Local Governments In Indonesia Research Articles

Understanding Sowan as a New Paternalistic Bureaucracy Pattern of Local Officials in Indonesia

This study aimed to examine the visit of bureaucratic officials to local head candidates who have been confirmed to win local elections, commonly known as sowan. The officials ignore the neutrality aspect of bureaucracy that should be strictly upheld. This phenomenon is explained by the concept of a new paternalistic bureaucracy. This study used a qualitative research method with a phenomenological approach. In-depth interviews, focus group discussions (FGD), and documentation was utilized as data collection methods for this study. This study's interview and FGD participants include local officials with knowledge of the sowan phenomenon and general civil servants in Banyumas, Purbalingga, Banjarnegara, Cilacap, and Kebumen. This study discovered that sowan in the perspective of bureaucracy signifies friendship, loyalty, approach, and negotiation. This research highlights the strength of paternalistic bureaucracy, which generally begins in the final phase of the democratic process of local elections. Conceptually, this study is useful to explain the sowan phenomenon concerning bureaucratic neutrality and democracy and provide practical insights on the importance of law enforcement to violators of bureaucratic neutrality. This study explains the new paternalistic bureaucracy in the era of democracy in local governments in Indonesia. This study recommends the importance of law enforcement for violators of bureaucratic neutrality without discrimination, the improvement of the relationship between political and bureaucratic officials that reflect better partnerships in the recruitment of career officials, and the importance of bureaucrats who are committed to maintaining the principle of merit in the selection of local officials.

Determinants of the Quality of Local Government Financial Statements in Indonesia: Coercive Pressure Dominates

Many financial statements of the Indonesian local government are still of concern due to the lack of disclosure, and not complying with standards and government regulations. This fact was pointed out in the poor audit results on the local government financial statements released by the Indonesian Supreme Audit Board (SAB). Using the perspective of institutional isomorphism theory, this study aimed to examine various potential factors that affect the quality of Indonesian local government financial statements, including the number of local parliamentarians, the number of civil servants, comparative studies, educational background of regional heads, and the level of urbanization. This study used a sample of 220 local governments in Indonesia taken in 2018. The logistic regression analysis showed that the number of civil servants and the number of local parliamentarians significantly affected the quality of Indonesian local government financial statements. This highlights the influence of coercive pressures on the quality of financial statements of the Indonesian local governments. These findings can serve as input for the Indonesian government in formulating public policies, particularly regarding improving the quality of local government financial statements.

The effect of enterprise risk management on prevention and detection fraud in Indonesia’s local government

It may sound familiar to use Enterprise Risk Management (ERM) to prevent and identify fraud. However, the use of this well-known strategy in municipal administration is still uncommon. Fraud is a major concern in local government fiscal management. We acquired 151 data points from the Supervisory Apparatus of Local Government Agencies in Indonesia using a questionnaire. To test the hypothesis, this study employs regression analysis. According to the findings, the control environment, risk assessment, control activities, information and communication, and monitoring all have a significant impact on fraud prevention and detection. This work contributes empirically to the use of Enterprises Risk Management to minimize and identify fraud in Indonesian local governments.

Kedudukan Wakil Kepala Daerah Dalam Sistem Pemerintahan Daerah Indonesia

In Indonesia, regional heads and deputy heads often clash when governing regional governments. This is shown in their efforts to assign people to critical positions and lack of agreement on government objectives. This study intends to clarify the role of Deputy Heads of Region in operating local governments at provincial, district, and municipal levels, as well as their connection with Heads of Region. This analysis uses statutory, conceptual, and historical methods. According to Law No. 23/2014, Article 63(1) on Regional Government, a Deputy Head of Region assists the Regional Head. In the regional government system, a Deputy Regional Head supports the Regional Head to improve regional government performance. Deputy Regional Heads must report to the Regional Head on their tasks. If the Head of a region dies, resigns, is fired, or cannot perform his or her duties for six consecutive months, the Deputy Head replaces him or her. This study's conclusions suggest a more comprehensive review of the Deputy Regional Heads' position and authority under Indonesia's regional government system. This would define the role and authority of the Deputy Regional Heads and prevent conflicts between Regional Heads and Deputy Regional Heads in Indonesia's local government system.

