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The quality of audit opinion results of local government financial statements in 2015 – 2020 has increased. Still, non-compliance with laws and corruption cases has increased, indicating that the implementation of Good Government Governance (GGG) has not gone well. This paper provides empirical evidence of the role of human development in realizing GGG and its effect on the performance of local governments in Indonesia. The research was designed as associative quantitative research, an organizational unit of analysis. The total population is the regency and city government in Indonesia, as many as 514 local governments, and the sampling technique is purposive sampling. The qualified samples were 268 local governments, with data observed from 2018 to 2020, or 3 years, so the number was 804. The data was sourced from the Regional Government Implementation Performance Evaluation report. The GGG variables were measured using indices and local government performance variables use scores. The main analysis uses SEM PLS and additional analysis with panel regression. The results showed that GGG had a significant effect on the performance of local governments. Novelty, the dimension of human development can strengthen the GGG variable so that its influence on the performance of local governments is even greater. This research has theoretical, managerial, policy, and practical implications. In addition, the completeness of the research data, which is still lacking in information, is a limitation of this study. Furthermore, recommendations for local governments so that human development receives special attention to increasing competitiveness by increasing the allocation of labor budgets.

Human resources have a pivotal role in a country because it determines the growth and development of an economy. In economic terms, factor of production can be defined as labor, land, and capital, thereforethe quality of human resources does matter to determine the growth and development in a country. Since ASEAN Economic Community has already started in 2015 and it put forward competitive conditions among countries, human development has been attracting a lot of interest. Furthermore, poverty is also considered as an interesting topic in Indonesia because it has been 74 years after Indonesian independence, and poverty is still a difficult problem to alleviate. In 2016, Indonesia is recorded as having the second largest number of poor people in ASEAN. Various programs have been implemented by the regional governments including fiscal decentralization. This paper aims to find the impact of fiscal decentralization on welfare. In this article, we focused on human development and poverty to reflect welfare. We use regional government expenditure, regional government revenue, and balancing funds to measure fiscal decentralization in selected provinces in Indonesia-West Java, Central Java, East Java, Special Capital Region of Jakarta, Special Region of Yogyakarta, and Banten. We found decentralization policy statistically significant affects human development and poverty alleviation. Hence, this information can be used to develop targeted interventions aimed on increasing the regional government revenue and reducing unnecessary regional government expenditure to escalate fiscal space. The fiscal space can be used to fund programs that encourage human development and poverty alleviation.