Factors influencing non-tax revenue sustainability in Indonesian government institutions: the mediating role of accountability

Abstract

Non-tax revenue (NTR) is a source of national revenue that has significantly grown over the last two decades in Indonesia. Apart from the achievement of NTR in the national budget which shows a positive trend, there are still accountability issues that were disclosed by the Supreme Audit Agency in the audit findings of the central government’s financial reports. This study aims to analyze the factors that promote the sustainability of NTR as potential central government revenue by placing accountability as a mediating variable. This quantitative research uses a survey approach to collect data by distributing questionnaires across central government institutions. Respondents who are the object of research are civil servants who work in State Ministries/Institutions with certain criteria. The data collected for this study were 353 respondents, mainly from the 20 national government agencies that were the largest NTR generators in the last three years. The partial Least Square-Structural Equation Modeling (PLS-SEM) was utilized to analyze the data. The results of the study show that government internal control and accountability have proven to be favorable for creating NTR sustainability. Accountability is an effective mediating factor for sustainable leadership and human resource (HR) competencies in supporting the strengthening of NTR sustainability. This research provides policy implications for central government institutions to strengthen accountability by internalizing accountability principles in NTR management, enhancing the internal control level, and formulating talent management for better government officer promotion design.