INFLUENCE OF FUNDS FOR RESULTS OF APBD: STUDY IN THE OIL AND GAS INDUSTRY IN INDONESIA

Abstract

Sharing fund is the proportion possesed by local governments as oil and migas
producers. Along with fiscal decentralization and greater local autonomy presently, the
sharing fund ought to be used for the wealth of these locals through APBD (Local Planning
and Expendfture Budget). This study was aimed at identifying the effect of oil and gas
upstream industry sharing fund on APBD. It was an explanative-associative study. Data were
collected through interviews, questionairre, observation and Ifterature. Data were analyzed
descriptively, and then treated by several assumption tests, approximated through path
coefficient and confinnatory factor analysis. Subsequently, the author interpreted and
modified the model. The results indicated that the effects of sharing fund on APBD was
significant. It means that the greater sharing fund will cause larger amount of APBD.