Purpose -The purpose of this paper is to investigate whether corporate governance practices and the quality of reporting are associated with firm value for public firms in Indonesia. Design/methodology/approach -The authors hypothesize that there are positive associations between firm value and corporate governance practices and reporting quality. For the authors' proxies for corporate governance and reporting quality they develop two new indices. First, they develop a corporate governance index (the CGI) to measure corporate governance practices by Indonesian firms. Second, they develop a reporting quality index (the RQI) to measure the firms' quality of reporting and disclosures. To examine the associations the authors run multivariate regressions of their proxies for firm value on the two indices. Findings -Consistent with the first hypothesis, the paper finds positive associations between corporate governance and different proxies of firm value. These findings suggest that firms that implement better corporate governance have higher values. Contrary to the second hypothesis, the paper finds negative associations between reporting quality and the proxies for firm value. These findings indicate that lower value firms tend to disclose more information that is consistent with the P3LKE than higher value firms.Research limitations/implications -The results suggest that corporate governance practice by Indonesian public firms is value relevant and therefore, should provide incentives to the firms to improve their governance. This shows that the Indonesian government's efforts to promote corporate governance provide benefits to publicly traded firms. The results also indicate that firms with low values are more likely to disclose information that is consistent with the P3LKE. This warrants further research because this finding is inconsistent with the contention that more disclosures should result in higher value. Practical implications -The authority needs to put more efforts in promoting good corporate governance implementations and making sure that public firms improve their disclosures and reporting quality in order to provide benefits to the users of financial information. Originality/value -Corporate governance index for public firms is not readily available in Indonesia. Therefore, the authors develop an index to measure corporate governance implementations by Indonesian public firms. To the authors' knowledge, this is the first paper that develops an index to measure adherence to the P3LKE, which is a comprehensive measure of the quality of reporting.

This research seeks to provide evidence about how political connections, proxied by government ownership and the existence of politically connected board members, affect the extent of corporate social responsibility (CSR) disclosures in Indonesian listed companies. This research uses the legitimacy theory as a basis for explaining management's motivation for disclosing its CSR. The sample consists of 131 firm-year observations from 38 non-financial public companies that published sustainability reports from 2013 to 2017. We measured the CSR disclosures using a disclosure checklist on the sustainability reports. We subsequently processed the data using a random effect (RE) linear regression. The result shows that CSR disclosures were greater in government-owned companies but lower in companies that have politically connected board members. The results support the legitimacy theory that the government intends to demonstrate legitimate national economic and political conditions by showing that government-owned companies are sustainable. However, CSR disclosures seem to have a substitutive relationship with the existence of politically connected board members, since those political connections may protect the company from public pressure and/or the risk of litigation, reducing the need for CSR disclosures. This research provides evidence that different types of political connections may have different impacts on corporate disclosures.

Purpose Global palm oil production is growing rapidly, especially in Southeast Asia, with Indonesia and Malaysia as the biggest producers. Despite significant contributions to these countries’ economies, environmental and social aspects continue to be debated within this industry. The sustainability strategy is very important for the palm oil industry. This study aims to explore the sustainability strategy using six elements, namely, stakeholder engagement, governance and leadership, sustainability view and the economic, environmental and social strategies of Indonesian and Malaysian palm oil companies. Design/methodology/approach This study observes 21 Indonesian palm oil companies and 44 Malaysian palm oil companies from 2014 to 2018 with a total observation of 280 firm years. The methodology used in this study is a qualitative content analysis of six themes based on the sustainability strategy elements, which was further developed into 40 indicators. Content analysis is carried out on information published in annual reports and sustainability reports. Findings The study results indicate that stakeholder engagement, governance and leadership and strategic view of the palm oil companies in Indonesia and Malaysia are still likely to be weak. Palm oil companies have not demonstrated their focus on implementing economic, environmental and social strategies. Although the results indicate that there is a greater emphasis on environmental and social strategies than on economic issues, attention to both issues is still very low. Practical implications Palm oil companies need to integrate sustainability strategies in their business models and communicate them well to stakeholders to increase their competitive advantage in the palm oil industry. The government also needs to issue stricter rules and incentives to encourage companies to implement sustainability strategies. Social implications The study results provide implications for the communities around palm oil plantations to provide better social control so that companies can implement sustainability strategies in their business processes. Originality/value This study highlights the importance of sustainability practices integrated into palm oil companies’ business models, which have not been well implemented in the palm oil industry in the world’s largest producing countries.

Penelitian ini bertujuan mengevaluasi penerapan metode Penghitungan Kerugian Negara (PKN) di Badan Pemeriksa Keuangan (BPK). Kerangka penelitian menggunakan Policeman Theory yang menekankan tanggung jawab auditor untuk mendeteksi kecurangan. Salah satu dampak akibat terjadinya kecurangan/korupsi dalam pengelolaan keuangan negara adalah timbulnya kerugian negara. Metode PKN yang digunakan dalam menghitung kerugian negara akibat suatu kasus korupsi masih beragam dan belum terstandarisasi. Penelitian menggunakan metodologi penelitian kualitatif dengan pendekatan studi kasus sehingga lebih menitikberatkan mengenai menggali fenomena PKN yang terjadi di BPK. Penelitian dilakukan dengan mengumpulkan data sekunder berupa dokumen putusan pengadilan kasus korupsi yang telah berkekuatan hukum tetap (inkracht). Hasil penelitian menunjukkan bahwa BPK secara signifikan telah memenuhi ekspektasi tugas auditor menurut Policeman Theory dalam mendeteksi fraud. Pemilihan metode PKN BPK yang beragam dalam menghitung kerugian negara yang diakibatkan fraud didasari pertimbangan penilaian penyimpangan yang terjadi dalam kasus korupsi, ketersediaan bukti yang cukup dan tepat, serta kondisi obyek PKN. Metode PKN yang digunakan oleh pemeriksa investigatif BPK dan sudah diterima dalam pengadilan antara lain Pokok Plus Bunga, Net Loss dan Real Cost.

Penelitian ini bertujuan untuk mengevaluasi akuntabilitas pelaporan keuangan dan pengendalian internal Gereja Toraja ABC. Metode yang digunakan dalam penelitian ini adalah metode kualitatif deskriptif yang menggunakan pendekatan studi kasus dengan metodologi single case unit analysis. Hasil penelitian menunjukkan bahwa tahapan dalam menilai akuntabilitas pelaporan keuangan gereja belum berjalan dengan optimal. Pengendalian internal pun belum berjalan dengan baik, terutama pengurus keuangan Gereja yang kurang kompeten, pemisahan tugas yang belum sepenuhnya baik, dan penerapan pedoman umum yang belum optimal. Kurangnya pemahaman para pengurus keuangan juga dimaklumi oleh jemaat, sehingga menerima saja keadaan seperti ini.