Do Characteristics And Political Background Of Regional Heads Influence Financial Performance Of Local Governments In Indonesia?

The present research aims at examining the influence of characteristics and political background of regional heads on financial performance of local governments in Indonesia. The population in the present research includes local governments in Indonesia. The samples are second level of local governments in Java. The total number of final samples is 112. Data comprise the APBD realization reports, data fromofficial websites of local governments, and data from official website of the Local Government Election Commission. Panel data regression was employed for data analysis. The results of the present studyindicate that educational background and level of education exert an influence on financial performance of local governments. Meanwhile, tenure, age, and political background do not have a significant influence on financial performance of local governments. The present research was only conducted at second level of local governments in Java in 2016—2018. The present research gives contribution to the literature of local government performance, especially from the perspectives of financial performance of second level local governments in Java Island. Research on the use of political background has rarely been conducted to assess financial performance of local governments.

Integrated Reporting For Regional Investment and Achievement of Sustainable Development Goals

Objective – The purpose of this research article is to assess how the integrated reporting <IR> is implemented into a regional investment information system (RIIS). Within build insight into regional investment management in line with sustainable development goals (SDGs). Methodology –This research was conducted on local governments in Indonesia that have implemented RIIS. Using data from 115 respondents, consisting of elements of local government, academics, business entities, NGOs, social organizations, and care for the environment. The measurement uses a nominal scale with a chi-square test for goodness of fit. Findings – The measurement results showed the frequency of observation (OF) has a value of 52.5504 with the chi-square table showing a value of 37.65. Based on this result showed OF > EF, it is evidence for being of corresponding between integrated thinking that fits with <IR>. The level of relationship towards SDGs information communication has a Pearson correlation coefficient of 0.2894, as a low relationship. Novelty – This research article contributes practical implications where regional government entities to be effective implementers of <IR> practices for communication for regional investment management. As an insight in the viewing the growing debate on the merits of <IR> as a voluntary reporting initiative including for the local government sector, which has been adopted by other <IR> organizations as a mandatory initiative. The results of this research provide a fundamental way for a regional investment strategy that facilitates communication of the achievement of the SDGs in a global context. Type of Paper: Empirical JEL Classification: M40, M9. Keywords: integrated thinking, integrated reporting, regional investment information system, sustainable development goals Reference to this paper should be made as follows: Hifni, S; Sayudi, A; Wijaya, R. (2022). Integrated Reporting For Regional Investment and Achievement of Sustainable Development Goals, J. Fin. Bank. Review, 7(1), 71 – 85. https://doi.org/10.35609/jfbr.2022.7.1(5)

Implementation of Good Governance in Local Government Systems in Indonesia

This paper discusses the application of government accounting to initiate good governance in local government. This paper initially describes good governance in regional financial management. Next are the regional government accounting standards and finally, the implementation and good governance of the regional government accounting system. Discussion on accrual-based government accounting. This study uses a qualitative approach with a descriptive method. This study indicates that the application of local government accounting is closely related to four governance arrangements, namely fairness, transparency, accountability, and responsibility. Good governance can be achieved by empowering systems and institutions based on laws and regulations. Good financial management and control based on the government accounting system is the main priority of action taken by the government. In the study, it can also be concluded that accrual-based accounting standards are one of the implementations of good governance in Indonesia's local government accounting system.

Local Governments Amalgamation in Indonesia: Prospects and Challenges

This research focuses on analysing the importance of amalgamation of local governments and critically examine the current neglect of the amalgamation of local governments in Indonesia. By using a case study approach, the investigation on the importance of local government amalgamation in Indonesia found that amalgamation is an alternative policy to be taken by the government, and can be contrasted with the policy practiced until recently, which permitted extensive proliferation in the numbers of local governments. There is no evidence to suggest any specific attempt from the government to implement amalgamation. The government’s objective is to uphold a moratorium on proliferation, even though the government’s target has been broken by the approval of some new local governments during the moratorium period. Adverse economic motives, intertwined with political factors, are the main reasons for the failure to adopt a policy of amalgamation of local governments in Indonesia.

