financial governance policy, especially for a case study in Sukoharjo and Karanganyar Regency that has a controversial phenomenon in managing local finance. "By using quantitative and qualitative analysis and using primary and secondary data, a lot of perceptions about good regional financial governance policy in both regions were found, especially in the aspects of participation, rule of law, responsibility and consensus," he said, Saturday (15/10) in open examination of Interagency Affairs Doctoral Program, Policy Studies Program of UGM Graduate School.
According to Joko, the perception of good governance at local government officials becomes the most influential factor against the policy of regional financial governance than other factors, such as human resources, local politics, fiscal decentralization, local potential, supervisory and agencies and legislation. "The results show that there are still problems in the process of policy formulation and determination of financial governance in the two regencies," he explained before the examiners board.
Therefore, in a dissertation entitled Analysis of Factors Affecting Financial Governance Policy: A Case Study In Sukoharjo and Karanganyar Regencies, the two regencies are advised to increase the understanding of good regional financial governance, improve the quality of human resources, and maintain commitment of bureaucracy and politicians. Various problems that arise must be resolved by involving all stakeholders. In addition, governments in both regencies should maintain consistency by running legislation related to local finance. "Therefore, the function of reporting needs to be undertaken carefully, so that the supervision and inspection over the use of local finance can produce a better opinion," he concluded.