• Erwin Saraswati Universitas Brawijaya


The quality of public spending still low because most of it was allocated to employee salaries (BPK, 2017). Efficiency and effectiveness of public financial management should be applied in order to increase economic growth.  This research aims to evaluate the efficiency using DEA approach and the effectiveness of local financial management in 38 districts located in East Java using World Bank modified questionnaire. Those questionnaire using five criteria which are regulatory framework, planning and budgeting, cash management, procurement, as well as accounting and reporting. These criteria are chosen since they are the major problems faced by PFM in East Java, according to BPK investigation. The result shows that regulatory framework gains the highest performance. On the contrary, planning and budgeting obtains the lowest performance, especially at allocating budget priority. This is consistent with the fact that budget realization in East Java only reaches 53%.

How to Cite
Saraswati, E. (2018). Indonesia. Simposium Nasional Keuangan Negara, 1(1), 1020-1045. Retrieved from