P-ISSN: 2808-5957
E-ISSN: 2808-6724
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1898
POLICY IMPLEMENTATION, FINANCIAL MANAGEMENT,
BUREAUCRATIC INNOVATION, AND COMMUNITY PARTICIPATION
ON REGIONAL DEVELOPMENT PLANNING’S EFFECTIVENESS
Warman
Master of Government Science, Satyagama University, West Jakarta, DKI Jakarta, Indonesia
hswarman.12@satyagama.ac.id
ARTICLE INFO
ABSTRACT
Published: November 9
th
,
2022
Indonesia is a developing country, therefore development programs
continue to be encouraged in all fields because it is important for human
survival in the world. To analyze the influence Policy Implementation has
on the Effectiveness of South Tangerang City Regional Development
Planning and that of Financial Management on the Effectiveness of
Tangerang City Regional Development Planning South, this type of
explanatory research is a strategy that is quite popular in mixed methods
research and is often used by researchers who are inclined to quantitative
processes and deemed suitable for this study. Regional development is not
solely determined by the potential or wealth of abundant natural resources,
but is also determined by systematic development planning, measurable, and
comprehensive. Good financial management has been proven to be able to
increase the effectiveness of regional development planning. The
implementation of the financial management system begins with the
formulation of the program and the determination of good performance
indicators. It will be very useful to apply because it will serve as a
benchmark in achieving the program objectives that have been set.
Keywords: policy implementation,
financial management, bureaucratic
innovation, society participation,
regional development
This work is licensed under CC
BY-SA 4.0
INTRODUCTION
One of the goals of the Indonesian nation contained in the Preamble to the 1945 Constitution
is to build an independent state that is sovereign, just, and prosperous. Indonesia is a developing
country, therefore development programs continue to be promoted in all fields because they are
important for human survival in the world. Through development, physically and spiritually, man
can improve his quality of life towards a better direction. In the era of globalization, various human
activities are measured by world standards, all of which use the label "world class" (Tilak, 2016).
The standard penetrates all areas of life such as economy, culture, politics, and government. On
the other hand, according to Rachmat et al. (2021), development requires planning as a strategic
process, to achieve goals and develop plans for organizational work activities, and the essence of
national development is the development of the whole Indonesian people and the Indonesian
people as a whole. This means that the development of the country includes everything be it
entrepreneurship, education, health, clothing, housing, food, a sense of security and a sense of
justice. Meanwhile, economic development is a process of increasing total and per capital income
by taking into account the increase in population and accompanied by fundamental changes in the
economic structure and the equitable distribution of income for the population for the inhabitants
of a state (Lee, 2003).
Economic development cannot be separated from economic growth (Heintz, 2012).
Economic development promotes economic growth, and conversely, economic growth facilitates
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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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
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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conditions like this, the role of private investment and regionally owned companies is expected to
be the main driver of economic growth and development.
METHOD
This research is included in the type of explanatory research that uses a quantitative approach.
This type of explanatory research is a fairly popular strategy in mixed method research and is often
used by researchers who are inclined to quantitative processes. This strategy is applied by
collecting and analyzing quantitative data in the second stage which is built on the basis of
quantitative initial results. The priority is given to quantitative data. The process of mixing data in
the strategy when the quantitative start informs the process of collecting qualitative data. For this
reason, these two types of data are separate, but still related. An explicit theory could have been
presented, but it could have been not, in shaping the whole procedure.
Hypothesis testing carried out in this study is to use simple and multiple linear regression
analysis. Linear regression is simple to test the influence of each independent variable on the
dependent variable partially/respectively while multiple linear regression to determine its effect
simultaneously/together. Here are the results of hypothesis testing in this study.
RESULT AND DISCUSSION
First Hypothesis
1) H
0
: ß
1
= 0: there is no significant effect of Policy Implementation on the Effectiveness of
Development Planning;
2) H
a
: ß
1
0: there is a significant influence of Policy Implementation on the Effectiveness
of Development Planning; and
3) Reject H
0
and accept H
a
if t
table
≥ t
count
≥ t
table
; or sig < 0.05 Accept H
0
and reject H
a
if t
table
< t
count
< t
table
; or sig > 0.05
T-test
Table 1. Test Results t Effect of X1 on Y
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24 for windows, the t
count
value
for the Policy Implementation variable (X1) was obtained at 4.172. The t value of the table in this
study using 4 independent variables and a sample of 89, namely df n-k-1 = 89-4-1 = 84 in α (0.05)
was 1.988. Thus the value of t
count
4.172 > t
table
1.988 so that H
0
is rejected and H
a
is accepted. It
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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2022
shows that Policy Implementation has a significant influence on the Effectiveness of Development
Planning.
