Abstract Proceeding Book of International Conference on Public...

i

Abstract Proceeding Book

of

International Conference on

Public Sector Accounting

(ICOPSA)

October 29, 2019

Tangerang Selatan, Indonesia

ii

Abstracts Proceeding Book

of

International Conference on Public Sector

Accounting

(ICOPSA)

ISBN :

978-602-5902-54-3

Chief of Editor:

Hendrati Dwi Mulyaningsih

Cover and layout: Diah Kusumastuti

Publisher:

Yayasan Sinergi Riset dan Edukasi

Office Address:

Komplek Sinergi Antapani

Jl. Nyaman 31, RT01 RW23, Bandung 40291, Indonesia

Contact: (+62) 811227479

Email: [email protected]

First publication, October 2019

Copyright © 2019 by Yayasan Sinergi Riset dan Edukasi.

All rights reserved. No part of this publication maybe

reproduced or utilized in any form or by any means, electronic

or mechanical, including photocopying, recording or by any

information storage and retrieval system, without permission in

writing from the publisher.

iii

FOREWORD

Polytechnic of State Finance STAN (in Bahasa: Politeknik

Keuangan Negara STAN or abbreviated PKN STAN) initially

established in 1952 as School of Accounting and Tax, it then

became Polytechnic of State Finance STAN (PKN STAN) in

2015. We are supported by mature resources, thanks to the

whole alumni who have assisted the transformation of PKN

STAN.

Our 12000 students and 400 faculty members are our greatest

resources. We build a constructive vicinity through

collaboration between students, lecturers, and Ministries.

Students are trained to have applied skills and to master in state

finance.

Supported by massive reform in the Ministry of Finance, PKN

STAN was born with two strengths, its vocational mainstream,

and network. PKN STAN is internationally recognized by

major universities/ institutions in the world. PKN STAN is also

trusted by central and local government to develop human

resources in accounting and finance. PKN STAN has been

committed to the whole of humanity.

We develop expertise in government accounting, taxes, asset

management, budget and treasury, customs and excise, and

fiscal policy, supported by the Ministry of Higher Education,

Research, and Technology and Ministry of Finance. We also

offer:

• Training for government officials

• Research/joint research with partner institutions

• Society service in fields of accounting and finance

Our Focus:

Updated teaching and research in fields of public finance in our

school is aimed to guard Indonesian reform. We create highly-

skilled talents in public finance with integrity as the path for

the more prosperous Indonesia. All subjects are thought with

intensive practices in laboratory, class simulation, real-world

experience, and field study.

iv

Our Motto:

Accounting for state welfare

Our Vision:

To become a leading university in Indonesia which produces

state finance managers of international reputation

Our Mission:

1. Organizes high-quality learning programs within the

framework of the acquisition of knowledge and expertise in the

field of public finance management

2. Conducting high-quality research in the development and

application of knowledge and expertise in the field of public

finance management;

3. Organizing high-quality community service to apply the

knowledge and expertise in the field of public finance

management

v

Research Synergy Foundation is a digital social enterprise

platform that focuses on developing Research Ecosystem

towards outstanding global scholars. We built collaborative

networks among researchers, lecturers, scholars, and

practitioners globally for the realization of knowledge

acceleration. We promote scientific journals among countries

as an equitable distribution tools of knowledge. We open

research collaboration opportunities among countries,

educational institutions, organizations and among researchers

as an effort to increase capabilities.

Known as a catalyst and media collaborator among researchers

around the world is the achievement that we seek through this

organization. By using the media of International Conference

which reaches all researcher around the world we are

committed to spread our vision to create opportunities for

promotion, collaboration and diffusion of knowledge that is

evenly distributed around the world

Our Vision:

As global social enterprise that will make wider impact and

encourage acceleration quality of knowledge among scholars.

Our Mission:

First, developing a research ecosystem towards outstanding

global scholars. Second, Promoting scientific journals among

countries as an equitable distribution tools of knowledge.

Third, opening research collaboration opportunities among

countries, educational institutions, organizations and among

researchers as an effort to increase capabilities. Fourth, creating

global scientific forum of disciplinary forums to encourage

strong diffusion and dissemination for innovation.

