Influence of Local Government Size, Legislative Size, and BPK Audit Opinion on Local Government Financial Performance

Ria Dwi Putri; Raden Budi Hendaris

doi:10.24843/EJA.2025.v35.i06.p17

Authors

Ria Dwi Putri Faculty of Economics and Business, Universitas Jenderal Achmad Yani, Indonesia
Raden Budi Hendaris Faculty of Economics and Business, Universitas Jenderal Achmad Yani, Indonesia

DOI:

https://doi.org/10.24843/EJA.2025.v35.i06.p17

Abstract

Regional financial performance is measured through the independence ratio which reflects the ability of regional autonomy. However, the low independence ratio in most regions indicates that regional autonomy has not been running optimally. This study is intended to obtain empirical evidence regarding the influence of Local Government Size, Legislative Size and BPK Audit Opinion on the Financial Performance of Local Government. The data used is secondary data from the www.jabar.bps.go.id and www.jabar.bpk.go.id of 2019-2023. The population in this study was determined through census techniques covering 18 districts and 9 cities in West Java Province. The data analysis method used multiple linear regression with IBM SPSS 27 software. The results of this study prove that the Size of the Regional Government has a significant positive effect on the Financial Performance of the Regional Government. Legislative size have a significant negative effect on the Financial Performance of Local Governments. And BPK Audit Opinion does not have a significant effect on the Financial Performance of Local Governments.

Keywords: Size of Local Government; Legislative Size; BPK Audit Opinion; Local Government Financial Performance

References

Angelina, J., Saerang, D. P. E., & Warongan, J. D. L. (2024). The Influence of Audit Opinion, Characteristics of Regional Head, and Levels of Corruption on Performance of Local Government in Indonesia. The Contrarian : Finance, Accounting, and Business Research, 3(2), 96–112. https://doi.org/10.58784/cfabr.160

Aprianto, I. (2021). The Effect Of Levarage, Legislative Measures, Intergovernmental Revenue And Regional Tax Revenue On Regency/City Government Financial In Indonesia. International Journal of Applied Finance and Business Studies, 9(3), 91–99. https://doi.org/10.35335/ijafibs.v9i3.3

Aswar, K. (2019). Financial Performance of Local Governments in Indonesia. European Journal of Business and Management Research, 4(6), 1–6. https://doi.org/10.24018/ejbmr.2019.4.6.164

Aulia, R., & Rahmawaty. (2020). Pengaruh Kemakmuran Pemerintah Daerah, Ukuran Pemerintah Daerah dan Tingkat Ketergantungan Pemerintah Daerah terhadap Kinerja Keuangan Pemerintah Kabupaten/Kota di Provinsi Aceh. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi (JIMEKA), 5(4), 584–598. https://jim.usk.ac.id/EKA/article/view/16826

Ayunisa, N., Susetyo, D., & Yusnaini. (2022). The Effect of Local Government Characteristics And Audit Findings on Financial Performance With Responsibility Level Moderation. Journal of Economics, Finance And Management Studies, 05(05), 1364–1372. https://doi.org/10.47191/jefms/v5-i5-16

Aziz, R. L., Reza, R., & Novinka, S. (2023). Analisis Tingkat Kemandirian Keuangan Daerah Kabupaten Sambas Tahun 2019-2022. EKODESTINASI: Jurnal Ekonomi, Bisnis, Dan Pariwisata, 1(2), 64–73. https://doi.org/10.59996/ekodestinasi.v1i2.46

Banunaek, I. A., Manafe, H. A., & Perseveranda, M. E. (2022). Pengaruh Pendapatan Asli Daerah, Ukuran Pemerintah Daerah, dan Leverage terhadap Kinerja Keuangan Pemerintah Daerah (Suatu Kajian Studi Literatur Manajemen Keuangan Daerah). Jurnal Manajemen Pendidikan Dan Ilmu Sosial, 4(1), 49–59. https://doi.org/10.38035/jmpis.v4i1.1372

Chaerani, E. Y., & Firmansyah, A. (2024). Regional Revenues, Audit Opinions, Local Government Financial Performance: the Moderating Role of Capital Expenditure. Riset: Jurnal Aplikasi Ekonomi Akuntansi Dan Bisnis, 6(1), 090–103. https://doi.org/10.37641/riset.v6i1.2064

detikFinance. (2024). Sri Mulyani Soroti Ketergantungan Pemerintah Daerah dari Dana Pusat. https://finance.detik.com/berita-ekonomi-bisnis/d-7553537/sri-mulyani-soroti-ketergantungan-pemerintah-daerah-dari-dana-pusat

Ditasari, R. A., & Sudrajat, M. A. (2020). Pengaruh Opini Audit dan Temuan Audit BPK terhadap Kinerja Pemerintah Daerah pada Kabupaten/Kota di Provinsi Jawa Timur. INVENTORY : Jurnal Akuntansi, 4(2), 104–117. https://e-journal.unipma.ac.id/index.php/inventory/article/view/7668/2964

