Articles
DOI DOI: 10.62441/actainnovations.v63i.1134

COMPARATIVE ANALYSIS OF THE FINANCIAL CONDITIONS OF ACEH AND NORTH SUMATRA PROVINCES

Laelis Neni1, Lily Karlina Nasution 2, Junus Sinuraya3, Mayang Murni 4, Agustina Nurul Fajriah5, Nurlela2
  1. 1 Departement of Accounting, LP3I Medan Polytechnic, Medan, Indonesia.
  2. 2 Departement of Accounting, LP3I Medan Polytechnic, Medan, Indonesia.
  3. 3 Departement of Computer Engineering, Medan State Polytechnic, Medan, Indonesia.
  4. 4 Departement of Accounting, Samudra University, Langsa, Indonesia.
  5. 5 Departement of Accounting, Samudra University, Langsa, Indonesia.

Abstract

This study aims to analyze the comparison of regional financial conditions between Aceh Province and North Sumatra Province, focusing on three key indicators: service solvency, financial flexibility, and financial independence. The background of this study lies in the difference in fiscal authority between the two provinces, where Aceh enjoys special autonomy status while North Sumatra does not. A quantitative comparative approach was employed, using secondary data obtained from regional government financial re s reports, and publications by the Central Statistics Agency (BPS). Data were analyzed using the independent sample t-test to determine the significance of differences in financial conditions between the two provinces. The results show a significant difference between Aceh and North Sumatra in all three financial indicators, with a significance value (Sig. 2-tailed) < 0.05. North Sumatra demonstrates relatively better fiscal stability and financial flexibility, while Aceh remains highly dependent on central government transfers and special autonomy funds. Based on the Regional Financial Condition Index (IKK) classification, of the 33 districts/cities in North Sumatra, 4 are categorized as good, 27 as fair, and 2 as poor. Meanwhile, in Aceh, out of 23 districts/cities, 5 are categorized as good, 13 as fair, and 5 as poor. These findings indicate that although Aceh possesses fiscal privileges through special autonomy funding, its regional financial management is not yet as effective as that of North Sumatra, which has a more diversified economic base. This study is expected to provide a reference for regional governments in formulating policies to strengthen fiscal independence, public spending efficiency, and optimization of local revenue (PAD) in the future.

How to Cite

Neni, L., Nasution , L. K., Sinuraya, J., Murni , M., Fajriah, A. N., & Nurlela. (2026). COMPARATIVE ANALYSIS OF THE FINANCIAL CONDITIONS OF ACEH AND NORTH SUMATRA PROVINCES. ACTA INNOVATIONS, 63, 661–675. https://doi.org/10.62441/actainnovations.v63i.1134
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