THE EFFECT OF ELECTIONS ON CAPITAL EXPENDITURE AND SOCIAL ASSISTANCE EXPENDITURE

The purpose of this study was to determine the differences in the allocation of capital expenditures and social assistance expenditures before and during the election of regional heads. This study uses the Wilcoxon test as a non-parametric test. The results showed that the proportion of capital expenditure and social assistance expenditure during the election was not greater than the proportion of capital expenditure and social assistance expenditure before the election. However, the proportion of capital expenditure during the election was not different from before the election.


INTRODUCTION
Based on the Government Regulation of the Republic of Indonesia Number 58 of 2005 concerning Regional Financial Management, it is stated that the regional head as the head of the regional government is the holder of the power of regional financial management in the ownership of separated regional assets, so that as the holder of the power of regional financial management has the authority to determine policies on the implementation of the APBD. The incumbent has a large enough opportunity to take advantage of expenditure items in the APBD preparation process to fulfill his interests for re-nomination. Expenditure posts that are often targeted by incumbent regional head candidates are grant spending and social assistance spending. The allocation for this expenditure post is used as a means to lure the public to vote for themselves again in the upcoming post-conflict local election. This reason is quite basic because based on Permendagri Number 59 of 2007, these two types of expenditure are part of the indirect component of expenditure which is not distributed through programs and activities, these two types of expenditure are also non-binding and continuous (Ritonga & Alam, 2010).
In an effort to anticipate the act of politicizing the grant and social assistance budget by regional heads in the 2015 General Election, the government issued Permendagri 39 of 2012 with a process for disbursing grants and social assistance that is more stringent than the previous process. After the issuance of Permendagri 39 of 2012 budgeting for grants and social assistance no longer uses a package system, but includes the recipient's name, address of the recipient and the amount of the grant and social assistance in appendix III of the Regional Head Regulation on the Elaboration of the Regional Revenue and Expenditure Budget (APBD). In addition to allocations for grants and social assistance expenditures, other expenditure items allegedly used by candidates for regional heads are allocations for capital expenditures and expenditures for goods and services.
The capital expenditures can be carried out in the form of public service programs and infrastructure improvements, thus giving the impression that the wheels of government that have been led previously can be said to be successful. This of course provides an advantage for the incumbent regional head to be re-elected, because the community considers the government to be successful. By increasing capital expenditure, it will increase productivity. The capital expenditures can also be used by incumbent regional head candidates to realize their physical The Effect of Selection ….. 158 projects. The purpose of this study was to determine the differences in the allocation of capital expenditures and social assistance expenditures before and during the election of regional heads.

REVIEW OF LITERATURE
The Regional Head Election The Regional Head Election (Pilkada) is a political recruitment, namely the selection of the people against the figures who run for Regional Head, both Governor/Deputy Governor and Regent/Deputy Regent or Mayor/Deputy Mayor. Regional Head is a political position or public position in charge of leading the bureaucracy to move the wheels of government. Government functions are divided into protection, public service, and development. The Regional Head carries out the policy-making function of the three government functions. In the context of the power structure, the Regional Head is the chief executive in the region (Pilkada, 2016)

Capital Expenditure
According to the Government Accounting Standards (

Minister of Home Affairs Regulation Number 32 of 2011 concerning Guidelines for
Grants and Social Assistance Sourced from Regional Revenue and Expenditure Budgets, defines Social Assistance (Bansos) as the provision of assistance in the form of money/goods from local governments to individuals, families, groups and/or community that is not continuous and selective in nature which aims to protect from the possibility of social risks.
Social assistance sourced from the APBD can be grouped into two types, namely social assistance in the form of money and social assistance in the form of goods. Social assistance in the form of money is money that is given directly to recipients such as scholarships for poor children, foundations for managing orphans, poor fishermen, the elderly, neglected, and severely disabled and health allowances for the sons and daughters of heroes who cannot afford. Social assistance in the form of goods is goods that are given directly to recipients such as operational vehicle assistance for private special schools and the underprivileged, boat assistance for poor fishermen, food/clothing assistance for orphans/social tuna, and livestock for underprivileged The Effect of Selection ….. 160 groups.

