scientific. In addition to college, this technokratis
also includes groups or professional associations that
are widely accessible within the community.
Formally, the role of the actor in this official role
is more prominent because it holds formal
legitimacy at every stage of public policy formation.
But, in reality, the field of involvement of actors
who play an unofficial role, is often more decisive
and, in real terms, the realisation is that the actors
play an official role only as a tool for the actors who
play an unofficial role. The interaction between
actors in real terms in policy analysis is the focus of
this research.
The community is also one of the actors in the
public policy process having a decisive role in
addition to other actors, such as the government, that
is formally legitimate in the process of public policy
evaluation. In the process of influencing the policy
through the government, the people can make
demands or otherwise provide support to ensure
their interests are represented in the public policy
that will be formulated. The process of bargaining
for interest takes place inside the conversion box
where inputs both in the form of support and public
demands and macro governmental considerations are
negotiated to become an output in the form of public
policy. It is true that people may have bargaining
positions or may not be visible in terms of the public
policy character that is generated whether
responsive, paternalist or authoritarian.
The process of interaction and negotiation
between actors also illustrates the running of the
policy network in the preparation of the Medium-
Term Development Plan.
3.2 Relationship in Determining Local
Financial Performance
The annual budget of the region, which is a follow-
up and simultaneously a manifestation of local
financial management, is determined every year by
regional regulation, consisting of income,
expenditure and financing. The regional annual
budget is prepared based on the Short-Term
Regional Development Plan in order to realise the
achievement of the government's objectives. In the
preparation of the regional annual budget, this is
done by using a performance budgeting approach
(performance budgeting or activity base).
The development of local government financial
performance is inseparable from the limitation of
regional financial management as regulated in: (1) of
Law Number 32 Year 2004 and Law Number 33
Year 2004 regarding Financial Balance Between the
Government and Local Government; (2)
Government Regulation Number 58 Year 2005
regarding Regional Financial Management; (3)
Permendagri Number 13 Year 2006 juncto Ministry
of Home Affairs Regulation Number 59 of 2007
concerning Amendment to Permendagri Number 13
Year 2006 concerning Guidelines on Regional
Financial Management.
Based on these provisions, the financial
performance of the Regional Government is closely
related to the performance aspect of APBD
implementation and the aspect of the condition of
the regional balance sheet. The performance of the
APBD is closely related to the structure and
accuracy of expenditures (direct expenditure and
indirect expenditures) of regional revenues which
include local own revenues (PAD), equity funds and
other legitimate revenues. The regional balance
sheet will reflect the development of the condition of
the Regional Government's assets, the condition of
the obligations of the Regional Government as well
as the condition of available equity funds.
3.3 Relations in Determining Medium
Term Development Plans
This Medium-Term Development Plan is a concern
for truly important development issues. Strategic
issues are conditions or things that must be
considered or put forward in regional development
planning because of their significant impact on
regions with important, fundamental or urgent
characteristics, and in determining the objectives of
local governance; the strategic development issues
are formulated based on the problems of regional
development, the challenge and the potential future
regional development, covering the physical-
environmental, socio-cultural, economic-financial
and legal-institutional aspects.
The strategic issue represents one of the
enrichments of external environmental analysis of
the planning process. If the external dynamics,
especially over the next 5 (five) years are well
identified, local governments will be able to
maintain/improve service to the community. Local
governments that do not align themselves equally on
their strategic issues will face potential failures in
implementing governmental affairs that are their
responsibility, or fail to carry out regional
development. Strategic issues are conditions or
things that must be considered or put forward in
development planning because of the impact that is
significant for future entities (regions/communities).
A condition/event that becomes a strategic issue is a
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