Indonesian Public Sector Research Articles

The impact of career development on employee performance: an empirical study of the public sector in Indonesia

This article examines the influence of career development on employee performance in public sector, mediated by perceived organizational support, work motivation, and affective commitment. By analyzing the perceptions of 250 civil servants in 15 regional branches of Ministry of Finance of Indonesia, and using structural equation analysis with SmartPLS 2.0 program, the findings reveal that career development has positive direct influence on perceived organizational support, motivation, and affective commitment. However, career development has no direct influence on performance. The indirect examination shows that mediating variables are perceived to have significant influence in strengthening that relationship. These findings theoretically imply that career development may be dependent on the extent to which organization is capable of providing perceived organizational support and motivation in promoting affective commitment and performance. Practically, these findings reveal the importance of both Indonesian’s central and local government to implement performance-based rewards.

Political Islam: The shrinking trend and the future trajectory of Islamic political parties in Indonesia

The trend of religious conservatism in Indonesian public sector is increasing nowadays. But the trend is not followed by the rise of political Islam‟s popularity. The Islamic political parties are precisely abandoned by their sympathizers because of some reasons. This paper tries to elaborate the reasons causing the erosion of Islamic parties‟ political legitimacy. Some fundamental problems such as inability to transform ideology into political platform, internal-factionalism, as well as the crisis of identity will be explained further. The experience from 2009 election can be used to revitalize their power and capacity for the better electability in the next 2014 election. But they seem to be unable to deal with the previous problems making the electability erosion in 2014 more potential and inevitable. Various strategies must be conducted by the parties such as consolidation, revitalizing their political communication strategy, widening political networks across various ideological and religious streams, and others. Without that, their existence would be subordinated by the secular parties to become the second class political players in this biggest Moslem country in the world.

Reforms in public sector accounting and budgeting in Indonesia (2003-2015): confusions in implementation

This paper examines whether public sector reforms in a developing country is consistent with the principles of new public management (NPM). It examines whether Indonesian public sector reforms from the late 1990s to 2015, specifically the adoption of accrual accounting, are motivated by NPM philosophy. Reviewing and analysing Government regulations and reports, the study finds that the reforms are an attempt to implement NPM, specifically in relation to five financial management aspects (i.e. market-oriented, budgeting, performance management, financial reporting and auditing systems). However, the reforms are inconsistent with the NPM philosophy of efficiency and effectiveness in public service provisions. By requiring the use of the existing system, the reforms actually created inefficiency. This research is novel in investigating the gap between 'ideal concepts' and examining practices in an emerging country context.

ACCRUAL ACCOUNTING & FINANCIAL REPORTING IN THE PUBLIC SECTOR TO ENHANCE ACCOUNTABILITY AND TRANSPARENCY (REFRAMING IMPLEMENTATION IN INDONESIA)

Implementation modified cash basis at public sector in Indonesia have adopted to implement accrual accounting and financial reporting as the basis for their reformed accounting policy. Public administration in Indonesia has changed dramatically since 1999. The country has gone through one of the fastest and most comprehensive devolution reforms ever seen. Managerial and financial responsibilities have been decentralized from central government, mostly to local government at the district level. Under accrual accounting, government reports financial flows in terms of an operating statement equivalent to a business profit and loss statement. If the budget operating balance is zero, then this year's operating expenses are being fully covered by this year's revenue. Expenses are not the same as outlays so expenses measure this year's costs of production, whereas outlays does not. Prior to the introduction of accrual accounting, the Indonesian government have fiscal policy indicator which underlying cash balance. It was the cash budget balance which the local government. With the arrival of accrual accounting, however, the cash budget balance has been supplanted in this context. This helps us to compare the cash budget balance with fiscal balance. This phenomenon has been widely debated in public management circles, and within the academic literature. Many of these debates however, have been arid and narrowly technically focused. This paper reviews the harmonization process of Indonesian local public sector accounting suppose some main adjustments regarding and prepared exposures draft to harmonize this problem

Participative Budgeting, Budgetary Slack And Job Satisfaction In The Public Sector

