MAGELANG — Regional fiscal independence has proven to have a far more tangible contribution to improving the quality of human life than mere annual economic growth rates or central government transfer funds. Recent research conducted by Anggie Wahyuwardani and Syamsul Huda from Universitas Pembangunan Nasional "Veteran" Jawa Timur reveals that Local Own-Source Revenue had a positive and significant effect on the Human Development Index in Magetan Regency from 2013 to 2024. These findings provide vital policy guidance for local governments to optimize local financial management for sustainable public welfare.
The background of this research focuses on the human development dynamics in Magetan Regency, which recorded a steady increase in its Human Development Index from 69.86 in 2013 to 76.77 in 2024. This consistent growth occurred despite sharp annual fluctuations in regional economic growth and General Allocation Fund receipts, particularly during the pandemic period. This contrast raised important questions regarding which fiscal or economic resources are most effective in sustaining health facilities, educational access, and decent living standards for local residents.
The research methodology utilized a quantitative explanatory approach, analyzing 12 years of time-series data from 2013 to 2024. Compiled from official Statistics Indonesia publications, the data included variables for the Human Development Index, realized Local Own-Source Revenue, real regional economic growth rates, and realized General Allocation Funds. The data were processed using Ordinary Least Squares multiple linear regression to examine both partial and simultaneous effects on human development outcomes in Magetan.
The primary results indicate that on a partial basis, only Local Own-Source Revenue demonstrated a statistically significant positive relationship with the Human Development Index. Conversely, economic growth and the General Allocation Fund showed no significant partial effects on human development changes within the same year. However, when tested simultaneously, Local Own-Source Revenue, economic growth, and the General Allocation Fund significantly explained approximately 74.6 percent of the variation in the Human Development Index in Magetan Regency.
The lack of partial significance for economic growth stems from the cumulative nature of health and education outcomes, which require time to accumulate and do not adjust immediately to annual gross regional domestic product fluctuations. Meanwhile, the General Allocation Fund acts as a fiscal equalization mechanism, meaning its aggregate total does not automatically reflect targeted spending on human capability development. In contrast, Local Own-Source Revenue offers local authorities greater budgetary flexibility to fund priority services, including healthcare centers, school infrastructure, clean water access, and basic public works that directly enhance daily living conditions.
The implications of this study are essential for public policy and regional budgetary strategy. The Magetan Regency Government is advised to continue optimizing local revenue generation while maintaining a favorable investment climate. Furthermore, local policymakers must ensure that intergovernmental transfers and economic growth gains are more effectively converted into targeted public investments that broaden access to education, health, and productive employment for all citizens.
Author Profiles
Anggie Wahyuwardani, Universitas Pembangunan Nasional "Veteran" Jawa Timur
Syamsul Huda, Universitas Pembangunan Nasional "Veteran" Jawa Timur
Research Source
Article Title: The Effect of Local Own-Source Revenue, Economic Growth, and General Allocation Fund on the Human Development Index in Magetan Regency
Journal Name: East Asian Journal of Multidisciplinary Research (EAJMR)
Publication Year: 2026
DOI: https://doi.org/10.55927/eajmr.v5i9.301
Official URL: https://journaleajmr.my.id/index.php/eajmr
0 Komentar