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The Effect of Regional Financial Characteristics and Transparency on Corruption Potential: Study on Regency / City Governments in Indonesia in 2020-2022

“…Delegation of full authority from the central government to the regions tends to produce more independent regions, which independently manage their lives without relying on subsidies from the central or provincial government, and often tend to be less obedient to the rules (Gudono, 2017 in Maria et al, 2021) [12] . This freedom is sometimes misused to produce programs that benefit the interests of certain individuals or groups within the organization more than the interests of the public as a whole (Chang & Geoffrey, 2002; Syurmita, 2014) [13,14] . This fact is reflected in the increasing number of corruption cases involving regional heads and legislative leaders in Indonesia.…”

“…The granting of full authority by the central government to regional governments is expected to produce independent regions, namely regions that are not dependent on central/provincial government subsidies and tend to have a lower level of compliance with regulations (Gudono, 2017 in Maria et al, 2021) [12] . However, this freedom is often misused for corrupt practices by creating programs that are more focused on maximizing personal interests and/or certain dominant groups in the organization rather than public interests (Chang & Geoffrey, 2002 [13] ; Syurmita, 2014 [14] ). This is supported by the many corruption cases in Indonesia involving regional heads and legislative leaders.…”