Analysis of Regional Financial Independence in East Luwu Regency: Evidence from 2023–2025

Independence ratio, decentralization, and level of independence

1*Dr. Bakhtiar
Universitas Andi Djemma
Orchid id : 0009-0005-0359-3811
Email : bakhtiar89799@gmail.com

2Ika Fausiah, S.E., M.M.
Universitas Islam Negeri Palopo
Orchid id : 0009-0002-8084-175X
Email : Ika_fausiah@uinpalopo.ac.id

Received-05-06-2026
Revised-10-07-2026
Accepted-17-07-2026

European Journal of Prosthodontics and Restorative Dentistry (2026) 34 (6s), 69–72

Analysis of Regional Financial Independence in East Luwu Regency: Evidence from 2023– 2025

This study examines the level of regional financial independence in East Luwu Regency by calculating the fiscal decentralization ratio, the regional financial dependence ratio, and the regional financial independence ratio. It also assesses the extent to which the regional government’s fiscal capacity is sufficient to finance development in East Luwu Regency. The findings indicate that the fiscal decentralization ratio falls within the moderate category. This condition is attributable to the relatively limited contribution of Locally Generated Revenue (Pendapatan Asli Daerah—PAD) to total regional revenue. The calculation of East Luwu Regency’s regional financial independence ratio places the regency within a consultative relationship pattern, with a ratio below 50%, indicating a low level of fiscal independence. In other words, transfer revenue remains greater than PAD. The regional financial dependence ratio of the East Luwu Regency Government remains in the very high category, averaging 58.7% over the 2023–2025 period.

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