Ernawati, Dirgantari, N., Pramono, H., & Wibowo, H. (2023). Pengaruh Ukuran Pemerintah Daerah, Pendapatan Asli Daerah, dan Belanja Modal Terhadap Kinerja Keuangan Pemerintah Daerah di Kalimantan Selatan Tahun 2019-2021. Jurnal EK&BI, 6(2), 245–256. https://doi.org/10.37600/ekbi.v6i2.1178

Fauziyah, I. N., & Ekaningtias, D. (2022). Pengaruh Pertumbuhan Belanja, Pendapatan Asli daerah, Ukuran Legislatif, dan Dana Perimbangan terhadap Kinerja Keuangan Pemerintah Daerah. Journal of Public and Business Accounting, 3(1), 41–61. https://doi.org/10.31328/jopba.v3i1.280

Ghozali, I. (2021). Aplikasi Analisis Multivariate dengan Program IBM SPSS 26 (Edisi 10). Badan Penerbit Universitas Diponegoro.

Gustianra, V., & Serly, V. (2019). Pengaruh Good Government Governance Dan Ukuran Legislatif Terhadap Kinerja Pemerintah Daerah (Studi Pada Pemerintah Kabupaten/Kota Di Indonesia Yang Terdapat Pada Indonesia Governance Indexs Tahun 2014). Jurnal Eksplorasi Akuntansi, 1(3), 1426–1442. https://doi.org/10.24036/jea.v1i3.152

Hashifa, N. S., Silviani, A. A., Ramadhan, F., Danita, I., Rinanda, N., Aisyahry, R. T., & Septiana, R. (2024). The Effect of Audit Opinion, Local Government Size, Balancing Funds and Legislative Size On The Financial Performance of Local Governments In Riau Province. Riau International Conference On Economics Business And Accounting (RICEBA), 1(2), 436–446. https://riceba.prosiding.unri.ac.id/index.php/riceba-prosiding/article/view/142

Hendaris, R. B., & Sastradipraja, U. (2024). Analysis of Factors Affecting Local Government Financial Performance. Dinasti International Journal of Economics, Finance & Accounting, 5(5), 5399–5410. https://doi.org/10.38035/dijefa.v5i5.3596

Ijitihad, R., & Harsono, I. (2024). Pengaruh Rasio Kemandirian Daerah, Efektivitas Pendapatan Asli Daerah, dan Pengelolaan Belanja Daerah Terhadap Kinerja Keuangan Daerah. Jurnal Ganec Swara Vol., 18(1), 41–50. https://doi.org/10.46799/jst.v3i6.572

Jannah, M., Azwardi, & Siddik, S. (2020). The effect of BPK audit result on financial performance. Accounting, 6(7), 1253–1258. https://doi.org/10.5267/j.ac.2020.9.001

Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1057/9781137341280.0038

Karno, D. K. S., & Alliyah, S. (2021). Pengaruh Karakteristik Pemerintah Daerah dan Opini Audit Badan Pemeriksa Keuangan terhadap Kinerja Keuangan Pemerintah Daerah Kabupaten/Kota di Provinsi Jawa Tengah. IE : Jurnal Inspirasi Ekonomi, 3(1), 40–55. https://jurnal.unimor.ac.id/JIE/article/view/1264

Kustinah, S., Hartikayanti, H. N., & Winarso, E. (2022). BUMDes Management Through Accounting Information Systems at BUMDes in Cisarua District, West Bandung District. Bubungan Tinggi: Jurnal Pengabdian Masyarakat, 4(2), 532–542. https://doi.org/10.20527/btjpm.v4i2.5240

Maulina, F., & Rhea. (2019). Analisis Rasio Keuangan Untuk Mengukur Kinerja Keuangan Pemerintah Daerah (Studi Kasus Pada Pemerintah Provinsi Kalimantan Barat). Jurnal OBIS: Jurnal Ekonomi Dan Bisnis, 2(1), 11–22. http://jurnal.polteq.ac.id/index.php/obis/article/download/30/12

Meilanda, P., Periansya, P., & Armaini, R. (2023). Determinasi Kinerja Keuangan Pemerintah Kabupaten/Kota di Provinsi Sumatera Selatan. Syntax Literate: Jurnal Ilmiah Indonesia, 8(11), 6578–6595. https://doi.org/10.36418/syntax-literate.v8i11.13916

Mulyanto, Budiman, N. A., & Fahmi, M. N. (2019). Pengaruh Sistem Akuntansi Keuangan Daerah, Penyajian Laporan Keuangan Daerah, Aksesibilitas Laporan Keuangan Daerah, Dan Desentralisasi Fiskal terhadap Akuntabilitas Pengelolaan Keuangan Daerah Dengan Sistem Pengendalian Internal Pemerintah Sebagai Variab. Jurnal Bingkai Ekonomi, 6(1), 1–17. https://doi.org/10.54066/jbe.v6i1.90

