Local Governments In Indonesia Research Articles

Rethinking Local Government Asset Management in Indonesia: Governance, Planning, and Policy Evaluation

Effective asset management is essential for enhancing operational efficiency and achieving sustainable development within local governments in Indonesia. This study explores key challenges in asset management, focusing on governance, planning, and policy evaluation. Several critical issues are identified: fragmented governance, insufficient transparency and coordination, outdated asset inventories, and misalignment between asset management practices and broader development goals. Policy evaluation mechanisms are also inadequate, failing to measure asset utilisation effectively. These challenges lead to inefficiencies in resource allocation, underutilisation of assets, and missed opportunities for local economic growth. The findings align with Sustainable Development Goals (SDGs), particularly SDG 11 (Sustainable Cities and Communities), which promotes efficient resource use, and SDG 9 (Industry, Innovation, and Infrastructure), which supports enhanced infrastructure management. Addressing these goals enables local governments to align asset management strategies with broader sustainability objectives, fostering equitable growth and long-term development. Through a qualitative literature review, this study analyses data from government reports and prior research to highlight these challenges and propose solutions. An integrated approach—aligning governance frameworks, improving asset management planning, and strengthening policy evaluation—can overcome the identified barriers. By adopting this model, local governments can optimise asset management, leading to improved efficiency, better resource utilisation, and sustainable development. Future research should explore applying this framework across regions in Indonesia to validate its effectiveness.

The Characteristics And Financial Performance Of Local Governments In Indonesia: The Moderating Role Of Financial Health Level

The Characteristics And Financial Performance Of Local Governments In Indonesia: The Moderating Role Of Financial Health Level

Prefectural System Practices in The Indonesian Local Government

This research aims to analyze the implementation of the prefectural system in Indonesia, examining its historical development, current application, and future trajectory in regional governance. This study employs a qualitative research design, utilizing a case study approach across several provinces in Indonesia. Data collection involved in-depth interviews, document analysis, and field observations to capture the nuances of the prefectural system's operation within different regional contexts. The prefectural system in Indonesia originated with the enactment of regional government laws and became more prominent after the New Order. It involves dividing the national territory into smaller administrative regions, with governors representing the central government, and features both deconcentration and decentralization. While previous studies have focused on decentralization and autonomy, this research highlights how these processes reinforce the prefectural system. This study provides fresh insights into the prefectural system's evolving role in Indonesia's decentralized governance. Unlike earlier works, it examines how the system balances central and local powers, anticipating its growing importance as Indonesia refines its decentralization policies.

THE ROLE OF POLITICAL COMPETITION BETWEEN AUDIT FINDINGS AND AUDIT OPINIONS

Research Purposes. This study aimed to determine the influence of audit findings on audit opinion involving the moderating variable of political competition among regencies/city governments in Indonesia. Research Methods. The secondary data are analyzed quantitatively utilizing binary logistic regression and MRA (Moderated Regression Analysis), processed by SPSS version 25 software. The population involves the entire 508 local governments of city-regencies in Indonesia, from which 395 sample cities/regencies in Indonesia in fiscal year 2016 were selected using purposive sampling. Research Results and Findings. The results showed that audit findings on internal control system weaknesses and non-compliance with legislation have a negative and significant effect on audit opinion, which means that more audit findings lessen the chance for the government to obtain an unqualified opinion. In addition, political competition strengthens the effect of audit findings of non-compliance with legislation and weaknesses in the internal control system on audit opinion. It implied that local governments in Indonesia should enhance internal controls and compliance and account for political factors to improve audit opinions.

Fraud threats: How organization improves the anti-fraud team quality?

This study aims to discover how the Indonesian Local Government Rural Bank improves the quality of the anti-fraud team to prevent and detect fraud based on a mechanism of the anti-fraud strategy issued by Bank Indonesia. A qualitative analysis approach was applied 12 semi-structured interviews with the anti-fraud team and related officers. The content analysis approach supported by NVivo software and has discovered several required competencies and competencies already developed by the organization’s anti-fraud team for fraud prevention and detection. This study provides a detailed discussion of how these competencies are used in the anti-fraud mechanism by identifying the gaps between the required competencies and developed competencies to give recommendations for the organization to enhance the quality of the anti-fraud team in conducting fraud prevention and detection.

