Local Governments In Indonesia Research Articles

Local Expenditures, Local Wealth, Financial Management Accountability, and Local Government Administration Performance: Empirical Studies in Indonesia

This study attempts to obtain empirical evidence regarding the determinants of local government administration performance in Indonesia using the local expenditures, local wealth, and financial management accountability factors. The research uses secondary data obtained from authorized government agencies. Through purposive sampling selection, this study generates 1987 observations from 508 Indonesian local governments within the 2015-2018 period, analyzed with multiple linear regression. The findings from our analysis demonstrate that the local government administration performance in Indonesia on average has reached a high level despite there still exists a number of local governments with medium and low performance. Multiple linear regression analysis generates empirical findings that operational expenditures, regional wealth, and financial management accountability exhibit a positive effect towards local government administration performance. However, capital expenditures does not show any significant effect. Further robustness testing also produced consistent findings for all independent variables. This study provides recommendations for realization of local governments to continuously improve the effectiveness of local expenditures, both operating expenditures and capital expenditures. The realization of capital expenditures must be followed by proper utilization of fixed assets to produce the expected outcomes. Local governments must also continue to maximize the local potential while maintaining good local financial accountability for the sake of improving local government administration performance.

Implementing Gender Mainstreaming in Indonesian Local Government: The Case of Tangerang Regency

This research is about the implementation of gender mainstreaming policies in local governments in Indonesia since the enactment of Presidential Instruction No. 9 of 2000 on Gender Mainstreaming in National Development. After running for almost two decades, the implementation of gender mainstreaming has not succeeded in having a significant impact in realizing gender equality in Indonesia in general and Tangerang Regency in particular. Indicators of poverty, domestic violence, and unemployment are still experienced by women. The low index of gender empowerment and women's representation in politics is another indicator that shows the failure of gender mainstreaming in development. Gender inequality in development is caused by internal and external factors that directly impact the achievement of gender equality. Internal factors refer to the low political commitment of regional leaders in initiating the making and stipulation of local regulations on gender mainstreaming in development. Meanwhile, external factors refer to the strong patriarchal culture in Indonesian society which still views women as incapable of political leadership and policy making

PENGARUH TEMUAN AUDIT, REKOMENDASI HASIL PEMERIKSAAN, DAN UKURAN PEMERINTAHAN DAERAH TERHADAP OPINI AUDIT PADA PEMERINTAH DAERAH DI INDONESIA

The purpose of this study was to analyze the effect of audit findings, recommendations on audit results, and the size of local government on audit opinions on local governments in Indonesia. This research uses quantitative research. Population sampling technique is done by using purposive sampling method. To test the hypothesis in this study using the Multinomial Logistics Regression Analysis test. Based on empirical facts and hypothesis testing in this study, it can be concluded that: 1) audit findings do not affect audit opinion on local governments; 2) audit recommendations influence audit opinions on local governments; and 3) the size of the local government influences the audit opinion on the local government.

Partnership building between NGOs and Indonesian local governments: a case study of integrative leadership immersing itself in innovativeness

PurposeThis study investigates partnership building between non-governmental organisations (NGOs) and the regencies of Gunung Kidul, Bantul, Sleman, Yogyakarta Province and Indonesia's central government. This study focuses on the perspective of the collaboration theory to reflect the usefulness of different leadership types. Furthermore, this study identifies the impact of partnership building on program effectiveness.Design/methodology/approachThis study uses an instance case study with thirteen informants who are NGO activists or members of the village, district and provincial governments. This study concludes that NGOs and local government partnerships have reached a collaborative level, characterised by their stakeholders' unity, regular communication, mutual trust and consensus in decision-making.FindingsThis collaborative relationship also shows the integrative leadership style, characterised by openness and active networks with all external parties. Furthermore, this study identifies that partnership building positively impacts and increases the outcomes, especially in capacity building and commitment. Finally, this research proposes a series of innovative policies through stakeholder mapping, forming joint forums, sharing responsibilities and accentuating intimate partnerships.Originality/valueThis research is unique in the following ways: First, this study argues that partnership building occurs due to a specific social contract between a local government and an NGO. The authors show that this contract occurs when a local government possesses innovativeness. Local governments know which programs are not financed from the central budget. They accent their innovativeness for increasing society's welfare by collaborating with an NGO. Second, local governments realise that building partnerships with NGOs is no longer an option but an obligation. This study considers the similarity objectives of providing the best services they can to the community, with the differentiation of the capacities and resources owned by both. Third, this study demonstrates that partnerships between NGOs and governments positively impact communities' development in emerging economies with all the obstacles that exist.

