Pengaruh Indikator Indeks Pengelolaan Keuangan Daerah terhadap Kinerja Pengelolaan Keuangan dengan Kapasitas Fiskal Daerah sebagai Variabel Moderasi pada Kabupaten/Kota di Provinsi Sumatera Utara

Abstract

This study aims to analyze the effect of the Regional Financial Management Index (IPKD) indicators on the Financial Management Performance of Local Governments (KPKPD) and examine the moderating role of Regional Fiscal Capacity in regencies/municipalities across North Sumatra Province. The independent variables in this research include alignment between planning and budgeting documents, budget allocation in the Regional Budget (APBD), financial management transparency, budget absorption, regional financial conditions, and audit opinions from the Audit Board of Indonesia (BPK) on local government financial statements. The study employs a quantitative approach using multiple regression analysis and moderated regression analysis (MRA), based on secondary data from the 2021–2023 fiscal years. The results reveal that all independent variables significantly affect local government financial management performance. Regional fiscal capacity is found to moderate only the relationship between budget absorption and financial management performance, while it does not moderate the relationships between the other variables and financial management performance. Among the variables, budget allocation in the APBD and budget absorption show the most significant influence. The study recommends strengthening coordination among relevant local government bodies such as the Regional Financial and Asset Management Agency (BPKAD), Regional Development Planning Agency (Bappeda/Bappelitbang), and Regional Inspectorate to ensure alignment between planning and budgeting. Furthermore, optimizing budget allocation through more rigorous evaluations of priority spending and enhancing transparency by delivering more accurate and timely financial reports is essential. Improvements in asset recording systems and local debt management are also necessary to enhance audit opinions from BPK. By improving financial governance, regional financial performance is expected to improve significantly and contribute to more sustainable regional development.