CORRELATION BETWEEN PERFORMANCE MEASURES AND DEVELOPMENT OUTPUT: RELATIONSHIP ANALYSIS OF EKPPD AND HDI

Abstract

Indonesia’s central government mandated that its municipalities are subject to performance evaluation entitled “Evaluasi Kinerja Penyelenggaraan Pemerintah Daerah”/ EKPPD. As it is embedded within other public sector performance measures, EKPPD is demanded to represent wide array of life quality dimensions. This research aims to analyze how far EKPPD can represent general achievement of development, relatively compared to HDI as a representation of widely-accepted general welfare indicators. The research uses regression method to create inferences from panel data of 492 municipalities along the years of 2009-2012. Result shows that EKPPD aggregate score and EKPPD sectoral score of health are positively correlated to HDI. It implies that all the three measures have reflected the same dimension intendedly measure, which is life qualityacross education, health, and welfare aspects. However, EKPPD sectoral score of education is not significantly correlated to HDI. It may be rooted from the incompatibility of several components calculated on the generic aspect of policy implementation in education sector. Comparing between urban and nonurban municipalities, there is no difference of correlation observed between EKPPD aggregate and sectoral score on HDI. Thus, EKPPD aggregate score is representative on both society structures