Understanding Public Policy in Regional Financial Management: A Narrative Approach to Analyzing Policy Implementation and Its Impact on Local Development

The discussion examined the relationship between local financial management, public policy, policy implementation, and their impact on local development. The focus of this discussion is on four main themes, namely financial inclusion, monetary policy, local financial strategies, and the role of the Small and Medium Enterprise (SME) sector. Through policy implementation analysis and a narrative approach, managerial and theoretical implications of each theme have been identified. The managerial implications highlight the importance of integrating public policies, considering monetary policy, developing human resources and infrastructure, adopting national industrial policies, and supporting the development of the SME sector in regional financial management strategies. Meanwhile, the theoretical implications emphasize the importance of understanding public policy, policy implementation, the role of the SME sector, and external factors in achieving the objectives of regional financial management and local development. This discussion provides important insights for practitioners and researchers in designing better public policies and optimizing regional financial management.


Introduction
Local financial management is a critical element in local governance. Local finance encompasses all financial resources managed by local governments to meet the needs of the the local context and face the challenges that exist. By applying a narrative approach, this research aims to understand and analyze public policies related to local finance, and their impact on local development. Through this research, it is hoped that new insights and innovative solutions can be found in local financial management that can promote sustainable and inclusive local development.
This research aims to understand public policy in local financial management using a narrative approach. Through analyzing policy implementation and exploring its impact on local development, this research is expected to provide a more comprehensive understanding of public policy and its implementation process in the context of local finance. Effective and sustainable local financial management offers important opportunities for local development, but also faces challenges such as transparency, accountability, capacity, and cooperation between central and local governments. Through an in-depth understanding of public policies related to local finance, it is expected that innovative and strategic solutions can be found to improve local financial management and its impact on sustainable and inclusive local development. This research is expected to make an important contribution to our understanding of public policy in local financial management. The results of this study can provide new insights for policy makers, practitioners, and academics interested in the field of local financial management and local development. This research can also serve as a basis for developing more effective and efficient policies in local financial management, as well as improving understanding of their impact on local development.
This research will focus on understanding public policy in local financial management using a narrative approach. Through analyzing policy implementation and exploring its impact on local development, this research aims to contribute to a deeper understanding of public policy and local financial management. The results of this research are expected to provide guidance for policy makers in improving the effectiveness and efficiency of local financial management, as well as optimizing its impact on sustainable local development.

Research Methods
This research will use a narrative approach and literature review method. The narrative approach will allow researchers to collect and analyze data collected from various narratives, both in the form of policy reports, case studies, and practitioners' experiences related to public policies in regional financial management. The literature review will be used to gain an in-depth understanding of theories and concepts related to public policy, local financial management, and their impact on local development. In collecting data, researchers will conduct a literature search through academic sources, scientific journals, government policy reports, and other related publications. The data collected will be analyzed thematically and narratively to identify trends, patterns, and impacts of public policies in local financial management.

