scholarly journals The Effect of Fiscal Decentralization on the Accountability of City / District Government Financial Reporting in Indonesia and the Regional Government's Financial Performance as a Moderation Variable

2020 ◽  
Vol 5 (7) ◽  
pp. 370-376
Author(s):  
Wahida Nurmuthmainnah ◽  
Syarifuddin . ◽  
Mediaty .
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Financial Reporting ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Financial Statements ◽  
Series Data ◽  
Financial Reports ◽  
Regional Governments

This study aims to provide an overview of the effects of fiscal decentralization in proxies with regional independence and regional dependence on the central government regarding accountability of regional financial reporting and financial performance of Local Governments as moderating variables. The type of data used in this study is secondary data, panel data in the form of time series data from 2015 to 2017 and cross section data from 509 districts / cities in Indonesia. The sample selection in this study was purposive sampling by creating a cluster of western, central and eastern regions, so that 135 samples were obtained. The results showed that: (1) Regional independence had a positive effect on the accountability of local government financial reports. (2) Regional Dependence has a negative effect on the Accountability of Regional Government Financial Statements. (3) The financial performance of regional governments can moderate the influence of regional independence on the accountability of local government financial reports. (4) The financial performance of regional governments can moderate the effect of regional dependence on the accountability of local government financial statements.

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

2019 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Pilipus Ramandei ◽  
Abdul Rohman ◽  
Dwi Ratmono ◽  
Imam Ghozali
Keyword(s):  
Local Government ◽  
Financial Reporting ◽  
Local Governments ◽  
Financial Statements ◽  
Financial Assistance ◽  
Financial Reports ◽  
Additional Information ◽  
West Papua ◽  
The Republic

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. 

scholarly journals Pengaruh Karakteristik Pemerintah Daerah Terhadap Kinerja Keuangan Pemerintah Daerah Kabupaten & Kota Di Jawa Timur

2018 ◽  
Vol 7 (1) ◽  
pp. 27
Author(s):  
Tatas Ridho Nugroho
Keyword(s):  
Local Government ◽  
Performance Measurement ◽  
Financial Performance ◽  
Local Governments ◽  
Good Governance ◽  
Secondary Data ◽  
Financial Statements ◽  
Financial Reports ◽  
Regional Autonomy ◽  
Local Expenditure

Performance measurement is one way that local governments can use to achieve good governance. Local government performance measurement (Pemda) includes measurement of financial and non financial performance. Analysis of local government financial performance is essentially not only a form of control, but also helps all users of local government financial reports including communities to be able to evaluate the performance of local governments. The performance of local government can be used to look at regional capability in running regional autonomy. This study aims to examine the effect of local government characteristics on the financial performance of local governments. The characteristics of local government are represented by size, intergovernmental revenue, and regional expenditure. This study examines the financial statements of local governments by taking a sample of 30 districts / cities in East Java. The data used in this research is secondary data. The analytical tool used in this study is multiple regression. From the analysis result, it can be concluded that partially size of local government size does not have an effect on to local government financial performance, intergovernmental revenue has significant effect to financial performance of local government and regional expenditure has no effect on local government financial performance. Simultaneously size, intergovernmental revenue, and local expenditure have an effect on to local government financial performance

scholarly journals ANALISIS PENGARUH DANA ALOKASI UMUM DAN PENDAPATAN ASLI DAERAH TERHADAP BELANJA PEMERINTAH DAERAH KOTA MANADO

2019 ◽  
Vol 17 (2) ◽  
Author(s):  
Ferly Christian Kolinug ◽  
Anderson Guntur Kumenaung ◽  
Debby Christina Rotinsulu
Keyword(s):  
Time Series ◽  
Local Government ◽  
Financial Performance ◽  
Local Governments ◽  
Central Government ◽  
Series Data ◽  
Positive Trend ◽  
Flypaper Effect ◽  
Regional Budget ◽  
The City