Natoen, A., Febriyanti, A., Sarikadarwati, & Ardiani, S. (2019). Pengaruh Karakteristik Pemerintah terhadap Kinerja Keuangan Pemerintah Daerah Kabupaten/Kota di Sumatera Selatan (Studi Empiris pada Pemerintah Daerah Kabupaten/Kota di Sumatera Selatan Tahun 2013-2017). Jurnal Riset Terapan Akuntansi, 3(2), 106–117. https://doi.org/10.5281/zenodo.3837691

Nugraheni, E., & Adi, P. H. (2020). Faktor–Faktor Yang Mempengaruhi Kinerja Auditor. Media Riset Akuntansi, Auditing & Informasi, 20(1), 19–42. https://doi.org/10.47709/jumansi.v2i1.2105

Nurhalimah, M., & Wicaksono, D. (2024). Pengaruh Opini Audit BPK dan Belanja Modal terhadap Kinerja Keuangan Pemerintah Daerah. AKRUAL Jurnal Akuntansi Dan Keuangan, 6(1), 78–87. https://doi.org/10.34005/akrual.v6i1.4161

Nurhayati, N., Suhendar, D., Nurhandika, A., Rostika, T., & Purnama, D. (2022). Affecting Financial Performance: Factors In Local Government, Indonesia. Proceedings of the 2nd Universitas Kuningan International Conference on System, Engineering, and Technology, UNISET. https://doi.org/10.4108/eai.2-12-2021.2320360

Nurrahmadani, S., Hariyati, & Armiani. (2024). Pengaruh Komponen Pendapatan Asli Daerah dan Dana Bagi Hasil terhadap Tingkat Kemandirian Keuangan Daerah. Valid Jurnal Ilmiah, 21(2), 162–179. https://doi.org/10.53512/valid.v21i2.385

Pattipawaey, R. E., & Leatemia, S. Y. (2023). The Effect of Audit Opinion and Audit Findings on the Level of Disclosure of Local Government Financial Statements at Regency / City in Maluku Province 2016-2021. Proceedings Conference on Economics and Business Innovation, 3(1), 877–886. https://doi.org/10.31328/cebi.v3i1.295

Pradnyani, N. M. D., & Mimba, N. P. S. H. (2020). Opini Audit dan Kinerja Keuangan Pemerintah Daerah dengan Realisasi PAD sebagai Pemediasi. E-Jurnal Akuntansi, 30(12), 3150–3161. https://doi.org/10.24843/eja.2020.v30.i12.p12

Pratama, A. B., Maslichah, & Marwadi, M. C. (2022). Pengaruh Opini Audit BPK, Pendapatan Asli Daerah (PAD) dan Intergovernmental Revenue terhadap Kinerja Keuangan Pemerintah Daerah Kabupaten di Jawa Timur Tahun 2017-2019. E_Jurnal Ilmiah Riset Akuntansi, 11(02), 25–34. https://jim.unisma.ac.id/index.php/jra/article/view/15070

Prayuda, Y. W., & Arifin, J. (2024). Determinan Kinerja Keuangan Pemerintah Daerah di Indonesia. Proceeding of National Conference on Accounting & Finance, 6, 77–87. https://journal.uii.ac.id/NCAF/article/view/32786

Putra, S. A. (2022). Analisis Kinerja Keuangan Pemerintah Daerah Lingkung Provinsi Sulawesi Utara Tahun 2014-2020. Jurnal Manajemen Perbendaharaan, 3(1), 1–13. https://doi.org/10.33105/jmp.v3i1.388

Raditya, T. A., Ermawati, E., Aswar, K., Andreas, A., & Panjaitan, I. (2022). Factors affecting the disclosure level of local government financial statements: Role of audit opinion. Investment Management and Financial Innovations, 19(3), 291–301. https://doi.org/10.21511/imfi.19(3).2022.24

Ramahdani, A. F., & Trisnaningsih, S. (2022). Pengaruh Ukuran Pemerintah dan Pendapatan Asli Daerah (PAD) terhadap Kinerja Keuangan pada Pemerintah Kota Surabaya. Journal of Economic, Business and Accounting, 6(1), 301–310. https://doi.org/10.31539/costing.v6i1.3924

Rasyid, Y., Suci, R. G., & Putri, A. M. (2022). Pengaruh Opini Audit dan Temuan Audit BPK terhadap Kinerja Pemerintah Daerah Kabupaten/Kota di Provinsi Riau. JURNAL PROMOSI Jurnal Program Studi Pendidikan Ekonomi UM Metro, 10(2), 80–93. https://ojs.fkip.ummetro.ac.id/index.php/ekonomi/article/view/6715

