Local Governments In Indonesia Research Articles

THE UTILIZATION OF GOVERNMENT FINANCIAL STATEMENTS BY EXECUTIVES: THE CASE OF LOCAL GOVERNMENTS IN INDONESIA

The objective of this study is to explore the utilization of LKPD produced through the implementation of accrual accounting. Using the cases of three local governments in Indonesia, it is revealed that the implementation of accrual accounting is still superficial. As predicted, financial statements that are frequently used by executive’s and local goverment are Budget Realization Statements and balance sheet. Other reports have been produced only to comply with government regulations, but they are not actually used. The implication of this study is that there is a need to improve executive’s understanding about accrual accounting, so that the objective of financial reporting as stipulated in Government Regulation No. 71 of 2010 can be achieved.

Is the Indonesian disaster response budget correlated with disaster risk?

This study investigates the correlation between disaster budget, index of disaster risks and the population of 23 districts in the Aceh province, northern Indonesia. It also explores how the budget for disasters is proposed and prepared by Indonesian local governments. A descriptive quantitative approach is used to examine this relationship. Data were collected from the budgets of local governments (Badan Penanggulangan Bencana Daerah [BPBD] or local disaster management agency) and the disaster risk index. In addition, surveys were undertaken in which the respondents were the key officers in the BPBDs who are responsible for the budget and programmes to obtain detailed information about how the local government prepares their budget for disaster. By employing the Pearson’s chi-square test and the Pearson correlation test, this study revealed no significant statistical relationship between the disaster budget and the level of disaster risks among districts or cities in the Aceh province, northern Indonesia. However, results show that the total budget of the local governments has a significant positive correlation with the disaster budget. The surveys also confirm the correlation between the total budget of the local government and disasters as the same budgeting procedure is applied. The result generalisability might be limited as this study only focused on one of Indonesia’s provinces, Aceh.Keywordsdisaster risk; disaster relief planning; disaster budget; local government; tsunami; Indonesia.

Public-Private Partnership In Indonesian Urban Water Sanitation And Hygiene Program: Human Resource Capacity’s Innovation

Public-Private Partnerships (PPPs) in Indonesia still face constraints on the limited capacity of human resources. Indonesian PPP with the United States Agency for International Development (USAID) in the implementation of the Indonesian Water, Sanitation and Hygiene (IUWASH) program tries to improve Indonesian sanitation which in the lowest rank in ASEAN. However, the implementation is still facing problems because human resources in local governments in Indonesia have not been able to increase their capacity so that program assistance to the government has not been able to run optimally. Therefore, human resources in Indonesia are required to be improved to be internationally competitive and innovatively synchronized with the developing technology so that human resources in Indonesia can support sustainable development. This research seeks to provide innovation in the human resource management capacity to improve the performance of local government resources on PPP in IUWASH programs in Indonesia in the face of the 4.0 Industrial Revolution. This research was conducted with literature review methods. Efforts to increase human resource capacity are carried out by creating human resource strategic planning based on analysis of the situation and potential of human resources with international standardization in training and development.

Faktor-faktor yang Mempengaruhi Efektivitas Fungsi Audit Internal pada Pemerintah Daerah X

The professional challenge of internal auditors in Indonesia is how to provide added value to the organization, especially in ensuring the implementation of good governance and organizational risk management. The limited research in the field of internal audit in local governments in Indonesia has become the main urgency in this study. The purpose of this study is to examine the effect of cooperation between internal and external auditors; management support; effectiveness of internal controls; and auditor experience on the effectiveness of internal audits. This study uses a survey method with a research instrument in the form of a questionnaire. 58 research respondents were auditors and financial staff who worked at the Regional Inspectorate and Financial and Asset Agency (BKAD) in Local Government. The data analysis method used in this study was multiple regression. The results of the study state that management support and auditor experience affect the effectiveness of internal auditors. Whereas, the collaboration between the auditor's internal and external auditors and the effectiveness of internal controls does not affect the effectiveness of internal auditors.

Interactions of Financial Assistance and Financial Reporting Competency: Evidence From Local Government in Papua and West Papua Indonesia

Good local government financial statements are financial statements according to the qualitative characteristics of financial statements, which are relevant, reliable, comparable and understandable. However, the phenomenon shows that there are still weaknesses in financial reporting in several local governments in Indonesia, especially in the provinces of Papua and West Papua based on the findings of the Audit Board of the Republic of Indonesia (IHPS II BPK, 2017). The purpose of this study is to obtain empirical evidence of the role of moderating financial assistance and apparatus competency on the quality of government financial reports. Explanation of the relationship between variables was using an institutional theory perspective. The survey was conducted in 2018 on 42 Local Governments in Papua and West Papua. Methods of processing and analyzing data were using SEM-PLS with WarpPLS 6.0 statistical software. The results of the apparatus competency research have a positive effect on the quality of financial statements. A financial resistance positively strengthens the influence of apparatus competency on the quality of local government financial reports. Thus, efforts to overcome the presentation of quality financial statements require competent apparatus through the existence of financial assistance policies. Limitations of the study are the method of collecting data using a questionnaire and that it is very possible for the bias to occur. Therefore, efforts to achieve better results need to be accompanied by an interview method in order to obtain additional information as a comparison of respondents' answers; 2) the determination coefficient value of R- square is 0.41 or 41% indicating that there are still 0.59 or 59% variability in the quality of Local Government Financial Statements (LKPD) which can be explained by other variables outside the research model.

