FAKTOR-FAKTOR YANG MEMPENGARUHI KEMANDIRIAN KEUANGAN DAERAH DI PROVINSI JAWA TENGAH TAHUN 2015-2019

Regional financial independence describes the ability of the region to pay all the costs of government operational activities, regional development and services to the community without assistance from other parties. It can be said that the financial independence of the region describes the level of dependence of the region on external sources of funds. The source of funds to finance the activity comes from the local revenue. This study used objects as many as 35 districts / cities in Central Java Province. The data used in this study is panel data which is a combination of cross-section data of 35 districts/cities in Central Java Province and annual time series data from 2015 to 2019. Methodologically, this study uses quantitative data and secondary data with Central Java Province as a population and samples of all districts / cities in Central Java Province. In this study using data panel analysis techniques with the selected approach is fixed effect model. This study uses multiple linear regression models with e-views software analysis tools. The purpose of this study is to describe the influence of independent variables: investment, per capita income, and the minimum wage of districts / cities to the dependent variables of regional financial independence in Central Java Province in the period 2015-2019. Based on the results of the F test (simultaneous test), this study shows that all independent variables together have a positive and significant effect on regional financial independence in Central Java Province. While based on the results of the t test (partial test), investment variables have a significant positive effect on regional financial independence. Regional prosperity variables as measured by per capita income have a significant positive effect on regional financial independence. The district/city minimum wage variable has no effect on regional financial independence