Optimizing Regional Financial Management by Implementing Good Government Governance

Abstract

The paradigm of regional financial management has undergone a very fundamental change since the enactment
of regional autonomy in 2001. Law no. 32 of 2004 and Law no. 33 of 2004 which became the main foundation
in implementing regional autonomy in essence provides greater opportunities to the region to further optimize
the potential of the region, whether concerning human resources, funds, and other resources that are regional
wealth. Therefore, in the framework of the management of regional finances is further regulated in Government
Regulation no. 58 of 2005 on Regional Financial Management. Basically the thoughts that lie behind the
publication of Government Regulation no. 58 of 2005 on Regional Financial Management is the desire to manage
state and regional finances effectively and efficiently, the basic idea is certainly to be implemented through good
governance that has three main pillars of transparency, accountability and participatory.
This research used descriptive and verifikatif approach, research method used descriptive survey and
explanatory survey. In this study, the sample was the Regional Device Work Unit of 180 units of the Working
Area. The method of analysis in this study used Path analysis. The results showthat the management of local
finance in East Priangan can be optimal by applying good governance.