E-Government and Budget Transparency

of Indragiri Hulu Government

Muslim Afandi

and Syed Agung Afandi

Department of Guidance and Counseling, State Islamic University of Sultan Syarif Kasim Riau, Pekanbaru, Indonesia

Department of Science Government, Muhammadiyah University of Yogyakarta, Yogyakarta, Indonesia

Keywords: Budget Transparency, E-Government

Abstract: Information and Communications Technology (ICT) become an essential requirement in developing

information society and a knowledge society. Indragiri Hulu Regency is the only regency in Indonesia to be

piloting an Open Government Indonesia (OGI) project with the targets to maximize the use of the website

for the needs of alternative information media. Based on the assessment of the Indonesian Forum for Budget

Transparency (FITRA) in 2013 Indragiri Hulu Regency scored 23 below the maximum score of 100. This

study aims to determine the budget transparency of Indragiri Hulu Regency government through its official

website. This study uses a qualitative method. The findings of this study indicate that the Indragiri Hulu

Regency government has an official website and accessible, but the website does not encounter any special

content of budget transparency. As for the publication of budget documents to be done but in different

content. Furthermore, Indragiri Hulu Regency also government budget documents does not update regularly

on its official website. This is due to the absence of awareness of local government and the absence of strict

sanctions so that people has not be Able to access information on the implementation process of local

budget policy.

1 INTRODUCTION

Internet is a media which is currently the most easily

accessible by the public and most cost effective for

the government to disseminate information. The use

of Information and Communications Technology

(ICT) in public life become a main needs in

developing the information society and a knowledge

society.

The World Summit on the Information Society

(WSIS) made the decision that by 2015 every state

to seek government agencies, education, hospitals

connected to communication and information

networks and 50% of the world’s population are able

to access information through the information and

communication technology (Tasmil, 2013).

Following up the WSIS then set instruction the

Presidential Directive No.3 of 2003 on National

Policy and Strategy Development of E-Government,

which requiers ministries/state agencies, provinces,

district and cities in Indonesia to implement e-

government.

Based on the Minister of Home Affairs

Instruction No. 188.52/1797/SJ of 2012 on

Transparency of Local Budget Management, local

governments are required to have an official

website, has a budget transparency content, publish

budget documents, and update data. Related to the

publication of budget documents, the documents that

must be published are: summary of RKA SKPD,

summary of RKA PPKD, draft of Regional

Rugulation on APBD, draft of Regional Rugulation

on Revised APBD, Regional Rugulation of APBD,

Regional Rugulation of Revised APBD, summary of

DPA SKPD, summary of DPA PPKD, LRA SKPD,

LRA PPKD, LKPD audited and BPK opinion on

LKPD.

Nationally based on the Ministry of

Communication and Information assessment of 224

government websites in 2004 there were 10% that

can not be opened. Furthermore, based on the results

of a national survey by the Ministry of

Communications and Information in the form of e-

Government Ranking in Indonesia (PeGI) in 2012

there are only 6 local government of the total 497

Afandi, M. and Afandi, S.

E-Government and Budget Transparency of Indragiri Hulu Government.

DOI: 10.5220/0008816900750079

In Proceedings of the 4th International Conference on Contemporary Social and Political Affairs (ICoCSPA 2018), pages 75-79

ISBN: 978-989-758-393-3

districts/cities that are considered successfully

implement e-government.

When compared with other countries in terms of

e-government adoption based on an international

survey of Waseda e-government ranking in 2012,

Indonesia was ranked 33rd out of 55. Even in 2013

Indonesia fell to 40th out of 55 countries surveyed.

In line with that results, e-government ranking by

the United Nations in 2012 shows Indonesia was

ranked 7th out of a total of 11 ASEAN countries, far

below Malaysia and Vietnam (Napitupulu, 2015).

Based on the findings of the Indonesian Forum

for Riau Budget Transparency (FITRA RIAU) in

2013, the index of periodic budget information

disclosure on the Government website of Indragiri

Hulu Regency is also considered minimal budget

information. Indragiri Hulu only got a score 23 out

of a total score 100. Indragiri Hulu Regency is the

only regency in Indonesia that was made piloting

project Open Government Indonesia (OGI) under

the supervision of Presidential Work Unit for

Development Monitoring and Control (UKP4).

UKP4 target is to maximize the use of the website

for the needs of the information media alternatives.

2 FORMULATION OF THE

PROBLEM

How is the transparency of budget management

Indragiri Hulu Regency through its official website?

2.1 Research Methods

This study uses a qualitative method. Qualitative

methods used in this context to describe, analyze and

interpret the condition of e-government especially

the transparency of local financial management on

the official website of Indragiri Hulu Regency using

indicators: the availability of information about the

implementation procesof budget policy; access to

information that is easily accessible and freely

acquired; comformity between the implementation

and standard procedures; as well as the application

of sanctions for negligence in implementation.