The Adoption of IPSAS (Accrual Accounting) in Indonesian Local Government: A Neo-Institutional Perspective

ABSTRACT This study investigates the speed and drivers of IPSAS adoption in Indonesia. Using data from 205 local government entities, the results show while the interaction between auditors and representatives of opposition on the council has more impact on the speed of adoption than with the councillors representing the government, the timing of the council meeting has delayed the adoption of IPSAS accrual. Government grant, Supreme Audit Office, councillors and religious beliefs are the isomorphic drivers of IPSAS adoption. Our results support the hypotheses that the three institutional pressures (coercive, mimetic and normative) influence the speed of IPSAS adoption.

Social Media-Based E-Government Application Feature

Relation between e-Government and social media is an inseparable relationship. The purpose of e-Government who wants to improve public services, with the help of information and communication technology. The best solution is using social media. In Indonesia, e-Government is a concept that is implemented not only by the central government, but also by regional/local governments. Right now, many local governments in Indonesia already implemented e-Government. However, not all of Indonesia local governments that implemented e-government have a social media-based e-Government application. There is a chance that a certain city/regency at Indonesia using same social media-based e-Government application. If the application is seen in terms of features, each application also has different features combination, which are the strengths and the uniqueness of each application. In this study, there are 9 applications that examined from 9 cities / regency in Indonesia. The purpose of this study is to analyse the relation between e-government and social media, in terms of using social media features and identified features that exist in each e-Government application that examined from 9 cities / regency in Indonesia with Systematic Literature Review. The feature found will be categorized with feature functionality categorization: Identity, Conversations, Sharing, Presence, Relationships, Reputation, and Groups. Each feature found can be having more than 1 feature functionality. The result of this study can be used as an indicator about features available at social media-based e-Government application and this study can be used to be a comparison or references for making another social media-based e-Government application in the future.

Direct and indirect effects of investment on community welfare

Despite the fact that the government is the main actor of economic development, it also invites private parties to be actively involved in the economic development. The main objective of public and private investment is economic development. But the ultimate goal of investment and economic development itself is to improve the welfare of the community. This study seeks to investigate the effect of private and public investment on economic growth. Furthermore, it also investigates the impact the investment on the community welfare either directly or indirectly through economic growth by way of analyzing the data on private and public investment, economic growth, and the human development index of local governments in Indonesia for the period from 2012 to 2016. Hypotheses were tested using PLS (Partial Least Squares). The results show that both private and public investment directly influence economic growth and indirectly affect the welfare of the people through economic growth. Direct test results also show the positive effect of economic growth on community welfare.

ANALISIS DETERMINAN KEPATUHAN PEGAWAI TERHADAP KAWASAN TANPA ROKOK DI DINAS PENDIDIKAN PROVINSI SULAWESI SELATAN

The policy to implement a Smoking Area (KTR) has been agreed as the main intervention strategy to control non-communicable diseases. Regulations in the form of Non-Smoking Regional Law (KTR) have also been approved in various countries as an embodiment of tobacco regulation in the world. Implementation of issued regional policies must be carried out by all Local Governments in Indonesia. This study discusses the determinants associated with employees in the Non-Smoking Area in the Education Office of South Sulawesi Province. This research is a type of quantitative research using Cross-Sectional Studies. The population in this study was 183 people. Sampling was done using the Total Sampling method so that a total sample of 183 people were obtained. Data processing and analysis using the SPSS program. Data analysis is based on the Chi-Square Test statistical test. The results showed there was a relationship between smoking relationships (p = 0,000), there was a relationship between attitudes (p 0,000), there was a relationship between social support (p = 0,000) and employee associations regarding smoking area regulations in the South Sulawesi Provincial Education Office and none the relationship between knowledge (p = 0.288) and employee associations regarding regional regulations in the South Sulawesi Provincial Education Office.

