Local Governments In Indonesia Research Articles

The Analysis of Fraudulent Financial Statements Prevention Using Hexagon’s Fraud and Government Internal Auditor as Moderating Variable in Local Government in Indonesia

This study aims to examine the six components of hexagon fraud which include: financial pressure, change of leadership, whistleblowing system, auditor opinion, education of head government and procurement system to fraudulent financial statements that occur in local government in Indonesia. In addition, this study also places the APIP (Government Internal Supervisory Apparatus) as a moderating variable. This study uses data from 1,419 financial statements in local government in Indonesia during the 2018–2020 period. The sampling technique is purposive sampling with the judgment sampling method. The research hypothesis was tested using Ordinary Least Squares regression. The results of the study show that only financial pressure and auditor opinion have a significant effect on fraudulent financial statements in local governments in Indonesia. In addition, evidence was found that APIP moderated the relationship between financial pressure and auditor opinion with fraudulent financial statements. This shows that APIP plays a role in mitigating fraudulent financial statements. This research is the first to test the hexagon theory to the financial statements environment in local government in Indonesia which contributes to integrating the role of APIP as a form of preventing financial statement fraud.

Implementation Of Public Housing Management Policy: A Case Study In Rusunawa Of Cimahi, West Java, Indonesia

Insufficient and affordable vertical housing (rusunawa) availability is still emerging as an alternative option for temporary residence for low-income individuals. Therefore, this study purposes to explore the implementation of Rusunawa management policies managed by local governments in Indonesia. The theoretical framework used to analyze policy implementation is based on Kearns and Lawson's (2008) concept, which examines four factors: 1) the policy itself, 2) implementing agencies, 3) inter-organizational relations, and 4) social and political factors. This research adopts a qualitative case study approach, focusing on three Rusunawa (vertical housing) facilities managed by the Cimahi Government. The data were collected within interviews with 18 respondents using purposeful sampling, employing open-ended questions complemented by observation and analysis of relevant documents. The implications of this research highlight the requirement for public rental housing management policies to consider the income criteria of prospective residents, rental period duration, and budget allocation for expanding the Rusunawa Public Service Unit (PSU), effective communication and information dissemination channels, and improved Rusunawa management practices. The findings underscore the socio-economic factors influencing the beneficiaries of general rental housing policies, along with the budgetary requirements for expanding the Rusunawa PSU, optimizing communication and information channels, and enhancing the overall management of Rusunawa facilities.

Analysis of the Implementation of Risk-Mitigation Governance in Public Services Near Yogyakarta International Airport

The public service risk mitigation implemented by local governments in Indonesia in tackling potential risks and the impact of development on local areas is important for governance reform. This study aims to analyze the public service risk mitigation carried out by the Government of Kulon Progo Regency in the YIA area. This study is a type of qualitative research with an instrumental case study methodology. Data were collected by analyzing secondary data, as well as primary data through interviews and observations. The analysis was carried out using triangulation techniques, policy adoption, comparison, searching for data explanations and inductive reasoning, and FGDs. The study findings show that risk-mitigation governance can shape public service providers to face potential risks due to reducing negative impacts on citizens’ basic rights and inequalities in the community. The risk-mitigation governance implementation runs led by the commitment of risk-oriented-local leaders, harmonization of regulations has not integrated to local-sector- law, stakeholder involvement with engagement the participation of basic service users, the private sector, as well as university, community representatives, media, and NGOs, with a collaborative and adaptable approach. Compliance and synergy among stakeholders are the most important factors forming public service risk mitigation.

Disclosure level of local government’s financial statements in Indonesia: Role of the internal control system

This study was conducted to examine the factors affecting the level of disclosure of local government financial statements. The study uses the internal control system as a moderating variable. Local government financial reports in Indonesia were the subject of this study’s audit by the Supreme Audit Agency. The number of research samples used was 487 local/city governments in Indonesia for the 2021 period with purposive sampling as a sampling technique. In this study, the Structural Equation Model-Partial Least Square (SEM-PLS) Version 3 data analysis method was employed. Based on the test results, it was found that local government budget expenditures (β = 0.263; p < 0.05) have a significant effect on the level of financial statement disclosure. Meanwhile, financial condition (β = 0.173; p > 0.05) has no significant effect on the level of financial statement disclosures. The internal control system as a moderating variable can moderate the influence of local government budget expenditure (β = 0.263; p < 0.05) on the level of disclosure of financial statements, but cannot moderate the effect of financial condition (β = –0.073; p > 0.05) on the level of disclosure of financial statements. Local governments in Indonesia are expected to be able to further optimize disclosure in accordance with Government Regulations in the future. One of the approaches used by regional governments to execute financial report transparency is the use of information technology to satisfy social expectations more effectively and efficiently.

