48 J.L. Pol'y & Globalization 1 (2016)

handle is hein.journals/jawpglob48 and id is 1 raw text is: 


Journal of Law, Policy and Globalization                                                www iiste.org
ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online)                                                    I
Vol.48, 2016lllSE

        The Transparency of the Local Finance Management of

   Papua Province in the Framework of the Establishment of the

                             Good Financial Governance

                 Roida Hutabalian1  Abdul Razak2   Marthen Arie3   Achmad Ruslan3
                          1.PhD student at Postgraduate Hasanuddin University
           2.Professor on Legal Science, Faculty of Law, Hasanuddin University and as a Promotor
         3.Professor on Legal Science, Faculty of Law, Hasanuddin University and as a co-Promotor

Abstract
Transparency is one of the principles to determine any of activities and the final results of the management of
budget income and expenditure area. It should be responsive to the people as the supreme sovereignty. One of
the main characteristics in the management of revenue and expenditures budget areas is transparency. One of the
important elements in the framework of the realization of good governance furthermore is the management of
budget revenues and expenditures. Research results revealed that the Government of Papua Province in financial
management areas ranging from budget planning, assignment/endorsement and implementation of budget
revenue and expenditure districts have not yet to apply the principle of transparency. The transparency or
openness is into something expensive, especially regarding information or data about the finances. Income and
expenditure budget document areas considered State secrets so that not one can see and read the contents. If
there is a publication on society are limited on the procurement of goods and services, or in the form of the
announcement of the auction for physical projects. The lack of the openness towards the manufacturing process
until the passage of the budget document into income and spending areas make the community cannot control
the use of the money people.
Keywords: Transparency, financial areas, good financial governance.

1. Introduction
The exercise of the authority of local governance is based on the Act No. 23 of 2014 on Local Government
(hereinafter referred Local Government Act); the Act No. 33 of 2004 concerning the Financial Balancing
between the Government and Local Government; the Act No. 17 of 2003 on the finance of the State; the Act No.
1 of 2004 on the Treasury of the State; and the Act No. 3 of 2004 concerning the examination of the
management and financial responsibility of the State. Those Acts create regional rights and obligations that arise
in terms of value of the money. Therefore, it is necessary to manage the financial management system as a sub-
system of the system of state financial management system and it is a primary element in implementing the local
governance. In terms of it , article 283 (2) of the Local Government Act stipulates that local financial
management is conducted efficient, effective, transparent, accountable, fair, order, proper, and conformed to
regulations.
        Transparency is the principle of openness that allows the public to know and gain access to information
about the financial area. It is the principle to determine any of activities and the final results of the management
of budget income and expenditure. It should be responsive to the people as the supreme sovereignty. One of the
main characteristics in the management of revenue and expenditures budget areas is transparency. One of the
important elements in the framework of the realization of good governance furthermore is the management of
budget revenues and expenditures. The Government is required to open and ensure the access of all stakeholders
towards a variety of information about the public policy process, the allocation of the budget for the
implementation of the policy, and the monitoring and evaluation of the implementation of the policy.1
        In this current climate of democracy, transparency of the local government financial management is to
be vital and becomes a part of human rights issues. The local government is demanded to act transparently in the
financial management areas starting from the planning process, the assignment/endorsement, implementation,
supervision, and accountability.

2. Decentralization of Fiscal
According to article 1 point 8 of the Local Government Act, decentralization means the transfer of Government
Affairs by the central government to autonomous regions based on the principle of autonomy. The
implementation of regional autonomy has led to the need for the region to develop various financial schemes to
finance various shift area authority of the central government to the local government. The most frequent reason


1Agus Dwi Yanto, Realizing Good Governance Through Public Service, GadjahMada University Press, Yogyakarta, 2008, p.
223.

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