<![CDATA[To reduce dependence on funds, the local government must look for potential alternatives to increase original local government revenue. This study uses a quantitative method with a path analysis approach. The scope of the research covers all regencies/cities in Indonesia receiving balanced funds in the form of General Allocation Funds (DAU), Special Allocation Funds (DAK), and Revenue Sharing Funds (DBH). The results of the quantitative analysis found several results and findings related to key factors as a strategy for local government in increasing local government financial autonomy in each of the research data clusters. The results found that in Clusters I and II, Direct Expenditure and Indirect Expenditure were factors in encouraging local government financial autonomy through the mediation of the PAD variable. These results encourage regencies/cities governments in Cluster I and II to be able to optimize local government expenditure, both directly and indirectly to increase local government financial autonomy. Furthermore, in Cluster III, indirect expenditure and central transfer of funds were determining factors for increasing financial autonomy in regions/cities through the mediation of the PAD variable. These results encourage regencies/cities governments in Cluster III to focus on using fiscal transfers for productive sector spending in increasing local government financial autonomy. In Cluster IV, the central transfer of funds had a significant but negative influence on local government financial autonomy. These results prove that the regencies/cities governments in Cluster IV are still very dependent on the central transfer of funds to the local government.]]>
