Comparative Analysis of Financial Performance in Fiscal Decentralization Era Among Natural and Non-Natural Resources Region

Indonesia has a long history of fiscal decentralization. In terms of accountability and transparency, it is necessary to have performance appraisalof local financial indicators. This research was conducted by taking samples of natural and non- natural resourcesregions from the 2010 - 2014 period. From the result of the degree of decentralization indicator, the natural resourcesregion has a low degree. In contrast, on non- natural resourcesregions, they have a higher degree and included in both good and very good criteria. Based on the independence local indicators, only Siak Regency has the greatest independence, while other natural resourceregions have very small category and the instructional relationships pattern. In non- natural resourcesregions categories, all samples are independent enough and already independent with participatory and discretionary relationship pattern. In the harmonization among routine and developmental spending indicators, in natural resourcesregions, routine spending is relatively small. While in non- natural resourcesregions, routine spending allocation is also very dominant. From that result, the government should formulate an innovative non-public development pattern to further enhancing the participation of other stakeholders and also provide advocacy to Local Government to start limiting the routine personnel expenditure and prioritizing to infrastructure development that impacts the investment.