Law of The Republic of Indonesia number 6 of 2014 concerning the village, mandates that the central government allocates fund through transfer mechanism to the Regency/ City. Therefore, it is necessary to monitor and evaluate the implementation regarding about the integrity of the law. This study aims to improve the capability and capacity of Village Government apparatus in term management of the Village Fund, to optimize the fund utilization. The method used in this research is descriptive qualitative, data collection techniques include focus group discussions, in-depth interview, observation, and documentation. The place of research in the Bulusulur village, Wonogiri District, Wonogiri Regency, Central Java. The Informant consist of the village head, including the village apparatus, village-owned enterprises (Village BUM

A B S T R A C TThis study aims to obtain empirical evidence related to the effect of the variables such as local government characteristics, infrastructure, and local government financial condition to the financial distress of local governments in Indonesia. Population of this study is all local government that issue the financial statements audited by the Supreme Audit Agency (Badan Pemeriksa Keuangan Repulik Indonesia-BPK RI) in the period 2007 to 2009. The method of sampling is purposive sampling method producing 152 observations. Method of analysis is binary logistic regression. The results show that size (SZ), total program cost for assets (RPCTA), carrying value (CV), ratio of cash quickly (CQR), performance of government wealth (PERF), return on equity (ROE), profit margin (PM), and current liabilities (CL) significantly associate with probability of financial distress of local government. It implies that information presented in the financial statements of local governments in Indonesia has a predictive value, and, therefore is relevant tobe used in decision making.

This study investigates the effect of local government internal control systems on local government administration performance. We use secondary data from the Ministry of Internal Affairs, Financial and Development Supervisory Agency, Indonesian Statistics Bureau, and respective local government financial statements and websites. We generate a set of panel data from 508 local governments during 2017-2019 with 1524 observations analysed with panel data regression. We evidence that several local governments still have low and medium administration performance in 2017-2019 that has not met the expectation of the Ministry of Internal Affairs as stated in the strategic plan in 2015. Our analysis provides empirical evidence that control environment, risk assessment, and information and communication positively affect local government administration performance. Our result provides implications to the Financial and Development Supervisory Agency to continuously optimise internal control system development programs in Indonesian local governments and the Ministry of Internal Affairs to have higher enforcement of local government administration performance achievement.

This study aims to assess the quality of post-reformation good governance implementation in 34 Indonesian provincial governments using the Principal Component Analysis (PCA) method. Specifically, the method determines the governance index sourced from the KNKG covering democracy, transparency, accountability, legal culture, and fairness and equality principles. The findings show that (1) there are 26 or 76.47% provincial governments with “good” good governance quality and 8 or 23.53% provincial governments with “adequate” good governance quality; (2) Indonesian provincial governments tend to exhibit fluctuating but downward performance (although still in the “good” category); (3) Bali Province is the best province in implementing good governance, while North Maluku Province is the worst province in implementing good governance in Indonesia; (4) the Kalimantan region is the region with better governance implementation quality in Indonesia, while the Maluku region exhibits the poorest performance. Our empirical findings underscore the importance of stakeholders’ commitments and synergy in improving good governance quality.

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