The Development of Social Media Intelligence System for Citizen Opinion and Perception Analysis over Government Policy

In Indonesia, community involvement in development planning and public policy has generally been carried out but limitedly. Social media uploads regarding public perceptions of policy implementation in the field are valuable input for those who quickly and accurately upload existing problems.The problems that arise from this effort to use social media are 1) how to detect public conversations related to a public policy. 2) Social media data collected extensively and accelerating can be processed quickly to get real-time analysis results. 3) Making the analysis results accessible in an interactive and representative form allows government policymakers to explore appropriate data and information to formulate and formulate public policies.This research produces a social media intelligence platform that can unite public opinion regarding public perceptions of the implementation of policies issued by the government, especially local governments in Indonesia. Based on modeling the topic of Covid-19 vaccination cases, 11 topics of discussion were obtained. While the sentiment analysis results of the 11 issues resulted, topic 6 had the most negative sentiment values regarding the development of Covid-19 vaccination in Indonesia. At the same time, topics with the most positive sentiment values are topic three and topic 10. These topics discuss the vaccination process carried out by health procedures (prokes) and government policies related to COVID-19 vaccination.

Management of Assets and Follow-Up the Findings of the Audit Board to Increase Financial Performance of Local Governments

The dependence of most local governments on the central government in funding regional spending is still a problem in Indonesia. Although the regional autonomy system has been implemented, including in terms of regional financial management, local governments still have difficulty in implementing efficient regional spending. This effort is done so that the financial management of local governments can be implemented efficiently. This research aims to find out the impact of the size of local governments, audit findings and follow-up of the recommendations of The Audit Board of the Republic of Indonesia on the financial performance of local governments This study uses a quantitative approach by testing hypotheses using multiple regression analysis methods in cross sectional data. The study used data from local government performance reports in 2019. The study analyses 406 district/city governments report in Indonesia. The results showed that: 1) There is a positive and significant influence on the size of local governments on the financial performance of local governments in Indonesia; 2) There are negative and significant influences on the findings of examination of the financial performance of local governments in Indonesia; 3) There is a positive and significant influence on follow-up recommendations of examination results on the financial performance of local governments in Indonesia. The results implication is that efficiency of local government asset and follow-up of audit findings of the Audit Board Republic of Indonesia can improve the financial performance of local governments.

The Impact of Regional Financial Capability during the COVID-19 Pandemic towards Regional Fiscal Capacity

Regional fiscal capacity is the region’s ability reflected in regional revenue, consisting of own-source revenue (PAD), fiscal balance transfers, and other legitimate regional revenues. This study aims at analysing the impact of regional financial capability during the Covid-19 Pandemic towards regional fiscal capacity. The research was conducted in local governments in Indonesia during 2020 using descriptive qualitative analysis. The results showed that generally the Covid-19 Pandemic affected the reduction on own-source revenue (PAD) in almost all provinces in Indonesia during the first semester of 2020. From 66 regencies/cities as the sample from this research, 49 regencies decreased in revenue and expenditure because of the Covid-19 Pandemic. The revenue reduction in each region was caused by regional taxes reduction of around 2,5 percent and 10,68 percent sequentially in the first semester of 2020, fiscal balance transfers around 8,42 percent, and general allocation grant (DAU) around 9,8 percent and 6,94 percent. Meanwhile, to solve the regional fiscal problems, the local governments implemented 2 types of policies: (1) the first policy is to implement a counter-cyclical policy through maintaining economic stability, decreasing revenues, and increasing local government expenditures; (2) the second policy is to implement a pro-cyclical policy through increasing revenues and decreasing expenditures. The present research also found that regencies/cities that implemented a counter-cyclical policy generally increased in expenditure components, such as grant expenditure around 316,51 percent and regional capital expenditure. Some local governments built infrastructure (assets and buildings) during the Covid-19 Pandemic. However, local governments decreased around -1% - 16% for the employee expenditures.

Determinant factors on the disclosure level of local government’s financial statements in Indonesia

Financial reports are required from both the federal and municipal governments to demonstrate and improve governance and raise openness and accountability of government financial management. This study aims to determine how much mandatory disclosure in local government financial reports can be increased by adding variables such as the number of members in the legislative body, debt, and population, as well as a control variable – the age of the municipal authorities. The population of this study comprised all Local Government Financial Statements (LGFS) in Indonesia and the Supreme Audit Agency’s financial statement auditing requirements as of 2018. The paper adopted a purposive sample technique; 248 local governments in Indonesia were sampled. This study tested hypotheses using multiple regression analysis with the SPSS Version 25 application. The findings show that the number of members in the legislative body, debt, and total population do not affect the level of LGFS disclosure; however, the level of welfare does. This study should provide information that can help increase LGFS disclosure in a way that is valuable for local governments. Utilization of information technology in meeting social demands more efficiently and effectively is one of the strategies for local governments in carrying out financial statement disclosures.

