Exploring government internet financial reporting in Indonesia

Abstract

Government financial reporting as public accountability and transparency is important. Previous research show that almost all local government in Indonesia have their official website, which is active use as presenting news, local potentials, and local government services. Unfortunately, there are still limited local governments which are disclose their financial information as well as budgeting reports and financial statements on their websites. This research aims to explore whether political competition, local asset, local dependency, population density, and information openness award have influenced IFR practice in government in Indonesia. We investigate financial report and budget report as of internet financial reporting (IFR) data of 32 provincial government websites. Indonesia consists of 34 provinces, which are 32 provincial websites consistently accessible and use as sample in this research. The empirical results show that local dependency toward central government and Information Openness Award positively significant influence IFR practices in provincial level in Indonesia. There is no significant influenced of political competition, local asset and population density to IFR in Indonesia Provinces website. Our research contribution is to extend previous research by concerning Information Openness Award as independent variable which influenced to IFR practice in local government.

Factors Affecting Internet Financial Reporting Disclosure to Provincial Governments In Indonesia

“…(Rulitawati et al, 2020) concluded that long-term solvency, including leverage, is the aspect of financial condition considered most important by users of government financial statements. However, different results are found in research (Diptyana, 2018) which states that Leverage has no effect on Internet Financial Reporting.…”

Pengaruh Kekayaan Daerah, Pendapatan Perkapita, Jumlah Penduduk, Dan Tingkat Pendidikan Terhadap Publikasi Laporan Keuangan Pemerintah Daerah

“…Afryansyah (2013) mengungkapkan bahwa jumlah kepadatan penduduk suatu daerah tidak cukup untuk memengaruhi publikasi laporan keuangan oleh pemerintah daerah secara sukarela melalui internet. Website pemerintah daerah lebih digunakan sebagai media pemberitahuan kepada publik terkait hal-hal di luar data keuangan pemerintah daerah itu sendiri, misalnya sebagai bentuk publikasi kegiatan pemerintah dan pencapaian nonkeuangan pemerintah daerah (Diptyana & Rokhmania, 2018).…”

Domination of Regional Wealth as a Determining Factor of Financial Statement Disclosure

“…An increase in own-source revenue is always carried out to motivate local governments to be able to finance their own needs, so as to be independent and no longer depend on the central government. Based on the stewardship theory, local governments can show their responsibility for good performance through a large amount of regional wealth and resources, making them try to write better financial statements [17].…”