Local Governments In Indonesia Research Articles

Land Value Capture as Financial Resource for Infrastructure Development in Palembang City

Indonesian local governments still depend on the state budget to fund infrastructure development. On the other hand, land value capture (LVC) is suitable for developing countries, such as Indonesia, to fund such development. However, there is an absent legal system to explicitly implement LVC in Indonesia. This paper aims to discuss factors affecting LVC implementation in the context of Palembang. Through an in-depth interview with several experts, the study identified existing issues affecting LVC implementation including delays in revising regulation; risk of corruption, collusion, and nepotism; decrease in public participation; and public complaints due to property tax increase. Finally, we proposed strategies that should be fulfilled by the local government for the successful implementation of LVC in Palembang. They include the establishment of an implementing agency with a clear division of role and skillful members, the enactment of specific regulations, and the establishment of a special forum, e-platform, and mass media.

Limitations to subnational authoritarianism: Indonesian local government head elections in comparative perspective

ABSTRACT In recent years, a sizeable literature on subnational authoritarian regimes in democracies has emerged. In some countries local authoritarian enclaves have persisted despite the democratization of politics at the national level. Even more intriguing, new subnational authoritarian regimes have emerged in the context of national level democratization. Finally, scholars have noted that there is considerable variance in subnational authoritarian regime durability between and within countries. This article will examine why subnational authoritarian regimes have not emerged in Indonesia. Arguably, the difficulties of subnational elites to concentrate control over local economies; the high economic autonomy of voters; and the rigid institutional framework of Indonesia’s decentralized unitary state have inhibited the rise of durable subnational authoritarian regimes in the world’s third largest democracy. One of the first studies on subnational authoritarian regimes in a decentralized unitary state, the article engages and informs the broader literature on subnational authoritarian regimes.

Factors Influencing Health Expenditure Allocation in Indonesian Local Governments

Factors Influencing Health Expenditure Allocation in Indonesian Local Governments

Weak Alertness Between The Central Government and Local Governments in Handling Crisis.

At the end of 2019, the world is being hit by a pandemic worrying for humanity. Covid-19 first appeared in the city of Wuhan, China, and spread massively throughout the world afterwards. WHO has designated Covid-19 as a pandemic that is difficult to control as of March 11, 2020. As of April 2020, there have been more than 2 million cases of people in the world infected with Covid-19, and 195 thousand people died at that time. In Indonesia itself, the government has taken preventive measures to respond and prevent the virus's spread. The response of the government, especially local governments in Indonesia, is very diverse. Judging from the local government's readiness, some have responded slowly and underestimated this pandemic's emergence. Therefore, in this paper, the state's readiness, especially local governments, will be highlighted in facing a crisis (pandemic) from the aspects of risk, impact, and mitigation to the community itself.

ANALISIS PERBANDINGAN KINERJA KEUANGAN PEMERINTAH DAERAH KABUPATEN/KOTA DI INDONESIA SEBELUM DAN SESUDAH KRISIS EKONOMI GLOBAL 2008

This research aims is to determine whether there are differences between financial performance of local governments in Indonesia at the level of financial independence, financial effectiveness, financial efficiency, and financial activities before and after the global economic crisis 2008. To analyze the financial performance of local governments, the research conducts financial ratio analysis of APBD. The samples used in this research is local governments in the province of DKI Jakarta, East Kalimantan, Riau, East Java, North Sumatra, Riau Islands, South Sumatra, Central Java, South Kalimantan and Lampung, which are the top ten provinces which have the largest foreign trade value according to the Badan Perencanaan dan Pembangunan Nasional (Bappenas) in 2010 and is expected to hit the global economic crisis 2008, and that was published the data of APBD from 2003 to 2012. The analysis instrument used to determine differences between financial performance before and after the global economic crisis of 2008 was the Paired Sample T Test. The results of research show that there were no differences between the financial performance of the local governments in Indonesia at the level of financial independence and financial effectiveness before and after the global economic crisis 2008. In other hand, there are differences between the financial performance of the local governments in Indonesia at the level of financial efficiency and financial activity before and after the global economic crisis 2008.

Psychological factors: self- and circumstances-caused fraud triggers

PurposeThis paper aims to provide new understanding of fraudulent behaviour by offering different theoretical discussion on the fraud causation.Design/methodology/approachThe authors interviewed 15 executive managers in one of Indonesia local governments, by using semi-structured questions.FindingsThe authors explored the dynamics of both self- and other-directed factors in the spread of fraudulent behaviours, by focusing on the public-sector fraud landscape in local government. As a basis of analysis, the authors applied the theory of planned behaviours. In this study, “a concept of fraud triangle” substantially provides little help in elucidating the causation of fraudulent behaviours in local government. The theoretical and managerial implications are discussed.Originality/valueThis study offers new direction on broadening and deepening fraud literature and theories about the root causes of fraudulent behaviours.