Pembaharuan Dalam Manajemen Pelayanan Publik Daerah: Tantangan dan Peluang Dalam Desentralisasi Pemerintahan di Indonesia

Like other countries around the world, both developed and developing countries, Indonesia's local government performance is measured primarily through the provision of basic services. Despite efforts to improve the service represents a concrete manifestation of good governance to promote human development, local governments have struggled to overcome many challenges and limitations. In this paper, good governance focuses on motivation and progress that emerged by some districts in Indonesia in improving their management system for the creation of effective service. Local governments can benefit from the assistance in fostering reform, provide advocacy, facilitating groups of stakeholders in implementing the reform agenda, monitor performance, and initiate and replicate the results. A study showed that coaching should be a partnership between consultant and local governments to develop capacity and provide skills to local government. The creation of a market for consulting and advocacy services include networking and advocacy among professional bodies and practitioners, public oversight bodies and “watchdog” organizations and groups of non-governmental organizations (NGO’s). In addition, the need to develop the market for the instruments in accordance with capacity building, particularly government-assisted instruments.

Pembaharuan Dalam Manajemen Pelayanan Publik Daerah: Tantangan dan Peluang Dalam Desentralisasi Pemerintahan di Indonesia

Like other countries around the world, both developed and developing countries, Indonesia's local government performance is measured primarily through the provision of basic services. Despite efforts to improve the service represents a concrete manifestation of good governance to promote human development, local governments have struggled to overcome many challenges and limitations. In this paper, good governance focuses on motivation and progress that emerged by some districts in Indonesia in improving their management system for the creation of effective service. Local governments can benefit from the assistance in fostering reform, provide advocacy, facilitating groups of stakeholders in implementing the reform agenda, monitor performance, and initiate and replicate the results. A study showed that coaching should be a partnership between consultant and local governments to develop capacity and provide skills to local government. The creation of a market for consulting and advocacy services include networking and advocacy among professional bodies and practitioners, public oversight bodies and “watchdog” organizations and groups of non-governmental organizations (NGO’s). In addition, the need to develop the market for the instruments in accordance with capacity building, particularly government-assisted instruments.

The prediction of financial distress probability in East Java province governments

Beginning in the mid-1970s, financial distress in local governments became big news when New York City nearly collapsed due to the energy crisis and high inflation. When local governments experience financial distress, the responsibility to provide services to the community both now and in the future cannot be fulfilled. Local governments can only maintain services to the community if they are able to avoid financial distress. If the financial distress condition is maintained, there will be a stagnation in the level of community welfare which will have an impact on regional economic growth because it is not supported by adequate public services. Some local governments like Pennsylvania, have implemented a measure to indicate financial distress as stipulated in the 1987 Financially Distressed City Act (UU 47). However, the local government in Indonesia does not yet have an absolute measure for this financial distress condition. For this reason, financial distress in this study will use a relative measure indicated by the probability value measured using a defined approach. The results of the study provide an overview of how the relevant values in local government financial statements are able to predict financial distress in local governments. The findings show that the variables intergovernmental revenue (IGR), financial independence (FIND), employee expenditure (EMPEX), capital expenditure (CAPEX), and operating position (OPPOS) have a significant effect and can be used as an alternative predictor of financial distress with more comprehensive suitability with the financial characteristics of local government in East Java Province.

Managing the COVID-19 Pandemic in a Fragmented Local Government Setting: a Study from Ogan Ilir Regency, Indonesia

The COVID-19 pandemic marks the importance of coordination, cooperation, and collaboration to reduce the virus’ spread and its impacts. Although a lot of literature has explored how the government works during the COVID-19 pandemic, only a few studies have examined it at the local government level. Therefore, this study aims to fill this gap by exploring the local government’s workings and the agencies. This study used narrative qualitative research with the main data source from interviews with the Ogan Ilir Regency COVID-19 Task Force for the Acceleration of Response. This study found that government agencies have not accomplished at the action level despite having a common goal as a condition of coordination. The findings of this study reaffirmed that the silo mentality still exists in the bureaucracy of local government in Indonesia.

