REGIONAL DISPARITY ANALYSIS BASED ON REGIONAL FINANCIAL INDEPENDENCE IN CITIES IN EAST JAVA BEFORE COVID-19 PANDEMIC

Abstract

absorption and concentration of the population in the city center, it is known from the highest population density level in 2014 in Surabaya City, which is 2.874 million people, where Surabaya City is also the city center in East Java Province. How the financial independence of financial management from each region must be different, but why are the regions close to big cities the PAD is not effective and efficient in learning regional needs. On the three criteria for the ratio of financial independence, namely the cities of Kediri, Pasuruan, Probolinggo, Batu, Blitar, and Mojokerto the average is <30% which is said to be moderate financial independence. For the City of Madiun, there are criteria 4, namely financial independence on average <40%. While in criteria 5 with good financial independence <50%, namely in the city of Malang. And on this criterion 6 the average is > 50.1% with very good financial independence, namely in the city of Surabaya. So in each city in the province of East Java, financial independence is different from each local original income, for existing financial independence it can be seen that the growth rate in each city, with regional disparities, each city has regulations that different to get the original regional income. From the financial independence of each city, the level of economic growth can be carried out properly for the movement of the economy in East Java Province. With the level of independence of each City, Gross Regional Domestic Product can be used as a benchmark for how the economic growth rate shows an increase in the economy. To measure the level of economic disparity between regions in East Java Province. For cities where the level of economic growth is still lacking, it will increase the existing sectors in each city because the sectors in each city are different, therefore the income or income of each city is different with the existing regulations. To support local revenue, the level of regional disparity can be used for the benefit of each city to increase income or income so that the level of the economy in each city can be maximized and can measure the level of economic inequality.