This study explores the relationship of participative budgeting on budgetary slack in the public sector in Indonesia, by examining the roles of job satisfaction on these variables. A total of 185 budget managers of regional work units in the in North Maluku province government, Indonesia, participated in the survey. The effective rate of return was 82.52 percent. A structural equation modeling was used to examine the direct and indirect effects of participative budgeting on budgetary slack. In particular, the study gives empirical evidences that participative budgeting factors affect budgetary slack mediated by intervening variables factors of job satisfaction. The results revealed the significantly negative effect of participative budgeting on budgetary slack, the significantly positive effect of participative budgeting on job satisfaction. This result affirmed the significantly negative impact of job satisfaction as a mediating variables on budgetary slack. However, the results could not find the indication of moderating effect of job satisfaction in the relationship of these variables.

Re-understanding corruption in the Indonesian public sector through three behavioral lenses

Purpose Based on the authors’ study, the purpose of this paper is to better understand why corruption in the Indonesian public sector is so resilient from three behavioral perspectives: the Schemata Theory, the Corruption Normalization Theory and the Moral Development Theory. Design/methodology/approach This paper examines corruption trends and patterns in the Indonesian public sector in the past decade through examination of reports from various institutions as well as other relevant documents regarding corruption-related issues to gain a better understanding of the behavioral mechanisms underlying the adoption of corruption into organizational and individual schemata. This paper also uses expert interviews and focus group discussions with relevant experts in Indonesia and Australia on various corruption-related issues. Findings The authors establish that the rampaging corruption in the Indonesian public sector is an outcome of cumulative decision-making processes by the participants. Such a process is influenced by individual and organizational schemata to interpret problems and situations based on past knowledge and experience. The discussion in this paper highlights the mechanisms of corruption normalization used to sustain corruption networks especially in the Indonesian public sector which will be very difficult to break with conventional means such as detection and prosecution. Essentially, the entire process of normalization will cause moral degradation among public servants to the point where their actions are driven solely by the fear of punishment and expectation of personal benefits. The three pillars of institutionalization, rationalization and socialization strengthen one another to make the entire normalization structure so trivially resilient that short-term-oriented anti-corruption measures may not even put a dent in it. The normalization structure can be brought down only when it is continuously struck with sufficient force on its pillars. Corruption will truly perish from Indonesia only when the societal, organizational and individual schemata have been re-engineered to interpret it as an aberration and not as a norm. Research limitations/implications Due to the limited time and resources, the discussion on the normalization of corruption in Indonesia is focused on corruption within the Indonesian public institutions by interviewing anti-fraud professionals and scholars. A more complete picture of corruption normalization in Indonesia can be drawn from interviews with incarcerated corruption offenders from Indonesian public institutions. Practical implications This paper contributes to the development of corruption eradication strategy by deconstructing corruption normalization processes so that the existing resources can be allocated effectively and efficiently into areas that will result in long-term benefits. Originality/value This paper demonstrates how the seemingly small and insignificant behavioral factors may constitute “regenerative healing factor” for corruption in Indonesia.

Contextual-Participative e-Government Implementation Model: A Case Study of the Office of Demographic and Citizen Data Records of Makassar

Today, e-Government has been increasingly practiced in the private and public sectors in both developed and developing countries. However, in the context of Indonesian public sector, it is questionable as to how effective e-Government is in supporting the delivery of quality public service. This study assumes that implementation model has something to do with the effectiveness of e-Government. It examines a mismatch between theorized e-Government implementation model and an actual model emerging from the context of an Indonesian public sector organization. The study found that the mismatch was influenced by the cultural and historical environment of the organization, which contributes to the ineffectiveness of e-Government implementation. In order to ensure effectiveness, the study proposes a contextual-participative implementation model for the organization under investigation. DOI: 10.5901/mjss.2016.v7n1s1p345

Personal Factors and Acceptance of Dysfunctional Audit Behaviour: Evidence from Indonesian Public Sector Audit

