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Fella Nur Fauziyah
Journal of Business Management and Entrepreneurship (2026)
Purpose: This article measures how large, how unequal and how stable are the returns that Indonesian local governments receive from their regionally owned enterprises (BUMD), and compares these returns with the capital the governments inject. Design/methodology/approach: A national panel of public budget realisation data covers every province, regency and city listed by the Ministry of Finance in 2019–2025 (3,806 government-years; 546 governments). After transparent screening of incomplete reports, 3,250 government-years (85.4%) are analysed. Returns are measured as proceeds from separated regional assets (HPKD) relative to own-source revenue and total revenue; effect sizes carry bootstrap 95% confidence intervals. Findings: HPKD equals about 3% of national own-source revenue and a median 0.44–0.49% of total revenue. Returns are concentrated (Gini 0.72, 95% CI 0.66– 0.76) and persistent (year-to-year rank correlations above 0.90). Relative to own- source revenue, regencies receive more than provinces (median difference 2.7 points), but the order reverses against total revenue. Most injecting governments received more than they injected (median cover 2.58), yet provinces injected Rp 43.9 trillion and received Rp 29.3 trillion; injection intensity is only weakly associated with later returns (ρ = 0.12). Originality/value: This is the first complete-frame national evidence on the owner's cash relationship with regional enterprises in Indonesia. It informs revenue planning and capital-injection