2.2 Theoritical Framework

2.2.1 Transparency

According to Lalolo (2003) transparency is a

principle that ensures access or freedom for

everyone to obtain information about the

implementation of government, namely information

about policies, manufacturing processes and results

achieved. Kristianten (2006) mentioned transparency

is the openness of the government in providing

information related to the management activities of

public resources to the needy i.e. the community.

According to Didjaja (2003) transparency is

openness of the government in making policies that

can be known by the public. Transparency will

ultimately create accountability between the

government and the people. Mardiasmo (2002)

mentions the objective of transparency in

governance: one of the forms of government

accountable to the public; efforts to improve the

management of government; as well as efforts to

improve the management and good governance and

reduce opportunities for corruption practice.

Some of the measuring instrument of

transparency by Mardiasmo (2002) are publication

of public policy through communication tools such

as annual reports, brochures, leaflets, information

centers, toll-free phone, media coverage, public

service announcements, websites, bulletin boards,

local newspapers; information presented such as

service reference, maintenance data, public activity

reports, complaint procedures; and complaint

handling such as city news in mass and local media,

notice of response, response time limit, opinion

pools and surveys on public policy issues, comments

and notes for draft policy and regulation, service

users surveys.

2.2.2 Budget Transparency

Budget transparency refers to the extent to which the

public can obtain information on the government

financial activities and their implications in

comprohensive, accurate, and timely (Andrianto,

2007). According to Mardiasmo (2002) budget

compiled by the executive is said to be transparent if

it meets some criteria, i.e.: there is the

announcement of budget policy; available budget

documents and easily accessible; available timely

accountability reports; accommodation of the

voice/suggestions of the people; and there is a

system to provide information to the public.

Kristianten (2006: 52) mentions that budget

transparency is information related to budgeting

planning is the rights of every society. Citizen rights

related to budgeting, i.e.: the right to know, the right

to observe and attend public meetings, the right to

expression opinions, the right to obtain public

documents and the right to be informed. According

Andrianto (2007) transparency of financial

ICoCSPA 2018 - International Conference on Contemporary Social and Political Affairs

management in the implementation is measured bu

indicators:

 Availability of information on the

implementation process of budget policy

 Access to information that is easily accessible

and free to obtain

 Comformity between implementation and

standard procedure

 Application of sanctions for negligence in the

implementation.

3 ANALYSIS AND RESEARCH

FINDING

3.1 Availability of Information on

Budget Policy Implementation

Process

The obligation to provide information on

implementation process of the local government

budget policy is determined through the Minister of

Home Affairs Instruction No. 188.52/1797/SJ of

2012 on Transparency of Local Budget

Management, where all local governments shall to

publish 12 documents of budget management

through its official website that consists of:

Summary of RKA SKPD, summary of RKA PPKD,

Proposed Regional Regulation of APBD, Proposed

Regional Regulation of Revised APBD, Regional

Regulation of APBD, Regional Regulation of

Revised APBD, Summary of DPA SKPD, Summary

of PPKD DPA, LRA SKPD, LRA PPKD, audited

LKPD and BPK’s opinion on LKPD.

Of the 12 budgeet documents that must be

published, the Government of Indragiri Hulu

regency through its official website only publish

some of budget documents. Beginning in 2011

means that before the Minister of Home Affairs

Instruction No. 188.52/1797/SJ of 2012 on

Transparency of Local Budget Management,

Government of Indragiri Hulu has published a

summary document of RKA SKPD, summary of

PPKD RKA, summary of DPA SKPD and summary

of DPA PPKD on its official website. In 2012, the

Government of Indragiri Hulu only publishes budget

documents in the form a summary of RKA SKPD,

summary of RKA PPKD, summary of DPA SKPD

and summary of DPA PPKD.

In 2013 the Government of Indragiri Hulu

website publishing only 5 budget documents

consisting of RKA SKPD, RKA PPKD, DPA

SKPD, DPA PPKD and LRA SKPD. In 2014, the

document management budgets published through

the Government of Indragiri Hulu official website is

RKA SKPD, RKA PPKD, Proposed Regional

Regulation of APBD, Proposed Regional Regulation

of Revised APBD, Regional Regulation of APBD,

Regional Regulation of Revised APBD, LRA

SKPD and LRA PPKD, while in 2015, 2016, 2017

and 2018 the Government of Indragiri Hulu does not

at all publish budget documents on its official

website so that the availability of information on the

implementation of budget policies process by

Government of Indragiri Hulu has not been done yet.

3.2 Access to information that is easily

accessible and obtainable free

Access to local financial information is the citizen

rights and part of the government's responsibility to

publish it in line with the transition to the good

governance principle. Implementation of good

governance that in line with the rapid development

of Information and Communications Technology

(ICT) then demanded the government to be able to

utilize the Internet as a medium to improve the

quality of service so that later developed the concept

of e-government.