Objective - This study examines various personal factors that influence auditor's acceptance of Dysfunctional Audit Behaviours in the Indonesian public sector audit Methodology/Technique - The data used in this study were gathered by means of questionnaires to auditors at the Indonesian Supreme Audit Board (BPK) in three provinces in Sumatera Island (West Sumatera, Riau and Jambi). The data were analyzed using Path analysis by means of SmartPLS 2.0 Software Package. Findings - The findings of this study suggest that several personal characteristics of public sector auditor such as external locus of control and turnover intention contribute to auditor's acceptance of DAB. However, inconsistent with previous studies on auditors in public accounting firms, this study fails to support the association of personal characteristics such as auditor's self-rated performance and organizational commitment to the acceptance of DAB. Novelty - Unlike those of private sector audit, only a few studies investigating auditor acceptance of dysfunctional audit behaviour (DAB) in the public sector have been conducted. This study fills the theoretical gap in that area within the context of Indonesian public sector audit. Type of Paper - Empirical Keywords: Audit; Public Sector; Dysfunctional Behaviour; Locus of Control; Performance

Indonesian public sector accounting reforms: dialogic aspirations a step too far?

Purpose – Drawing from an interest in the changing Indonesian political and regulatory history, the purpose of this paper is to provide an understanding of the role that accounting reform can play in nurturing, or failing to nurture, a more dialogic form of accounting in a local Indonesian municipality. Design/methodology/approach – To collect the data, the authors undertook a case study of a local municipality and drew from patterns found in Indonesia’s long colonial history. Data were acquired from official and publicly available documents and interviews with 29 key figures, including those involved in formulating and disseminating laws and also those affected by the accounting reforms from 1998 to 2009. Document collection and interviews were conducted at national and local levels. Findings – This study shows that Indonesia has undertaken significant economic and political reforms for the intended purposes of fostering democracy, strengthening accountability, and creating transparency in relation to pu...

Bureaucratic reform in post-Asian Crisis Indonesia: The Directorate General of Tax

Our research examines a key aspect of the extensive bureaucratic reform program that was applied to the Indonesian public sector following the Asian Economic crisis. The organisation we focus on is the Indonesian Directorate of Tax. The reforms moved the case organisation towards more bureaucratic organisational arrangements. The most notable elements of the reforms related to the organisational efficiency and changes in administrative style and culture. An ethnographic approach was adopted, in which the researcher was immersed in the life of the selected case organisation over an extended period of time. This research extends a thin literature on the topic of management control and culture in the Indonesian context. Also, this paper fills a gap in the theoretic approaches for studying bureaucracy, which is dominated by western conceptualisations. This paper provides a reminder to policy makers (including organisation such as the World Bank and the International Monetary Fund) of the consequences of neglecting cultural influences when conducting bureaucratic reform.

Service innovation in the complex environment of tax administration: the Indonesian public sector perspective

Providing straightforward and inexpensive public services is a necessity in public administration including in the field of tax administration. To simplify the tax administration process, the Indonesian Directorate General of Taxes (DGT) has initiated an electronic tax service project, e-tax service. This e-tax service consists of e-registration, e-payment and e-filing. Using institutional theory, this paper aims to study the process and the challenges in implementing the e-tax service in Indonesia. The findings show that institutional power and pressures, institutional settings, and institutional politics have affected the Indonesian tax authority’s ability to deploy the e-tax system. Consequently, the e-tax initiative could not be fully implemented because of institutional setting and institutional politics.

Information Technology Governance Framework in the Public Sector Organizations

This paper discusses the framework of IT (Information Technology) governance in the public sector organizations and the factors that contribute to the implementation of IT governance in the province of Gorontalo, Indonesia. The problem that occurs is the absence of such a framework which can provide the basis, functions and limits for the efficient use of IT resources, IT strategic alignment and the management of risk in public organizations. Descriptive approach used to identify the processes and the factors that contribute to the implementation of IT governance. This study shows that the form of the IT governance framework ensuring success is related to achieving organizational goals, strategic alignment, resource management, and risk management in the Indonesian public sector, especially to the province of Gorontalo. The strategic role of IT governance can be an effective solution for making more consistent and transparent decisions about strategies and IT investments in public sectors.