ABSTRAK Pelaksanaan desentralisasi dibiayai atas beban Anggaran Pendapatan dan Belanja Daerah (APBD) sehingga pembiayaan pembangunan secara bertahap akan menjadi beban terhadap pemerintah daerah. Keadaan ini akan semakin memperkuat tekanan internal dari keuangan daerah, karena peranan sumbangan dan bantuan pusat dalam pembiayaan pembangunan daerah akan semakin kecil. Bantuan pusat dalam pembiayaan pembangunan hanya akan diberikan untuk menunjang pengeluaran pemerintah, khususnya untuk belanja pegawai dan program-program pembangunan yang hendak dicapai. Hal ini berarti bahwa seiring dengan berjalannya otonomi, dana transfer yang diberikan oleh pemerintah pusat ke pemerintah daerah mulai berkurang dan yang menjadi sumber utama pembiayaan daerah adalah pendapatan dari daerah sendiri. Transfer Pemerintah Pusat khususnya yang didominasi oleh transfer tidak bersyarat yaitu DAU dan DBH menjadi sumber dana utama dalam menunjang pembiayaan pembangunan yang ada di Kota Manado, hal ini mengindikasikan adanya fenomena flypaper effect pada Kota Manado. Penelitian ini bertujuan menelaah performa kinerja keuangan daerah untuk mengetahui apakah transfer atau DAU plus DBH dari pemerintah pusat dan PAD berpengaruh terhadap belanja pemerintah daerah (BD) Kota Manado serta untuk mendeteksi terjadinya flypaper effect. Data yang dipakai menggunakan data time series dengan periode anggaran tahun 2006-2012. Metode analisis yang digunakan adalah model analisis rasio dan model ekonometrik, dengan menggunakan data sekunder. Hasil analisis rasio menunjukkan kemandirian dan derajat desentralisasi memiliki trend positif, akan tetapi masih sangat bergantung pada dana transfer pusat, juga ditemukan  produktivitas dan efektivitas belanja daerah (BD) terjadi penurunan. Hasil analisis regresi menunjukkan bahwa DAU dan PAD secara terpisah maupun serentak berpengaruh positif terhadap Belanja Daerah dan  pengaruh PAD terhadap BD lebih besar daripada pengaruh DAU terhadap BD dan memberikan bukti tentang tidak adanya keberadaan flypaper effect. Hal ini menunjukkan bahwa Pemerintah Daerah Kota Manado dalam memprediksi Belanja Daerahnya (BD) lebih mengutamakan kemampuan keuangannya sendiri yang diproksi dari penerimaan Pendapatan Asli Daerah (PAD).   Kata kunci:      Kinerja Keuangan Daerah, Anggaran Pendapatan dan Belanja Daerah (APBD),  Flypaper Effect. ABSTRACT The implementation of decentralization be financed at the expense of the Regional Budget (APBD) so that development financing will gradually become a burden for local governments. This situation will further strengthen the internal pressure of the financial area, because the role of donations and assistance in financing the regional development center will be smaller. Central assistance in development financing will only be granted to support government spending, particularly for personnel expenditure and development programs to be achieved. This means that over autonomy, transfer of funds given by the central government to local governments began to decrease and become the main source of funding is the revenue from the region itself. Central Government Transfers particularly dominated by unconditional transfer that DAU and DBH become a major source of funding to support the financing of development in the city of Manado, it indicates that the phenomenon of flypaper on the city of Manado. The research examined the performance of the financial performance area to determine whether the transfer or DAU plus DBH of the central government and the PAD influence on local government expenditures (BD) as well as the city of Manado for detecting the occurrence of flypaper. The data used using time series data with the 2006-2012 budget period. The analytical method used is the ratio analysis models and econometric models, using secondary data. Results of the analysis showed the ratio of self-reliance and degree of decentralization has a positive trend, but still highly dependent on the transfer of funds center, also found the productivity and effectiveness of expenditure areas (BD) decline. Regression analysis showed that DAU and PAD separately or simultaneously positive effect on regional expenditures and the effect of PAD to BD is greater than the influence of the DAU to BD and provide evidence about the absence of the existence of flypaper. This indicates that the Local Government Area of ​​Manado in predicting Shopping (BD) prefers his own financial capabilities are a proxy of acceptance revenue (PAD).   Keywords: Financial Performance Regional Budget (APBD), flypaper.

scholarly journals Determinants of Government Characteristics and Audit Findings on Local Government Financial Performance

2021 ◽  
Vol 13 (2(I)) ◽  
pp. 7-15
Author(s):  
Mahendro Sumardjo ◽  
Febriana Dwi Jayanti
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Local Governments ◽  
Size Dependence ◽  
Central Government ◽  
Provincial Government ◽  
Government Size ◽  
West Java ◽  
Financial Reports ◽  
Local Expenditure

This study is based on the low success of local governments' financial performance in West Java Province, as evidenced by the fact that financial reports of local governments that receive unqualified opinions are still being found. The detection of numerous frauds in local governments is responsible for the majority of incidents of poor financial performance in local governments. Local government financial performance is related to local government size, dependence on central government, local spending, and audit findings. The purpose of this study was to examine the influence of local government characteristics and audit findings on the financial performance of local governments. Techniques analyzing data used regression model selection test with STATA version 16. This study builds on agency theory to develop a conceptual framework that connects local government size, dependence on central government, local expenditure, audit findings, and financial performance. The results of this study show that the size of local government, local spending has a significant effect on local government financial performance based on independence ratio and operating expenditure activity ratio, local government financial performance is unaffected by the dependence of central government or audit findings. Contributions to the West Java Provincial Government are required to be taken into account when making decisions and policies for the improved financial performance of local government.

