Model Pertumbuhan Ekonomi dan Pengembangan Pembangunan Wilayah Melalui Variabel Intervening Badan Pemeriksa Keuangan (BPK) (Studi pada Provinsi Sumatera Utara)

Abstract

This study examines the role of public audit governance in mediating the links between economic and fiscal factors and regional development in Indonesia. Specifically, it models the effects of Economic Growth (X1), Local Revenue (X2), Investment (X3), and Government Accountability–Effectiveness (X4) on Regional Development (Y), with the Supreme Audit Institution’s audits (BPK; Z) as an intervening variable. The method employs Partial Least Squares–Structural Equation Modeling (PLS-SEM) using combined Likert-scale perceptual data and relevant secondary indicators. Construct validity and reliability satisfy accepted thresholds (high composite reliability; AVE > 0.50), supporting credible structural interpretations. The main findings indicate that economic growth exerts a strong, significant impact on regional development (β≈0.71; p<0.001). Economic growth and local revenue both increase the intensity/process of audit examinations (β≈0.28 and β≈0.29; p≤0.001), while the direct path from investment to regional development is not statistically significant. Theoretically, the results underscore the need to distinguish audit indicators based on findings from those capturing follow-up actions; policy-wise, local governments should link audit recommendations to the subsequent planning–budgeting cycle, strengthen productive infrastructure spending, and monitor follow-up completion (TLRHP) as a governance-to-performance bridge.