E Buddy's Impact on Local Governance in Indonesia through Transforming Document Management

General Background: The advent of electronic document management systems has revolutionized administrative processes in local governance, emphasizing the need for effective implementation strategies. Specific Background: In Indonesia, the Electronic Official Document Arrangement through the E Buddy application has been introduced to enhance the efficiency of village governance, particularly in Panggreh Village, Jabon Sub-district, Sidoarjo Regency. Knowledge Gap: However, challenges remain regarding the consistency and effectiveness of E Buddy's usage among village officials, particularly concerning communication, resource allocation, and bureaucratic structures. Aims: This study aims to analyze and describe the implementation of the E Buddy application in Panggreh Village using a qualitative descriptive method, focusing on the indicators proposed by George Edward III: communication, resources, disposition, and bureaucratic structure. Results: The findings indicate that while E Buddy has been implemented, issues persist, such as inconsistent usage of the application for official document transmission and inadequate technical guidance. Furthermore, some officials struggle with the application’s functionalities, and insufficient resources hinder optimal performance. The study also highlights the need for dedicated personnel, improved evaluation methods, and the establishment of incentives to motivate village officials in utilizing E Buddy effectively. Novelty: This research contributes to the understanding of the practical implications of electronic document management systems in local governance, offering insights into the barriers faced by village officials in Indonesia. Implications: The results underscore the necessity for continuous training, resource upgrades, and structural reforms to enhance the efficacy of the E Buddy application and improve service delivery in rural governance. Highlights: Communication Issues: WhatsApp used instead of E Buddy for documents. Resource Deficiencies: Officials lack skills in using E Buddy effectively. Regulatory Compliance: Structure follows regulations, but support needs improvement. Keywords: E Buddy, Electronic Document Management, Implementation, Local Governance, Sidoarjo Regency

The Effectiveness of Audio Visual Media in Reporting Technique Material in Improving Accounting Economics Learning Outcomes for Class Students at SMAN 2 Majene

This study examines the impact of leadership style, organizational culture, policy implementation, and community participation on the efficiency of public services and the happiness of employees in local government in Indonesia. The study involves a quantitative analysis with a sample size of 250 participants. It utilizes a Likert scale ranging from 1 to 5 and leverages Structural Equation Modeling-Partial Least Squares (SEM-PLS 3) for data analysis. The findings demonstrate that all connections are both positive and statistically significant, emphasizing the crucial functions these parameters fulfill in public administration. Leadership style, corporate culture, policy execution, and community participation have a major positive impact on both public service efficiency and employee happiness. The findings provide significant theoretical contributions to the comprehension of public sector management and present practical implications for policymakers and practitioners seeking to enhance public service performance and employee morale.

Analisis penerimaan dan penyetoran Pajak Bumi dan Bangunan Perdesaan dan Perkotaan (PBB-P2) di Desa Tombasian Atas Kecamatan Kawangkoan Barat

The Rural and Urban Land and Building Tax (or PBB-P2) is a crucial source of revenue for local governments in Indonesia. This research will analyze the revenue collection and payment of PBB-P2 in Tombasian Village, Kawangkoan Barat Subdistrict. The research methodology employed a qualitative approach, gathering data through interviews with tax officials and secondary data analysis. The findings clearly show a low level of public awareness regarding tax obligations, which is hurting tax revenue. Public understanding of tax policies and the quality of tax services significantly influence the payment of PBB-P2. The study provides recommendations to local governments to enhance public awareness campaigns, empower tax officials, and improve services to the community, thereby increasing revenue collection and tax payment of PBB-P2. These measures will undoubtedly lead to an increase in local tax revenue, which will support the development of Tombasian Village.

Implementation of Digital Transformation and Government Enterprise Architecture in Improving the Performance of Integrated Social Services

This study addresses the subject matter of declining public confidence in local governments in Indonesia, primarily due to issues in public service delivery, highlighting the urgent need for improved integrated social services. The objective is to analyze the mediating effect of enterprise architecture orientation on the influence of environmental turbulence, flexibility strategy, business model innovation, and digital transformation on social service performance in West Java. Methods involved a survey explanatory approach with all 27 social service providers in West Java Province, employing whole population sampling. Data were analyzed using descriptive statistical analysis and hypothesis testing using Partial Least Square Structural Equation Modeling (PLS-SEM). Results indicate that environmental turbulence, flexibility strategy, business model innovation, and digital transformation significantly impact social service performance when mediated by enterprise architecture orientation. The conclusions suggest that a robust model emphasizing strategic architectural orientation and effective implementation of flexibility, innovation, and digital transformation can enhance social service performance amidst environmental challenges. This study contributes to understanding the complex dynamics of social service provision in local governments, advocating for strategic investments in enterprise architecture and adaptive strategies to improve public service delivery and restore public trust.

