Journal of Taxation Insights Policy Practice

Evaluation of Transparency and Accountability of Regional Government Financial Reports (LKPD) in Realizing Good Governance

Feri Hardiyanto — 2025-08-28

Transparency and accountability in Regional Government Financial Reports (LKPD) are key to achieving good governance, yet challenges such as limited resources and political pressure often hinder effective implementation. This study evaluates the extent to which LKPDs reflect good governance principles in Indonesia, given the importance of transparent and accountable regional financial management for building public trust and improving government efficiency. Specifically, it analyzes the level of transparency and accountability in LKPDs, identifies supporting and inhibiting factors, and assesses their contribution to good governance, focusing on regional governments across multiple provinces. Using a qualitative descriptive-analytical approach with a purposive sampling method, data were collected through interviews, observations, document analysis, and questionnaires with government officials, Audit Board of the Republic of Indonesia (BPK) auditors, and stakeholders. Analysis followed the Miles and Huberman model: data reduction, presentation, and verification. Results show that 72% of regions achieved an Unqualified Opinion (WTP) from BPK, while 28% received Qualified or Disclaimer opinions. Key obstacles include limited human resources, political pressure, and low public participation. High-quality LKPDs are strongly associated with improved governance outcomes. The study implies that sustained capacity building, technology integration, and stronger stakeholder coordination are essential to enhance transparency, accountability, and ultimately, public sector performance.

The Impact of the Implementation of the Regional Financial Information System (SIPKD) on the Effectiveness of Regional Financial Management

Abdul Robi padri — 2025-08-28

This study analyzes the impact of the Regional Financial Information System (SIPKD) implementation on the effectiveness of regional financial management in Indonesia. As a technology-based platform, SIPKD is expected to enhance efficiency, transparency, and accountability in public financial governance-yet empirical evidence on its direct contribution remains limited. This research is one of the few quantitative studies that examines SIPKD's impact across multiple regional governments using measurable performance indicators. The study employs an explanatory research design with a purposive sample of 100 regional governments. Data were collected through documentation and questionnaires, then analyzed using simple linear regression. Findings reveal that SIPKD implementation has a positive and significant effect on regional financial management effectiveness, with a regression coefficient of 0.72 (p < 0.001). Regions with higher levels of implementation show improved budget absorption, more accurate financial reporting, and a greater likelihood of obtaining an Unqualified Audit Opinion (WTP) from the Supreme Audit Agency (BPK). These results reinforce the theory that robust information systems can substantially enhance public sector performance. Theoretically, this study expands the understanding of digital governance systems in the public sector. Practically, it suggests that central and regional governments should strengthen SIPKD implementation through human resource capacity building, adequate infrastructure provision, and sustainable system integration to achieve optimal governance outcomes.

Adaptation of Sharia Accounting in the Digital Economy: A Study of Sharia-Based Fintech Startups in Indonesia

Gina Puspita — 2025-08-28

The digital transformation in the financial sector has spurred the emergence of Sharia fintech startups as an innovative alternative financial service that remains compliant with Sharia principles. However, the integration of digital financial systems and Sharia accounting still faces challenges, particularly in recording contract-based transactions and preparing financial reports in accordance with Sharia Financial Accounting Standards (PSAK). While previous studies have explored Sharia compliance in conventional financial institutions, research focusing on the contextual adaptation of Sharia accounting within the digital-based fintech ecosystem remains limited. This study addresses that gap by analyzing how Sharia fintech startups in Indonesia adapt Sharia accounting practices, identifying key challenges, and formulating a novel Digital Sharia Accounting Adaptation Model tailored for the digital economy. Using a qualitative case study approach involving three Sharia fintech startups, data were collected through in-depth interviews, questionnaires for certified employees, and direct observation of the financial information systems employed. Thematic analysis was conducted to identify patterns of adaptation and innovation in digital Sharia financial reporting. Findings reveal that adaptation is significantly influenced by technological readiness, understanding of Sharia accounting, and managerial support, while major obstacles include the absence of detailed regulatory guidelines and limited human resources. The proposed model integrates Sharia compliance, technology integration, and organizational readiness, providing a practical framework for developing robust, digital-based Sharia financial reporting systems in the era of financial technology.

Influence Understanding Taxation and Awareness Must Tax to Compliance MSME Tax

Mega Mustika Sari — 2025-08-27

Taxes are the primary source of funding for development in Indonesia, with Micro, Small, and Medium Enterprises (MSMEs) contributing significantly to GDP. However, MSMEs' tax compliance remains low, primarily due to limited tax understanding and taxpayer awareness. This study aims to address this issue by analyzing the influence of these two factors on tax compliance. This study aims to analyze the influence of tax understanding and taxpayer awareness on MSME tax compliance in Indonesia and to provide recommendations for improving compliance through education and outreach. This study used a quantitative approach with a causal survey design among 400 MSMEs in Central Java and Yogyakarta. Data were collected through questionnaires and analyzed using Structural Equation Modeling (SEM) was used to test the hypothesis. The results showed that tax understanding (coefficient 0.45) and taxpayer awareness (coefficient 0.38) significantly influenced tax compliance, although the compliance rate only reached 45%. Understanding had a greater influence than awareness, indicating the need for educational interventions to improve MSME compliance.

Digital Transformation and Financial Report Accountability: A Study of MSMEs Post-Pandemic in Indonesia

Diana Magfiroh — 2025-08-28

Digital transformation has become inevitable for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia following the COVID-19 pandemic. However, the adoption of digital technology by MSMEs has not been fully followed by increased accountability in financial reporting. This study aims to analyze the extent to which digital transformation has influenced MSME financial reporting practices and to identify inhibiting factors and strategies for improving technology-based financial accountability. This study used a qualitative approach with a case study design. Data were collected through in-depth interviews, field observations, and questionnaires distributed to MSME actors and administrative staff in DKI Jakarta, West Java, and Central Java. The results show that the majority of MSMEs have adopted digital technology for recording transactions and sales but have not yet integrated these systems into standardized financial reporting practices. The main obstacles include low digital accounting literacy, limited time and resources, and the absence of direct incentives from the government or financial institutions. The most effective strategies for improving accountability are through practice-based training, community mentoring, and integrating digital reporting with access to financing. This study concludes that digital transformation has the potential to strengthen MSME financial accountability if supported by policy interventions and human resource capacity building.