Results and Discussion
Local financial management has been recognized as an important element in local governance. Local finance includes all financial resources managed by local governments to meet the needs of the community for effective development and public service delivery (Fölster & Henrekson, 2006). Public policies relating to local financial management play an important role in determining the effective and efficient use of financial resources, as well as their impact on sustainable local development.
At the same time, local financial management also faces significant challenges (Baldoni et al., 2021;Crawford & Irving, 2011;Mounier-Jack et al., 2020). The phenomenon of increasing regional autonomy provides great opportunities for local governments to manage their own financial resources. However, challenges such as a lack of local financial management capacity, financial risks, and potential inequality between regions have also emerged (Austin & Rahman, 2022;García Lara et al., 2022).
In this study, the narrative approach is used as a tool to understand and analyze public policies related to regional finance. The narrative approach allows researchers to collect and analyze data collected from various narratives, such as policy reports, case studies, and practitioners' experiences related to public policies in regional financial management. With this approach, the research can provide a more comprehensive understanding of public policy and its implementation process in the context of local finance.
Prior Research 1. This research was conducted by (Guo et al., 2021). The purpose of this research is to map the differences in Payment for Ecosystem Service (PES) policies in different regions to provide information that can be used in integrated management. The case study used in this research is the Yangtze River Economic Belt. The research used descriptive analysis and spatial mapping methods to analyze existing PES policies in the Yangtze River Economic Belt region. The researchers collected data on PES policies from various sources, including government policies, scientific literature, and other official documents. They then analyzed and mapped the differences in PES policies in different regions within the Yangtze River Economic Belt. The results show that there are significant differences in PES policies in different regions within the Yangtze River Economic Belt. These differences include the criteria for selecting conservation areas, the types of ecosystem services valued, the types of payees, and the payment rates set. This mapping provides valuable information for policy makers and managers in the region to develop effective integrated management strategies. This research makes an important contribution in understanding how PES policies differ in different regions and how this information can be used in integrated management. The results of this study can serve as a basis for policy makers to develop more effective and integrated PES policies in the Yangtze River Economic Belt and can serve as a reference for similar policy research and mapping in other regions. 2. Research conducted by (Oanh et al., 2023). The purpose of this study is to analyze the relationship between financial inclusion, monetary policy, and financial stability in countries with high and low levels of financial development. This study uses a comparative analysis method between countries with high and low levels of financial development. The data used in this study include indicators of financial inclusion, monetary policy, and financial stability collected from various sources such as reports of international financial institutions, national statistical data, and related research. The results show a complex relationship between financial inclusion, monetary policy and financial stability. In countries with high levels of financial development, higher financial inclusion tends to contribute positively to financial stability. Moreover, effective monetary policy can also strengthen this relationship by managing systemic risk. However, in countries with low levels of financial development, the relationship between financial inclusion, monetary policy and financial stability becomes more complex. While higher financial inclusion can provide social and economic benefits, this study shows that its effect on financial stability is not always positive. In this context, the role of monetary policy becomes more important to maintain financial stability. This research provides a better understanding of the relationship between financial inclusion, monetary policy, and financial stability in countries with different levels of financial development. The results can serve as a reference for policymakers to develop country-specific financial inclusion and monetary policy strategies and effectively maintain financial stability. 3. Research conducted by (Li & Shao, 2023). The purpose of this study is to analyze how financial development and strict environmental policies affect renewable energy innovation. This research also involves testing the Porter Hypothesis and going beyond the concept. This research uses statistical and econometric analysis methods using data on financial development, environmental policies, and renewable energy innovation from various sources, such as government reports, international institutions, and related academic research. The results show that there is a complex relationship between financial development, environmental policy stringency, and renewable energy innovation. This study found that better financial development can increase renewable energy innovation, especially in countries with higher levels of financial development.
On the other hand, stricter environmental policies can also encourage renewable energy innovation. In addition, this study goes beyond the concept of the Porter Hypothesis which states that strict environmental policies can promote innovation and efficiency. This research shows that the interaction between financial development and environmental policies can have different effects depending on different country contexts. This research provides important insights into the relationship between financial development, environmental policies, and renewable energy innovation. The results can guide policymakers in designing financial strategies and environmental policies that effectively promote renewable energy innovation. In addition, this study also makes a theoretical contribution by going beyond the concept of the Porter Hypothesis and exploring the more complex relationship between these factors. 4. Research conducted by Asri Usman, Hillman Wirawan, and Zulkifli. The purpose of this study was to analyze how human capital and physical capital affect regional financial conditions, as well as how the management control system moderates the relationship. This study uses statistical analysis methods and data collection from various sources, such as regional financial data, data on human capital and physical capital, and data on management control systems. This research also involves surveys or interviews with relevant parties to obtain more detailed information. The results show that human capital and physical capital have a significant influence on regional financial conditions. Human capital, such as education and labor skills, plays an important role in improving efficiency and productivity at the regional level. Meanwhile, physical capital, such as infrastructure and other physical assets, also contribute to economic growth and regional financial stability. This study also found that management control systems have a moderating effect on the relationship between human capital, physical capital, and regional financial conditions. A good management control system can improve the effective use of human capital and physical capital in achieving better financial conditions at the regional level. This study provides a better understanding of the importance of human capital and physical capital in influencing regional financial conditions. In addition, the findings regarding the moderating role of the management control system also provide practical implications for policy makers and managers to consider the importance of implementing an effective management control system to improve regional financial conditions. 5. This research was conducted by (Xie et al., 2022). The purpose of this study is to analyze whether national industrial policy can improve financial market stability, focusing on the risk of falling stock prices. This study uses statistical analysis methods and collects stock price data from various sources, as well as data related to national industrial policies. This study also considers other controlling factors that can affect financial market stability, such as macroeconomic factors and other control variables. The results show that national industrial policy can affect financial market stability, especially in terms of reducing stock price crash risk. In the context of this study, a well-implemented national industrial policy is likely to reduce stock price crash risk and improve financial market stability. This research provides important insights into the relationship between national industrial policy and financial market stability. The results may provide a better understanding for policymakers and financial market regulators in designing and implementing industrial policies that promote financial market stability. This study can also serve as a basis for further research on the relationship between industrial policy and financial market stability. 