Transparency of local government in Indonesia

Abstract

Purpose -The purpose of this paper is to provide empirical evidence about the influence of the size of local government, the quality of local government financial statements, the level of local government response to the disclosure of financial information and the local political environment on the transparency of local government in Indonesia. Design/methodology/approach -The study sample consisted of 34 regional governments (provinces) in Indonesia in 2016, using purposive sampling and multiple regression analysis. Findings -The results showed that the quality of financial reporting through the audit opinion and political environment have a significant positive effect on the transparency of local government in Indonesia. On the other hand, the size of the local government and local government response rate on the regulation do not affect the transparency of local government in Indonesia. Originality/value -The agency, legitimacy and institutional theory have an important role in the underlying local government transparency practices in Indonesia. The results of this study should be used as the basis of thought and study to determine the factors that affect the performance of local governments from the financial and non-financial aspects.

What Factors Affect Financial Transparency Reports? A Study of Regional Government Financial Reports in South Sulawesi Province, Indonesia

“…The government provides detailed and essential information and maintains public access (Tavare and da Cruz 2017). Adiputra et al (2018) said that one of the problems affecting communities is the lack of accessibility to government-held information. Due to the correlation between responsibility and ethical issues, corruption, bureaucracy, obligations or inertia bureaucracy (Purnomo et al, 2019), transparency is one of the key aspects of good governance in ensuring access for all, including public expenditure management, information on governance (Medina, 2012).…”

“…IT equipment can change from traditional management to modern management to increase financial statements' efficiency and significance (Jiang 2020). In this regard, Adiputra et al (2018) and Ode Hasiara (2017) suggested using a management information system that can explain the financial reporting of local government. Financial technology's use and development have influenced many people and many communications (ICT) in everyday life (Afroz, Muhibbullah, and Morshed, 2020).…”

“…To improve the public service, the governments may have to address the following key areas of websites to develop further transparency (Adiputra, Utama, and Rossieta, 2018). Transparency appears primarily to be driven by local governments' dependent variables.…”

“…Financial reporting and local government budget performance are essential to the credible basis, where the local government needs an internal control system; if they could not meet those factors, the local government may categorize them as less transparent and accountable so that it could transform the financial report system into a low level or unqualified opinion (Dollery et al, 2020) In dealing with the financial report system, the research focuses on categorizing BPK in correlation with the four factors. Accordingly, Unqualified Opinion (UO), Qualified Opinion (QO), Adverse Opinion (AO), and Disclaimer of Opinion (DoO) which are associated with government apparatus competence; organizational commitment; standard operating procedures; and control system, which refers to the availability of financial report system on the official website of the local government (Adiputra, Utama, and Rossieta, 2018). This study uses a descriptive quantitative method to indicate the availability of information about the local government budget on the financial report system (Lee-Geiller and Lee, 2019).…”

Transparency in Government: A Review on the Failures of Corruption Prevention in Indonesia

“…It is important to understand that the provision of necessary and desired information in accordance with the expectations of the public today is the government's obligation in order to fulfill the rights the citizens deserve. It is the duty of policymakers and officials to jointly participate in creating conditions for good governance that are a necessity in today's global society, which inevitably encourages governments to be open and transparent to meet the demands of our increasingly developed and modern society by making responsible, transparent, open government as a form of democratic and accountable government system (Weil et al, 2006;Hood & Heald, 2006;Hollyer et al, 2014;Adiputra et al, 2018).…”