INTERNET FINANCIAL REPORTING: REVEALING STRATEGIES AND PRACTICES IN REGIONAL GOVERNMENT

Abstract

The enactment of Law No. 14 of 2008 concerning public information transparency emphasizes the important obligation of public bodies, including local governments, to provide accurate, timely, and easily accessible public information, especially financial reports. Despite regulatory mandates and technological advancements, previous studies reveal that local governments in Indonesia exhibit low levels of financial transparency through Internet financial reporting (IFR). This study aims at analyzing the IFR practices carried out in regional governments in Indonesia. This study employed qualitative research methods and focused on 27 regency and city regional governments within the West Java provincial government. The data employed were financial reporting for the 2021 fiscal year. The employed data collection methods included observation and documentation. The process of data analysis consisted of three distinct stages: data reduction, data display, and drawing conclusions. The research findings indicate that the IFR practices implemented are still limited and insufficient with an average IFR index score of 47.11. The current practice does not align with the prescribed mandate of positive law in Indonesia, which requires regency and city regional governments to enforce IFR practices. However, the regional/city government has not fully implemented this requirement.