The impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia

Lewis, Blane D.; Hendrawan, Adrianus

doi:10.1016/j.ejpoleco.2018.11.002

Cited by 41 publications

(31 citation statements)

References 33 publications

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“…Moreover, in the health sector, strong coalitions also undertake greater budget manipulation in goods and service, as well as capital spending than weak coalitions. This result confirms Lewis and Hendrawan's (2018) study, which found that coalition parties holding more than half of the legislative seats tended to direct local government spending towards the health sector and service delivery. Strong coalitions also make greater budget manipulations to the economy, housing and public facilities, education and social protection spending.…”

Section: The Role Of Incumbents' Coalition Parties In Budget Manipulation In An Election Yearsupporting

confidence: 89%

“…Various previous studies have explained the role of party coalitions in budget decisions. For instance, Lewis and Hendrawan (2018) studied the impact of majority coalitions on local government spending, service delivery and corruption in Indonesia. They deployed data from 488 districts during the period 2005-2012.…”

Section: The Role Of Regional Heads' Coalition Parties In Legislative Budget Decisionsmentioning

confidence: 99%

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

Wiguna

Khoirunurrofik

2021

Asia-Pac J Reg Sci

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This study aims to investigate political budget cycles motivated by elections in Indonesia and the role of incumbent coalition parties in the degree of budget manipulation in election years. Employing a panel data regression model, we analyzed total revenue and total expenditures, together with their components, to identify budget patterns. The study employed data obtained from 499 districts/cities in Indonesia, covering the 2011-2017 period. With regard to revenue, budget cycles existed in all components of local own revenue. In contrast, they occurred in spending components favorable for community welfare in terms of the spending function. In relation to the type of spending, budget cycles were evident in spending components, goods and services spending, and capital spending. Stronger incumbent party alliances were observed to lead to a higher degree of budget manipulation in election years.

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Section: The Role Of Incumbents' Coalition Parties In Budget Manipulation In An Election Yearsupporting

confidence: 89%

Section: The Role Of Regional Heads' Coalition Parties In Legislative Budget Decisionsmentioning

confidence: 99%

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

Wiguna

Khoirunurrofik

2021

Asia-Pac J Reg Sci

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“…By highlighting the Papuan government, which is one of the least developed regions in Indonesia, this study makes it clear that this gap exists. This is in line with Lewis and Hendrawan (2019), who highlighted the relationship of patterns of power in the region to the quality of public services, in relation to the implementation of a decentralized system, which gave rise to corruption and waste of regional budgets.…”

Section: Financial Assistance Interaction and Apparatus Competence On The Quality Of Financial Statementssupporting

confidence: 81%

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

Ramandei¹,

Rohman²,

Ratmono³

et al. 2019

IJFR

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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.

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“…Meanwhile, for local governments, many studies show that when the government lacks supervision, the intensity of fraud is higher (Puspasari 2015). In the process of government administration and development in the regions, is very important to improve supervision of regional financial management so that the regional revenue and expenditure budget can be managed effectively, efficiently, and achieve the expected goals (Lewis and Hendrawan 2019). This is in line with the mandate of laws in the field of state finance, which implies the need for a more accountable and transparent state financial management system (Puspasari 2015).…”

Section: Descriptive Statistical Analysismentioning

confidence: 99%

“…Fraud can occur in any sector, including the private sector, public services, and both national and international organizations (Lombardi et al 2015;Charlopova et al 2020). Indonesia has recorded massive cases of fraud since the government's efforts to eradicate corruption in the reform era (Lewis and Hendrawan 2019). Fraud and criminal acts of corruption involve many parties, conglomerates, public officials, company employees, government employees, religious leaders, political figures and even the public in various aspects of life (Jakimow 2018a).…”

Section: Introductionmentioning

confidence: 99%

Financial intelligence: Financial statement fraud in Indonesia

Ikbal¹,

Irwansyah²,

Paminto³

et al. 2020

JISIB

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Indonesia is currently in an honesty crisis, especially in financial governance, bothin government and private institutions. Our study uses the concept of financial intelligence toidentify and collect information related to financial affairs in an organization. We use theopinions of 76 auditors regarding various fraudulent attempts, both with fraudulent financialstatements and other corrupt practices in organizations in Indonesia. Our important finding isthat small companies are more likely to commit fraud due to weak supervisors than listed publiccompanies. This is also more likely than family-owned companies and government levelorganizations. It was indicated by some respondents that local government level organizationswith weak supervision are more likely to commit fraud than local governments with closesupervision from urban communities. The results of the non-parametric relationship analysisshow that although there is a possibility that the more experienced the auditor is, the more ablethey are to detect fraud and manipulation in the organization, the relationship is relativelyweak. Other findings also show that auditors who have a CFE certificate find it easier to findfraud in the company.

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The impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia

Cited by 41 publications

References 33 publications

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

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

Financial intelligence: Financial statement fraud in Indonesia

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