Before testing based on the region's characteristics, the results showed that the influence of the OSR against the construction of infrastructure, SNGs is negative and insignificant. Testing variables DAK is also negative, but the result is significant. On the contrary, the Influence of DAU and DBH on the development of infrastructure SNGs is positive and significant. Then testing the moderation of the variable mandatory spending infrastructure sourced from DTU (DAU and DBH) showed that these variables can moderate and have significant value and play a role as a pure moderator. On testing based on the characteristics of the region, the influence of the OSR and DAK on the development of infrastructure is strong and positive values on the characteristics of the area of SNGs with a level of financial independence which is better (urban, Java-Sumatra, and metropolitan). On the contrary, the influence of the DTU on the development of infrastructure is strong and positive values on the characteristics of the territory of the SNGs with the category of the level of financial independence which is relatively lower (district, Non-Java-Sumatra, and non-metropolitan).
5.2 Implication
Through this research, the Central Government can be more focused and have better priorities to maximize the potential of SNGs in developing infrastructure. The end goal is the achievement of the SDGs Infrastructure in Indonesia. The ministry of
363 finance can make the results of this study as a proposal material to update the redistribution of fund balance intergovernmental allocation related to infrastructure development in Indonesia specially designed for a specific region. At the time of the synchronization process and the harmonization of the related proposal for the allocation of DAK Physical components may be added weighting characteristics of the SNGs on aspects of the assessment of the proposal DAK Physical. This study can also identify the challenges and strengthen the strategy to reduce the gap in economic growth. This research can also be an evaluation material for SNGs in regulating the portion of the infrastructure spending in the APBD is a maximum that can push the economy so that it will also increase the potential of the OSR.
5.3 Research Limitations
This study has some limitations related to the proxy used to measure infrastructure.
In this study, the proxy is used in the form of the realization of infrastructure spending.
Future research may consider the size of the infrastructure, among others, by looking at the physical condition of the infrastructure successfully built by the SNGs, such as roads (km2) per number population or size of the material, which is the output of infrastructure spending. It is also necessary, plus the range of the study period, to compare the effect before implementing the policy of mandatory spending infrastructure sourced from DTU with the period after the enactment of the policy. Advanced research could examine the impact of infrastructure spending on income according to the theory of the spend-tax hypothesis.
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367 Appendix
Compilation Table of the Hypothesis Test Result
Code Result Type Of Test
Regression Results in GMM Description & directions
coefficient p-value
H1 Rejected OSR GMM general coefficient (-) no
H2a Accepted DAU GMM general coefficient (+) significant H2b Accepted DBH GMM general coefficient (+) significant H3 Rejected DAK GMM general coefficient (-) significant
H4 Accepted MRA OSR Test can be moderated significant
H5a Accepted MRA DAU Test can be moderated significant
H5b Accepted MRA DBH Test can be moderated significant
H6 Accepted OSR Var. dummy 1 urban (+) > district (-) significant H7 Accepted OSR Var. dummy 2 JS (+) > non JS (-) significant H8 Rejected OSR Var. dummy 3 metro (+) > non metro (-) no H9a Accepted DAU Var. dummy 1 urban (+) < district (+) significant H9b Rejected DBH Var. dummy 1 urban (-) < district (+) significant H10a Accepted DAU Var. dummy 2 JS (+) < non JS (+) significant H10b Accepted DBH Var. dummy 2 JS (+) < non JS (+) significant H11a Rejected DAU Var. dummy 3 metro (+) < non metro (+) no H11b Rejected DBH Var. dummy 3 metro (+) < non metro (+) no
H12 Accepted DAK Var. dummy 1 urban (+) > district (-) significant H13 Rejected DAK Var. dummy 2 JS (+) > non JS (-) significant H14 Rejected DAK Var. dummy 3 metro (+) > non metro (-) significant
Description:
JS: Java Sumatra
Non JS: Non Java Sumatra Metro: Metropolitan
Non Metro: Non Metropolitan