A social system for sustainable local e-government

PurposeMost studies in electronic government (e-government) sustainability focus on the role of specific actors (stakeholders such as government employees or citizens) in sustaining an e-government project. However, such actors may not have sufficient resources to support e-government sustainability by themselves and must collaborate across different departments and stakeholders to sustain e-government projects. This paper aims to take a social systems theory perspective on sustainable local e-government, where actors cooperate and coordinate in a social system to leverage resources for e-government sustainability in local government contexts in developing countries.Design/methodology/approachThis paper is an interpretive study of two local e-government case studies based on in-depth interviews with local government information technology (IT) managers, local leaders and staff. Data analysis based on constructivist grounded theory is used to understand the role of a social system in sustaining e-government systems in local governments in developing countries.FindingsThe original social system theory was developed for industry initiatives and adapted for public organisations in this paper. The unique characteristics of the public sector and e-government innovation are used to identify new components of the social system related to local e-government. Local e-government is sustained through a collaboration between actors in a social system to leverage resources and reduce challenges.Research limitations/implicationsWhile this is an exploratory study, the cases show that the use of a social system theory consisting of institutional, management, social and economic components requires multiple lenses for investigation. This is a challenging process because it requires different areas of knowledge to carry out the research. The challenges may influence the overall outcome of this study. In addition, the two cases may generate limited insight and experiences as this study was carried out within two local governments in Indonesia. The findings may not provide a strong basis for generalization to other contexts.Practical implicationsThis study offers guidance to local government IT departments to improve collaboration in a social system between local actors (such as political, managers and staff) while implementing and using e-government systems.Social implicationsSustainable local e-government requires all actors to coordinate and cooperate in a social system to reduce financial, political and technical challenges.Originality/valueThis paper offers new insight into how a local government collaborates in a social system to realize sustainable e-government systems. Collaborating in a social system reduces common challenges and leverages resources to support e-government sustainability.

Reframing whistleblowing intention: an analysis of individual and situational factors

PurposeThis paper aims to reframe the whistleblowing process by examining the individual and situational factors that have been overlooked by prior studies. Ethical climate, public service motivation (PSM), organisation identification and psychological safety are inquired.Design/methodology/approachThe present study sample was drawn from a population of Indonesian local governments located in east Java, Indonesia. Particularly, self-administered questionnaires were hand-distributed to the employees in the four local governments. Of 2,169 questionnaires distributed to the employees, 1,687 questionnaires were returned to the researcher. However, the researcher removed 33 returned questionnaires because of poor data quality, such as incomplete answers. Thus, only 1,654 questionnaires were analysed in this study.FindingsThe findings support the idea of an ethical climate that can encourage the individual to blow the whistle. However, its effect is indirect. The predictive power of ethical climate on the individual’s whistleblowing intentions depends on the meditating roles of PSM, psychological safety and organisation identification. Interestingly, the mediating effects of PSM, psychological safety and organisation identification are extremely acknowledged when individuals have an opportunity to choose internal or external disclosures.Originality/valueThis study produces a different approach to understanding people’s intentions to report any wrongdoings. This study is dissimilar from prior studies in terms of the theoretical paradigm and research design. Previous studies mostly used students as their experiments. In contrast, the current study recruited employees who work in local governments. This situation fundamentally affects the understanding of the impact of an ethical climate on the individual intention to blow the whistle.

The Zeitgeist of "Financial Reporting Quality" Predictors: An Empirical Study among Local Governments (Districts) in Indonesia

The research investigated the relationship among FRQ, ICS, RPM, and COR as moderating variables. The research recommends that local governments should improve in the field of financial management and implement an effective internal control system. Aligning the research problem and objectives, this research adopted the agency theory for local government. This theory includes information asymmetry, where the agent has more information and understands more about the actual financial position than the principal. Modern democracies are based on a series of principal-agent relationships, which may lead to problems in the public sector. In this research, 257 qualified questionnaires were collected from local governments in Indonesia, using self-administered surveys. Furthermore, Partial Least Square-Structural Equation Modelling (PLS-SEM) technique was used for data analysis. The results showed that ICS, COR, and RPM have a positive relationship with FRQ, while the hypothesis that COR strengthens the effect of ICS on FRQ was rejected. High COR does not significantly improve the FRQ without being supported by a good ICS. With a high or low COR, the ICS will continue to be carried out properly by leaders and superiors. Therefore, a good COR does not significantly moderate the effect of the ICS on the FRQ. The quality of financial reports is the result of accounting activities that can provide financial information which can be understood by users and be used for decision-making in the future.