Who is calling the shot? Risk culture experiments on bi-level governments

PurposeThis study aims to explore how risk culture – tone at the top (TATT) and informed risk decision (IRD) – can affect the effectiveness of risk management (EORM) in the government.Design/methodology/approachThe authors experimented on 84 civil servants working in central and local governments in Indonesia, focusing on vital local governments and critical ministries/institutions in central governments.FindingsTATT and its interaction with IRD do not affect the EORM, while IRD and socialization of risk affect and improve it. A weak TATT, low commitment and ineffective implementation of risk culture to the lower-middle echelon may impair a country’s risk management (RM) practice. IRD with socialization is also the key to improving decision-making and RM.Originality/valueThis paper illuminates the possibility of risk culture in regulating the EORM in the governmental general planning process using the experiment as the research method and provides different facets in the application of risk culture in the government, where the focus is on policy-making, budgeting and planning aspects by involving several important ministries, institutions and strategic local government’s civil servants.

Determinants of E-Government Implementation in Indonesia

Aims: This study aimed to determine the effect of Regional Original Income, general allocation funds, capital expenditures, audit opinions, and the level of public education on the implementation of e-Government in local governments in Indonesia.
 Study Design: This study uses secondary data.
 Place and Duration of Study: Local Government Financial Reports (LKPD) and audit opinions. This information can be found at the Supreme Audit Agency (BPK). The level of community education attainment uses the new Average Years of Schooling (RLS) method from the Central Statistics Agency (BPS) representative of each province from 2018 to 2020.
 Methodology: The sample used is 347 local governments. The purposive sampling method and multiple regression analysis were used in this study and used the SPSS 25 analysis tool. Before running the regression test, the data was first tested using the classical assumption test.
 Results: The independent variables in this study consisted of Regional Original Income (PAD), General Allocation Funds (DAU), Capital Expenditures, Audit Opinions, and Community Education Levels. At the same time, the dependent variable is the implementation of e-Government seen from the SPBE index value. This study carried out hypothesis testing with the Coefficient of Determination Test (R2) and the t-Statistical Test. The Coefficient of Determination Test (R2) measured how far the model's ability to explain the variance of the dependent variable was. The value of the coefficient of determination is zero or one. A small R2 value means the ability of the independent variables to provide almost all the information needed to predict the dependent variable variance [1]. At the same time, the t-test statistic shows how far the influence of one explanatory/independent variable individually in explaining the variation of the dependent variable results in a decision to reject or accept H0. This research was processed using IBM SPSS version 25 software.
 Conclusion: In this study, the variables "Regional Original Income," "General Allocation Funds," "Opinion Audits," and "Community Education Levels" have a positive effect on the implementation of e-Government. On the other hand, the capital expenditure variable does not affect the implementation of e-Government.

Factors influencing financial statement disclosure: Empirical evidence from Indonesia

Identifying the characteristics of Indonesian local governments that disclose financial statements looks relevant in order to find out the reasons for local governments in making policies to disclose financial statements. This study aims to examine whether financial condition, financial independence and political competition have an effect on the disclosure of financial statements in local governments, particularly districts/cities in Sumatra, Indonesia. A sample of 151 districts and cities on the Indonesian island of Sumatra were used in this quantitative analysis. The use of cluster sampling due to the implementation of accrual accounting based on the government regulation No. 71 of 2010 is applied in all districts/cities in Sumatra and has the same characteristics. The data analysis technique used in this study is a multiple linear regression with the SPSS test tool. The results reveal that factors influencing the financial statements disclosure is influenced by financial conditions (β = 0.095; p < 0.05), financial independence (β = 0.069; p < 0.05), and political competition (β = 0.038; p < 0.05). Overall, the results show a strong conclusion regarding the factors that affect the financial statements of the Indonesian government. The findings of this investigation can be a useful consideration for local governments in improving the quality of their external communications and improving public governance.

