DETERMINANTS OF LOCAL GOVERNMENT PERFORMANCE: EVIDENCE FROM SIAK REGENCY, INDONESIA

This study aimed to examine the effects of internal control, accountability, transparency, and budget participation on local government performance in Regional Apparatus Organizations of Siak Regency, Indonesia. The study employed a quantitative approach with a survey method. Primary data were collected through structured questionnaires distributed to employees responsible for financial management within Regional Apparatus Organizations. Purposive sampling was applied, resulting in 75 valid respondents. The data were analyzed using multiple linear regression after passing validity, reliability, and classical assumption tests. The results showed that internal control did not have a statistically significant effect on local government performance, with a regression coefficient of 0.056 and a significance value of 0.343. In contrast, accountability had a positive and significant effect, with a regression coefficient of 0.186 and a significance value of 0.013. Transparency had a positive and significant effect, with a regression coefficient of 0.191 and a significance value of 0.000. Budget participation had a positive and significant effect, with a regression coefficient of 0.264 and a significance value of 0.000, emerging as the strongest predictor. The independent variables jointly had a significant effect, with an F-statistic of 63.713 and a significance value of 0.000. The adjusted coefficient of determination of 0.772 indicated that 77.2 percent of the variation in local government performance was explained by the model. These findings suggested that strengthening accountability, improving transparency, and encouraging greater participation in budgeting could enhance local government performance.