6. Research conducted by (García-Pérez-de-Lema et al., 2022). The purpose of this study is to analyze the operational, financial, and investment impacts of the Covid-19 pandemic on Small and Medium Enterprises (SMEs), as well as evaluate the demands of public policy for sustainable recovery by considering the moderating effects of the economic sector. This research utilizes statistical analysis methods and data collection from surveys and interviews with SME owners. The data collected includes information on the operational, financial, and investment impacts caused by the Covid-19 pandemic, as well as factors affecting recovery and public policy demands. The results showed that the Covid-19 pandemic had a significant impact on SMEs, including decreased revenue, poor liquidity, and investment delays. In addition, the study found that the economic sector has a moderating effect on the impact of the pandemic, with some sectors suffering more severely than others. The research also concludes that a sustainable recovery from the Covid-19 pandemic requires public policy actions that consider the characteristics of different economic sectors. In this context, public policy demands include greater financial support, technical assistance, and government-backed investment opportunities. This research provides important insights into the impact of the Covid-19 pandemic on SMEs and public policy needs for sustainable recovery. The results can guide policymakers in designing effective recovery strategies for the SME sector, considering the moderating factors of the economic sector. In addition, this study also underscores the importance of the government's role in providing appropriate support and policies to support the sustainable recovery of SMEs. 7. This research was conducted by (Helseth et al., 2020). The purpose of this study was to analyze whether policy risk and financial risk can be used to predict stock market movements. This study uses statistical and econometric analysis methods using data on policy risk and financial risk, as well as stock price data from the stock market. The data used includes indicators of policy risk, such as changes in government policy or economic policy, and indicators of financial risk, such as market volatility or corporate leverage. The results show that policy risk and financial risk can provide useful information in predicting stock market movements. The study found that government policy changes and financial risk factors can have a significant influence on stock prices. This study provides important insights into the relationship between policy risk, financial risk, and stock market movements. The results may benefit investors and market participants in developing more effective investment and risk management strategies. In addition, this study also contributes to our understanding of the factors that influence the stock market and how risk information can be utilized in making investment decisions. 8. Research conducted by (Bickley et al., 2021). The purpose of this study was to analyze the stabilizing effect of social distancing practices in response to the COVID-19 pandemic policy on financial markets, considering differences between countries. This study uses statistical and econometric analysis methods using financial market data and COVID-19 pandemic policies from various countries. The data used includes information on financial market volatility, public health policies, and indicators of social distancing practices in the countries studied. The results show that there are significant differences in financial market responses to COVID-19 pandemic policies and social distancing practices in different countries. This study found that social distancing practices have a significant stabilizing effect on financial markets. In countries where social distancing practices are more stringent, financial market volatility tends to be lower, indicating a more stable market response to pandemic policies. This study provides important insights into the importance of social distancing practices in maintaining financial market stability during the COVID-19 pandemic. The results can provide valuable information for policymakers in designing effective pandemic policies and to help reduce financial market volatility in times of crisis. This research also underscores the importance of international cooperation and cross-country comparisons in studying financial market responses to pandemic policies and public health practices. 9. This research was conducted (Feyen et al., 2021). The purpose of this study is to analyze the financial sector policy response to the COVID-19 pandemic in emerging markets and developing economies. This research uses descriptive analysis methods and case studies to analyze financial sector policies taken by developing countries and emerging economies in response to the COVID-19 pandemic. The data used includes government policies related to the financial sector, economic stimulus measures, and risk mitigation efforts taken by financial authorities. The results show variations in financial sector policy responses among developing countries and emerging economies to the COVID-19 pandemic. The research identifies various policies adopted, including liquidity policies, financing policies, real sector support, and regulatory and supervisory measures. In addition, the research also highlights the specific challenges faced by developing countries and emerging economies in addressing the impact of the COVID-19 pandemic on their financial sectors. This research provides important insights into the financial sector policy response in developing countries and emerging economies during the COVID-19 pandemic. The results of this study can serve as a reference for policymakers in designing effective policy response strategies to maintain financial sector stability and support economic recovery in times of crisis. This research also contributes to our understanding of the challenges and opportunities faced by developing countries and emerging economies in the face of the global financial crisis. 10. This research was conducted by (Zhang et al., 2020). The purpose of this study was to analyze financial market movements under the global pandemic COVID-19. This study uses descriptive and statistical analysis methods to analyze financial market data collected during the COVID-19 pandemic period. The data used includes stock market indices, interest rates, market volatility, and other relevant factors. The results showed that the COVID-19 pandemic had a significant impact on financial markets around the world. The research found a sharp decline in stock market indices, an increase in market volatility, and a decline in interest rates in response to the pandemic. In some cases, the research also found correlations between economic factors and health factors associated with the pandemic. This research provides important insights into financial market movements during the COVID-19 pandemic. The results of this study can help investors and market participants in understanding the impact of the pandemic on financial markets and in making informed investment decisions amid high economic uncertainty. This research can also contribute to our understanding of the relationship between health and economic factors in the context of a global pandemic. 11. Research conducted by (Andersson & Grundel, 2021). The purpose of this study was to analyze regional policy mobility in shaping and changing bioeconomy policies in the Värmland and Västerbotten regions, Sweden. The research used a qualitative approach with case studies in the Värmland and Västerbotten regions. Data were collected through interviews with stakeholders, analysis of policy documents, and participatory observation. The results show that regional policy mobility plays an important role in shaping and changing bioeconomy policies in Värmland and Västerbotten counties. This mobility involves the exchange of knowledge, experience and practices between actors involved in the policy process. The research reveals the policy transfers that take place between the regions, both horizontally between the same regions, and vertically between different levels of government. This research provides important insights into the dynamics of regional policy mobility in the context of bioeconomy policy. The results can provide valuable information for policy makers and practitioners in Värmland, Västerbotten, and other regions interested in developing bioeconomy policies. The research also makes a theoretical contribution to our understanding of how policy mobility can shape and change policy at the regional level. 12. Research conducted by Moritz Baer, Emanuele Campiglio, and Jérôme Deyris. The purpose of this research is to analyze institutional dynamics and climate-related financial policies. The research uses an analytical and conceptual approach with a focus ATESTASI: JURNAL ILMIAH AKUNTANSI Vol 6, Issue 1, (2023), 197 -216 205 on the interaction between institutions and climate-related financial policies. The research considers factors such as policy frameworks, financial regulations, and interactions between various actors, including governments, financial institutions, and civil society. The results show that institutional dynamics play an important role in the formation and implementation of climate-related finance policies. The research highlights the complex interactions between financial institutions and climate policies, including factors such as regulation, financial incentives, and civil society demands. It also shows that institutional changes can influence the direction and success of climaterelated finance policies. This research provides important insights into the institutional factors that influence climate-related financial policies. The results of this study can serve as a reference for policymakers and practitioners in designing and implementing financial policies that are sustainable and responsive to climate change. It also makes a theoretical contribution to understanding institutional dynamics in the context of finance and climate.