Impacts of cultural behavior of civil servants on citizens' satisfaction: A survey on licensing services of Indonesian local government agencies

A low‐level of citizens' satisfaction with public services is one of the central issues in developing countries, including Indonesia. Attempts have been made to investigate factors influencing the quality of public services and citizens' satisfaction, as have been explored by scholars with such concepts as “customer orientation” and “customer satisfaction.” What has received relatively less attention in this pursuit of customer satisfaction is a cultural dimension, namely how cultural traits of service providers and receivers impact on the mode of interactions and the degree of satisfaction. This study aims to explore whether local culture has positive impacts on the ways public services are evaluated and received by citizens or not. The type of the study is quantitative research. The total sample numbered is 381 from those who obtained public services. This study applied the correlation and linear regression analysis. The findings of the research undertaken in Indonesia, demonstrate that the cultural behavior of civil servants brings positive impacts on citizens' satisfaction. It is proposed that the reform programs for enhancing the quality of civil servants should pay attention to cultural aspects, which are crucial in determining how government services are perceived and appraised.

One Decade, 20 Percent Education Budget: How About Causality Between Education Success and Poverty?

In 2019, exactly one decade of the government expenditure on education in Indonesia (central and local government) was allocated 20 percent. The purpose of this study was to analyze the causality relationship between government budget on education, education success (proxied by the mean years of schooling), and poverty (proxied by the number of poor people) in Indonesia. The data analyzed is secondary data, to be precise panel data from 34 provinces in Indonesia over a period of five years (2015-2019). The analysis technique used is the Granger Causality Test. The results showed that the government budget on education had a significant effect on the mean years of schooling and had a causal relationship with poverty. Meanwhile, poverty has been shown to affect the mean years of schooling. Based on the results of this analysis, it is for the government to consistently prioritize the budget for the education sector because it is proven to have an impact on education success and poverty alleviation. In addition, the government also needs to pursue poverty alleviation programs such as subsidizing cash assistance for student in poverty.

Preventing Procurement Fraud in E-purchasing for Indonesian Local Governments

Preventing Procurement Fraud in E-purchasing for Indonesian Local Governments

Implementasi Kebijakan Transaksi Non Tunai Pemerintah Daerah di Indonesia

Non cash transactions are a new paradigm in the management of government finance. Non cash transactions are implemented in line with the issuance of the Minister of Home Affairs circular No. 910/1866 in 2017 concerning the implementation of non cash transactions in local governments. This is in accordance with the provisions of Presidential Instruction No. 10 in 2016. The purpose of this study is to investigate the application of non cash transactions by local governments in Indonesia. The results showed that the implementation varies across local governments in Indonesia in terms of when local governments under studied began to implement the system, minimum amount or threshold for the cash transactions allowed by the local governments under studied and types of transactions that have been done under non-cash transactions. The implementation of the non cash system is carried out in accordance with the principles of good governance. This non cash transaction system provides several benefits and constraints in implementing it in local governments

A Long Road of Local Governance in Indonesia: From Indonesian Independence to Promulgation of Job Creation Law

This study aims at examining and reviewing thoroughly the local governance in Indonesia from time to time. This research employed normative a juridical method by searching the secondary data more. According to the research, we may state that local governance implementation has taken a long road and continuous changes pursuant to the laws and regulations regulating it. The relatively interesting dynamics are that Constitutional Court Decision No. 137/PUU-XIII/2015 states that cancellation of local regulation is under the Supreme Court’s authority. In addition, Law No. 11 of 2020 concerning Job Creation actually revokes some authorities granted to local level to be that of the central level, although the Law aims at correcting overlapping laws and regulations.

The Effects of Human Resources Quality, Infrastructure, Leadership, and Communication on E-Government Implementation: A Case of Indonesia Local Government

This research aimed to examine the effects of human resources quality, infrastructure, leadership, and communication on e-government implementation. It used statistical methods and multiple regression analysis to figure out the relationships between variables. Data collection was conducted through observation, questionnaire survey, and literature study or documentation. By applying Slovin’s formula to determine the sample size, 245 respondents were obtained from a population of local public officers in the Yapen Islands Regency of Papua. The results show that human resources quality and communication had significant effects on e-government implementation, while infrastructure and leadership did not affect e-government implementation.