vi

TABLE OF CONTENTS

ORGANIZING COMMITTEE ................................................. VII

SCIENTIFIC AND REVIEW COMMITTEE ........................ VIII

CONFERENCE CHAIR MESSAGE.......................................... XI

KEYNOTE SPEAKER .............................................................. XII

CONFERENCE AGENDA ....................................................... XXI

A. GOVERNMENT ACCOUNTING RESEARCH .................................. 1

B. FINANCIAL ACCOUNTING RESEARCH ...................................... 22

C. ACCOUNTABILITY AND INTEGRITY RESEARCH .................... 31

D. ACCOUNTING INFORMATION SYSTEM RESEARCH ............... 35

E. AUDITING AND ASSURANCE RESEARCH ................................. 39

F. CORPORATE SUSTAINABILITY RESEARCH.............................. 41

G. PUBLIC AND CORPORATE FINANCE RESEARCH .................... 44

H. FORENSIC ACCOUNTING RESEARCH ........................................ 58

I. MANAGEMENT ACCOUNTING RESEARCH ............................... 60

J. PUBLIC AND CORPORATE GOVERNANCE RESEARCH .......... 62

K. PUBLIC SECTOR ACCOUNTING RESEARCH ............................. 69

L. TAXATION AND CUSTOMS RESEARCH ..................................... 72

M. OPEN INNOVATION IN PUBLIC SECTOR RESEARCH .............. 92

FUTURE EVENTS ................................................................................... 95

vii

ORGANIZING COMMITTEE

Conference Chair

Yuniarto Hadiwibowo, Ph.D.

Co-Conference Chair

Dr. Hendrati Dwi Mulyaningsih

Organizing Committee

Puji Wibowo, Ak., MIDEC, CA.

Raynal Yasni, S.S.T., Ak., M.A., M.Ec.Dev., CA.

Maman Suhendra, S.S.T., Ak., M.P.P.

Akhmad Priharjanto, S.E., M.Si.

Azas Mabrur, Ak, M.Ak.

Pujo Hariyanto

Amik Yuniyanti

Conference Coordinator Santi Rahmawati Ani Wahyu Rachmawati

Conference Support

Rifi Wijayanti Dual A.

Astri Amanda

Diah Kusumastuti

Information and Technology Support by Scholarvein Team

viii

SCIENTIFIC REVIEW COMMITTEE

Rahmadi Murwanto, PhD.

Polytechnic of State Finance STAN, Indonesia

Tanda Setiya , S.E., M.E.


Dr. Ali Tafriji Biswan, S.E., S.S.T., Ak., M.Ak.


Akhmad Solikin, S.E., Ak., M.A., Ph.D.


Dr. Thariga Pholloke

Khon Kaen University, Thailand

Dr. Rakan Fuad Aldomy

Multimedia University/ FOM, Malaysia

Amrie Firmansyah, S.E., M.M.


Prof. Li-Jiun Chen

Feng Chia University, Taiwan

Dyah Purwanti, Ak., M.Si.


Marmah Hadi, Ak., M.B.A.


Soffan Marsus, S.E., Ak, M.Si.


Dr. Abdusalam Faraj Yahia

Oman Chamber of Commerce and Industry, Oman

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Zef Arfiansyah, S.E., M.Acc.Fin., CPA.


Benny Setiawan, S.S.T., Ak., M.A.


Andy Prasetiawan Hamzah, S.S.T., Ak., M.Si.


Muhadi Prabowo, Ak., M.B.A.


Eko Nur Surachman, S.S.T., Ak., M.Comm


Ferry Irawan, S.S.T., M.P.P., M.E.


Mas Nur Mukmin

Djuanda University, Indonesia

Prof. OmKumar Krishnan

IIM Kozhikode India, India

Dr. Fayaz Ahmad Bhat

Higher Education Department Govt.of Jammu & Kashmir,

Khasmir

DR. SITI NUR 'ATIKAH ZULKIFFLI

Faculty of Business, Economics And Social Development,

Universiti Malaysia Terengganu- Malaysia

Prof. Jessie I. Quierrez

Polytechnic University Of The Philippines – Phillipines

Prof. Salina Daud

Universiti Tenaga Nasional (Uniten) – Malaysia

Engr. Dr. Muhammad Mujtaba Asad

Universiti Tun Hussein Onn Malaysia – Pakistan

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Dr. Moawiah Awad Abdulraheem Alghizzawi

Universiti Sains Islam Malaysia (Usim) – Jordan

Arfah Habib Saragih, S.E., M.S.Ak., CA., ACPA.

Department of Fiscal Administration, Universitas Indonesia

Sita Deliyana Firmialy, MSM

School of Business and Management, Institut Teknologi

Bandung

Dr. Joni

Maranatha Christian University

Anak Agung Gde Satia Utama SE., M.Ak., Ak., CA

Airlangga University

Dr. Shumaila Zeb

Shaheed Zulfikar Ali Bhutto Institute of Science and

Technology

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CONFERENCE CHAIR MESSAGE

We are delighted to welcome you to the International Conference

on Public Sector Accounting (ICOPSA) by Politeknik Keuangan

Negara STAN and Research Synergy Foundation as an official

partner held on October 29, 2019, at PKN STAN campus Tangerang

Selatan, Indonesia.