Synthesis and Hypothesis
Based on a summary of the 12 studies that have been presented, several conclusions can be drawn that are relevant to the research theme Understanding Public Policy in Regional Financial Management: A Narrative Approach in Analyzing Policy Implementation and Its Impact on Local Development". These conclusions include: Research in the field of local financial management has provided a better understanding of the relationship between various relevant factors. The first study, conducted by Oanh et al. (2023), reveals the importance of financial inclusion and country-specific monetary policies. These findings can serve as a basis for policy makers in designing financial inclusion strategies and monetary policies that can enhance local financial stability. The next study, conducted by Li & Shao (2023), highlights the complex relationship between financial development, environmental policies, and renewable energy innovation. The results of this study provide important insights for policymakers in designing financial strategies and environmental policies that effectively promote renewable energy innovation. Furthermore, research by Asri Usman, Hillman Wirawan, and Zulkifli shows that human capital and physical capital have a significant influence on regional financial conditions. This finding is relevant to research that wants to understand public policy in regional financial management, as it emphasizes the importance of developing human resources and infrastructure to achieve better financial stability at the regional level.
Research by Xie et al. (2022) revealed that national industrial policy can affect financial market stability in the region. This finding provides important insights into the relationship between national industrial policy and financial market stability, which is relevant to the research theme of understanding public policy in regional financial management. The results of this study can provide valuable information for policymakers in designing and implementing industrial policies that promote financial market stability in the region. Furthermore, research by García-Pérez- de-Lema et al. (2022) highlights the impact of the COVID-19 pandemic on the SME sector and the need for public policies for sustainable recovery. These findings can guide policymakers in designing effective recovery strategies for the SME sector in the context of regional financial management.
Research by Helseth et al. (2020) provides important insights into the factors that influence the stock market and how risk information can be utilized in investment decision making. These findings are relevant to the research theme that wants to understand public policy in regional financial management, because public policy can affect financial risk and stock market movements at the local level. Research by Bickley et al. (2021) emphasizes the importance of social distancing practices in maintaining financial market stability when facing a crisis. The relevance of these findings to the research theme lies in the influence of public policies related to social distancing practices in regional financial management in times of crisis such as the COVID-19 pandemic. Research by Feyen et al. (2021) provides important insights into financial sector policy responses in developing countries and emerging economies during the COVID-19 pandemic. This finding is relevant to the research theme that wants to understand public policy in regional financial management, because regional financial management can be influenced by financial sector policies taken in response to the crisis. Research by Wang et al. (2022) provides insight into the importance of responsive and adaptive fiscal policies in managing regional finances when facing a crisis. These findings can serve as a reference for policymakers in designing effective fiscal strategies for local economic recovery. Recent research by Wang et al. (2021) shows that comprehensive and integrated policies, involving various sectors and stakeholders, have the potential to achieve better results in local financial management. This finding is relevant to the research theme of understanding public policy in local financial management, as it emphasizes the importance of a comprehensive approach in formulating local financial policies and strategies. Overall, the summary of these studies provides important insights into various aspects of public policy in local financial management and its impact on local development. The findings underscore the importance of an in-depth understanding of the relationship between public policy, local finance, and economic development in designing effective strategies to promote sustainable and inclusive local development.
Based on the research that has been conducted, the hypotheses that can be developed related to understanding public policy in local financial management, with a narrative approach in analyzing policy implementation and its impact on local development are: 1. Hypothesis 1: Implementation of public policies that support financial inclusion, country-specific monetary policies, and human capital and infrastructure development will contribute to better local financial stability and regional economic development. 2. Hypothesis 2: Public policies that integrate financial development, environmental policies, and renewable energy innovation will promote sustainable economic growth and improve environmental quality in the region. 3. Hypothesis 3: National industrial policies supported by appropriate public policies will have a positive impact on local financial market stability and promote industrial growth in the region. 4. Hypothesis 4: Pandemic-responsive public policies, including SME sector recovery and adaptive financial sector policies, will support local economic recovery after the crisis and promote SME sector growth.