The Possibility of Applying Religious Multiculturalism Policy in Local Government in Indonesia

This study investigates local government’s opportunities for implementing religious multiculturalism policies, which refer to the regional autonomy system. The subject of this research is Tangerang City, Banten Province, which has an urban and pluralistic image of society due to its location as a buffer for the city capital. Data collection in this study used a qualitative method which refers to in-depth interviews of 15 respondents who came from representatives of the government and religious leaders. In addition, secondary data in this study relates to observations, field notes, documentation, and relevant literature. The result of this study indicates several indicators that lead to the possibility for Tangerang City’s local government to apply a religious multiculturalism policy: government institutions in strengthening harmony and handling religious conflicts. The Religious Harmony Forum (FKUB) promotes religious harmony, a grant program to accommodate the needs of religious groups, a supportive and open-minded Mayor, cultural and religious festivals, successful resolution of religious conflict, and intensive dialogue between religious leaders.

Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results

Internal control plays a critical role in achieving the effectiveness and efficiency of organization's operational activities. This study seeks to investigate the effect of local government size, locally-generated revenue, capital expenditures, social assistance expenditures, and follow-up audit results on local government’s internal control weaknesses. By using multiple linear regressions on 382 samples of local governments in Indonesia, this study found that local government size and social assistance expenditures positively affected internal control weaknesses. Locally-generated revenue negatively affected internal control weaknesses, while capital expenditures and follow-up audit results did not significantly affect internal control weaknesses. This study adds social assistance expenditures, which are still rarely studied by previous researchers because of the large number of irregularities and their discretionary nature. Thus, the results of this study may provide an input for auditors and regulators to focus more on spending on social assistance and further improve comprehensive standards in internal control systems.

Development of the implementation of public information disclosure by regional governments in Indonesia: a systematic literature review

One of the characteristics of a democratic country is an open government. The administration of the state can take place in democratic and open governance if it applies the principle of public information disclosure (PID) in the administration of its government. In this regard, the Government of Indonesia issued Law Number 14 of 2008 concerning the Openness of Public Information, which must be implemented by all public bodies at every level of government in Indonesia, starting from the central government, and provincial governments, to district/city governments. This study's purpose is to see the extent to which the development of PID implementation practices is at the local government level. The method used in this research is a systematic literature review (SLR) method, by collecting all the results of the latest study on implementing PID at the local government level in Indonesia and systematically analyzing them. From 674 published articles obtained from the scholar.google.com portal using the Publish & Perish application, a PRISMA flow diagram was carried out so that 69 reports were received that were directly related to implementing KIP in local governments in Indonesia. The results show that the quality of PPID institutions influences the implementation of KIP in local governments, the availability of legal umbrellas in the form of regional regulations and head regulations, the information media used, and the available public information according to general needs.

Shallot growth and yield supported by irrigation and nitrogen application in utilizing dry land area in Mesuji, Lampung Province, Indonesia

Lampung Province, Indonesia local government intended to extend shallot cultivation in Mesuji Regency, Lampung (-3.86, 105.43). Mesuji has 21,863.5 ha dry land area, with unproductive land of 10,325.6 ha which could be potential for growing <em>shallot</em>. However, horticulture crops such as shallot often face obstacles in dry land since dry land characterized with poor soil nutrient and limited water. The objective of this research are to analyze the effects of nitrogen fertilizer and different irrigation volumes on shallot growth and production, investigate shallot suitability to Mesuji agro-climate, and estimate shallot yield potential in Mesuji. The treatments on factorial split block were: without N, 80 kg N ha<sup>-1</sup> , 160 kg N ha<sup>-1</sup>, and 240 kg N ha<sup>-1</sup> and the irrigation levels: 25, 50, 75 and 100% of ETc; ETc is crops evapotranspiration. The Mesuji agro-climate was evaluated using standardized precipitation index (SPI) and the yield was simulated by Aquacrop model. The results showed that the effort of shallots production with a high fresh weight of bulbs and biomass in the Mesuji area requested water at least 75% ETc and N fertilizer doses of 160 kg N ha<sup>-1</sup>. The SPI indicated near normal condition was more than 65%, and drought existed in a small percentage in both places (a total of 16.9% for Brebes the centre of shallot production and 19.43% for Mesuji). The AquaCrop simulation gave a good yield estimation (simulated 19.451 ton ha<sup>-1</sup> and observed 17.351 ton ha<sup>-1</sup>). There is a possibility that shallot will grow well in the Mesuji area even though the quality of the shallot should be further tested.