Determination Analysis
Table 2. Coefficient of Determination of Effect
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24, a coefficient of determination
value of 0.653 was obtained. This shows that 65.3% of the diversity of Development Planning
Effectiveness is due to the diversity of Policy Implementation, while the remaining 34.7% is due
to other variables.
Simple Linear Regression Equation
Based on the results of data processing using SPSS version 24, the values of the simple linear
regression equation were obtained as follows:
Ŷ = a + b1X1
Ŷ = 2,358 + 0,435X1
This linear regression equation shows that any increase of 1 value of the Policy
Implementation variable can increase the value of Development Planning Effectiveness by 2,793
with the estimate of other variables constant.
Second Hypothesis
1) H
0
: ß
1
= 0: there is no significant influence of Financial Management on the Effectiveness
of Development Planning;
2) H
a
: ß
1
0: there is a significant influence of Financial Management on the Effectiveness
of Development Planning; and
3) Reject H
0
and accept H
a
if t
table
≥ t
count
≥ t
table
; or sig < 0.05 Accept H
0
and reject H
a
if t
table
< t
count
< t
table
; or sig > 0.05 Test t
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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2022
Table 3. T-Test Results Effect of X2 on Y
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24 for windows, the
calculated
t value
for the Financial Management variable (X2) was obtained at 13,531. The t value of the table in
this study using 4 independent variables and a sample of 89, namely df n-k-1 = 89-4-1 = 84 in α
(0.05) was 1.988. Thus the value of t
count
13.531 > t
table
1.988 so that H
0
is rejected and H
a
is
accepted. This shows that Financial Management has a significant influence on the Effectiveness
of Development Planning.
Determination Analysis
Table 4. Coefficient of Determination Effect X2 on Y
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24, a coefficient of determination
value of 0.678 was obtained. This shows that 67.8% of the diversity of Development Planning
Effectiveness is due to the diversity of Financial Management, while the remaining 32.2% is due
to other variables.
Simple Linear Regression Equation
Based on the results of data processing using SPSS version 24, the values of the simple linear
regression equation were obtained as follows:
Ŷ = a + b2X2
Ŷ = 1,017 + 0,749X2
This linear regression equation shows that any increase of 1 value of the Financial
Management variable can increase the value of Development Planning Effectiveness by 1.766 with
the estimate of other variables constant.
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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Third Hypothesis
1) H
0
: ß
1
= 0: there is no significant influence of Bureaucratic Innovation on the Effectiveness
of Development Planning;
2) H
a
: ß
1
≠ 0: there is a significant influence of Bureaucratic Innovation on the Effectiveness
of Development Planning; and
3) Reject H
0
and accept H
a
if t
table
≥ t
count
≥ t
table
; or sig < 0.05 Accept H
0
and reject H
a
if t
table
< t
count
< t
table
; or sig > 0.05
T-Test
Table 5. T-Test Results Effect of X3 on Y
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24 for windows, the
t
count
value
for the Bureaucratic Innovation (X3) variable was obtained at 2.169. The t value of the table in
this study using 4 independent variables and a sample of 89, namely df n-k-1 = 89-4-1 = 84 in α
(0.05) was 1.988. Thus, the value of t
count
2.169 > t
table
1.988 so that H
0
is rejected and H
a
is
accepted. It shows that Bureaucratic Innovation has a significant influence on the Effectiveness of
Development Planning.
Determination Analysis
Table 6. Coefficient of Determination Effect X3 on Y
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24, a coefficient of determination
value of 0.734 was obtained. This shows that 73.4% of the diversity of Development Planning
Effectiveness is due to the diversity of Bureaucratic Innovation, while the remaining 26.6% is due
to other variables.
