Interregional Fiscal Collaboration Model for Strengthening Local Government Finances in West Java

Fiscal capacity disparities and declining general-purpose transfers have narrowed local fiscal space and increased the need for intergovernmental cooperation in West Java Province. This study aims to formulate an Interregional Fiscal Collaboration Model (IFCM) to strengthen local government finances through cost-sharing, benefit-sharing, resource pooling, and collaborative governance. The study employed an explanatory mixed-methods approach using local financial reports and budget documents, a matrix of 50 intergovernmental cooperation entries, a survey of 135 local officials, and thematic interviews in the research areas. The findings reveal three main results. First, fiscal capacity heterogeneity is substantial; local governments with low fiscal independence need collaboration the most but have the weakest ability to pay and data readiness. Second, only 28% of cooperation initiatives are operationally active, while 72% remain at the exploratory/MoU stage or have expired. Third, active cooperation is associated with explicit contribution formulas, budget integration, management units, monitoring mechanisms, and dispute resolution arrangements. This article proposes an adaptive formula [?·FC + ?·BM + ?·RK ? ?·HC] and a 36-month implementation strategy positioning the West Java Provincial Government as facilitator, mediator, monitor, and policy integrator. Implementing the IFCM could mitigate the participation paradox by introducing ability-to-pay-based contributions, fiscal safeguards, and targeted provincial support, enabling fiscally vulnerable local governments to participate more equitably in interregional cooperation.