Hypothesis 5:
A comprehensive and integrated public policy approach, involving various sectors and stakeholders, will achieve better results in local financial management and promote sustainable local development.
In analyzing policy implementation and its impact on local development, a narrative approach can provide a deeper understanding of the context, challenges and opportunities faced in local financial management. By testing these hypotheses, we can gain better insight into how public policies can shape the local financial environment and promote sustainable economic growth and inclusive local development.
Based on the interpretation of this research, it can be concluded that the keywords in this research synthesis consist of: Financial Inclusion and Monetary Policy, Local financial strategies in creating local financial stability, Human resource development and infrastructure in supporting Local Financial Management, National industrial policy in maximizing Local Financial Management, SME sector as part of the variables in maximizing local finance, Fiscal policy, and Policy implementation.
Local financial management is an important aspect of local development. A good understanding of public policy and its implementation can have a positive impact on regional development. In this context, financial inclusion and monetary policy play a central role. Financial inclusion includes efforts to expand access to financial services to all people, including in remote areas. Meanwhile, monetary policy includes decisions and actions taken by the central bank to regulate money supply, interest rates, and other factors that affect the regional economy. In this discussion, we will explain the relationship between financial inclusion, monetary policy, public policy, and local development.

Financial Inclusion and Monetary Policy
Financial inclusion is a concept that involves access to and use of financial services by all segments of society. This includes access to banks, insurance, credit, and other financial products. Good financial inclusion can strengthen economic stability and promote inclusive growth. In the context of public policy, local governments have an important role to play in promoting financial inclusion in their areas. They can adopt policies that encourage financial institutions to provide financial services to people in remote areas and marginalized groups. Monetary policy, on the other hand, relates to the decisions and actions of central banks in regulating money supply, interest rates, and other policies that affect economic stability. Monetary policy decisions can have a direct impact on public policy and local financial management. For example, interest rate adjustments can affect the cost of borrowing accessed by local governments to fund development projects. Therefore, an in-depth understanding of monetary policy and its relationship with local financial management is crucial for sustainable local development.

Implementation of Public Policy in Regional Financial Management
Implementation of public policies in regional financial management is the concrete steps taken by local governments to implement established policies. Effective implementation involves coordination between various stakeholders and adequate resources. In the context of local finance, public policy implementation involves proper budget allocation, local revenue collection, and efficient use of financial resources. The narrative ATESTASI: JURNAL ILMIAH AKUNTANSI Vol 6, Issue 1, (2023), 197 -216 208 approach in analyzing public policy implementation allows for a better understanding of how policies are implemented and their impact on local development. In this approach, stories and narratives are used to describe the policy implementation journey and the challenges faced by local governments. This approach helps to see the implementation process as a complex story, with various parties involved and the dynamics that occur.

Impact of Policy Implementation and Financial Inclusion on Local Development
Effective policy implementation in local financial management can have a significant positive impact on local development. When public policies relevant to financial inclusion are well implemented, access to financial services can be expanded, especially in remote areas and marginalized groups. This allows people to access financial products such as savings, loans, and insurance, which in turn can boost local economic activity, create jobs, and reduce poverty. In addition, prudent monetary policy can also support sustainable local development. Decisions on interest rates and other monetary settings can affect the investment climate in the area. When interest rates are low or stable, local governments can gain access to more affordable sources of funding for development projects. This can stimulate economic growth, improve infrastructure, and enhance the quality of life of local communities.
Local financial stability is an important objective in local financial management. A good understanding of public policies and their implementation can contribute positively to the achievement of financial stability at the local level. In this context, local financial strategies play a key role. The strategy involves the measures and policies taken by local governments to manage budgets, revenues, and expenditures to achieve financial stability. In this discussion, we will explain the relationship between local financial strategy, public policy, and local development through a narrative approach in analyzing policy implementation and its impact.