Do Smaller Local Governments Bring Citizens More? Evidence from Direct Elections in Indonesia

Abstract Do smaller local governments provide more for their citizens, especially when they are also held accountable to their citizens? This paper extends the empirical literature on the size of local governments by explicitly exploring one of the key influencing factors – direct local elections, a proxy for local accountability. Using an Indonesian panel of village-level outcomes data, the paper shows that a reduction in local government size (due to district splitting) increases public good provision but that this effect is restricted to districts that had direct local elections. It also provides suggestive evidence to show that increased revenue was channeled into developmental expenditures only in those split districts that faced direct elections. The identification strategy relies on a surprise local election announced while the number of local governments in Indonesia was increasing, which also abruptly imposed a moratorium on the process of splitting.

New public management and corruption: Empirical evidence of local governments in Indonesia

This study is relevant because it examines the determinants of corruption in local governments that have a negative impact on the success of sustainable development. This study aims to examine the effect of New Public Management (NPM), as measured by fiscal decentralization, financial reporting quality and independent audits, on the level of corruption. The sample consisted of 433 local governments in Indonesia based on data from 2011–2017. PLS-SEM was used as a data analysis technique. The results test shows that fiscal decentralization positively affects corruption with a path coefficient of 0.19 and a p-value of 0.004. The quality of financial reporting has a negative effect on the level of corruption with a coefficient of –0.26 and a p-value < 0.001. Hypotheses testing results also show that audit finding positively affects corruption with a coefficient of 0.10 and a p-value < 0.10. On the other hand, follow-up audit results have no significant effect on corruption with a p-value > 0.10. This study concludes that the NPM mechanism in the form of fiscal decentralization positively affects corruption. These results imply that fiscal decentralization needs to be balanced with good governance, among others, by increasing the quality of financial reports and independent audits.

Developing the strategic collaboration model in basic education

<span lang="EN-US">The strategic collaboration approach has recognized widely can overcome the complexities and challenges of teaching and learning programs and achieve sustainable education quality improvement. This study analyzed the development of a strategic collaboration approach in education at local government in Indonesia. The mixed-method analyzed the correlation of the strategic collaboration approach in education. Data gained through the questionnaire for quantitative data and in-depth interview with the key informants for qualitative data. The school collaboration networks, school strategic leadership, teacher strategic alliances capacity, school culture innovation, and school committee collaboration. Besides, the education service innovation as the core objective of the element education strategic collaboration has determined by two factors consist of school collaborative strategic planning and strategic collaboration development in education. Research samples were teachers, school leaders, and school supervisors and also the personnel of the education agency of Banggai Regency, Central Sulawesi, Indonesia. The research samples selected by using a stratified random sampling technique. There were 521 selected respondents and 15 key informants. The questionnaires for quantitative model are scaled on a 6 point-Likert scale ranged from strongly agree to strongly disagree. The strategic collaboration development model viewed as a better approach to achieve education quality improvement, creating a service innovation, and quality control in education.</span>

The innovation of ecological fiscal transfers policy at Siak Regency

For several decades, the problem of forest fires has been recurring almost every year in Siak regency, Riau Province. This phenomenon affected a huge portion of damage for public. However, the previous policy has been failed to solve the forest fires problem. However, some local government has attempting to address the problem of forest fires with policy innovation. This article focuses on innovation by the Siak local government through ecological transfer policy. Although the idea of ecological transfer policy is not new, there are few Indonesian local governments has initiate in the policy. Siak is one step ahead to initiate the ecological transfer policy during Siak Hijau vision. This article analyses the success story of Siak in formulating the ecological transfer policy in local budget. Through a qualitative research method, we found that the ecological transfer policy can occur due to combination of local elite support and advocacy of civil society organizations. Both actors played an active role in the ecological transfer policy. However, the women tended to be alienated in the formulation of the ecological transfer policy due to cultural and political barriers. In that sense, it is important to create inclusiveness for policy formulation‥

Pengaruh Karakteristik Pemerintah Daerah dan Faktor Keuangan terhadap Kondisi Financial Distress di Indonesia

This study aims to determine the effect of Regional Government Characteristics (Regional Financial Independence, Degree of Decentralization, and Population) and Financial Factors (Efficiency Ratio, Growth Ratio, and Effectiveness Ratio) on financial difficulties in Regency/City local governments in Indonesia in 2017-2019. . This study uses secondary data from BPK and BPS. The sampling technique used is a simple random sampling technique. So that obtained a sample of 170 districts and 54 cities per year. Data analysis is multiple linear regression analysis. This study found that (1) regional financial independence had a significant positive effect on financial distress, (2) the degree of decentralization had a significant negative effect on financial distress, (3) the population had a significant negative effect on financial distress, (4) the efficiency ratio had a significant positive effect on financial distress, (5) the growth ratio has a positive and insignificant effect on financial distress, (6) the effectiveness ratio has a positive and significant effect on financial distress

