An Analysis of Regional Economic Performance of Riau on the Capital Expenditure Budget: A Study of Indonesian Territorial Economics

Abstract

This study aims to assess the economic performance of Riau Province, Indonesia, both within the region and on a national scale. The research methodology used in this study is a descriptive statistical approach. The results of quantitative data processing are interpreted in an effort to develop the macroeconomic theories and frameworks relating to financial governance and regional budgets. The results of the study conclude that the economic performance of Riau has experienced a downward trend in recent years. In 2017, it reached IDR 471.42 trillion and grew about 2.71%, measured using Gross Regional Domestic Product (PDRB) at constant 2010 prices. In 2017, the Regional Expenditure Budget experienced a decline compared to 2016, in which it was IDR 35.44 trillion. Based on data analysis and interpretation, we propose frameworks for regional economic performance and the regional financial capability theory.