Political budget cycle patterns and the role of coalition parties in shaping Indonesian local government spending

Political budget cycle patterns and the role of coalition parties in shaping Indonesian local government spending

Government Internal Control System and Local Government Administration Performance: Evidence from Indonesian Local Governments

This study investigates the effect of local government internal control systems on local government administration performance. We use secondary data from the Ministry of Internal Affairs, Financial and Development Supervisory Agency, Indonesian Statistics Bureau, and respective local government financial statements and websites. We generate a set of panel data from 508 local governments during 2017-2019 with 1524 observations analysed with panel data regression. We evidence that several local governments still have low and medium administration performance in 2017-2019 that has not met the expectation of the Ministry of Internal Affairs as stated in the strategic plan in 2015. Our analysis provides empirical evidence that control environment, risk assessment, and information and communication positively affect local government administration performance. Our result provides implications to the Financial and Development Supervisory Agency to continuously optimise internal control system development programs in Indonesian local governments and the Ministry of Internal Affairs to have higher enforcement of local government administration performance achievement.

Determinants and Measurement Quality of the Financial Statement of Local Government in Indonesia

This research aim is to create the measurement index of the quality of FSLG, using data from APRGE, Notes to FSLG, and ICS. APRGE has many indicators, but the relevant ones are AIS, Competence, Performance, and GGG. The measurement index sourced from APRGE is calculated from the percentage of performance achievement of every indicators. 35 main and 7 conditional indicators are taken from the Notes to FSLG. The ICS has 101 indicators. Samples are 25 Local Governments of provinces, cities, and municipals since 2015 to 2018. Software E-Views 8 is used for statistical computation. The output of the measurement index is the FSLG quality assessment category. The index can be used to measure the quality of FSLG produced by Local Governments. The results of statistical testing show that Competence and GGG affect the Quality of FSLG. Meanwhile, AIS and Performance do not. However, AIS and Performance can still be used to measure the Quality of FSLG. AIS is a primary need that cannot be left out in the process of presenting FSLG. Likewise for Performance, each Local Government already has its own KPI which will make CSA work properly following the rules, including in the preparation of the FSLG. The implication is to facilitate the internal and external parties in assessing and improving the quality of FSLG.

Quality of Financial Statements in Indonesian Local Governments: An Empirical Investigation

Quality of Financial Statements in Indonesian Local Governments: An Empirical Investigation

An analysis of performance measurement system used in Indonesia local government

An analysis of performance measurement system used in Indonesia local government

The role of government auditing in controlling the level of corruption in Indonesia

The regional autonomy system has a great impact on the Indonesian local government to create good governance so as to prevent corruption. This study aims to examine the impact of detection of irregularities, audit opinion, and audit rectification on the level of corruption in provincial governments in Indonesia. The data collected in this research was the audit report of the Audit Board of the Republic of Indonesia and the annual report of The Corruption Eradication Commission in 34 provinces in 2015-2019. Further, the data was analyzed using multiple linear regression. The results indicate that the detection of irregularities and audit rectification has a positive impact on the level of corruption, while the irregularities and audit opinion do not have impact on the level of corruption. These results are expected to encourage the government to strengthen its financial supervision system.

THE INTERACTION OF INSTITUTIONALIZATION OF INFORMATION TECHNOLOGY & INSTITUTIONAL ENTREPRENEURSHIP: AN IDEA OF A FRAMEWORK FOR THE APPLICATION OF INFORMATION TECHNOLOGY IN PUBLIC SECTOR FINANCIAL MANAGEMENT

This article aims to provide an idea of a framework for implementing information technology in public sector financial management. This is based on the ongoing debate regarding the impact of information technology implementation on Government performance, including in the management of government finances. Through a literature review and understanding of the application of information technology in the context of Local Government in Indonesia, it was found that the concept of institutionalizing information technology was not sufficient to explain the benefits of implementing information technology on the performance of regional financial management, it was also necessary to consider the extent of the role of institutional actors that could potentially influence and have the power to legitimize and mobilize organizational resources to direct the institutionalization of information technology to explain comprehensively the variations in the implementation and benefits of implementing information technology in local financial management. As well as having implications for improving the process of implementing information technology in local governments, this article also opens up opportunities for future research development, particularly in relation to the role of information technology in public sector financial management

The Implementation of E-Procurement in Indonesia: Benefits, Risks, and Problems

E-procurement was a new model of muamalah applied in the procurement in several countries in the world. Indonesia was implemented from 2010, but the implementation was not maximal. Proven there were still doubts to use this modern muamalah model. So, this research aimed to find information on how e-procurement was implemented in Indonesia. Data were obtained from a questionnaire containing a list of structured and open questions provided to government agency procurement officers, provider staff, and secondary data from e-procurement research in several local governments in Indonesia. The results showed that the implementation of e-procurement reduced fraud. Benefit (maslahah) e-procurement was proven to be more than the risk (mafsadat). There were still doubts about sharia in the implementation of procurement due to a lack of information. The implementation of e-procurement still needs the attention to strengthening the quality of procurement officials, regulations, supervision, and internet support so that e-procurement success.