Increasing Regional Original Income (PAD) Using Cloud Computing Information Communication Technology

Abstract

The demographic bonus momentum in Indonesia has become a tremendous potential for economic growth, provides the widest possible prosperity of the Indonesian people. It could be realized by using technology. Technology both in the central and local government of Indonesia depends on Government and each region local budget (APBN and APBD). Technology budgeting in the APBN and APBD is very dependent on state and regional income. This study aims to examine empirical evidence on whether technology can be financed by Regional/local district Income and analyze whether cloud computing technology could increase Regional Original Income (PAD). The sample uses the district government Yogyakarta, the first phase we examine whether Regional Original Income (PAD), General Allocation Fund (DAU), and Special Allocation Fund (DAK) can finance Capital Expenditures (technology) and the second phase we analyze how to increase PAD through Cloud computing technology. Descriptive analysis of PAD, DAU and DAK data in financing technology and analysis of using cloud computing technology in order to improve PAD. The Research using four districts and one capital city in Yogyakarta. Using secondary data from 2006-2015 realized APBD, we analyzed whether the four districts and one capital city could finance the capital expenditures (technology). Using PLS We examined whether PAD, DAU, and DAK be able to finance the technology, and We analyzed whether cloud computing can improve PAD. The results conclude that technology spending in district budget cannot fully be financed by PAD, DAU, and DAK. Furthermore, DAU does not significantly affect capital expenditure (technology), but PAD and DAK positively influence the capital expenditure (technology). It is a different phenomenon findings that DAU does not significantly affect capital expenditure (technology). In order to make Indonesia is one of a developing country in the world, We conclude the demographic bonus momentum requires technology as well as computing cloud technology. Moreover Indonesia needs to increase and utilize PAD, DAK, and DAU to finance capital expenditure (technology).