Which Better between Dynasties or Military Regent on Financial Independence Ratio?: Empirical Studies in East Java
DOI:
https://doi.org/10.62398/probisnis.v16i5.1191Keywords:
Fiscal Decentralization, PAD, Financial Independence Ratio, Indonesia Local government, Military regent , Political dynastyAbstract
This study aims to investigate the effect of political dynasties and military regents on the Regional Finance Independence Ratio in East Java, Indonesia. By using panel dataset from 2008–2024 across 38 districts/cities, We employs a panel regression model to test the effect of leadership background on the Financial Independence Ratio (FIR). The findings show that regent with political dynasties can reduce Regional Financial Independence. But, there is no evidence that Regent with military-background impact on it. Our findings also show that regent with Political Dynaties is more destructive that Military Background regent. This results highlight the need for anti-dynasty safeguards, transparency measures, and PAD-oriented reforms to strengthen local fiscal independence, while military backgrounds appear less consequential in shaping fiscal outcomes.
References
Alfajri, N. A., Ariani, N. E., & A, N. N. (2024). Financial Sustainability in the Spotlight: Unraveling the Impact of Financial Independence, Debt Ratio, and Capital Expenditure. 2024 International Conference on Decision Aid Sciences and Applications (DASA), 1–6. https://doi.org/10.1109/DASA63652.2024.10836474
Ardiansyah, A., Abdin, M., & Salis, M. (2025). Village Financial Ratio Analysis: Independence, Effectiveness, Efficiency, and Growth. Journal of Applied Accounting and Taxation. https://doi.org/10.30871/jaat.v10i1.9126
Dulay, D., & Go, L. (2021). When Running for Office Runs in the Family: Horizontal Dynasties, Policy, and Development in the Philippines. Comparative Political Studies, 55, 588–627. https://doi.org/10.1177/00104140211024292
Fatgehipon, A. H. (2024). HUBUNGAN SIPIL DAN MILITER ERA PRESIDEN JOKO WIDODO. Uwais Inspirasi Indonesia.
George, S., & Ponattu, D. (2018). Like father , like son ? The economic impacts of political dynasties ∗. https://consensus.app/papers/like-father-like-son-the-economic-impacts-of-political-ponattu-george/574248d7d1c351749a324dab3e20e47e/
Hadi, K., Sahri, & Fadliyanti, L. (2025). Analysis of Factors Affecting Regency/City Regional Financial Independence in West Nusa Tenggara Province 2016-2023. Journal of Economics, Finance And Management Studies. https://doi.org/10.47191/jefms/v8-i7-01
Hariyati, Nuswantara, D. A., Venusita, L., & Run, P. (2025). The Hidden Costs of Political Dynasties: Governance, Corruption, and Economic Inequality in the Context of SDGs. Journal of Lifestyle and SDGs Review. https://doi.org/10.47172/2965-730x.sdgsreview.v5.n03.pe05592
Irmawati, F. D., & Pratolo, S. (2016). PENGARUH KINERJA KEUANGAN, POLITIK DINASTI, DAN KINERJA PEMERINTAH DAERAH TERHADAP AKUNTABILITAS PELAPORAN KEUANGAN PEMERINTAH DAERAH DI INDONESIA TAHUN 2012 – 2013. https://consensus.app/papers/pengaruh-kinerja-keuangan-politik-dinasti-dan-kinerja-irmawati-pratolo/08401cf8b57d596faf818b1bd127c52f/
Mietzner, M. (2006). The politics of military reform in post-Suharto Indonesia: Elite conflict, nationalism, and institutional resistance.
Pratolo, S., & Irmawati, F. D. (2020). Determinan Akuntabilitas Laporan Keuangan: Tinjauan Pada Kinerja dan Politik di Pemerintahan Daerah di Indonesia. European Journal of Anaesthesiology, 30, 800. https://doi.org/10.24843/eja.2020.v30.i03.p20
Preuß, S., & Koenigsgruber, R. (2019). How do corporate political connections influence financial reporting? A synthesis of the literature. International Corporate Finance EJournal. https://doi.org/10.2139/ssrn.3402044
Rahman, A. (2013). Essays on political dynasties: evidence from empirical investigations. https://consensus.app/papers/essays-on-political-dynasties-evidence-from-empirical-rahman/c22881ec6ac55908b2c2bcebf85bc9e8/
Runtunuwu, P. C. H. (2023). THE IMPACT OF LOCAL GOVERNMENT’S FINANCIAL PERFORMANCE ON ECONOMIC GROWTH, UNEMPLOYMENT, POVERTY. Economica. https://doi.org/10.22202/economica.2023.v12.i1.6872
Schiff, R. (2008). The Military and Domestic Politics: A Concordance Theory of Civil-Military Relations. https://consensus.app/papers/the-military-and-domestic-politics-a-concordance-theory-of-schiff/5205ff9aaff85bb8a9f1ee19d4ec8e33/
Tahar, A., & Zakhiya, M. (2011). Pengaruh pendapatan asli daerah dan dana alokasi umum terhadap kemandirian daerah dan pertumbuhan ekonomi daerah. Journal of Accounting and Investment, 12(1), 88–99.
Tejaarief, B., & Husni, M. (2025). A STUDY ON HOW THE REGIONAL FINANCIAL INDEPENDENCE RATIO SUPPORTS REGIONAL AUTONOMY IN SERANG CITY. Journal of Management : Small and Medium Enterprises (SMEs). https://doi.org/10.35508/jom.v18i1.19017
Yahya, A. S., & S, R. (2022). ANALYSIS OF FINANCIAL INDEPENDENCE RATIO IN MAMUJU REGENCY. Jurnal Riset Manajemen Dan Akuntansi. https://doi.org/10.55606/jurima.v2i2.263
Yanuarti, S. (2018). Militer dan Pemilu-pemilu di Indonesia. Journal of Political Research, 15(2), 233–248.
Yulianto, D. P. (2003). Oposisi Berseragam: Catatan Tentang Hubungan Politik Suharto dan Militer di Akhir 1980-an. Jurnal Ilmu Sosial Dan Ilmu Politik, 6(3), 245–284.
Yulistiyono, A. (2021). Populasi Indonesia. Bonus Demografi Sebagai Peluang Indonesia Dalam Percepatan Pembangunan Ekonomi, 1, 1.
1.jpg){kind=logo}
