Fiscal decentralization mission is creating local autonomy which has been mandating in a package of a local autonomy policy namely The Constitution of the 22
nd
in the year of 2000 about Local Goverments and The Constitution of the 25
in the year of 2000 about Balancing Financial Constitution between local government and central government which has been changed into The Constitution of the 32
in the year of 2004 and The Constitution of the 33
rd
in the year of 2004. In order to implement decentralization, government uses APBN financial fund
in district i.e. General Allocation Fund ( DAU ) in a purpose to get an even distribution in the district. The goverments gives more extensive authority to local government to empower its local potency to rise The Own Revenues ( PAD ) . Local government is expected to be able to excavate the local potency optimally based on its initiative and capacity resource. On behalf of supporting those policy, local government needs to have in sleeve some requiring infrastructure that is to say Capital Expenditure Allocation as its stated in Kepmendagri of The 13
rd
in the year of 2003 that`s been changed into Permendagri of the 13
rd
in the year of 2006 and the 59
in the year of 2007.
This research was executed and purposed to acquire an image about the influence of General Allocation Fund ( DAU ) and The Own Revenues ( PAD ) toward Allocation of Capital Expenditure to the regency and municipality in The middle of Java after implementation of The Local Autonomy Constitution of the 1
. This research uses Multiple Linier Regression ( MLR) test which fulfills Ordinary Least square ( OLS ) conditions.
The result of this research shows that DAU gives negative significant side effect to Capital Expenditure Allocation, and PAD gives influence positively but insignificant to Capital Expenditure Allocation in the regency or municipality in all over Middle Java and influence of DAU and PAD to Capital Expenditure after implementation of The 32
nd
th
Constitution in the year of 2004 are more dominant. The research indicates that the ascesion both DAU and PAD significantly
didn`t equalized by the rise of Capital Expenditure Allocation proportionall y ( The increase is getting less ) in every its years
st
th
nd
and 2
nd