The antecedents and impacts of green eProcurement infrastructure: evidence from the Indonesian public sector

This study aims to understand the factors that affect the implementation process of the eProcurement infrastructure in the Indonesian public sector, and its impacts. The concept of green information systems IS decision-making and the concept of the triple bottom line of sustainability were used as lenses. The notion of green IS was extended by incorporating the concept of sustainability. Using an interpretive stance, the study found that legal, technological, and managerial factors affected the implementation of the green infrastructure. The impacts of the green II was well captured by the concepts of the triple bottom line of sustainability: planet such as reduced use of paper, less frequent trips/less CO

Model and Practice of Strategic Policy Process in Indonesia: Case Study Strategic Management in Indonesian Central Government (2009-2012)

Since 1998, the Indonesian government had introduced an approach for Strategic Management under Government Regulation No. 108/200 the government has not evaluated experiences with this strategy. However, in 2009, the administration of President Yudhoyono introduced a new approach entitled Rencana Pembangunan Jangka Menengah (RPJMD) –Medium Term Development Planning. The interesting question regards the compliance of government with this strategic plan. In other words, is the implementation of the strategic plan proceeding? In this paper, both writers investigate experiences with the attempt to introduce the model and practice of Strategic Management in the Indonesian public sector, particularly the aspects of process and tools. The Research method used in this research is historical and descriptive using the casual loop model of system dynamics method. The study found that the model of strategic planning applied by the government was a linear process model a linked to key success factors of leadership, professional coordination among governmental units, and monitoring of the complete process and its instruments: planning, implementation and evaluation.

Institutionalization of accrual accounting in the Indonesian public sector

PurposeThe purpose of this paper is to evaluate the institutionalization of an accrual accounting system in the Indonesian public sector.Design/methodology/approachThe authors undertake a case study to gain insights relating to the critical features of the institutionalization process of the accrual accounting system (AAS) in one Indonesian public sector municipality. The data are drawn from official documents of the Indonesian Government and from publicly available information about the accrual adoption processes. The authors also interviewed key actors who were involved in the accrual accounting policy formulation, standards development and implementation. The data under investigation cover the period from 1983 to 2010.FindingsThe IPM of Dambrin, Lambert and Sponem is employed to evaluate the process by which an AAS was idealized, standardized, implemented and used in one Indonesian municipality. Scott's pillars of legitimization also inform rationales behind practice. This study reveals how the decision of the Indonesian Government to adopt accrual accounting in 2003 was part of greater political and economic reforms following the financial and political crisis that occurred in 1998. Idealized in the early 1980s by technocrats in the Ministry of Finance, accrual accounting practices were deferred and then enabled by a series of national political events. Their ultimate internalization into our municipality was led by new legislation but also influenced by the habits and histories of the Indonesian local context and was as a result decoupled in many respects from ideals, discourses and techniques established for it.Research limitations/implicationsThe findings should be understood in the economic, social and historical context of Indonesia. Findings offered here may differ from other applications due to the nature of the economic, social and political contexts.Originality/valueUniquely employing the IPM model, and drawing from a context which has undergone significant political change but which has benefitted from little research, this study contributes to an understanding of the institutionalization and legitimization process of an accrual accounting system in an emerging‐economy public sector. Findings demonstrate how notions of politics and power inform the complexity of institutionalization in this unique political‐economic environment.

Assessing Risk Management Capability of Public Sector Organizations Related to PPP Scheme Development for Water Supply in Indonesia

The success of Public Private Partnership (PPP) for water supply investment is inseparable from the capability of risk management of the parties within the project. This study investigates the risk management capability of Indonesian local public sector organizations that are potentially involved in PPP schemes for water supply. A risk management maturity model based assessment tool probing the culture, process, experience, application and partnership aspects is used in the survey. The model describes risk management capability in four levels (ad-hoc, initial, competent, excellent). The survey shows that their risk management capability is still in-average at the initial stage (level 2), meaning that the adopted risk management postures are mostly supported only by unstructured, ad-hoc and non-formal processes. The result of this study can help decision makers in choosing appropriate risk management methods and tools to be used by the local public authorities for managing risks in PPP schemes.

