ABSTRACT

This research aims to
know the financial performance of local government through regional financials
ratio analysis, i.e. regional financial independence ratios, regional financial
effectiveness ratios, regional financial efficiency ratios and regional
expenditure harmony ratios,as well as analyzing the impact of regional
financial performance against the human development index (HDI).

This research was
conducted in 20 Counties/cities in level area I. Analysis techniques used was
multiple linear regression analysis with SPSS Statistics 21.

The results showed
that: 1) ratio of the independence of regional financial effect positive and
significant against the HDI, 2) ratio of the effectiveness of regional
financial no significant effect against the HDI, 3) ratio of the efficiency of
regional financial no significant effect against the HDI and 4) ratio of the
harmony shopping of regional financial no positive effect against the HDI.

Based on the results of
the research that has been done, it can be concluded that the influence of the
financial performance against the HDI, from the level of independence is very
low, from the level of effectiveness is very effective, from the level of efficiency is very efficient, and then seen
from the level of the shopping area is less harmony.