Institutional Capacity of the West Java Province Government in Regional Formulation Fiscal Policy

Abstract

The West Java Province developments runs more dynamic and full of complexity. One of the more important dimensions has been distinguished is about the financial independence which applied through the the growth of the Original Revenue that still has a flutuant tendency of  achievement for supporting and financing the regional development in accordance with the problems encountered. Thus it is important to improve the implementation of local government financial management in order to realize the development format of West Java Province supported by financial sustainability on an on-going basis.Based on the fundamental thinking about the institutional capacity of Regional Finance Organizations, this research requires some supportive theories that explain various understandings such as the understanding of decentralization and regional autonomy, the idea of the financial relationship between central and local governments, the Thinking on the Functions of Budgets in Regional Development and to Understanding the Citizens Capacity of Operational is used to analyze the Effectiveness of Institutional Management of Regional Keangan. In practice, this research then uses qualitative procedures involving research informants as the main information source whose description is then analyzed in such a way as to generate the discussion and conclusions that answer the previous research question.The results of the study explain that in general the institutional capacity of regional financial managers, especially in the context of the formulation of financial policy in West Java Province has a good picture quitely in supporting the formulating process on regional financial policy. Nevertheless, it is necessary to think about the collectivity of institutional functions, because in the formulation of regional financial management policy is not only related to the interests of regional apparatus organizations but for the interests of other organizations that are related to the formulation of local financial management policies and institutions that play a role in determining policy formulation into decisions such as DPRD.

Keywords; Institution Capacity, Policy Formulation, and Regional Financing.