Performance Accountability in Indonesian Local Governments: Does Monitoring Really Work?

Authors

  • Muhtar Faculty of Teacher Training and Education, Universitas Sebelas Maret
  • Taufiq Arifin Faculty of Economics and Business and Center for Fintech and Banking, Universitas Sebelas Maret
  • Sutaryo Faculty of Economics and Business and Center for Fintech and Banking, Universitas Sebelas Maret

DOI:

https://doi.org/10.33736/ijbs.4329.2021

Keywords:

local government, performance accountability, external audit, legislative monitoring, public monitoring.

Abstract

This study aims to empirically examine whether the monitoring activities on local government implementation really matter for local government performance accountability. Based on a sample of decentralized Indonesia during 2010-2019, we test this by measuring monitoring activities of local government at district and city levels. Using panel data set of 514 local governments, our results show that the monitoring activities, conducted by external audit and the public, positively affect local government performance accountability. In contrast, legislative monitoring negatively affects performance accountability. These findings suggest that the external audit plays a fundamental role in monitoring activities at the local governments. In addition, direct public monitoring can enhance performance accountability through intensifying human development and a greater democracy. As for legislators, the composition between government coalition and opposition should also be suitable for the effectiveness of monitoring.

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Published

2021-12-17

How to Cite

Muhtar, Taufiq Arifin, & Sutaryo. (2021). Performance Accountability in Indonesian Local Governments: Does Monitoring Really Work?. International Journal of Business and Society, 22(3), 1673–1692. https://doi.org/10.33736/ijbs.4329.2021