Mengeksplorasi Perubahan Sifat Kerja Dan Kinerja ASN Pemerintah Daerah Jawa Timur Pasca Covid-19

Local governments should maximize employee to produce improved outcomes and efficiency. Performance is related to the result and how the job process is carried out since it is this process that determines a person's level of achievement at work. What needs to be understood is how the Civil Servants' efficiency can be optimized, and leaders must pay attention to enhancing their performance. This study aims to examine the effect the of change nature of work on the performance of Indonesian local government civil servants in the post-Covid-19 period. The result shows that to build good collaboration, it is necessary to understand between employees so that no miscommunication and leaders can manage subordinates well with attitude deep concern for their employee. It also requires high responsiveness, responsibility, and transparency in decision making. Besides that, it is necessary to understand the importance of cooperation to providing socialization to all employees.

Explaining Decentralization Performance in Indonesia: Member of Parliament Decision, Political Networks, and Constitution Amendment

Decentralization has several positive impacts on Indonesian local government performance. To date, many studies have unpacked the positive implications of Indonesian decentralization. Yet, few have shown a structural argument of the decentralization reform trajectory in Indonesia constitutional reform 1998-2002. This study investigates the dynamic processes of parliament voting within the constitution amendment on the decentralization article as a source of the existing Indonesian decentralization performance. Analyzing research questions will conduct; to what extent do political networks shape the content of the decentralization article in the constitution amendment in 1999-2000; how much pressures out of parliament session affect the political networks within Indonesian constitution amendment the decentralization article. This study applies a theory that social networks and personal relations sourced from party alignment can explain the outcome variations of decisions at the political arenas. The quantitative method is used to construct independent variables of political networks in testing to what extent informal political networks influence the voting of members of parliament within 32 meetings in 1999 and 2000. In presenting statistical, empirical findings, this study points out that the constitutional amendment, which ‘produces’ new decentralization article, is a direct result of bargaining between members of parliament, which builds informal political networks. So, this provision creates an improved performance of Indonesian decentralization today. Due to the statistical, empirical findings talking to wider themes of parliament and decentralization, this study suggests paying more attention to the indicators of political networks on and off parliament’s formal meetings within the constitution amendment.

Local Government Capital Expenditure, Internal Supervision, Wealth and Human Development: Evidence from Indonesia

This study examines the influence of local government capital expenditures, internal supervision, and wealth on human development in Indonesian local governments. Using secondary data from the authorized government institutions from 2017 to 2019, a set of unbalanced panel data with total 1,437 observations was generated. Using panel data regression analysis, this study discovers that local governments in Java, Bali and Sumatra have a better human development achievement, followed by Kalimantan, Sulawesi, and Eastern Indonesia. City local governments also have a higher average of human development index achievement than regency local governments. Further, we find that local government capital expenditures and internal supervision positively affect human development, while local government wealth has insignificant effect on human development. Our findings imply that local governments are suggested to increase the amount of capital expenditures for infrastructure development, especially for local governments that are relatively underdeveloped in Indonesia.

Transparency of Local Financial Management: Evidence from Local Governments in Indonesia

AbstractThis study aims to provide empirical evidence about the influence of political competition, local independence, level of human development, and Supreme Audit Board (BPK) audit opinion on increasing transparency in local financial management in Indonesia. The research sample consisted of 436 local governments in Indonesia in 2016. The analytical method used to test the hypothesis is multiple linear regression. The results of this study indicate that local independence, level of human development, and BPK audit opinion have been proven to have a positive effect on increasing transparency in local financial management in Indonesia. On the other hand, political competition does not affect increasing transparency in local financial management in Indonesia. The findings contribute as the fundamental idea and recommendation for the government to improve the local financial management transparency in Indonesia. Keywords: Transparency, Local Financial Management, Local Government.