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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2022
Simple Linear Regression Equation
Based on the results of data processing using SPSS version 24, the values of the simple linear
regression equation were obtained as follows:
Ŷ = a + b3X3
Ŷ = 2,916 + 0,300X3
This linear regression equation shows that any increase of 1 value of the Bureaucratic
Innovation variable can increase the value of Development Planning Effectiveness by 3.216 with
the estimate of other variables constant.
Fourth Hypothesis
1) H
0
: ß
1
= There is no significant influence of Community Participation on the Effectiveness
of Development Planning;
2) H
a
: ß
1
0: there is a significant influence of Community Participation on the Effectiveness
of Development Planning; and
3) Reject H
0
and accept H
a
if t
table
≥ t
count
≥ t
table
; or sig < 0.05 Accept H
0
and reject H
a
if t
table
< t
count
< t
table
; or sig > 0.05
T-Test
Table 7. T-Test Results Effect of X4 on Y
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24 for windows, the t
count
value
for the Community Participation variable (X4) was obtained at 27.637. The t value of the table in
this study using 4 independent variables and a sample of 89, namely df n-k-1 = 89-4-1 = 84 in α
(0.05) was 1.988. Thus the value of t
counts
27.637 > t
table
1.988 so that H
0
is rejected and H
a
is
accepted. This shows that Community Participation has a significant influence on the Effectiveness
of Development Planning.
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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Determination Analysis
Table 8. Coefficient of Determination Effect X4 on Y
Source: SPSS version 24 for Windows
Based on the results of data processing using SPSS version 24, a coefficient of determination
value of 0.898 was obtained. This shows that 89.8% of the diversity of Development Planning
Effectiveness is due to the diversity of Community Participation, while the remaining 10.2% is
due to other variables.
Simple Linear Regression Equation
Based on the results of data processing using SPSS version 24, the values of the simple linear
regression equation were obtained as follows:
Ŷ = a + b4X4
Ŷ = 0,032 + 1,004X4
This linear regression equation shows that any increase of 1 value of the Community
Participation variable can increase the value of Development Planning Effectiveness by 1.036 with
the estimate of other variables constant.
Discussion
There is an influence of bureaucratic innovation on the effectiveness of regional development
planning in South Tangerang City with a coefficient of determination of 73.4%, therefore with the
improvements made to the policies adopted in accordance with the situation in South Tangerang
City, research was carried out before preparing new policies to be determined, the existence of
new initiatives and policy directions. the existence of policies that have been taken and
implemented by the administrative units, and mobilize good financial and human resources after
trials and evaluations of new policies are carried out.
There is an influence of community participation on the effectiveness of regional
development planning in South Tangerang City with a coefficient of determination of 89.8%,
therefore with the community encouraged to enforce regional regulations according to the needs
of their communities widely and effectively, the management of city population services must be
able to encourage and activate socio-economic activities through existing regulations, the
community needs to be involved in the decision-making process of programs carried out,
community or group participation is involved in assessing the performance of public officials
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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2022
working in the Government, as well as the community voluntarily participating in programs carried
out by the South Tangerang City Government;
There is an influence of policy implementation, financial management, bureaucratic
innovation, and community participation on the effectiveness of regional development planning in
South Tangerang City with a coefficient of determination of 95.6%, therefore with the
development planning program aimed at absorbing local labor optimally, development planning
activities are analyzed according to environmental conditions and circumstances, development
planning carried out makes it easier for the community to absorb local labor optimally,
development planning activities are analyzed according to environmental conditions and
circumstances, development planning plans carried out make it easier for the community to absorb
local workers optimally, development planning activities are analyzed according to environmental
conditions and circumstances, development planning carried out makes it easier for the community
to absorb local labor optimally looking for jobs, development activities are planned to be able to
increase people's productivity, development activities in government programs cannot be bought
into third parties but utilize existing instruments.
The theoretical implication of the magnitude of the influence of policy implementation on
the effectiveness of regional development planning in South Tangerang City is that by
implementing policies fairly there is no partiality, creating a dynamic atmosphere, implementing
policies responsibly, maintaining regional order and ensuring the implementation of fair behavior
to every citizen without worrying about any status behind their existence.