The Transparency Level of Local Governments in Indonesia: Does the Level of Financial Health Matter?

This study examines the impact of fiscal autonomy, capital expenditure for basic services, and local government investment on the transparency level of local government. In addition, this study includes local government financial health as a moderator in the association between the dependent and independent variables. This study employs a quantitative approach. Data are obtained through content analysis of the local government's official websites. The total sample of this study amounted to 349 observations collected from 2016 to 2019 and was selected by purposive sampling. The hypothesis test employs multiple linear regression analysis with the ordinary least square. The study suggests that fiscal autonomy is positively associated with the transparency level of local governments, capital expenditure for basic services is negatively associated with the transparency level of local governments, and local government investment is not associated with the transparency level of local governments. This study also finds that local governments' financial health has a role in strengthening the positive effect of local government investment on the transparency level. However, the local government's financial health weakens fiscal autonomy's positive effect on the transparency level of local government. Furthermore, the local government's financial health has no moderator in the association between capital expenditure for basic services and the transparency level of local government. The study result suggests that the Indonesia Ministry of Finance and the Indonesia Ministry of Home Affairs should boost the policies that encourage transparency in local governments and enhance the independence level to generate local revenues.

The Role of e-Government to Improve the Implementation of Merit System in Indonesian Local Goverments

Digitalization has had an impact on changing various aspects of life, including the public sector. One of the adoptions of the use of information technology is carried out in the management of civil servants. This study aims to determine the role of e-government in improving the merit system in local government, with the locus of research in the Bali provincial government. This research uses a qualitative approach. The collection was conducted through interviews with the provincial governments of Bali, Indonesia, and studies of related documents. The results showed that the implementation of digital governance can improve the implementation of the merit system in local governments in Indonesia. The procurement of civil servants through an online selection mechanism has proven to cut the gap in the occurrence of nepotism in the procurement of civil servants. The quality of civil servants selected through the online selection mechanism is considered more competent. Information technology-based performance appraisals also make performance appraisals more transparent. The information technology-based competency development mechanism provides wider opportunities for employees to participate in competency development. Evaluation of competency development can be carried out directly by agencies through information technology. The personnel management information system, based on information technology, helps the implementation of the merit system. Through the integration of data and staffing processes, civil servant management based on the merit system is easier to do.
 Keywords: digitalization, digital governance, meritocrarcy, e-government

Akuntabilitas Publik dan Pengungkapan Laporan Keuangan Pemerintah Daerah (LKPD) di Indonesia

Purpose: Using a quantitative approach at the explanatory level, this research paper aims to examine the effect of the Regional Government Financial Report Disclosure variable on Public Accountability variables. Methodology/approach: The non-probability technique of the purposive sampling type obtained 450 observations from 150 samples of district local governments in Indonesia during 2017-2019 through documentation and literature review of secondary data Results/findings: The results of hypothesis testing using the EViews 9 data processing software provide findings that Disclosure of LKPD (Y) also has a direct effect on Public Accountability. Limitations: The measurement of the Public Accountability variable in this study is based only on audit opinions reported by the Supreme Audit Agency or BPK RI, due to time constraints, this study eliminates the measurement on the weak aspects of the LKPD internal control system as measured by the number of SPI cases and non-compliance with statutory provisions. LKPD invitations as measured by the total cases of non-compliance . Contribution: The implications of these findings explain that disclosure of financial statements can reduce information asymmetry between agents and principals through the publication of financial reports that disclose relevant information. In addition, the research results can become criticism and suggestions for the government as regulators and decision makers in formulating policies related to transparency to the public.

Internal Control Weakness and Corruption: Empirical Evidence from Indonesian Local Governments

Purpose: Corruption still becomes a serious problem in Indonesia in the decentralization era. This paper aims at providing a comprehensive empirical examination regarding the effect of internal control system weaknesses on corruption in Indonesian local governments (LGs). Theoretical framework: By drawing the concept from the fraud theories and agency theory, the study explores the internal control weaknesses as corruption determinants in LGs. Design/methodology/approach: We use secondary data from the related regulating bodies in Indonesia during 2010-2018 fiscal period from 508 LGs with total of 4530 observations, analyzed with panel data regression. Findings: Our findings suggest that the corruption in Indonesian LGs has not experienced significant decrease during the observation period. The internal control system implementation also still has significant weaknesses that has not improved from 2010-2018. Our analysis demonstrates that internal control weakness positively affects corruption. Further analysis also reveals that all internal control weakness element also has positive effect on corruption, both the weaknesses in the budget, revenue, and expenditure administration, the weaknesses in accounting and financial reporting, and the structure weaknesses. Research, Practical & Social implications: Based on the research findings, our study emphasizes that the internal control system implementation in Indonesian LGs needs urgent improvement to support the prevention of corruption in local level. The policymakers are required to take strategic efforts for internal control system reform in the LGs to reduce the likelihood of corruption by irresponsible local authorities. Originality/value: The study fills the limitation in Indonesian corruption literature by providing one of the earliest empirical investigation that comprehensive covers the whole Indonesian regions.

