Differences in State Financial Management Irregularities before and after Assessment of Anti-Corruption Initiative in the Ministry of 'XYZ'

10 Pages Posted: 30 Nov 2016  

Susi Dwimulyani

Trisakti University - Accounting Magister Program Faculty of Economic and Business

Tri Rahayu Kusumaningtyas

Trisakti University - Accounting Magister Program Faculty of Economic and Business

Date Written: July 13, 2016

Abstract

In order to realize the implementation of clean and respectable country, the Indonesian government has committed for preventing and eradicating of corruption. According Maheka (2008), the eradication of corruption is a series of measures to prevent and tackle corruption with public participation based on the legislation. Based on these descriptions can be concluded that the eradication of corruption, there are 3 forming elements, namely prevention (anti-corruption/preventive), action (prevention/contra-corruption/repressive), and community participation. In the National Strategy for Preventing and Eradicating of Corruption laid the prevention as the foundation for eradication of corruption in Indonesia. One of the strategies in the prevention of long-term focus is the strengthening of anti-corruption commitments on all elements of government (executive), judicative, and legislative. Anti-corruption initiative as one of commitments in the prevention of corruption has actually been carried out by institutions not only at central government but also at local government. However, the anti-corruption initiatives are generally not run as an integrated system.

The Corruption Eradication Commission as the agency charged with the prevention of corruption in Indonesia, has an instrument called the Anti-Corruption Initiative Assessment to measure and reward these efforts. Assessment Initiative of Anti-Corruption aims to provide an overview of the efforts of anti-corruption that are being taken by the main unit in the public sector, pushing the main unit to be responsible for the success of efforts to prevent corruption in the unit primarily, and ensure that each of the main unit have the initiative and a strong enough commitment to eradicating corruption within the scope and authority (Directorate of Research and Development of Corruption Eradication Commission, 2009). Anti-Corruption Initiative Assessment consists of eight main elements, namely: 1) Specific Code of Conduct; 2) Transparency in the Management of Human Resources (HR); 3) Transparency of State Officers; 4) Transparency in Procurement; 5) Public Complaint Mechanism; 6) Public Access to obtain Information; 7) Implementation of Suggestion Advice Provided by Corruption Eradication Commission or State Audit Agency or Government Internal Supervisory Apparatus; and 8) Promotion Activity of Anti-Corruption; as well as an element of innovation, namely the Another Anti-Corruption Initiative Adequacy.

In addition to anti-corruption initiatives, the efforts to prevent corruption are also done through supervising the management of state finances. This is in accordance with the instructions of President of the Republic of Indonesia Number 5 Year 2004 on the Acceleration of Corruption Eradication, which confirms the need for the management of state finances optimally efficient and effective in a manner that an orderly correspond the legislation in force with surveillance objective, in order to avoid and prevent possible irregularities in its use.

This study was conducted to compare and obtain empirical evidence of differences in state financial management irregularities before and after the assessment of anti-corruption initiative of the Ministry of XYZ, Indonesian Republic, in 2005-2014 periods. The hypothesis was tested that irregularities in the financial management of the state prior to the assessment of anti-corruption initiatives differ significantly than after the assessment of anti-corruption initiatives.

The design of this research is the comparative study. The research variable is assessment of anti-corruption initiatives and irregularities in the management of state finances. The sample in this study using nine of the 10 Echelon Units in the Ministry XYZ conducted an audit by the Inspectorate General of the Ministry of XYZ from 2005 through 2014 periods. The statistical tests performed using Wilcoxon Signed-Ranks Test with significance level used was 0.05.

The output of Wilcoxon Signed-Ranks Test can be descripted as follows: 1) the average value of the state's financial findings before assessment of anti-corruption initiatives greater than after assessment of anti-corruption initiatives; 2) the difference between the findings of state finances after assessment of anti-corruption initiatives and before assessment of anti-corruption initiatives is negative value, means the value of the state's financial findings after doing assessment of anti-corruption initiatives smaller than before assessment of anti-corruption initiatives; and 3) irregularities in financial management of state prior to assessment of anti-corruption initiatives significantly different than after assessment of anti-corruption initiatives. This result shows that the assessment of anti-corruption initiatives can lower the country's financial management irregularities in the Ministry of XYZ.

Keywords: Assessment of Anti-Corruption Initiatives, Irregularities in State Financial Management

Suggested Citation

Dwimulyani, Susi and Kusumaningtyas, Tri Rahayu, Differences in State Financial Management Irregularities before and after Assessment of Anti-Corruption Initiative in the Ministry of 'XYZ' (July 13, 2016). OIDA International Journal of Sustainable Development, Vol. 09, No. 07, pp. 23-32, 2016. Available at SSRN: https://ssrn.com/abstract=2876276

Susi Dwimulyani (Contact Author)

Trisakti University - Accounting Magister Program Faculty of Economic and Business ( email )

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

Tri Rahayu Kusumaningtyas

Trisakti University - Accounting Magister Program Faculty of Economic and Business ( email )

Jl. Kyai Tapa No.1, Grogol, RT.6/RW.16
Tomang, Grogol petamburan, Kota Jakarta Barat
Jakarta, Daerah Khusus Ibukota
Indonesia

Paper statistics

Downloads
12
Abstract Views
38