THE QUALITY OR PUBLIC IMAGE: EXPLANATORY STUDY OF LOCAL GOVERNMENTS FINANCIAL STATEMENT IN INDONESIA

  • Edy Suprianto Strategic Business Unit for Oil Palm Seeds Company, Medan
Keywords: Government Accounting Standard, Government Apparatus Quality, Internal Control System, Local Government Performance Report

Abstract

This research aims to identify a problem which forced by local government in production of qualified financial statement in Indonesia. Local government has two choices to create financial statement. In one hand, they have to produce better financial statement as obligated in Government Accounting Standard (SAP). On the other hand, there is public image about the result of financial statement audit. This research performs qualitative method with survey for data collection. Purposive Sampling is used to choose the sample with criteria the units always report financial report to local government centre. The population of this research is all local government units in Semarang-Indonesia, consisting of 50 units (there are 20 units fulfilling all criteria). Each unit has 5 respondents to analyze unit. The finding shows that local government prefers to maintain public image than financial report quality. They have opinion that the qualified opinion from auditor is important without considering the financial statement quality. The evidence is audited financial statement can not identify corruption problem in this area

Author Biography

Edy Suprianto, Strategic Business Unit for Oil Palm Seeds Company, Medan

PhD (Plant Breeding) in Georg-August-Universität Göttingen.

Strategic Business Unit for Oil Palm Seeds Company, Medan.

Member of Indonesian Oil Palm Research Institute (IOPRI), North Sumatera, Indonesia. Actively involved on the oil palm germplasm management, selection, and varieties development through classical breeding and molecular approaches as well as on seed production system. Part of pioneer team in developing oil palm seed production based on quality management system. 

Published
2016-11-23
How to Cite
Suprianto, E. (2016). THE QUALITY OR PUBLIC IMAGE: EXPLANATORY STUDY OF LOCAL GOVERNMENTS FINANCIAL STATEMENT IN INDONESIA. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (1(1), 109-112. Retrieved from https://euraseans.com/index.php/journal/article/view/13