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Reforms in public sector accounting and budgeting in Indonesia (2003-2015): confusions in implementation

Reforms in public sector accounting and budgeting in Indonesia (2003-2015): confusions in... This paper examines whether public sector reforms in a developing country is consistent with the principles of new public management (NPM). It examines whether Indonesian public sector reforms from the late 1990s to 2015, specifically the adoption of accrual accounting, are motivated by NPM philosophy. Reviewing and analysing Government regulations and reports, the study finds that the reforms are an attempt to implement NPM, specifically in relation to five financial management aspects (i.e. market-oriented, budgeting, performance management, financial reporting and auditing systems). However, the reforms are inconsistent with the NPM philosophy of efficiency and effectiveness in public service provisions. By requiring the use of the existing system, the reforms actually created inefficiency. This research is novel in investigating the gap between 'ideal concepts' and examining practices in an emerging country context. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Public Budgeting, Accounting & Financial Management Emerald Publishing

Reforms in public sector accounting and budgeting in Indonesia (2003-2015): confusions in implementation

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1096-3367
DOI
10.1108/JPBAFM-29-01-2017-B005
Publisher site
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Abstract

This paper examines whether public sector reforms in a developing country is consistent with the principles of new public management (NPM). It examines whether Indonesian public sector reforms from the late 1990s to 2015, specifically the adoption of accrual accounting, are motivated by NPM philosophy. Reviewing and analysing Government regulations and reports, the study finds that the reforms are an attempt to implement NPM, specifically in relation to five financial management aspects (i.e. market-oriented, budgeting, performance management, financial reporting and auditing systems). However, the reforms are inconsistent with the NPM philosophy of efficiency and effectiveness in public service provisions. By requiring the use of the existing system, the reforms actually created inefficiency. This research is novel in investigating the gap between 'ideal concepts' and examining practices in an emerging country context.

Journal

Journal of Public Budgeting, Accounting & Financial Management – Emerald Publishing

Published: Mar 1, 2017

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