Challenges of Government Accounting Policy Reform in Indonesia

Gracia Maya Kristiani; Rodiyatul Fadillah; Sahrul Sahrul; Silvia Ayu Anggraeni

doi:10.26905/j-tragos.v2i1.11442

Challenges of Government Accounting Policy Reform in Indonesia

Gracia Maya Kristiani, Rodiyatul Fadillah, Sahrul Sahrul, Silvia Ayu Anggraeni

Abstract

This article delves into the significant changes in government accounting, particularly in Indonesia. The shift from cash-based accounting to accruals, and ultimately to full accruals, marks a significant transformation in the country’s government accounting practices. The research methodology employed in this study is a qualitative approach to a literature review. The primary source of information was a comprehensive search of publications about accounting regulations implemented by the government. The main objective of this study is to identify and evaluate the challenges faced during the reform of Indonesia’s government accounting policy. The study’s findings reveal that the government is required to prepare financial accounts under Law No. 17 Year 2003. This law refers to the Government Accounting Standards (SAP). As a derivative of this regulation, the government enacted Government Regulation Number 24 of 2005. This regulation has been revised with Government Regulation Number 71 of 2010 on Government Accounting Standards (SAP). The practical implication of these regulations is a significant change in the basis of government accounting records. Previously, the records were maintained on a cash basis, accrual basis, and cash basis. However, with the new regulations, the records are now maintained on a fully accrual basis. This change is expected to improve the transparency and accuracy of government financial records, thereby enhancing public trust in government financial management. In conclusion, the transition to full accrual accounting is a notable development in Indonesian government accounting. Despite the challenges, this transition is a crucial step toward improving the quality and reliability of government financial information. The study provides valuable insights into the obstacles encountered during this reform and offers recommendations for future policy improvements.

Keywords

Cash Base Accounting System; Full Accrual Base; Government Accounting; Governmental Accounting Standards

Full Text:

PDF

References

Abdillah, K., Sholahuddin, A., & Sadhana, K. (2022). Study of Teacher performance implementation of staffing policies in Training and Basic Education in Probolinggo Regency of Indonesia. International Journal of Research in Social Science and Humanities (IJRSS) ISSN: 2582-6220, DOI: 10.47505/IJRSS, 3(8), 28-35.

Aidi, Ahmadi et al., 2021. Challenges Of Policy Reform On Government Accounting In Indonesia: Response To Changing Global Dynamics. Ilomata International Journal Of Tax And Accounting, 2(4), 286-294. https://doi.org/10.52728/ijtc.v2i4.362

Arwanto & Anggraini, Wike. 2022. Good Governance, International Organization, And Policy Transfer: A Case Of Indonesian Bureaucratic Reform Policy. Jkap (Jurnal Kebijakan Dan Administrasi Publik), 26(1), 33. https://doi.org/10.22146/jkap.68703

Avita, I., Wahyudi, C., & Dwinugraha, A. P. (2023). Implementation of Village Financial Management Through SISKEUDES in Pandanrejo Village. Journal of Transformative Governance and Social Justice, 1(1), 31-38. https://doi.org/10.26905/j-tragos.v1i1.9195

Blondal, J.R., Hawkesworth, I., & Choi, H.D. (2009). Budgetting in Indonesia

Cairns, D., Massoudi & Tarca, A. 2011. IFRS Fair Value Measurement and Accounting Policy Choice in the United Kindom and Australia. The British Accounting Review, 43 (1): 1-21

Darise, N. (2008). Akuntansi Keuangan Daerah (Akuntansi Sektor Publik). N Darise ed.I. Gramedia

Fuentes, S.F. & Borreguero, J.H. (2008). Institutional Capacity in the Accounting Reform Process in Spanish Local Governments. Revista de Contabilidad, 21 (2), 188-195

Herlina, H. 2013. Analisis Faktor-Faktor yang Mempengaruhi Kesiapan Pemerintahan Daerah dalam Implementasi PP 71 Tahun 2010 (Studi Empiris: Kabupaten Nias Selatan). Jurnal Akuntansi UNP, 1 (3).

