Abstract
Transparency is a challenge for public administration reforms for now and beyond towards modern and better governance. The economic crisis that occurred has led to a large erosion of public confidence in the effectiveness of government financial management. This study aims to analyze the key elements of local government transparency in new public governance. The research data was obtained through financial reports on local government websites. The sample selection technique used purposive judgment sampling and yielded a total of 262 local governments in Indonesia. The analytical method used is logistic regression analysis. The results showed that key elements, reflected by the local government size and local financial independence ratio, had a significant influence on the implementation of internet financial reporting, while audit opinions do not have a significant effect. This is due to changes in public perception of the quality of audit opinions provided by the Audit Board. This study emphasizes that local governments that receive a fair or unfair audit opinion cannot prove with certainty that the local government has performed good or poor financial management. Audit opinions obtained by local governments do not always facilitate the publication of financial statements on their official websites.
Highlights
Transparency, among other things, is interpreted as the extent to which an organization provides information about its internal work, decision making processes and available procedures (Pina et al, 2010)
The results showed that key elements, reflected by the local government size and local financial independence ratio, had a significant influence on the implementation of internet financial reporting, while audit opinions do not have a significant effect
Audit opinion does not affect the implementation of the internet financial local government reporting in Indonesia
Summary
Transparency, among other things, is interpreted as the extent to which an organization provides information about its internal work, decision making processes and available procedures (Pina et al, 2010). According to Indonesian Corruption Watch (Wiwoho, 2014), during the first semester of 2014, the trend of corruption defendants was the highest among local government officials or employees, out of 261 accused of corruption in 2014, there were 101 local government officials who were proven to be corruptors. The number of local government officials as corruptors increased from the previous two years. In 2012, Local original income ICW report found 48 local government officials who committed corruption, and in 2013, the number increased to 60 local government officials accused of corruption. This is in line with the results of a survey conducted by Transparency International Indonesia. The lack of transparency is often associated with corruption in the government sector. The lack of transparency is often associated with corruption in the government sector. Sharman and Chaikin (2009) show that corruption is an important problem in most developing countries and is the biggest hindrance to economic development. Ellis and Fender (2006) show that economic transparency, which results in a decrease in the level of corruption, is part of the output over time, while less transparent economies face an increase in corruption
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