EXAMINING THE CONTRIBUTION OF LOCAL GOVERNMENT IN ADVANCING ELECTROMOBILITY: INSIGHTS FROM THE LEGAL FRAMEWORK IN INDONESIA

As part of the commitment to decarbonise and combat climate change, electric vehicles have been identified as a promising solution. Several legal instruments have been implemented both at an international and national level to support the transition to low-emission vehicles. In addition, a recent development has resulted in the need for local governments to adopt policies that can be implemented locally. Specifically, this study explores and analyses the policies of two local governments in Indonesia, namely those of Jakarta and Bali. These two regions have adopted a regional policy that incentivises the public and industry to use electric vehicles in their respective regions. A further aspect of this study was the analysis of national and provincial regulations. Furthermore, the study provides a detailed analysis of the opportunities and challenges associated with adopting electric vehicles at the local level. The findings of this study are expected to serve as a reference and recommendation for establishing laws and regulations to promote electric vehicles.

Exploring the impact of social media technology on public service efficiency: A case study of Indonesian local government

Exploring the impact of social media technology on public service efficiency: A case study of Indonesian local government

Pengaruh Budget Transparency dan Fiscal Autonomy terhadap Financial Sustainability: Studi Empiris pada Kabupaten dan Kota di Indonesia

The purpose of this study is to analyze the effect of budget transparency and fiscal autonomy on the financial sustainability of local governments in Indonesia. The data in this study were sourced from the Local Government Financial Statements obtained from the official website of the local government and the BPK RI website and TPAD data viewed on the official website of the local government. The sample collection method uses a purposive sampling method calculated using the Slovin formula. Hypothesis testing in this study uses multiple linear regression analysis. The results showed that budget transparency has no significant effect on financial sustainability and fiscal autonomy has a significant effect on financial sustainability.

Evaluation of Tobacco Tax Funding to Eradicate Illicit Cigarettes in Indonesia: A Qualitative Approach.

The illicit cigarette trade endangers public health because it increases access to cheaper tobacco products, hence fueling the tobacco epidemic and undermining tobacco control policies. The objective of this study was to evaluate the execution of an illicit cigarette eradication program under the jurisdiction of the local government in Indonesia. We sought to provide insights into the effectiveness of current policies and their impact on the illicit cigarette trade in line with the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) protocol to eliminate illicit trade in tobacco products. We conducted semistructured interviews with key policy-makers and semistructured FGDs with consumers and small- to medium-scale cigarette manufacturers at the district level. We indentified Pasuruan and Kudus as the districts or cities with the highest proportion of DBH CHT, and Jepara and Malang as a district with a highest illicit cigarette incident. We used reflective thematic analysis to identify the important opportunities and challenges facing illicit cigarette eradication programs in the three districts. We identified four opportunities and four challenges related to illicit cigarette eradication program implementation under the local government. The opportunities for illicit cigarette eradication lie in strong central government regulatory and multisectoral authority support, consumer awareness, and local governments' commitment to tobacco supply chain control. The key challenges facing illicit cigarette eradication include ineffective public dissemination programs, rapidly changing regulatory designs, consumers' preferences for illicit products, and a lack of industrial involvement in tobacco supply chain control programs. In addition to significant budget allocation and increasing consumer awareness, local programs to eradicate illicit cigarette production require considerable evaluation to rethink the program's design and external stakeholders' engagement within the local government's scope.

The Influence of Leadership Style, Organizational Culture, Policy Implementation, and Community Participation on Public Service Efficiency and Employee Satisfaction in Indonesian Local Government

This study examines the impact of leadership style, organizational culture, policy implementation, and community participation on the efficiency of public services and the happiness of employees in local government in Indonesia. The study involves a quantitative analysis with a sample size of 250 participants. It utilizes a Likert scale ranging from 1 to 5 and leverages Structural Equation Modeling-Partial Least Squares (SEM-PLS 3) for data analysis. The findings demonstrate that all connections are both positive and statistically significant, emphasizing the crucial functions these parameters fulfill in public administration. Leadership style, corporate culture, policy execution, and community participation have a major positive impact on both public service efficiency and employee happiness. The findings provide significant theoretical contributions to the comprehension of public sector management and present practical implications for policymakers and practitioners seeking to enhance public service performance and employee morale.

The influence of audit opinion, characteristics of regional head, and levels of corruption on performance of local government in Indonesia

The influence of audit opinion, characteristics of regional head, and levels of corruption on performance of local government in Indonesia

The Effect of Regional Financial Management on Financial Distress of Local Government in Indonesia

Deficits experienced by local governments can lead to financial difficulty, often referred to as financial distress. Although local governments experience deficits, local governments can avoid these conditions with good regional financial management. This research aims to determine regional financial management's effect on local governments' financial distress in 2019-2022. The sample in this research uses a total sampling technique at all provincial and local government levels in 2019-2022. This research uses secondary data with documentation techniques. Binary logistic regression was obtained to perform data analysis. The results showed that financial independence significantly negatively affects financial distress. Financial flexibility has a significant negative effect on financial distress. Operational solvency does not have a significant adverse effect on financial distress. Short-term solvency has a significant positive effect on finances. Service solvency has a significant negative effect.

