Transparency and Accountability in the Finance Management of the Local Government in Promoting Good Governance

Abstract

The problem of corruption in Indonesia has already come to its critical point so that it cannot be tolerated anymore. During the year 2012, a number of corruption cases have been disclosed and Indonesia ranks 118 in the list of corruption perception index. Some efforts to establish the standards of public service have actually been carried out and Act No. 14 of 2008 on Public Information Disclosure has already been issued, but so far the standard of public services is still at the conceptual level, while its implementation is still far from the expectations. Consequently, good governance cannot be reached. The principles of transparency and accountability are very important and must be highly considered in the context of supervision. There are some barriers in the implementation of transparency and accountability such as the readiness of the Human Resources and the financial management system of the local government. Orderly administration and the quality of the human resources should be improved continuously to encourage transparency and accountability of the local government. Also the local officers must be equipped with the knowledge of technical legal issues.