Yundy Hafizrianda
Universitas Cenderawasih, Papua, Indonesia

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Regional Financial Independence and Audit Opinion Quality Effects on Capital Expenditure in Papua Putra Agung Dwijaya; Elsyan R. Marlissa; Yundy Hafizrianda
Studi Ekonomi dan Kebijakan Publik Vol 4 No 2 (2026): Januari
Publisher : Penerbit Goodwood

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/sekp.v4i2.7113

Abstract

Purpose: This study examines the effect of regional financial performance, proxied by regional financial independence, and financial report quality, proxied by the audit opinion of Indonesia's Supreme Audit Agency or Badan Pemeriksa Keuangan (BPK), on capital expenditure among regencies and cities in Papua Province, individually and jointly.Research Methodology: The study used secondary panel data covering 8 regencies and 1 city in Papua Province over the 2019-2024 period, drawn from BPK audit reports on regional government financial statements, yielding 54 observations. Data were analyzed with panel data regression, selected among the common effect, fixed effect, and random effect specifications through the Chow, Hausman, and Lagrange Multiplier tests, followed by classical assumption testing and hypothesis testing using EViews.Results: Regional financial independence had a negative and significant effect on capital expenditure, financial report quality had a positive but not significant effect, and the two variables jointly did not have a significant effect, explaining only a small share of the variation in capital expenditure.Conclusions: Rising fiscal independence in Papua's regencies and cities has not translated into higher capital spending, a pattern consistent with agency-theory concerns about how additional own-source revenue is used.Limitations: The two-variable model, the nine-region sample, and the six-year window limit the explanatory power and generalizability of the findings.Contributions: The study extends agency theory to a fiscally distinctive Papuan setting and identifies capital expenditure determinants that warrant further investigation beyond financial independence and audit opinion.
Spatial Analysis of the Effect of Economic Growth and Unemployment on Poverty in Papua Province and Its New Autonomous Regions Iis Pebriyanti; Hasan Basri Umar; Yundy Hafizrianda
Review of Multidisciplinary Academic and Practice Studies Vol 1 No 1 (2024): February
Publisher : LPPM STIE KRAKATAU

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61401/rmaps.v1i1.572

Abstract

Purpose: Poverty in Papua Province and its three New Autonomous Regions remains the most critical development challenge in Indonesia, given its persistently high ranking relative to the national average. This study analyzes the effect of economic growth and the open unemployment rate on poverty while accounting for spatial heterogeneity across districts and cities. Methodology: Panel data from 29 districts and cities in Papua, South Papua, Central Papua, and Highland Papua for 2020 to 2024, yielding 145 observations, were analyzed using Geographically Weighted Regression Panel with an adaptive bisquare kernel function, following a Breusch-Pagan test for spatial heterogeneity and a global Ordinary Least Squares benchmark. Results: The Breusch-Pagan test confirmed significant spatial heterogeneity. The Geographically Weighted Regression Panel model substantially outperformed the global model, raising R squared from 35.78 percent to 73.23 percent and lowering the corrected Akaike Information Criterion from 965.00 to 881.87. Locally, economic growth and unemployment negatively affect poverty with varying sensitivity across regions, and unemployment proved a more dominant and spatially stable determinant than growth. Conclusions: Poverty reduction strategies following regional expansion must be spatially differentiated rather than uniform. Limitations: The study covers only five years, three predictors, and one geographic cluster of provinces. Contributions: The study offers one of the first district-level spatial panel analyses of poverty determinants across Papua's newly expanded provinces.