Learning organization and work performance in Bandung city government in Indonesia: a path modeling statistical approach

Purpose This study aims to explore the applicability of the learning organization (LO) concept as a predictor of work performance (WP) using partial least square (PLS) as a statistical method to explain the presence or absence of relationships between those latent variables. Design/methodology/approach An empirical approach was conducted on a research sample of a local government in Indonesia. The design of this study is a cross-sectional study using a closed-ended questionnaire, and PLS is used as a statistical method. Findings The results show evidence of internal consistency and construct reliability and provide a sound answer that the LO concept can explain a considerable proportion of the WP. This indicates that LO could be considered as the predictor of WP. Originality/value To date, studies on the benefit of becoming an LO have been increasing since the publication of Senge’s book, The Fifth Discipline, in the 1990s. However, such research efforts are directed primarily at assessing financial and knowledge performance (Swanson and Chermack, 2013). Very few studies have focused on the benefits associated with becoming an LO with an emphasis on individual performance using the behavioral aspect.

Determinants of Financial Reporting Quality in the Public Sector: Evidence from Indonesia

Most studies addressing the issue of financial reporting quality (FRQ) focus on corporations. This study investigates the determinants of FRQ in the public sector. We use the type of audit opinion as a proxy for reporting quality, with an unqualified opinion representing the best reporting quality while a disclaimer of opinion represents the worst quality. Using manually collected data from 3018 financial reports of local governments in Indonesia from 2008 to 2014, we find that a high proportion of capital expenditures in the total budget is associated with low FRQ. Further, we find that larger and wealthier local governments are associated with higher FRQ. Finally, we find that local governments under more experienced mayors have higher reporting quality. Our results are robust to different measures of FRQ. This study contributes to the reporting quality literature by providing empirical evidence on the determinants of FRQ in the public sector, which has been relatively underexplored. We conclude that certain characteristics of local governments and of mayors are associated with the types of audit opinion and that financial incentives accelerate the improvement of reporting quality.

Development Policy Kampung Bantar in Realizing Smart City in Jambi City, Indonesia

This paper discusses the emergence of smart city as a new direction for city development. Today, smart cities are increasingly popular among local governments in Indonesia, including the Jambi City government. This paper intends to describe the policy of the Jambi city government in realizing smart city with a focus on the utilization of RT-based urban villages (Kampung Bantar) and their meaning for the welfare of urban residents. To explain this case, qualitative research methods are used. This approach was chosen because this research is related to the complexity of the understanding of the local government regarding smart city. This research requires secondary data in the form of official government documents such as several regional regulations, mayor decisions and regulations, as well as various documents related to the city development policy towards smart city. Primary data is also used in the form of interviews with informants obtained through in-depth interviews. This article will answer the general question: how is the smart city in Jambi city implemented? Specifically, it will answer: how is the role of the village in realizing smart city and giving meaning to the welfare of urban residents. The findings show that the success of the Jambi City government in implementing smart city is a strong commitment from the local government by initiating innovations in utilizing RT-based settlements to face the city development towards smart city.

Policy Economic Analysis of HIV/AIDS Intervention in Indonesian Local Government

Global governance concerns the issue of HIV/AIDS through Millennium Development Goals (MDGs) and followed by Sustainable Development Goals (SDGs). In the Indonesian context, the number of people living with HIV/AIDS has been increasing in the last ten years. This paper studies the HIV/AIDS policy intervention in an Indonesian local government context by using policy economic analysis. The finding demonstrates that the policy intervention has been applied through a supply approach such as in welfare states in which the local government provides free access to health facilities for HIV/AIDS-positive persons. This approach differs from the macro policy level of the Indonesian central government who adopts free-market orientation and demand intervention of health economics. The research focuses on a Yogyakarta Special Province case study while the data depend on analysing and interpreting regional and national regulation of HIV/AIDS and policy recommendations of the regional public health department. We argue that the improvement of local intervention emerges as the supply is just for the HIV/AIDS diagnosis test and it does not cover the continued HIV/AIDS health treatments and nursing.

Financial statements disclosure on Indonesian local government websites

Purpose The purpose of this paper is to examine the extent to which audit opinion, audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment influence the disclosure of financial statements on the official website of local government. Design/methodology/approach The data of this research comprise 68 financial statements during the period 2015–2016 collected from 34 local governments across Indonesia by employing the census method. The data then are analyzed using logistic regression. Findings The results of this study show that audit opinion has a positive significant influence on the disclosure of financial statements on local government websites in Indonesia, while the audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment have no significant influences on the disclosure of financial statements local governments’ websites across Indonesia. Originality/value The study contributes to the public sector accounting research by enhancing our understanding to the disclosure of financial statements on local government websites.

