Determinant of Local Government Performance Based on the SDG (Indonesian Evidence)

Objective: The purpose of this study is to ascertain how report quality, e-government, and accountability affect local governments' financial performance both inside and outside of Java. Theoretical Framework: When implementing regional autonomy in Indonesia, it is necessary to take into account the issue of disparities in the financial performance of regional governments within and outside of Java. The financial performance of local governments is anticipated to increase with the introduction of e-government, accountability, and high-quality financial reports. Method: From 2021 to 2022, the study was carried out on all local governments in Indonesia. The Ministry of Home Affairs database, the official websites of local governments, and the financial audit agency's official website were the sources of the data. Panel data regression was used to analyze the data. Results and Discussion: According to the study's findings, local governments' financial performance both inside and outside of Java was unaffected by accountability. The financial performance of governments on the island of Java is positively impacted by e-government, whereas governments outside of Java experience negative effects. Both inside and outside of Java, regional governments' financial performance is unaffected by the caliber of their financial reports. Research Implications: The study's findings can be used as a guide when formulating policies to raise of local government financial performance. Originality/Value: This is one of the few studies that compares the local governments' financial performance within and outside of Java Island, Indonesia.