Local Finance Strategy and Local Financial Stability
Local financial strategies include a range of policies and measures designed to achieve financial stability at the local level. It involves prudent budget management, monitoring of revenues and expenditures, and other policies that may affect the local financial balance. The strategy aims to create fiscal sustainability, avoid excessive budget deficits, and minimize the risk of bankruptcy. Local financial stability has a significant impact on local development. When local finances are stable, governments have a better ability to fund development programs, improve infrastructure, and deliver quality public services. In addition, financial stability also creates a favorable investment climate, promotes economic growth, and creates jobs for local communities.

Public Policy and Policy Implementation in Regional Financial Management
Public policy plays an important role in local financial management. These policies include decisions taken by local governments in regulating budgets, revenues, expenditures, and other policies related to local finances. Effective public policy implementation is a key step in achieving financial stability. The narrative approach in analyzing public policy implementation helps to understand the processes and dynamics that occur in local financial management. In this approach, stories and narratives are used to explain how policies are implemented, the challenges faced, and the impacts that occur. This narrative approach enables a deeper understanding of the role of public policy in achieving local financial stability and its effects on development.

Impact of Local Finance Policy and Strategy Implementation on Local Development
Good implementation of local financial policies and strategies has a significant impact on local development. When public policies and local financial strategies are effectively implemented, financial stability can be achieved. Impacts include: 1. The ability of local governments to fund development and infrastructure programs that support local economic growth. 2. Improved quality public services for communities, such as education, health and basic infrastructure. 3. Increased local investment, which drives economic growth, creates jobs, and improves community welfare. 4. Reduced risk of bankruptcy and excessive budget deficits, which can hamper the ability of local governments to implement long-term development policies.

Development of human resources and infrastructure to support Regional Financial Management
Local financial management is an important aspect of local development. To achieve effective financial management, human resource development and infrastructure play a crucial role. Skilled human resources and good infrastructure can improve the ability of local governments to manage budgets, revenues, and expenditures efficiently. In this discussion, we will discuss the importance of human resource development and infrastructure in local financial management and link it to the understanding of public policy, policy implementation, and its impact on local development.
Human resource development is an important step in improving the ability of local governments to manage local finances well. Skilled and knowledgeable human resources in public finance can make a significant contribution to developing and implementing effective policies. Continuous training, education and skills development are needed to strengthen local financial capacity. In the context of public policy, it is important for local governments to adopt policies that support human resource development in public finance. This involves investing in financial training and education for local government staff, as well as the recruitment and retention of qualified financial experts. Thus, human resource development can improve competence and professionalism in local financial management.

Infrastructure in Regional Financial Management
Good infrastructure is an important foundation for effective local financial management. Adequate infrastructure, such as information and communication technology, integrated accounting systems, and supportive physical infrastructure, can assist in the efficient collection, processing, and reporting of financial data. This enables local governments to make informed decisions in financial management. In public policy, proper planning and budget allocation are required to build the necessary infrastructure in local ATESTASI: JURNAL ILMIAH AKUNTANSI Vol 6, Issue 1, (2023), 197 -216 210 financial management. Investment in reliable financial infrastructure and advanced information technology systems can speed up the financial reporting process, reduce bureaucracy, and increase transparency in local financial management.

Impact of Human Capital and Infrastructure Development on Local Development
Human resource development and infrastructure in local financial management have a significant impact on local development. When human resources are improved, the quality of local financial management improves, and better policies can be formulated and implemented. This has a direct impact on efficiency and transparency in budget use, revenue and expenditure management, and improved public services to communities. Good infrastructure also supports sustainable local development. Adequate infrastructure improves connectivity between regions, facilitates economic growth, and encourages investment. For example, reliable information technology infrastructure enables the implementation of efficient and transparent financial systems, while good physical infrastructure strengthens financial accessibility and connectivity necessary for local economic growth.

National industrial policy in maximizing Regional Financial Management
National industrial policy plays an important role in maximizing local financial management. The policy includes strategic measures taken by the government to develop the industrial sector at the national level. In this context, a good understanding of public policy in regional financial management is essential. In this discussion, we will discuss the relationship between national industrial policy, public policy, local financial management, as well as their impact on local development through policy implementation analysis.
National industrial policy is a set of policies and actions taken by the government to promote and develop the industrial sector at the national level. This policy involves regulating trade policy, investment, intellectual protection, infrastructure, research and development, and other relevant aspects. The objective of the national industrial policy is to encourage economic growth, job creation, and increase the competitiveness of industries in the country. In the context of regional financial management, national industrial policy plays an important role. Strong industrial sector growth in the region can increase regional income through the sector's contribution to GDP and taxes generated. In addition, national industrial policy can also provide opportunities for local governments to develop local industrial sectors and attract investment to their regions, which in turn can have a positive impact on local financial management.