scholarly journals Game Theory-Based Analysis of Local Governments’ Behavioral Dissimilation in the Third-Party Soil Pollution Control under Chinese-Style Fiscal Decentralization

Land ◽  
2021 ◽  
Vol 10 (4) ◽  
pp. 389
Author(s):  
Caihua Zhou
Keyword(s):  
Local Government ◽  
Soil Pollution ◽  
Pollution Control ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Third Party ◽  
The Third ◽  
Party Control ◽  
The Third Party

The participation of a third party of the environmental service enterprise theoretically increases the level and efficiency of soil pollution control in China. However, Chinese-style fiscal decentralization may have a negative impact on the behaviors of participants, especially the local government. First, this paper conducts a positioning analysis on participants of the third-party soil pollution control in China and discusses the behavioral dissimilation of the local government under fiscal decentralization. Second, taking the government’s third-party soil pollution control as a case, a two-party game model of the central government and the local government is established around the principal-agent relationship, and a tripartite game model of the central government, the local government, and the third-party enterprise is designed around the collusion between the local government and the third-party enterprise. The results show that Chinese-style fiscal decentralization may lead to the behavioral dissimilation of local governments, that is, they may choose not to implement or passively implement the third-party control, and choose to conspire with third-party enterprises. Improving the benefits from implementing the third-party control of local governments and third-party enterprises, enhancing the central government’s supervision probability and capacity, and strengthening the central government’s punishment for behavioral dissimilation are conducive to the implementation of the third-party soil pollution control. Finally, this study puts forward policy suggestions on dividing the administrative powers between the central and local government in third-party control, building appraisal systems for the local government’s environmental protection performance, constructing environmental regulation mechanisms involving the government, market and society, and formulating the incentive and restraint policies for the participants in the third-party soil pollution control.

scholarly journals Transparency of local government in Indonesia

2018 ◽  
Vol 3 (1) ◽  
pp. 123-138 ◽  
Author(s):  
I Made Pradana Adiputra ◽  
Sidharta Utama ◽  
Hilda Rossieta
Keyword(s):  
Local Government ◽  
Financial Reporting ◽  
Local Governments ◽  
Financial Statements ◽  
Political Environment ◽  
Content Type ◽  
Audit Opinion ◽  
Government Response ◽  
Positive Effect

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.

scholarly journals Auditors characteristics and audit delay: Evidence from Indonesian regional governments

2015 ◽  
Vol 13 (1) ◽  
pp. 66-73 ◽  
Author(s):  
Sutaryo Sutaryo ◽  
Yediel Lase
Keyword(s):  
Decision Making ◽  
Local Government ◽  
Local Governments ◽  
Financial Statements ◽  
Educational Background ◽  
Auditor Characteristics ◽  
Regional Governments

Overdue financial statements reporting, more specifically audit delay, can cause losses in its capacity in decision making. We investigate the effects of auditor characteristics on local governments’ audit delay by studying 127 Indonesian local governments. We find that auditor professional proficiency and auditor educational background have significant effect on the audit delay of local government financial statements. Our results also indicate the intersection of some auditor characteristics in affecting audit delay. Our findings mainly suggest that the auditor professional proficiency should be improved to shrink audit delay.

scholarly journals KINERJA KEUANGAN DAERAH PASCA PERALIHAN BEA PEROLEHAN HAK ATAS TANAH DAN BANGUNAN

2017 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Juli Juli Juli
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Local Governments ◽  
Central Government ◽  
Capital Expenditure ◽  
Local Taxes ◽  
Paired Samples ◽  
Before And After ◽  
Operational Expenditure ◽  
Observation Period

This study examined differences in the local government's financial performance before and after the transition from central tax BPHTB be local taxes? In general, this study aims to determine the contribution BPHTB to the PAD as a source of funding for the survival of each region in order to achieve local autonomy system. The samples used in this study is the district/city that has existed since autonomy BPHTB not be treated as 114 cities/districts. The realization of the study observation period is the period before the transition budget BPHTB (Year 2010) and after the transition BPHTB (Year 2011). The research data were statistically tested with a different test of two paired samples. The results show that the performance of local government in Java have differences before and after the transition BPHTB from the central government to local governments. This research can provide empirical evidence of the differences in the financial performance of the post-transition region from the center to the regions BPHTB especially Java. The results of this study can also be used as a reference in future studies with similar themes to consider several things. First, the use of samples that are not confined to the local government but the entire Indonesian island of Java. Second, adding the growth rate ie performance measurement. Third, review the compatibility ratio because in addition to operational expenditure and capital expenditure is no longer heading in the budget expenditure is financing and transfer.     Keywords: Bea Perolehan Hak atas Tanah dan Bangunan, Financial Performance, Autonomous Region.

