The Regulation on Village Governance in Indonesia: Efficient Contracting in Agency Theory

Abstract

The application of efficient contracting concept in Village Fund management is an interesting idea and formula in the public governance perspective. The concept provides a potential solution so that the Village Government obey the Law No. 6 of 2014 and brings impact to public-oriented service. The philosophical concept of “Gotong Royong” or mutual assistance reinforces the efficient contracting essence. The aim of this research is to build a framework of public governance on Village Fund by implementing the efficient contracting, and to identify, illustrate and describe the variables in efficient contracting concept to Village Fund Management. The research used qualitative method, designed in narrative strategy and grounded theory approach, and formulated using constructivism paradigm. Results of the study have demonstrated that (1) Efficient contracting concept encompasses economic constitution, government policy, public finance management and governance, and the functional relationship in the government body (Central, Regional and Village); (2) the essence of Efficient Contracting is the community active participation, legal aspect, government attention, balance consensus, effectiveness and efficiency, justice and equality, transparency, responsibility and accountability. The descriptive findings were interpreted in textual and structural method to expand the Efficient Contracting concept and to bring implication in development administration and public management.

Planning, Accountability and Reporting of Village Financial Management in Indonesia

“…This was in line with research conducted by Wicaksana el al. [18]. With good planning, it would be increasingly difficult for officials to commit violations and thereby increase accountability to society.…”

“…Village financial management planning begins with planning carried out at the village community level to explore community aspirations in proposing priority programs that are urgently needed in village development. A good village planning forum that can accommodate community aspirations will improve Good governance [18]. Planning increases community coherence and increases aspirations in village development [19].…”

The Evaluation of Village Fund Policy in Penukal Abab Lematang Ilir Regency (PALI), South Sumatera, Indonesia

“…Public policy is defined as the authoritative allocation of values for a society as a whole, or as the coercive allocation of values to all members of society. Public policy is a hypothesis that contains initial conditions and predictable consequences and can be distinguished from other policies [17][18][19]. The involvement of non-government factors influences this.…”

Penerapan dan Evaluasi PSAP Nomor 13 dalam Penyajian Laporan Keuangan (Studi pada Universitas Pendidikan Ganesha)

“…Nilai inovasi pada sektor publik mendorong berbagai pemerintahan untuk mengimplementasikan layanan publik yang lebih baik (Pratama 2020). OECD (Organization for Economics Cooperation and Developments) menyatakan bahwa pemerintahan yang baik akan memotivasi program dan agenda pemerintah yang berorientasi pada masyarakat (Wicaksana et al 2019). Agenda reformasi pada sektor publik ditandai dengan munculnya konsep New Public Management pada tahun 1991 yang diperkenalkan oleh Christopher Hood dengan anjuran pemerintah untuk meninggalkan paradigma lama yang cenderung pada birokratis yang gemuk serta tidak efisien dan tidak efektif dalam pemberian pelayanan.…”