Improvement of Environmental, Social, and Cultural Attributes in the Slum Settlements on the Riverbanks of Yogyakarta City under the Sultan’s Rule

A riverbank revitalization program is being carried out to overcome the problem of slum areas and restore the role of the river. Many local governments in Indonesia are working to revitalize riverbanks, with Yogyakarta being one of them. As a special region in Indonesia, the Yogyakarta government has implemented the Mundur, Munggah, Madhep Kali (M3K) program, under Government Regulation (PP) No. 38 of 2011, to manage the conservation, development, and control of the destructive power of river water. This study aimed to ascertain how changes to the riverbanks affect both people’s quality of life and the river itself. The factors that influenced the changes in the environment, society, and culture of the community after the M3K program were also determined in this study. This study used a descriptive method with qualitative and quantitative data analyses. The statistical analysis method used was logistic regression. The findings obtained show that the M3K program has transformed people’s mindsets and habits toward keeping the environment clean, particularly the river area. According to the findings of the logistic regression analysis, the variables that determine the changes in the social and cultural environment of the community affected by M3K are age, education, employment opportunities, and income.

Advocacy on Combating Hunger: Political Will of the Kedunggebang Village Government to Implement Banyuwangi Tanggap Stunting Programs in 2022

Accelerating stunting reduction is a government policy priority supported by all local governments in Indonesia. Banyuwangi Regency has the Banyuwangi Tanggap Stunting (BTS) Program as innovative program to reduce stunting rates, which must be supported by all village governments in Banyuwangi Regency. The success of the policy must begin with the Political Will of the village government to support the implementation of policies in the villages. In this context, Kedunggebang Village, Tegaldlimo District, implements the BTS program through cross-sectoral synergy and massive counselling to the people at Kedunggebang Village. The purpose of this study is to describe the Political Will of the Kedunggebang village government to support the BTS project, and obstacles in its implementation. This research uses qualitative descriptive methods through in-depth interview techniques and is analyzed using Brinkerhoff theory (1999) as an analytical instrument. The novelty of this research is a multidisciplinary study that examines public health issues using the perspective of public policy and government bureaucracy. The results of this study show that the Kedunggebang Village Government has low Political Will, but is able to implement the BTS program. So there is a need for bureaucratic reform in the form of village regulation legislation, preparation of village development plans, and organizing a task force to accelerate stunting reduction.

PENGARUH PENDAPATAN ASLI DAERAH DAN ASET TETAP TERHADAP BELANJA PEMELIHARAAN: SEBUAH BUKTI EMPIRIS DARI PEMERINTAH DAERAH DI INDONESIA DI MASA PANDEMI COVID-19

The purpose of this study is to provide empirical evidence of the effect of Local Own Revenue (PAD) and Fixed Assets (AT) on Maintenance Expenditure (BP) at local governments in Indonesia during the Covid-19 pandemic using a multiple linear regression model. The data used is secondary data sourced from the audited local government financial statements (fiscal year 2020) of 215 local governments as the sample. We used the purposive sampling method. The sample criteria are local governments experiencing a deficit in 2019 and obtaining an unqualified opinion (WTP) in 2020. The results showed that PAD had a significant effect, while the AT variable did not have a significant effect on BP. These results prove that during the Covid-19 pandemic, the allocation of maintenance expenditures by local governments was not based on the amount of existing fixed assets.

Penggunaan Media Sosial Sebagai Media Komunikasi Dalam Penyebaran Informasi Pada Dinas Kominfo Kota Medan

The emergence of social media has had a significant impact on the way people communicate. This applies not only to individuals but also to government organizations. Most local governments in Indonesia have yet to harness the presence of social media as a means of communication. The objective of this research is to identify the use of social media as a communication medium in the dissemination of information and the barriers to information dissemination from the Office of Communication and Information Services (Kominfo) in the city of Medan. This study utilizes a qualitative descriptive method. Interviews, observations, or in-depth documentation are used as data collection approaches. The snowball sampling method is employed to identify informants. Data triangulation is used to examine the accuracy of the data, with the hope of reducing potential inaccuracies. The main components of the interactive data analysis approach used in this study are data reduction, data display, conclusion drawing, and verification. The output of this study is the utilization of social media by the Office of Communication and Information Services (Kominfo) in the city of Medan as a communication tool.