Hypothesis Development
Ritonga and Mansur (2010) conducted a study with the aim of investigating (1) whether there were differences in allocating the grant budget and the local government social assistance budget before and during the regional head election process; (2) whether there are differences in allocating grants and spending on social assistance during the regional head election process between incumbents and non-incumbent candidates. This study uses a purposive sampling method to analyze districts and cities that practice the process of selecting regional heads involving incumbents and incumbent candidates in Indonesia. The objects investigated are grants and spending on social assistance in the 2009-2010 APBD.
The data were analyzed using statistical hypothesis testing paired sample t-test and independent sample t-test. The results of the research are (1) the allocation of grant expenditure budget to incumbent regions during the regional head election process is higher than the grant budget allocation prior to the regional head election process.
(2) the budget allocation for social assistance spending in incumbent regions during the regional head election process is higher than the budget allocation before the regional election process.
(3) the period of budget allocation for grant spending in incumbent regions. (4) budget allocation for social assistance spending in incumbent regions during the election process is higher than the same regional budget allocation before the regional head election process. Another study was conducted by Amalia and Pratolo (2013) who wanted to prove whether there was use of grant spending, social assistance spending and financial aid spending by the incumbent of Regional General Elections and to test the increase in the effectiveness of grant spending, social assistance spending and financial aid spending through the influence of the three sources of spending. incumbents running for election. Winoto & Falikhatun (2015) found that there was no significant difference between the proportion of grant spending and social assistance before and before the 2015 General Election; Regional financial capacity has a significant effect on the proportion of Discretionary Fund allocations (Grants and Social Assistance) ahead of the 2015 General Election; Political factors (incumbents/non-incumbents) have a significant effect on the proportion of Discretionary Fund allocations (Grants and Social Assistance) before the 2015 General Election. Based on the previous studies above, the hypothesis in this study is structured as follows:

H01:
There is no effect of The Regional Head Election (Pilkada) on Capital Expenditure

Ha1:
There is an effect of The Regional Head Election (Pilkada) on Capital Expenditure

H02:
There is no effect of The Regional Head Election (Pilkada) on Social Assistance Expenditure Ha2: There is an effect of The Regional Head Election (Pilkada) on Social Assistance Expenditure during the regional head election process is higher than the budget allocation for non incumbent regions during the regional head election process.

Population
According to Hadi, S; the entire population intended to be investigated is called the population or universe (2015: 190). The population in this study were 7 provincial governments that held the 2017 post-conflict local elections, namely Aceh, Bangka Belitung, DKI Jakarta, Banten, Gorontalo, West Sulawesi, and West Papua.

Operational Definition and Measurement of Variables
The Regional Head Election (Pilkada) The Regional Head Election (Pilkada) is a process of direct election of leaders who will lead level I and level II regions in Indonesia.

Capital Expenditure
Capital Expenditure according to Halim (2008: 101) is a budget expenditure for the acquisition of fixed assets and other assets that provide benefits for more than one accounting period The Effect of Selection ….. 162

Social Assistance Expenditure
According to the Regulation of the Minister of Finance Number 254/PMK.05/2015, social assistance expenditure is expenditure in the form of transfers of money, goods or services provided by the Government to the poor or unable to protect the community from possible social risks, increase economic capacity and/or public welfare.

Capital Expenditure
Capital  The Effect of Selection ….. 163

RESULTS AND DISCUSSION Descriptive Analysis
Based on the results of descriptive statistical tests, the results are known as the The Effect of Selection ….. 165 indicating there is no similarity in value between pre-capital expenditure and post-capital expenditure.

Social Assistance Expenditure
Negative Ranks show that there are 2 declines in value from pre spending on social assistance to post spending on social assistance. Positive Ranks show that there are 5 increases in value from pre spending on social assistance to post spending on social assistance with an average increase of 4. Ties = 0, indicating that there is no similarity in value between pre spending on social assistance and post spending on social assistance.

Hypothesis Testing Results
The results of testing the first alternative hypothesis show a significance of 0.612 (greater than = 0.05) which means it is not significant.

Discussion
The results of this study are not in line with some studies. The first difference is with research conducted by Ritonga and Mansur (2010) which states that the proportion of Capital Expenditure and Social Assistance Expenditure at the time of the Regional Head General Election for incumbent regions is greater than before the Regional Head General Election (2009).
The second difference is the research conducted by Amalia and Suryo (2013)  The Effect of Selection ….. 166 the allocation of Capital Expenditures and Regional Financial Aid Expenditures for incumbents at the time of the Regional Head General Election is greater than before the Regional Head states that significant Political Budget Cycles are seen in the direct election of regional heads at the local government level, especially if the regional head nominates another regional head candidate. But the results of this study are in line with the research of Winoto & Falikhatun (2015) which found that there was no significant difference between the proportion of grant spending and social assistance before and before the 2015 General Election. The results of this study have provided evidence that there is no indication of the use of capital expenditures and expenditures. Social Assistance for the benefit of 2017 Regional Head Election.

CONCLUSION
Based on the analysis of the results and discussion, it can be concluded that the proportion of Capital Expenditure at the time of the General Election of Regional Heads is not greater than the proportion of Capital Expenditures prior to the implementation of the Regional Head General Election. The proportion of Social Assistance Expenditure at the time of the General Election of Regional Heads is not greater than the proportion of Social Assistance Expenditure prior to the implementation of the Regional Head General Election. The research that has been carried out has several limitations, namely this study only compares conditions during the General Election and before the General Election by using the variables of Capital Expenditure and Social Assistance Expenditure in the Provincial Government Budget.
Researchers suggest to strengthen the results of the study, it is necessary to add other variables, such as Financial Aid.