Hanna, Don. (2006). Indonesia, Malaysia, and Thailand: New Administrations, New Policies, New Performance?. Asian Economic Papers, 5(3), 128-168. https://doi.org/10.1162/asep.2006.5.3.128

Hyndman, Noel & Connolly, Ciaran. (2011). Accruals Accounting In The Public Sector: A Road Not Always Taken. Management Accounting Research, 22(1), 36-45. https://doi.org/10.1016/j.mar.2010.10.008

Haryani, Tiyas & Puspasari, Apriana. (2020). Integration Zone Development In Bureaucratic Reform. Spirit Publik Jurnal Administrasi Publik, 15(2), 174. https://doi.org/10.20961/sp.v15i2.46759

Ishak, Nurfaika et al., (2020). Bureaucratic And Political Collaboration Towards A Good Governance System. Bestuur, 8(1), 19. https://doi.org/10.20961/bestuur.v8i1.42922

Jatmikowati, S. H., Dinata, C., & Noorsetya, B. (2020, March). Strengthening Public Administration with Good Collaborative Governance (Government and Civil Society Organizations Relation for Development Countries in Decentralization Era: Case Studies in Malang Regency). In International Conference on Public Administration, Policy and Governance (ICPAPG 2019) (pp. 179-185). Atlantis Press.

Jayasinghe, Kelum et al., (2021). Government Accounting Reforms In Sub-Saharan African Countries And The Selective Ignorance Of The Epistemic Community: A Competing Logics Perspective. Critical Perspectives On Accounting, 78, 102246. https://doi.org/10.1016/j.cpa.2020.102246

Jayasinghe, K., Andhikari, P., & Abdurafu, N. (2021). Government Accounting Reforms in Sub-Saharan African Countries and the Selective Ignorance

Jauhari H & Hazisman. (2021). Pengaruh Sistem Akuntansi Keuangan Daerah dan Standar Akuntansi Pemerintah terhadap Kualitas Laporan Keuangan Pemerintah. JAK (Jurnal Akuntansi) Kajian Ilmiah Akuntansi, 8 (1), 104-121

Juwira, R. (2013). Pengaruh Implementasi Standar Akuntansi Pemerintahan dan Sistem Informasi Akuntansi terhadap Kualitas Laporan Keuangan. Trikonomika, 12 (2), 201-214

Kasim, Azhar. (2013). Bureaucratic Reform And Dynamic Governance For Combating Corruption: The Challenge For Indonesia. Bisnis & Birokrasi Jurnal Ilmu Administrasi Dan Organisasi, 20(1). https://doi.org/10.20476/jbb.v20i1.1862

Kaufmann, Daniel et al., 2005). Governance Matters Iv: Governance Indicators For 1996-2004. SSRN: Electronic Journal. https://doi.org/10.2139/ssrn.718081

Karima, D & Sudaryanti, D. (2021). Pengaruh Penerapan Sistem Akuntansi Pemerintah Daerah, Pemahaman Akuntansi, dan Ketaatan pada Peraturan Perundangan terhadap Akuntabilitas Kinerja Instansi Pemerintah Daerah. E-Jurnal Ilmiah Riset Akuntansi, 10 (06)

Lassou, Philippe., et al. (2019). Varieties of Neo-Colonialism: Government Accounting Reforms in Anglophone and Francophone Africa – Benin and Ghana Compared. Critical Perspectives On Accounting, 65, 102071. https://doi.org/10.1016/j.cpa.2019.01.003

Lassou, P & Murinde. (2019). Varieties of neo-colonialism: Government Accounting Reforms in Anglophone and Francophone Africe-Benin and Ghana Compared. Critical Perspectives on Accounting, 65, 102071

Lewis, B.D., Nguyen, H.T.M., & Hendrawan, A. (2020). Political Accountability and Public Service Delivery in Decentralized Indonesia: Incumbency advantage and the performance of second term mayors. European Journal of Political Economy, 64, 101910

Marwata & Alam, Manzurul. (2006). The interaction among reform drivers in governmental accounting changes. journal of accounting & organizational change, 2(2), 144-163. https://doi.org/10.1108/18325910610675989

Mardiasmo. (2018). Otonomi dan Manajemen Keuangan Daerah. Mardiasmo (ed): III. Penerbit ANDI

Merotti, D. (2021). Managing Fiscal Risks: Lesson From Case Studies Of Selected OECD Countries. OECD Journal on Budgeting, 21 (1).