Indonesia’s Plan for Concurrent Regional Expansion

The development of ties between the center and the regions came to light after Indonesia underwent reformation in 1998. A new paradigm in the management of local government in Indonesia has emerged as a result of the passing of Law No. 22 of 1999. One effect of the passage of Law No. 22 of 1999 was the enlargement of the region to create a number of new autonomous regions. The pattern of creating new autonomous areas based on the will of the people causes certain regional expansions to be successful while others result in conflicts due to the interests of local elites (bottom-up). Therefore, the creation of new autonomous zones and the birth of a new paradigm require a new formulation. As a result, the creation of new autonomous regions requires a new formulation, and Law No. 23 of 2014’s regional structuring idea represents the development of a new paradigm. How to formulate the development of a new autonomous region through concurrent regional expansion is the study’s formulation of the problem. According to the study’s findings, regional growth is required in order to meet the needs of the envisioned increase in the number of Provinces, Regencies, and Cities.

Urban Green Space Policy Reform in Indonesia: Breathing in the Middle of Development

Rapid population growth and limited land availability have resulted in a decline in environmental space utilization, including green open spaces, which are crucial for oxygen production and supporting biodiversity. Land conversion driven by increased land demand exacerbates this issue. This research focuses on two main problems: the adherence of the Salatiga City Local Government in Indonesia to the minimum area requirement for green open spaces mandated by Law No. 26 of 2007, and the forms and utilization of green open spaces within the city. This research reveals deficiencies and obstacles in implementing the policy, leading to a failure in meeting the minimum area target. Factors such as idealistic policy pursuit, delegation of authority issues, and excessive emphasis on perfection rather than practical relevance contribute to these challenges. The Salatiga City Regional Spatial Plan, outlined in Regional Regulation Number 4 of 2011, designates green open spaces as protected areas, encompassing city parks, cemeteries, urban forests, border rivers, and green belts. However, obstacles arise from small area sizes, incorrect initial land use practices, and inadequate resolution of land ownership issues. Despite these challenges, the City of Salatiga has partially maintained the functionality of these spaces, prioritizing their overarching purpose over specific land use. In conclusion, this research highlights the shortcomings in implementing Green Open Space policies in Salatiga. It emphasizes the importance of addressing land-related issues and ensuring proper management of green spaces. Resolving these challenges is crucial for enhancing environmental sustainability and benefiting both the community and the environment.

DETERMINAN KINERJA PENYELENGGARAAN PEMERINTAH DI INDONESIA: STUDI EMPIRIS PERANAN KEMANDIRIAN DAERAH DAN KEKAYAAN DAERAH

This study aims to analyze the influence of regional financial factors consisting of independence and regional wealth on the performance of local governments in Indonesia. This study used secondary data from authorized government institutions with a final sample of 506 local governments which were analyzed using multiple linear regression methods. The results of the analysis show that in terms of achievements, the average performance of local governments in Indonesia has been good, but there are still issues of disparities between regions that need to be corrected. 
 Meanwhile, the analysis of hypothesis testing through multiple linear regression found a positive effect of regional independence variables on local government performance. Meanwhile, the regional wealth has no significant effect on local government performance. This research has the implication that improving the quality of regional financial management is very important in the implementation of regional autonomy in Indonesia in order to support the achievement of regional performance so that it must be optimized. In this case, the regional government and the central government must synergize through various policies to improve the quality of regional financial management in order to increase independence, fiscal capacity, and optimize assets

Open Government Index in Local Government During the Period of the COVID-19 Pandemic

Identification that has been carried out in studies of open data government and e-government has been widely described from various perspectives. This study aims to examine how the government applies open government data. This study analyzed the existing open government of local government in Indonesia during the COVID-19 period, providing information to test the transparency of existing local governments. This study adopts the Benchmark Model Evaluating Data Openness theory and E-Gov assessment using a quantitative approach by dividing several categories and assessment variables. The open government analysis assessment uses a score of 1-5, and a web assessment with a score of 100. From this calculation, it is found that the five provinces with increased cases have high OGD scores. The results are plotted based on the spread of COVID-19 throughout Indonesia, as determined by reviewing and surveying the provincial government's COVID-19 website. West Java (89.87), East Java (89.87), Jakarta (88.75), Central Java (88.37), and Yogyakarta (88.37) all had high and nearly balanced total scores (84.87). The increased assessment results are supported by infrastructure and good management, and the five areas are "metropolitan" areas with good quality technology and information