The theoretical implications of the magnitude of the influence of financial management on
the effectiveness of regional development planning in South Tangerang City are with actions that
result in income and expenditure expenses must be present in the regional budget, making
economic growth, understandable and presented in accordance with Government Accounting
Standards, using a performance approach in its preparation, and preparing periodic accountability
reports. The theoretical implications of the magnitude of the influence of bureaucratic innovation
on the effectiveness of south Tangerang City development planning, with the development of
concrete concepts, experimental development and evaluating a new policy, discovery of creativity,
system updates, as well as the existence of digital applications or studies carried out to prepare
policies with new ideas that will make improvements.
The theoretical implications of the magnitude of the influence of community participation
on the effectiveness of development planning in South Tangerang City, with the benefits of
participation in setting and assessing public policies, the obligation of participants with awareness,
seizing opportunities and being given opportunities in development carried out in various ways,
proposing transparency and being carried out transparently so that the community can also
monitor, and have initiatives in participating in programs that was done. The theoretical
implications of the magnitude of the influence of the Effectiveness of South Tangerang City
Development Planning with the preparation process are that development activities are prepared
to be able to increase people's income, the availability of easy access facilities to facilitate the
community in carrying out economic activities, the benefit process or being able to create a balance
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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2022
of development in the community environment, and the implementation of development can be
simultaneously with community self-management, as well as achievement development is aimed
at absorbing and providing new jobs. Based on the conclusions that have been put forward, several
suggestions can be given that can be implemented, namely: In terms of achieving the objectives of
effective regional development planning, it will be achievable if the regional government of South
Tangerang City can implement policies more effectively, if development planning is carried out
guided by clear targets and time and in line with the policies of the Central and Provincial
Governments.
Good financial management has been proven to be able to improve the effectiveness of
regional development planning. The implementation of the financial management system begins
with the formulation of the program and the determination of good performance indicators, it will
be very useful if applied because it will serve as a benchmark in achieving the program objectives
that have been set. It is necessary to apply innovation to all bureaucracies, because it will be able
to make development planning more effective, transparent, responsive, efficient and effective.
Community participation is certainly expected to be able to provide development support, both in
planning, implementing, evaluating, and supervising so that the impact of development is felt by
the community. Effective development planning can be achieved according to goals and
objectives, inseparable from the implementation of policies, financial management, bureaucratic
innovation.
There needs to be socialization from the Government in implementing development planning
policies, and the superior programs that are continued and strengthened are modern and religiously
intelligent, becauseinefficient and ineffective development planning will cause a negative image
of the quality of government apparatus services, The development of financial management in
each region must immediately adjust to technology. However, it is also determined by systematic,
measurable, and comprehensive Development planning. Therefore, the role of the leader is very
decisive, because it takes a leader who becomes an innovation leader or a leader who is able to
inspire in providing ideas so that the organization can adapt to external conditions and achieve its
goals, because the role of the leader is very strong in an organization.on, and community
participation.
CONCLUSION
From the results of the discussion about the research above, the author can conclude that to
achieve a world-class government, government leaders are required to carry out transformation,
not just development, because development is more determined to create the existing or improve
the existing ones to be better, and these developments are every effort that is carried out in a
planned manner to implement changes that have the main objective of improving and raise the
standard of living, well-being, and quality of human beings.
There is an influence of policy implementation on the effectiveness of regional development
planning in South Tangerang City with a coefficient of determination of 65.3%. Therefore, with
the increasing success of the policies implemented, it will be felt by the wider community,
Policy Implementation, Financial Management, Bureaucratic Innovation, and Community
Participation on Regional Development Planning’s Effectiveness
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2022
increasing social welfare for the community, having a real impact, and will create harmony for the
community in living a social and social life. There is an influence of financial management on the
effectiveness of regional development planning in South Tangerang City with a coefficient of
determination of 67.8%. Therefore, with the good financial management of the South Tangerang
City Government felt by the community, a financial audit of the regional financial statements is
carried out. South Tangerang City's revenue is fully paid in time to the regional treasury, in
accordance with the provisions of the applicable laws and regulations, regional original revenues
(PAD) are regulated to improve the community's economy, and, a value for money audit is carried
out to regional financial statements.
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