EFFICIENCY OF LOCAL GOVERNMENT AGAINST INDEKS DESA MEMBANGUN

Abstract

Abstract. Nawa Cita is a program that made by President of Republic Indonesia, Bapak Joko Widodo, this program aims to transform Indonesia into a politically sovereign country, which is independent in economy and culture’s personality. Strengthening the regions and rurals in municipal is the strategy to make this program can be implemented. One of criterion that can be used to strengthen the rural development is rural index. There are not only 3 dimensions developing rural index that affect rural development include social, economy and ecology, but also local government is a factor in the process of developing rural area. Local governments can provide enormous benefits for rural development if the factors can be managed appropriately. So, this research is aimed to find rurals that have been effcient and have not been efficient in managing local government factors. The objects of this research are 345 rurals in municipal in Indonesia. This research uses input oriented Variable Return to Scale ( VRS) Data Envelopment Analysis ( DEA) model to measure the technical efficiencies of the rurals in municipal and Mann Whitney U – Test to hypothesis testing to examine the significance level of the efficiencies.

 

Keywords: efficiency, Data Envelopment Analysis, developing rural index