Public Policy in Regional Financial Management and Implementation of National Industrial Policy
Public policy plays a key role in local financial management and the implementation of national industrial policy. Good public policy includes planning, budgeting, and implementing policies relevant to local financial management. In the context of national industrial policy, local governments should have a good understanding of the policy and integrate it into their local development plans. Implementation of the national industrial policy requires cooperation between the central government and local governments. Local governments need to develop policies and regulations that support the development of the local industrial sector, facilitate investment, and encourage innovation and research. The central government, on the other hand, should provide policies that incentivize regions to develop their industrial sectors. Through the synergy between public policies and the implementation of national industrial policies, local financial management can be improved and have a positive impact on local development.

Impact of National Industrial Policy on Local Development and Regional Financial Management
An effective national industrial policy can have a significant impact on local development and financial management. The growth of the local industrial sector can create new jobs, increase community income, and drive economic growth. It can contribute to local financial management through increased tax revenue and reduced local financial burden in providing public services and infrastructure. In addition, the development of the industrial sector can also reduce dependence on central government transfers and other sources of revenue. By having a strong industrial sector, local governments can increase their own local revenue, which allows them to have more independence in financial management and local development.

SME sector as part of the variables in maximizing regional finance
The Small and Medium Enterprise (SME) sector plays an important role in maximizing local finance. SMEs are a significant source of economic growth, create jobs, and make a sustainable contribution to local development. In this context, an understanding of public policy in local financial management is crucial. In this talk, we will discuss the relationship between the SME sector, public policy, local financial management, as well as their impact on local development through policy implementation analysis.

The Role of the SME Sector in Regional Financial Management
The SME sector has a significant role in regional financial management. SMEs collectively contribute to GDP, job creation, and unemployment reduction in the region. The growth of the SME sector also encourages local economic development and diversification of regional income. SMEs are often the backbone of the regional economy by engaging local communities in production and trade activities. In public policy, it is important for local governments to adopt policies that support the development of the SME sector. This involves providing incentives, access to finance, training, and mentoring for SME actors. Local governments should also create a conducive business climate, such as clear regulations and efficient licensing processes. Thus, local financial management can be improved through the development of the SME sector.

Implementation of Public Policy to Encourage SME Sector Development
Effective public policy implementation is an important factor in maximizing the SME sector's contribution to local finance. Local governments need to properly implement established policies and ensure that the necessary incentives, financing, and training are available to SMEs. In addition, efficient licensing and regulatory processes are also crucial to support the growth and development of SMEs. In the context of public policy, collaboration between local governments, financial institutions, and the private sector is also important in promoting the development of the SME sector. For example, local governments can establish partnerships with financial institutions to provide easier access to financing for SMEs. Such support can help SMEs grow and develop, which in turn can increase their contribution to local finances.

Impact of SME Sector Development on Local Development and Local Financial Management
The development of the SME sector has a significant impact on local development and regional financial management. SME sector growth can create new jobs, reduce unemployment, and drive the local economy. In terms of local financial management, the growth of the SME sector contributes to increased local revenue through tax contributions and business income. In addition, SMEs can also reduce the region's dependence on transfers from the central government. SME sector development also has positive social impacts. SMEs are often involved in local community empowerment, women's involvement, and poverty alleviation. By creating employment opportunities and economic independence at the local level, the SME sector makes an important contribution to improving people's quality of life. The SME sector plays a crucial role in maximizing local finance and local development. Through a good understanding of public policy, policy implementation, and its impact on local financial management, local governments can effectively promote the growth and development of the SME sector. Appropriate support from local governments, such as incentives, financing, and conducive regulations, will facilitate the sustainable development of the SME sector. As such, the SME sector will contribute more to local financial management, create jobs, and drive inclusive local economic growth.

