Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
1899 | I n d o n e s i a n J o u r n a l o f M u l t i d i s c i p l i n a r y S c i e n c e , 2 ( 2 ) , N o v ,
2022
the process of economic development (Ehigiamusoe & Samsurijan, 2021). Economic growth is
the process of continuously changing the economic condition of a country over a certain period
(Hanson, 2019).
According to Susilo et al. (2012), in entering the era of globalization and free markets in the
twenty-first century which is full of complexity, competition, diversity and dynamics; as well as
the enactment of regional autonomy. Business firms such as Cooperatives and Small and Medium
Enterprises (KUKM), the private sectors, and State-Owned Enterprises (BUMN) as economic
pillars in Indonesia, should be able to play an optimal role in the absorption of labor, development
of territories, absorption of technology, export and competitive capabilities. Furthermore, he stated
that entrepreneurship is defined as an innovator and driver of development, even an entrepreneur
is an aggressive catalyst to accelerate economic growth (Susilo et al., 2012).
In implementing development, every local government requires accurate planning since
planning is the most important process of all management functions (Jurnali & Siti-Nabiha, 2015).
Without planning, the functions of organizing, directing, and controlling will not run effectively
and efficiently (Okwang et al., 2015). Planning is a series of activities of the most priority
development, as well as to determine the direction, and strategy of development (Steiss, 2019). In
the government administration, plans can be either informal or formal (van Assche et al., 2014).
Planning with all its variations is aimed at helping to achieve organizational goals because the next
management function is organizing, stabilizing, leading, and controlling (Cummings & Worley,
2014). Therefore, planning must support the four remaining management functions.
Activity planning means strive for the use of human resources, natural resources, and other
resources to achieve goals (Zia et al., 2021). Strategic planning is also the setting of the
fundamental long-term goals of one organization, and the selection of alternative actions and the
allocation of resources necessary to achieve these goals (Globocnik et al., 2020). Meanwhile,
operational planning, which is derived from tactical planning, has a narrower focus, a shorter
timeframe, and involves lower-level management (Leiras et al., 2013).
Autonomy and regional financial management relates to the importance of re-initiating the
concept of decentralization and regional autonomy in the true sense (Nelles et al., 2018). The idea
of reorganizing the regional autonomy system departs from the idea of ensuring efficiency,
effectiveness, transparency, accountability, and democratization of people's values in the practice
of organizing local government (Dafflon, 2015). The current era of reform provides an opportunity
for a paradigm shift in national development from a growth paradigm to a paradigm of equitable
and balanced development equality (Taysum, 2019). This paradigm shift is realized through
regional autonomy policies and the balance of central and regional finances.
Today is the era of globalization and free trade, in which every state strives to the maximum
to create a policy framework capable of creating a conducive economic climate (Mayer & Phillips,
2017). It is to increase domestic investment and be able to encourage people to play in the global
market.
With regional autonomy, it is required to find alternative sources of development financing
without reducing the hope of still assistance and sharing from the central government. With