Abstract
It is important to manifest financial transparency of local government as a means of monitoring the misuse of public resources and preventing cases of corruption. One of the local governments that succeeded in achieving the best transparency in Indonesia is Central Java. Based on 2019 Central Java Local Government financial data, this research is aimed to find evidence whether there are relationships between the characteristics of local government and financial transparency of local government. The evidence is obtained through the results of statistical analysis, namely multiple linear regression analysis. The results of this research show that the size of local government, the tenure of regional heads, the structure of regional revenues, and regional financial independence have a positive relationship to the financial transparency of local government.
Highlights
Corruption-free governments can be created when local governments manifest transparency in their regional financial management
The truth and reliability of financial information can be seen through financial reports audited by the Supreme Audit Agency, this could prove to the public that the local government did not misuse the funds that have been obtained
In Indonesia’s Government Regulation Number 71 of 2010 concerning Government Accounting Standards, transparency itself is defined as the provision of open and honest financial information to the public, based on the consideration that the public has the right to know openly and thoroughly the government's responsibility in managing the resources entrusted to it and compliance with laws and regulations
Summary
Corruption-free governments can be created when local governments manifest transparency in their regional financial management. Financial transparency carried out by the government must be presented in a complete, timely, accurate, and understandable manner (Ott, Bronic, Petrusic, & Stanic, 2017). Completeness of this financial information is regulated in Indonesia’s Government Regulation Number 56 of 2005 concerning Regional Financial Information Systems, which are regional revenue and expenditure budgets with their realization, regional balance sheets, cash flow reports, notes on regional financial reports, deconcentration funds, co-administration funds, financial reports of regional companies, as well as data relating to fiscal needs and regional fiscal capacity
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