The Governments Capital Expenditure: A View from Central Government and Local Government in Indonesia


Mas Nur Mukmin , Indra Cahya Kusuma , Farizka Susandra ,

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Volume 9 - October 2020 (10)


The Government’s main role is to serve the public and ensure the fulfilment of social needs. Public facilities are essential to support the national prosperity and development. Capital expenditure becomes one of the financial instruments that can be allocated to build infrastructures as the part of public service. The research aim to figure out the performance of central and local government in spending the income to public investment. The study conducts ten years analysis to financial report of local government in West Java Province-Indonesia. There are 30 data sample from Bogor, Depok and Bekasi City, that proceeded into statistical analysis using multiple regressions. The result shows that both central and local government have optimize their income capacity especially in dedicated funds and budget surplus toward capital expenditure. The regression remains a significant influence from independent variable to dependent variable. The research contributes to the completion of previous study in the government investment especially the relation of central and local government.


Government Investment Feasibility, Public Infrastructure, Regional Development


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