Conclusion
In our discussions on local financial management and its linkages to public policy, policy implementation, and impact on local development, several key themes have emerged. We have discussed financial inclusion, monetary policy, local finance strategy, human capital and infrastructure development, national industrial policy, and the role of the Small and Medium Enterprise (SME) sector in maximizing local finance. Let's summarize the conclusions from each of these themes.
First, financial inclusion is an important factor in regional financial management. By encouraging access to financial services, such as banking, insurance, and capital markets, local governments can increase people's participation in the financial system and improve their access to financing and investment. Financial inclusion also has an impact on local economic development and improving people's welfare. Through public policies that promote financial inclusion, local governments can create a conducive environment for inclusive and sustainable economic growth.
Second, monetary policy plays an important role in local financial management. Effective monetary policy, implemented by the central bank, can influence interest rates, liquidity, and currency stability at the subnational level. An accommodative monetary policy can boost regional economic growth and facilitate investment. However, a tight monetary policy can hinder access to finance and local economic growth. Therefore, it is important for local governments to understand monetary policy and link it with local financial strategies to achieve optimal financial stability.
Third, local financial strategy plays a key role in creating local financial stability. In local financial management, it is important for local governments to adopt policies that support financial stability, manage budgets well, and minimize the risk of bankruptcy. Local financial stability has a significant impact on local development, including the ability of local governments to fund development programs, improve public services, and create a favorable investment climate. Through a narrative approach in analyzing policy implementation and its impact, local governments can understand the challenges, successes, and lessons learned to improve local financial management.
Fourth, human resources and infrastructure development are important factors in local financial management. Improving the quality of human resources, such as training, education, and financial skills development, can improve the ability of local governments to manage budgets, revenues, and expenditures efficiently. Adequate infrastructure, whether in terms of information and communication technology, accounting systems or physical infrastructure, facilitates the efficient collection, processing and reporting of financial data. In public policy, proper budget planning and allocation is required to build the necessary infrastructure for local financial management. Investment in human resources and infrastructure can improve the effectiveness of local financial management and support sustainable local development.
Fifth, national industrial policy plays an important role in maximizing regional financial management. National industrial policy involves strategic steps taken by the government to develop the industrial sector at the national level. Strong industrial sector growth in the region can increase local revenue through the sector's contribution to GDP and the taxes it generates. National industrial policy also provides opportunities for local governments to develop the local industrial sector and attract investment to their regions. By integrating national industrial policies into local financial management public policies, local governments can strengthen local economic growth and achieve sustainable financial stability.
Finally, the Small and Medium Enterprises (SMEs) sector plays a crucial role in maximizing local finance. SMEs are the backbone of the local economy by contributing significantly to GDP, creating jobs, and driving local economic growth. Through public policies that support the development of the SME sector, such as incentives, access to finance, and a conducive business climate, local governments can increase the contribution of SMEs to local finance and local development. Appropriate support from local governments and partnerships with financial institutions and the private sector can reinforce SME sector development and strengthen local finances. Overall, a good understanding of public policies in local financial management, policy implementation, and their impact on local development is essential. Effective integration of public policies with local financial management strategies can create a conducive environment for local economic growth, financial stability, and sustainable development. In analyzing policy implementation and its impact, local governments can gain valuable insights to improve local financial management and achieve better local development goals.
Managerial Implications: Local financial management needs to integrate public policies related to financial inclusion. This involves efforts to encourage people's access to financial services, such as banking, insurance, and capital markets. Local governments need to work with financial institutions to provide financial products and services that suit the needs of the community, including SMEs. In addition, local governments can consider incentive initiatives to encourage community participation in the financial system. Monetary policy implementation should be an important consideration in local financial management. Local governments need to understand the implications of monetary policy on interest rates, liquidity, and currency stability. In this regard, they can work closely with the central bank and financial institutions to monitor monetary conditions and adapt local financial strategies accordingly.
In local financial management, an effective financial strategy should include human resources and infrastructure development. Local governments need to engage skilled and trained staff in public finance, as well as ensure adequate information technology infrastructure to support efficient collection, processing and reporting of financial data. Investment in human resource development and infrastructure should be prioritized to improve local financial management capacity. Local governments should consider national industrial policies in formulating financial management strategies. In this regard, they can collaborate with the central government and relevant agencies to identify potential industrial sectors that can be developed in their areas. Providing incentives, financing facilities, and improving industrial infrastructure should be part of a comprehensive regional financial strategy. As part of the regional financial management strategy, the SME sector needs special attention. Local governments can adopt policies that support SME development, such as providing access to affordable financing, providing training, and mentoring for SMEs, and creating a conducive business climate. In this regard, collaboration with financial institutions and the private sector can strengthen local government efforts in developing the SME sector.
Theoretical Implications: The theoretical implication of this discussion is the importance of understanding public policy in local financial management. Public policy theories, such as public decision theory and policy analysis, can be used to understand the policy-making process related to local financial management. This theoretical implication emphasizes the importance of involving stakeholders, integrating policies, and considering the impact of policies on local development. Another theoretical implication is the importance of effective policy implementation in achieving local financial management objectives. Policy implementation theories, such as rational implementation theory and applied policy theory, can provide insights into the factors that influence policy implementation and how they can impact local financial management outcomes. These theoretical implications highlight the importance of coordination, institutional capacity, and monitoring in the policy implementation process. Another theoretical implication is the role of the SME sector as an important part of local financial management. Local economic development theory and economic growth theory can be used to understand the contribution of the SME sector in improving local finance and local development. This theoretical implication emphasizes the importance of involving the SME sector in local financial planning and creating an environment conducive to the growth of the sector. The final theoretical implication is the importance of considering external factors, such as monetary policy and national industrial policy, in local financial management. Economic policy theory can be used to understand how national economic policies affect local financial management and local development. This theoretical implication highlights the importance of coordination between the central government and local governments in formulating mutually supportive policies.
Overall, the managerial implication of this discussion is the importance of integrating public policies related to financial inclusion, monetary policy, human resource and infrastructure development, national industrial policy, and SME sector development in local financial management strategies. Local governments need to understand the theoretical implications of these aspects to design effective strategies and improve local finance and local development holistically.