Dampak Tata Kelola Pemerintahan Daerah Terhadap Realisasi Investasi di Provinsi Jawa Timur

Abstract

Regional governance is one of important supporting factors in stimulating investment realization in every region. The aims of the study are (1) to describe the perceptual difference among businessmakers in East Java based on regional governance survey held by KPPOD (Komite Pemantauan Pelaksanaan Otonomi Daerah) in 2007 and 2010, (2) to analyze the linkages between regional governance and investment realization in East Java, and also (3) to analyze the impact of regional governance to investment realization in East Java. Data used in this research consist of 2 period, 2005-2007 and 2008-2010, and 38 districts and municipals in East Java. Data are taken from Investment Coordinating Board, Central Bureau of Statistics Indonesia and Directorate General of Fiscal Balance (DJPK). Methods used are descriptive statistic ,using Pearson and Spearman correlation, and also static panel data regression. Perceptual difference on the latter survey, as the first result, found to be significantly better and even worse than the previous one for some major variables . Results also showed that there is a strong linkage between foreign direct investment, domestic private investment, public investment and regional governance. The elements of regional governance that affected domestic investment are percentages of businessmaker having business licence (Tanda Daftar Perusahaan) and also dummy of regional government program in promoting local potential product/commodity. The elements of regional governance that affected foreign direct investment are dummy of donation barrier to the regional government, dummy of the regent/municipal’s comprehension to the business matters and dummy of the quality of road infrastructure.