In an effort to implement e-governmnet, the

Government of Indragiri Hulu has utilized the

internet by making the official website at the address

www.inhukab.go.id. The official website of the

Indragiri Hulu Government has been well managed

through the Office of Communications and

Information Technology as the party who were

given the task and responsibility in managing.

Until now, the official website of Indragiri Hulu

Government has made it easily the public to obtain

access information especially related to local budget

management because these websites can be accessed

from anywhere and by anyone and without time

limit so that information is always available to the

community at any time for 24 hours. Good

management of the website by the Indragiri Hulu

Government is an effort of local government in act

transparently to manage local budgets so it can be

judged that the Government of Indragiri Hulu has

succeeded in adopting the earlystage of e-

government.

3.3 Correspondence between the

implementation and the standard

procedure

Utilization of the internet as a media to support the

government's performance especially in the field of

E-Government and Budget Transparency of Indragiri Hulu Government

local budget management has been arranged through

the Minister of Home Affairs Instruction No.

188.52/1797/SJ of 2012 on Transparency of Local

Budget Management. In the policy, local

governments are required to have an official

website, has a budget transparency content, publish

budget documents and update data.

In the implementation, the Government of

Indragiri Hulu already has an official website that to

public, but the website does not have a budget

transparency content accordingly. This websites

publishes budget management documents on the

content of "information-services" along with other

documents so that the public need spend of time to

find budget management document on this website.

Of the 12 budget documents that must be

published, the Government of Indragiri Hulu does

not publish the overall budget management

document. In 2011 the Government of Indragiri

Hulu has begun to publish the budget document in

the form summary of RKA SKPD, summary of

PPKD RKA, summary of DPA SKPD and summary

of DPA PPKD on his website.

Post-enactment the Minister of Home Affairs

No. 188.52/1797/SJ of 2012 on Transparency of

Budget Management Area, Government of Indragiri

Hulu in 2012 instead only publish four budget

documents, 5 budget document in 2013, 8 budget

documents in 2014 while in 2015, 2016, 2017 and

2018 there was no budget document on the website.

Thus it is known that the Government of Indragiri

Hulu does not update the data related to the budget

management on his official website.

3.4 Application of Sanctions for

Negligence In Execution

The application of sanctions is an action on the

bansis to ensure all the rules and policies can be

implemented properly in accordance with

established procedures so that the goal can be

achieved. Minister of Home Affairs Instruction No.

188.52 / 1797 / SJ of 2012 on Transparency of Local

Budget Management, set without the existence of

clear sanction by the central government. In

addition, the website belongs to the Directorate

General of Regional Finance Development Ministry

of Home Affairs with the address

http://keuda.kemendagri.go.id which should contain

the data assessement transparency of local

government websites were empty. This is a form

lack of seiousness of the central government in the

implementation of e-government for media of local

budgets transparance.

Lack of seriousness the central level this is also

happens at the regional level, especially the

Government of Indragiri Hulu caused by the lack of

awareness of the government as policy implementers

to act according the rules, whereas Indragiri Hulu is

the only Regency in Indonesia, which is used as a

piloting project Open Government Indonesia (OGI)

which receive guidance directly by the Presidential

Work Unit of Development Monitoring and Control

(UKP4) with a target to maximizing the use of

websites for the needs of information media

alterantive.

4 CONCLUSIONS

Budget transparency is an openness to all policies

related to financial management. Based on the

Minister of Home Affairs Instruction No.

188.52/1797/SJ of 2012 on Transparency of Local

Budget Management, local governments are

required to have an official website, has a budget

transparency content, publishing budget documents

and update the data. In the implementation, the

Government of Indragiri Hulu already has an official

website which can be accessed public, but the

website has no content of budget management

transparency.

Related to the publication of budget management

documents, local governments are required to

publish 12 budget documents. In the

implementation, the Government of Indragiri Hulu

does not publish all local budget management

documents on its official website. In 2011 and 2012

the website is only publishes 4 budget documents, 5

documents in 2013, 8 documents in 2014, while in

2015, 2016, 2017 and 2018 the Government of

Indragiri Hulu is not at all publish budget documents

on its official website so that the update data is not

done.

Related to the application of sanctions for non-

conformity in policy implementation, Minister of

Home Affairs Instruction No. 188.52/1797/SJ of

2012 on Transparency of Local Budget

Management, set out without any sanctions. Other

than that, the website belongs to the Directorate

General of Regional Finance Development Ministry

of Home Affairs which should contain the assessing

transparency data of local government websites were

empty. Lack of seriousness at the central level is

what also happens at the regional level, especially

the Government of Indragiri Hulu Regency caused

by the lack of awareness of the government as the

implementer of the to act on the rules.

ICoCSPA 2018 - International Conference on Contemporary Social and Political Affairs

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E-Government and Budget Transparency of Indragiri Hulu Government