Religiosity, ethical leadership and local wisdom in moderating the effect of fraud risk management on asset misappropriation: evidence from local government in Indonesia

Purpose This study aims to examine the effects of religiosity, ethical leadership and local wisdom on the relationship between fraud risk management and asset misappropriation in Indonesia. Design/methodology/approach Data were collected using a set of questionnaire surveys administered to the head office, local government internal auditors (inspectorate) and local government employees in Indonesia. Sample selection used purposive techniques and obtained 151 respondents who became research data. The dependent variable was asset misappropriation. The independent variable was fraud risk management. The moderating variables for this study were religiosity, leader ethics and local wisdom. The analysis technique applied the structural equation model-partial least square (SEM-PLS). Findings Fraud risk management has a significant negative effect on asset misappropriation. In addition, this study finds evidence that religiosity, ethical leadership and local wisdom increase fraud risk management against asset misappropriation. Research limitations/implications This study proposes an integrative model that enables local governments to understand fraud risk management. By integrating religiosity, ethical leadership and local wisdom, managers can design strategies to prevent asset misappropriation. Originality/value This research has the advantage of proposing an integrative model for mitigating asset misappropriation. Research on asset misappropriation is limited. Therefore, this study provides insights into fraud risk management, particularly in Indonesia’s local governments. In addition, this study adds ethical aspects such as religiosity, leadership and local wisdom to complement the weaknesses of fraud risk management and reduce the potential for asset misappropriation.

The Effect Of Economic Growth, Local Original Income And Equalization Fund On Capital Expenditure (Study On District/City Local Governments In Indonesia)

Capital expenditure is a budget expenditure for the acquisition of fixed assets and other assets that benefit more than one accounting period, including expenditures for maintenance costs that maintain or increase useful life, and increase capacity and asset quality. This study aims to examine the effect of Economic Growth, Local Original Revenue, and Balancing Funds on Capital Expenditure in District/City Regional Governments in Indonesia in 2022 both partially and simultaneously. This research uses quantitative methods, using secondary data obtained through the website of the Directorate General of Financial Balance and the website of the Central Statistics Agency. The sampling technique uses the purposive sampling method with a total sample of 218 District/City Regional Governments in Indonesia in 2022. The data analysis method in this study used multiple linear regression analysis. The results of the study show that the variables of Economic Growth, Regional Original Income, and Balancing Funds simultaneously affect Capital Expenditure. Partially, Economic Growth does not affect Capital Expenditure, while Regional Original Revenue and Balancing Fund affect Capital Expenditure.

Human development and the quality of financial reporting among the local governments in Indonesia

We investigate whether a local government’s level of human development is associated with its financial reporting quality. We use audit opinions and accruals management to capture financial reporting quality and manually collected data from our sample of 4,254 financial reports of Indonesian local governments from 2010 to 2018. We find that local governments whose citizens have a higher Human Development Index (HDI) and on each dimension of human development are more likely to receive an unqualified audit opinion on their financial reports. However, we find that local governments with a higher development index are more likely to use accruals management through revenue overestimation or expense underestimation in preparing the statement of operations. Our results suggest that employees of higher quality, as indicated by a higher HDI, have a greater ability to follow accounting rules resulting in a cleaner audit opinion. However, they might opportunistically use their judgments in making accounting estimates. Finally, our study contributes to the literature by providing insight into how human development and its dimensions are associated with the quality of financial reporting, especially in the public sector in developing countries.

Unjust by default: The political economy of Indonesia's local government policy on infrastructure development

The Indonesian government's attention to economic infrastructure development has increased over the last two decades. However, there has been a trend of rampant rent-seeking in infrastructure projects by elites in both local and central governments. Nonetheless, why and how rent-seeking practices in infrastructure projects have been so endemic in Indonesian local government remains poorly understood. This article addresses this by investigating how infrastructure development in local government serves dual functions of economic growth and political commodity by utilising qualitative data obtained from interviews in Central Kalimantan (2016) and East Nusa Tenggara (2020) provinces. This data confirms the existence of infrastructure's dual function, in which official regional development planning documents and accompanying regulations are more likely to function as a legal umbrella for legalising rent-seeking practices. The term ‘unjust by default‘ identifies the practice of rent-seeking by formalising political-economic interests into regional development planning documents and manipulating regulations in order to implement infrastructure development programmes.