THE MODERATING EFFECT OF ECONOMIC GROWTH ABILITY OF FINANCIAL FACTORS ON THE IMPLEMENTATION OF E-GOVERNMENT

Abstract

This study seeks to obtain the evidence about the ability of economic growth in moderating the influence of financial factors in Indonesian local government e-government implementation level. Using the dependent variable of Indonesia e-government ranking (PeGI) issued by the Ministry of Communication. The independent variable used in this study is Degree of Decentralization ratio (RDD), Local Government Financial Dependency Ratio (RKKD), Ratio of Locally-generated Revenue Effectiveness (PAD), and Economic Growth (GRDP) as a moderating variable. Purposive sampling method are used in this study. This study uses sampling criteria of the PeGI. Those criteria are divided into five dimensions (policy, institutional, infrastructure, applications, and planning). A sample of 220 cities/ municipalities meets with those criteria. The data used in this research are taken from the Realization of the Regional Budget Reports (APBD) and the Central Statistics Agency (BPS) in 2012-2015. Descriptive statistics, classical assumption, and Moderated Regression Analysis (MRA) are used in this research.

The results showed that the Degree of Decentralization Ratio (RDD) and Locally-generated Revenue Effectiveness (PAD) were affecting the e-government implementation. On the other hand, Local Government Financial Dependency Ratio (RKKD) doesn’t have an effect on e-government implementation. Economic growth does not affecting the implementation of e-government but moderating influence the degree of Decentralization Ratio (RDD) Locally-generated Revenue Effectiveness (PAD) on the implementation of e-government.

Keywords: e-government, Degree of Decentralization Ratio, Locally-generated Revenue Effectiveness, Local Government Financial Dependency Ratio, Economic Growth