ФУНКЦИЯ ВНУТРЕННЕГО АУДИТА И КАЧЕСТВО ГОСУДАРСТВЕННЫХ УСЛУГ: ДАННЫЕ ИССЛЕДОВАНИЯ ДЕЯТЕЛЬНОСТИ МЕСТНЫХ ОРГАНОВ ВЛАСТИ ИНДОНЕЗИИ

This study investigates the role of local government internal audit function maturity and expertise in supervising local government public service quality. We use secondary data from all local governments in Indonesia for the 2016-2019 fiscal year that generates panel data with 1934 observations, analyzed with panel data regression. Local governments in Indonesia have a good average quality of public services. In most tests, we evidence the positive effect of local government internal audit function maturity and expertise on public service quality. Internal audit function maturity is the strongest contributor, while expertise supports the audit process to achieve higher public service quality. Our study provides implications for local government supervision that should be maximized through internal audit function to achieve good quality public services, by developing proper internal auditor programs of the Financial and Development Supervisory Agency (BPKP). The local government should also have a proper budget allocation for public service. The adoption of information technology should also be optimized in public service implementation and supervision. Finally, our study brings significant novelty to public service and internal audit literature in Indonesia by providing one of the first comprehensive studies covering all Indonesian local governments.

Simultaneous Importance-Performance Analysis based on SWOT in the Service Domain of Electronic-based Government Systems

Decision makers for decades have used SWOT analysis for strategic planning. However, the problems that arise in the SWOT analysis are subjective, so decision-making becomes inefficient. Therefore, SWOT analysis is often combined with other methods to make decision-making strategies more focused and measurable according to priority interests. The SWOT analysis basis in this study is Simultaneous Importance-Performance (SIPA) analysis by observing each indicator's weights. In addition, this study proposes a new method by focusing on competitor factors in strategies mapping to improve services for Electronic-Based Government Systems (SPBE). The object of this study was two local governments in Indonesia, namely the Meranti Islands Regency and the Limapuluh Kota Regency. The results showed that a SIPA-based SWOT analysis has succeeded in showing the Strengths, Weaknesses, Opportunities, and Challenges of the district government. Furthermore, based on the results of hypothesis testing, SIPA-based SWOT identification has reflected a valid organizational situation.

Studi Deskriptif: Determinan Teknologi, Informasi dan Komunikasi dalam Pengungkapan LKPD di Indonesia

Abstract: Purpose: This descriptive study aims to explain technological determinants related to the disclosure of local government financial statements proxied in the variables of Telecommunications Network (X1), Internet Access (X2), Technology Development (X3), e-Government (X4), Website Accessibility (X5), Press Visibility (X6), and E-Procurement (X7) Method: A quantitative approach at the descriptive level is used in this study. 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. Data analysis using SPSS software. Results: The average level of telecommunications networks, quality of internet access, technology development, e-government, ease of website accessibility, and the frequency of procuring goods and services online for Indonesian local governments are in moderate numbers. Limitations: This study is only up to the level of describing the sample and using a limited number of ICT determinants. Some of the technological factor data used in this study are not detailed based on the district government, due to limited information obtained through the Ministry of Communication and Information and the Central Statistics Agency (BPS). Contribution: These findings contribute to central and regional governments as regulators and decision makers in formulating policies to consider technological factors related to financial report disclosure in order to realize transparency and public accountability in a time-effective and cost-efficient manner. Keywords: 1. Technology 2. Information and Communication Technology 3. Local Government 4. ICT 5. LKPD 6. Internet

The Role of Law Enforcement on Moderating the Relationship between Government Size, Fiscal Decentralization, Audit Finding and Corruption

This study is based on Indonesia's high levels of corruption, as evidenced by the Corruption Perception Index's low level (CPI). In Indonesia, the bulk of corruption cases involve local government entities. The objective of this study is to empirically examine the factors that contribute to high levels of corruption in local governments of district or city in Indonesia and the role of enforcement in that influence. This study applied a purposive sampling method to obtain a sample consisting of 66 district governments and 15 municipal governments in Indonesia in 2019. The data were analyzed by utilizing multiple linear regression techniques using Statistical Package for the Social Sciences (SPSS) version 25. The results of the analysis revealed that fiscal decentralization, government size, and audit findings have a significant positive with the level of corruption and law enforcement significantly moderates such relationship. This research contributes to auditing practices, government administration, law enforcement, and corruption control initiatives in the local government of Indonesia. Local government is also expected to be able to involve the role of the community to help oversee the running of a government which is free from corruption practices. Supervision also needs to be done by law enforcement officials, especially those dealing with corruption cases. Law enforcement officers are expected to be able to supervise and crack down on perpetrators of corrupt practices.

Determinants of Indonesia's local government system acceptance

Determinants of Indonesia's local government system acceptance