scholarly journals THE ROLE OF LOCAL GOVERNMENTS IN REGIONAL FINANCIAL MANAGEMENT FOR THE HANDLING OF THE COVID-19 PANDEMIC

Yurispruden ◽  
2021 ◽  
Vol 4 (2) ◽  
pp. 208
Author(s):  
Fahrul Abrori
Keyword(s):  
Local Government ◽  
Research Methods ◽  
Financial Management ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
The Government ◽  
The Stability ◽  
The Relationship

 ABSTRAKPandemi Covid-19 yang terjadi di Indonesia membuat pemerintah membuat kebijakan-kebijakan sebagai stimulus untuk menjaga kestabilan masyarakat dan perekonomian. Pemerintah pusat memberikan kewenangan kepada pemerintah daerah untuk mengelola keuangan daerah untuk menangani covid-19 di daerah masing-masing. Hal ini disebabkan karena pemerintah daerah lebih memahami kebutuhan daerahnya. Permasalahan yang diangkat Pertama, bagaimana hubungan Pemerintah Pusat dan Pemerintah Daerah dalam pengelolaan keuangan untuk penanganan pandemi Covid-19? Kedua, Apa peran Pemerintah Daerah dalam pengelolaan keuangan daerah untuk penanganan pandemi Covid-19? Menggunakan metode penelitian yuridis normatif dengan pendekatan perundang-undangan dan pendekatan konsep. Hubungan Pemerintah Pusat dan Pemerintah Daerah dalam Pengelolaan Keuangan untuk Penanganan Pandemi Covid-19 yaitu desentralisasi fiskal yang mana. Peran Pemerintah Daerah dalam Pengelolaan Keuangan Daerah untuk Penanganan Pandemi Covid-19 yaitu dengan melakukan refocusing kegiatan, realokasi anggaran, dan Penggunaan Anggaran Pendapatan dan Belanja Daerah.Kata kunci: Pemerintah Daerah, Pengelolaan Keuangan Daerah, Pandemi Covid-19 ABSTRACTThe Covid-19 pandemic in Indonesia led the government to make policies as a stimulus to maintain the stability of society and the economy. The central government authorizes local governments to manage local finances to deal with covid-19 in their respective regions. This is because the local government better understands the needs of the region. The issue raised first, how is the relationship between the Central Government and Local Government in financial management for the handling of the Covid-19 pandemic? Second, What is the role of local governments in regional financial management for the handling of the Covid-19 pandemic? Using normative juridical research methods with statutory approaches and concept approaches. The relationship between the Central Government and Local Government in Financial Management for the Handling of the Covid-19 Pandemic is fiscal decentralization. The role of local governments in regional financial management for the handling of the Covid-19 pandemic is by refocusing activities, reallocating budgets, and using regional budgets.Keywords: Local Government, Regional Financial Management, Covid-19 Pandemic

scholarly journals Determinan Akuntabilitas Laporan Keuangan: Tinjauan Pada Kinerja dan Politik di Pemerintahan Daerah di Indonesia

2020 ◽  
Vol 30 (3) ◽  
pp. 800
Author(s):  
Suryo Pratolo ◽  
Febriana Diah Irmawati
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Financial Reporting ◽  
Fiscal Decentralization ◽  
Local Governance ◽  
Secondary Data ◽  
Regional Government ◽  
Government Accountability ◽  
And Performance ◽  
Dynastic Politics

This study is reviewed and tested empirically the influence of financial performance, dynastic politics, and performance of local government on accountability of regional financial reporting. This study uses the documentation method with secondary data taken from sources of the Indonesian Supreme Audit Board (BPK RI) and the Ministry of Home Affairs. The analytical test tool used in this study is multiple linear regression. It was found that the fiscal decentralization did not significantly affect the accountability of regional financial reporting but it was found that processing results showed a dependency ratio that had a negative and significant effect on the accountability of financial reporting produced by the local government. In the aspect of political dynasties, this variable was found to have no significant effect on the accountability of regional government financial reporting. The results also showed a significant positive effect of local government performance on the accountability of local government financial reporting. Keywords: Financial Performance; Political Dynasty; Performane of Local Government; Accountability of Financial Reporting in Local Governance.

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