Fiscal Performance Analysis of Local Government through an APBD-Based Financial Ratio Approach: Empirical Evidence from East Kalimantan Province, Indonesia (2020–2024)

Lalu Mahendra Wahyudi (Universitas Mataram)
Endang Astuti (Universitas Mataram)

Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 3 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

Fiscal decentralization has expanded the authority of local governments in managing regional financial resources; however, greater fiscal authority does not necessarily guarantee stronger fiscal independence and sustainable fiscal performance. Evaluating local government fiscal performance is therefore essential to assess the effectiveness of regional financial management, particularly in resource-rich provinces with complex fiscal structures. This study aims to analyze the fiscal performance of the East Kalimantan Provincial Government during 2020–2024 using an APBD-based financial ratio approach. This study employed a quantitative descriptive design using secondary data from the audited Regional Government Financial Reports (LKPD) of East Kalimantan Province for fiscal years 2020–2024. Fiscal performance was evaluated through several indicators, including fiscal decentralization ratio, fiscal independence ratio, fiscal dependency ratio, PAD effectiveness ratio, revenue-expenditure efficiency ratio, expenditure composition ratio, and fiscal growth ratio. The results indicate that East Kalimantan experienced strengthening fiscal capacity during the observation period, reflected in increasing regional revenue and consistently effective PAD realization. However, fiscal independence remained influenced by intergovernmental transfers, indicating that regional fiscal autonomy has not been fully achieved. The expenditure structure also shows a gradual increase in capital expenditure after the COVID-19 period, although operating expenditure remains the dominant component of regional spending. These findings demonstrate that strong fiscal capacity should be accompanied by revenue diversification, improved expenditure quality, and sustainable fiscal governance. This study contributes empirical evidence on the fiscal performance dynamics of a resource-rich Indonesian province during pandemic disruption and post-pandemic recovery, providing implications for strengthening local fiscal autonomy under the decentralization framework.