Exploring paternalistic leadership and its application to the Indonesian public sector

PurposeThis present work aims to report on a study that examines the applicability of Paternalistic Leadership (PL) to public sector organisations in Indonesia. The paper seeks to discuss whether the construct of PL is perceived the same way across different cultures on the basis of an empirically‐based profile of Indonesian public sector leadership developed on the basis of a large‐scale survey carried out in Indonesian government agencies.Design/methodology/approachThe study sample consisted of 1,000 civil servants in the East Java and Jogyakarta Special Region Provinces of Indonesia. Data were collected using simple random sampling techniques. The 42 items in the PL instrument were subjected to explanatory factor analysis (EFA) with variamax rotation. EFA was used to test the degree to which the model of PL proposed by Cheng applied to the Indonesian sample.FindingsUsing confirmatory factor analysis the results showed that there are core similarities with the Cheng et al. model which has been tested in Taiwan. The Indonesian benevolent, moral‐leadership behaviour is substantially confirmed with the model adopted for this study. According to civil servants' perception, it seems likely that Indonesian leaders are visible and authoritarian.Research limitations/implicationsThe findings are based on a relatively small proportion of the total number of Indonesian civil servants, and focuses on those who are most likely to still uphold Javanese values. Another limitation is in the design of the study, broader focus on PL will allow the study to explain in any detail what the actual impact of PL is on management practices.Practical implicationsThis research suggests that people teaching leadership or acting in leadership roles in Indonesia need to develop a clear understanding of the particular values of that country, rather than assuming that all Asian cultures are exactly alike.Originality/valueThe paper adds insight into the applicability of PL in Indonesian public sector organizations.

Accrual Based Regime Adoption in the Indonesian Public Sector

Accrual Based Regime Adoption in The Indonesian Public Sector. A global trend indicates the emerging role of the private style reporting system as a part of New Public Financial Management reform in the public sector in developed and emerging economies. This study documents that the Indonesian goverments policy to formally adobt an accrual accounting reporting for the public sector in 2003 was part of wider public financial reform imposed by international donor communities and domestic aspiration as a means to strengthen the accountability, transparency and efficiency of public sector operation. Drawing from empirical data issued by the Goverment Institutions (e.g the State Audit Board) and the experience of a municipal goverment in implementing the new reporting system and other relevant information, the institutionalization of the new goverment reporting system in Indonesia has been encountered with a number critical issues: local goverments have been positioned as the passive adopter of the accounting regime against the decentralization policy, the low level of compliance to reporting standarts, the lack of using financial information for managerial purposes, and the emerge of an illegal practice as an unintended outcome of the public financial management reform. This paper concludes with practical recomendation and suggestion for future studies.

Managerial and Organizational Trends in a BOT Treatment: A Study in the Indonesian Telecommunications Sector

Despite considerable interest in assessing work dimensions and managerial practices that may enhance organizational vitality, seldom have these features been examined in Build Operate Transfer (BOT) arrange ments which have been frequently used in large-scale infrastructure and development in emerging economies. This study examined job design dimensions and management practice in regional divisions of TELKOM Indonesia, four operating under foreign-partnered BOT arrangements and two operating under the Indo nesian public sector. Surveys were administered to employees at management, functional and lower levels in the telecommunications divisions. Analysis of variance was used to compare private BOT and public sector divisions for staff training, perceived job dimensions and productivity. The results show that BOT divisions with a centralized, pyramidal structure and autocratic management style achieved the greatest infrastructure development and revenue. This was particularly evident in the French BOT division that was associated with the greatest job scope, reasonable investment in training and the highest rates of productivity. The host nation, Indonesia used training and autonomy in work design and reported the greatest spending on human resources and the fewest service complaints. Implications are discussed in terms of executive development and management practices in developing countries.

Contraceptive introduction and the management of choice: the role of Cyclofem in Indonesia

This paper presents a programmatic perspective on the relationship between the introduction of new contraceptive technology and expanding contraceptive options, using the example of Cyclofem in Indonesia. Past approaches to contraceptive introduction have considered only the characteristics of the new method in the decision-making process. In assessing whether the introduction of a new method actually expands contraceptive choice for women and whether the program has the managerial capabilities to assure quality of care in this process, the authors argue that consideration must be given to all methods within a delivery system and how new technology relates to the management of contraceptive choice. Using this perspective, the authors suggest that choice would not necessarily be expanded with scaled-up service delivery of a new once-a month injectable in the Indonesian public sector context.