Rayhan, A., & Wibowo, P. (2022). Analisis Kemandirian dan Efektivitas Keuangan Daerah Kabupaten dan Kota di Provinsi Sumatera Selatan Sebelum dan Sesudah Pandemi COVID-19. Jurnal Aktiva: Riset Akuntansi Dan Keuangan, 4(3), 150–168. https://doi.org/10.52005/aktiva.v4i3.166

Safitri, B. W., Dirgantari, N., Hariyanto, E., & Winarmi, D. (2023). The Effect of PAD, Capital Expenditures, Government Size, and Budget Changes on Regional Financial Performance (in Central Java Province in 2019-2021). International Journal of Applied Finance and Business Studies Journal, 10(4), 201–208. https://www.ijafibs.pelnus.ac.id/index.php/ijafibs/article/view/63

Sari, N. M. D. P., & Mustanda, I. K. (2019). Pengaruh Ukuran Pemerintah Daerah, Pendapatan Asli Daerah dan Belanja Modal terhadap Kinerja Keuangan Pemerintah Daerah. E-Jurnal Manajemen, 8(8), 4759–4787. https://doi.org/10.24843/EJMUNUD.2019.v08.i08.p02

Sartika, N. (2019). Analisis Rasio Keuangan Daerah untuk Menilai Kinerja Keuangan Pemerintah Daerah Kepulauan Meranti. Inovbiz: Jurnal Inovasi Bisnis, 7(2), 147–153. https://doi.org/10.35314/inovbiz.v7i2.1207

Satriawan, I., Natoen, A., Periansya, & AR, S. (2021). The Effect of Local Government Characteristics and BPK Audit Opinions on the Financial Performance of Local Governments (Study on Local Governments in South Sumatra). Proceedings of the 4th Forum in Research, Science, and Technology (FIRST-T3-20), 1, 120–128. https://doi.org/10.2991/ahsseh.k.210122.021

Singa, H. G., Cahyati, S., Limbong, S. H., & Muda, I. (2024). Factors Affecting Financial Performance in Regional Government Legislative Measures & Audit Findings of the Financial Audit Agency (BPK). Brazilian Journal of Development, 10(1), 193–206. https://doi.org/10.34117/bjdv10n1-014

Subagyo, Sirat, A. H., & Suwito. (2021). The Effect of Audit Results and Local Characteristics on Financial Performance of Province Governments in Indonesia. Research Journal of Finance and Accounting, 12(14), 57–65. https://doi.org/10.7176/rjfa/12-14-06

Sugianto, R. S., & Larasati, A. Y. (2023). Pengaruh Kontribusi Pajak Bumi dan Bangunan (PBB) dan Pajak Hotel terhadap Peningkatan Pendapatan Asli Daerah. COSTING:Journal of Economic, Business and Accounting, 6(2), 2749–2757. https://journal.ipm2kpe.or.id/index.php/COSTING/article/view/6017/4776

Sugiyono. (2023). Metode Penelitian Kuantitatif, Kualitatif, dan R&D (2nd ed). Alfabeta Bandung.

Undang-Undang Nomor 1 Tahun 2022 Tentang Hubungan Keuangan Antara Pemerintah Pusat Dan Pemerintah Daerah, Pub. L. No. 1 (2022). https://peraturan.bpk.go.id/Details/195696/uu-no-1-tahun-2022

Undang-Undang Nomor 23 Tahun 2014 Tentang Pemerintah Daerah, Pub. L. No. 23 (2014). https://peraturan.bpk.go.id/Details/38685/uu-no-23-tahun-2014

Wijaya, R., & Solikhi, A. (2022). Factors that Affect the Local Government Financial Performance (Study on District/City Governments in Jambi Province). International Journal of Academic Research in Accounting Finance and Management Sciences, 12(2), 433–448. https://doi.org/10.6007/IJARAFMS

Wijayanti, Y., & Suryandari, D. (2020). The Effect of Regional Characteristics, Leverage, Government Complexity, BPK Audit Findings and Opinions on Local Government Financial Performance. Accounting Analysis Journal, 9(1), 30–37. https://doi.org/10.15294/aaj.v9i1.22483

Zaitul, Jefrita, W., & Rifa, D. (2021). Karakteristik Anggota Legislatif dan Kinerja Pemerintah Daerah. Akurasi : Jurnal Studi Akuntansi Dan Keuangan, 4(1), 73–86. https://doi.org/10.29303/akurasi.v4i1.66

Zamzami, F., & Rakhman, F. (2023). Determinants of Local Government Financial Performance in Indonesia. Academic Journal of Interdisciplinary Studies, 12(5), 332–347. https://doi.org/10.36941/ajis-2023-0148