Nordiawan, D & Rahmawati, M. (2007). Akuntansi Pemerintah, Jakarta: Salemba Empat, I, 1-40

Nogueira, Sonia et al., (2013). The Usefulness Of Financial Reporting For Internal Decision‐Making In Portuguese Municipalities. Management Research The Journal Of The Iberoamerican Academy Of Management, 11(2), 178-212. https://doi.org/10.1108/mrjiam-dec-2011-0465

Pompey, Jifvy, et al., (2019). Improving Quality Of Information On Local Financial Statements And Its Utilization For Capital Expenditure Budgeting (Case Study At The Provincial Government Of East Nusa Tenggara). https://doi.org/10.2991/aprish-18.2019.13

Pasaribu, Goenawan et al., (2022). Tax Reforms And Financial Performance Of The Indonesian Tax Authority Between 2017 And 2021: Literature Review. Journal Of Finance And Accounting, 6(5), 11-21. https://doi.org/10.53819/81018102t4105

Padovani, E & Lacuzzi, S. (2021). Realtime Crisis Management: Testing The Role Of Accounting In Local Governments. Journal Of Accounting And Public Policy, 40 (3), 106854

Patra, A. D. Bustami & Hasriani, H. (2016). Pengaruh Penerapan Sistem Akuntansi Keuangan Pemerintah Daerah terhadap Kualitas Laporan Keuangan Pemerintah Daerah. Jurnal Akuntansi STIE Muhammadiyah Palopo, 2 (1).

Ryan, Christine. (1998). The Introduction Of Accrual Reporting Policy In The Australian Public Sector. Accounting Auditing & Accountability Journal, 11(5), 518-539. https://doi.org/10.1108/09513579810239837

Shinkle G.A & Gary. (2021). Government Policy Changes and Organizational Goal Setting: Extting: Extensions to the behavioral theory of the firm. Journal of Business Research, 129, 406-417

Simanjuntan, B.H. (2005). Menyongsong Era Baru Akuntansi Pemerintahan Di Indonesia. Jurnal Akuntansi Pemerintah, 1 (1), 9-18

Sukardi, S. (2014). Good Governance: Reposisi Administrasi Publik, Lensa Kapital Sosial. Publisia: Jurnal Ilmu Administrasi Publik, 18(1), 21-43. https://doi.org/10.26905/pjiap.v18i1.2026

Tambunan, D. (2013). Tinjauan Terhadap Pelaksanaan Sistem Akuntansi Pemerintah Pusat Dalam Penyusunan Laporan Keuangan Pemerintah. SNIT 2013

Warsono, Hardi, et al., (2023). Local Governments' Financial Accountability Responses In Critical Time: A Reflection From Intergovernmental Management In Indonesia During The Early COVID-19 Pandemic. Academic Journal Of Interdisciplinary Studies, 12(1), 303. https://doi.org/10.36941/ajis-2023-0025

Yusriadi. (2018). Reformasi Birokrasi Indonesia: Peluang Dan Hambatan. Jurnal Administrasi Publik Public Administration Journal, 8(2), 178. https://doi.org/10.31289/jap.v8i2.1824

Yilmaz, Serdar & Guner, Ayse. (2013). Local Government Discretion And Accountability In Turkey. Public Administration And Development, 33(2), 125-142. https://doi.org/10.1002/pad.1646

Yilmaz, Serdas et al., (2010). Linking Local Government Discretion And Accountability In Decentralization. Development Policy Review, 28(3), 259-293. https://doi.org/10.1111/j.1467-7679.2010.00484.x

DOI: https://doi.org/10.26905/j-tragos.v2i1.11442