Analysis of Local Government Financial Capability and Performance in Batang Hari Regency

The purpose of this study was to determine the ability and performance of regional finances in the implementation of regional autonomy in Batang Hari Regency. The method used is descriptive with a quantitative approach. The data analysis technique uses calculations of Batang Hari Regency financial data for the 2017-2023 fiscal year. The Financial Capability Index (IKK) reached 0.3956 and based on Permendagri Number 62 of 2017, the financial capacity of Batang Hari Regency is classified as moderate. The financial performance of the Batang Hari Regional Government based on the ratio of the degree of fiscal decentralization and the ratio of regional financial independence is in the very low category. The APBD effectiveness ratio of the Batang Hari Regency Government is in the less effective category. The regional financial efficiency ratio is in the inefficient category, with the regional expenditure compatibility ratio getting the result that the operating expenditure fund is greater than the capital expenditure.