Administrative Control over Local Government (A Study of Determination of 2014 Kediri Regency Budget)

Central government control over local government is necessary In order to ensure achievement of decentralization policy goals. Unfortunately, study about local government control is uncommon in Indonesia. This study aims to describe types of central government control to local government and to explain how those control work in crucial political situation within local government. Most of problematic LGR (Local Government Regulation) were about local government budget. Similar to the problem that was faced by many local governments in Indonesia, Kediri Regency struggle with delay of determination of local government budget. This qualitative research was conducted in 2014-2015 in approval process of 2014 Kediri Regency Budget. McNabb procedures for data analysis (2002) was used in this research. There are three types of administrative control: general, sectoral, and functional control. Another research findings about the cause of determination delay for LGR about 2014 local government budget (APBD) were two things. First source of problem was conflict within and between Kediri Regency Council and Local Government. Second source of problem was lack of control from central government about the overtime budget approval.  Â

Analysis of work satisfaction on work achievement of employees Indonesian local government

Analysis of work satisfaction on work achievement of employees Indonesian local government

Application Of New Public Management (NPM) In Indonesia In The Field Of Transportation (Case In Bandar Lampung)

This paper explains the results of studies and information on the application of New Public Management (NPM) in Indonesia in the field of transportation (the case in Bandar Lampung). Finding New Public Management is applied not only in countries with high levels of prosperity but also applied in countries with levels similar to the conditions in Indonesia. Apart from deficiencies in the implementation of regional autonomy, the application of NPM in the management of local government in Indonesia has a positive impact on several matters, more trapped performance of accountability of government institutions and moratorium and early retirement policies for civil servants who do not qualify as an effort to improve efficiency and the productivity performance of local governments, which in turn will improve the quality of public services. The creation of partnerships between the public and private sectors or public-private partnership (PPP) has now become a standard concept in the local government environment. The concept of Trans BRT, Bandar Lampung BRT as the first in Indonesia to operate without government subsidies is a new thing in Indonesia. The strong desire and passion of the City of Bandar Lampung and transportation stakeholders in Bandar Lampung to create convenient urban transportation.

Does Fiscal Decentralization Encourage Corruption in Local Governments? Evidence from Indonesia

This study examines the effects of fiscal decentralization on corruption by analyzing whether the degree of fiscal decentralization facilitates or mitigates the number of corruption cases in Indonesia’s local governments. The research utilizes a panel data model and a system Generalized Method of Moments (GMM) estimator to assess the degree of fiscal decentralization on corruption in 19 provinces for the period between 2004 and 2014. The estimation results reveal that the degree of fiscal decentralization, both expenditure and tax revenue sides, drives a growing number of corruption cases in local governments. A lack of human capital capacity, low transparency and accountability, and a higher dependency on intergovernmental grants from the central government may worsen the adverse effects of corruption. Our results suggest that a more heterogeneous population and higher political stability mitigate the adverse effects of corruption. Furthermore, this is the first corruption study in Indonesia to create corruption measures from the number of corruption cases investigated by the Indonesia Corruption Eradication Commission as well as extensive, provincial-level government financial data. As a result of using these different datasets, this research advances existing empirical studies and makes policy recommendations for the local governments in Indonesia.

THE IMPLEMENTATION OF CIVIL SERVANTS’ INCOME ZAKAT IN DKI JAKARTA AND ACEH PROVINCE

Zakat, as one of five Islamic Pillars, is an obligation for all eligible Muslims according to Sharia. Zakat has a potential to develop and give benefit to all peoples, especially to create an equal distribution of the economy, promote social welfare, and diminish poverty, so the utilization of zakat is in line with the Indonesian government’s purposes. The research has a purpose to explain the implementation of civil servants’ income zakat policy in Indonesia. In this research, we use an analytical approach to analyze the implementation of income zakat policy in DKI Jakarta and Aceh Province with normative juridical method pursuant to Sharia and Indonesian Law No. 23 of 2011 on Zakat Management. The result of this research shows that several local governments in Indonesia, such DKI Jakarta and Aceh has issued local regulations or policies which instructed the Muslim civil servants to pay their income zakat by cutting their salaries directly by 2.5% every month. Each province has a different practice model in the execution of the income zakat for the civil servants. In DKI Jakarta it is voluntary, while in Aceh it is mandatory. The differences policy raises uncertainty and controversy in Muslim communities. Because of that, for legal certainty, we need a particular national law that can organize zakat for the civil servants. This regulation will become legal protection and reference for that different local regulation which rule the civil servants’ zakat.

Pengaruh Implementasi E-Budgeting Terhadap Transparansi Keuangan Daerah Di Indonesia

This study aims to determine the effect of implementing e-budgeting on regional financial transparency in Indonesia. The theory used to achieve the objectives of this study is agency theory. This research was conducted at 32 local governments in Indonesia. Based on a simple regression model, this study shows that the implementation of e-budgeting has a positive and significant effect on regional financial transparency in Indonesia. These findings reinforce previous research. The findings of this study have implications in the form of useful contributions to government officials (executive and legislative), in demonstrating the important role of e-budgeting to encourage regional financial transparency. In addition, the findings of this study can be used as a basis for further research related to the topic of implementing e-budgeting and regional financial transparency.
 Keywords: E-Budgeting, transparency, regional finance