The theme of the Conference is Public Sector Accountants and

Global Quantum Leap. How Far Can We Survive? ICOPSA 2019

International Conference shows up as a cutting-edge Public Sector

Area Research platform to gather presentations and discussions of

recent achievements by leading researchers in academic research.

It has been our privilege to convene this conference. Our sincere

thanks, to the conference organizing committee; to the Program

Chairs for their wise advice and brilliant suggestion on organizing the

technical program and to the Program Committee for their thorough

and timely reviewing of the papers. Recognition should go to the

Local Organizing Committee members who have all worked

extremely hard for the details of important aspects of the conference

programs and social activities.

We welcome you to Tangerang Selatan, Indonesia and hope that

this year’s conference will challenge and inspire you, and result in

new knowledge, collaborations, and friendships.

Best regards,


Conference chair ICOPSA 2019

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KEYNOTE SPEAKER

Sri Mulyani Indrawati, S.E., M.Sc.,

Ph.D is the Minister of Finance of the

Republic of Indonesia since 2016 until

now. She holds a Bachelor of Economics

degree from the University of Indonesia

(1986), a Master Degree in Policy

Economics (1990) and a Ph.D in

Economics (1992) from the University

of Illinois Urbana Champaign, United States. Her research expertise

includes Monetary Economics and Banking and Labor Economics. In

early October 2002, she was elected as Executive Directors of the

International Monetary Fund (IMF) representing 12 countries in

Southeast Asia (Southeast Asia / Southeast Asia Group). On

December 5, 2005, she was appointed Minister of Finance by

President Susilo Bambang Yudhoyono. She was named Asia's best

Finance Minister for 2006 by the Emerging Markets Forum on

September 18, 2006 at the Annual Session of the World Bank and

IMF in Singapore. She was also selected as the 23rd most influential

woman in the world by Forbes magazine 2008 and the 2nd most liked

woman in Indonesia by Globe Asia magazine in October 2007. Sri

Mulyani was also the best Finance Minister for 2006 by Euromoney

magazine and became the best Minister of Finance in Asia in the same

year by the Emerging Market Forum. In 2008, she served as Acting

Coordinating Minister for Economic Affairs after Coordinating

Minister for the Economy, Dr. Boediono, was appointed as Governor

of Bank Indonesia. On June 1, 2010 Sri Mulyani Indrawati became

the Managing Director of the World Bank. On July 27, 2016, she was

appointed by President Joko Widodo to become Minister of Finance

in the Working Cabinet. On 11 February 2018, she was named the

world's best minister at the World Government Summit in Dubai.

Summary Speech :

Public sector accountants have an important role in providing

timely and relevant financial information. This is important because

financial information is not only used as a form of government

xiii

accountability for managing state finances, but also for decision

making.

The existence of technology must help public sector accountant

jobs, such as recording transactions, financial reporting at the end of

the year, audits can be carried out with current developing

technology. The role of accountants is more about how to explain

financial information to decision-makers who do not understand

accounting. Therefore, going forward, decision making will be better

because it is based on more comprehensive information.

The Industrial Revolution 4.0 will not only cause loss-jobs but

will also create new workspaces that may never exist today. It also

needs to be considered by accountants in government because the

processes of budget planning, budget execution, and financial

reporting have used a lot of information systems.

In the era of the Industrial Revolution 4.0, there will be faster

changes, marked by the emergence of such as supercomputers, smart

robots, cloud computing, big data systems, genetic engineering and

the development of neurotechnology that allows humans to optimize

brain function further. Industrial Revolution 4.0 will disrupt the

accounting profession.

To survive in this era, the accounting profession must not

underestimate the impact of technology. The competency of the

accountant profession needs to be improved immediately, such as the

ability of data analysis, information technology development, and

leadership skills including in the government sector. The power of

using big data will influence the use of cloud-based accounting data,

and the accounting will integrate non-traditional financial

information in a modern system, the work of accountants will be more

efficient and mobile. Therefore, accountants in the government sector

must change by supplementing their capabilities with a variety of

knowledge and knowledge outside of accounting that is highly

developed today.

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KEYNOTE SPEAKER

Prof. Dr. Mardiasmo, MBA., Akt. is the

Deputy Minister of Finance of the

Republic of Indonesia since 2014 until

now. He completed his undergraduate

education at the Faculty of Economics,

Gajah Mada University in 1981. He got

his Master of Business Administration

(MBA) at the University of Bridgeport,

Connecticut, USA in 1989, and obtained

his PhD from the School of Public Policy, University of Birmingham,

United Kingdom in 1999. With a focus on the field of Accounting, he

served as Chair of the Indonesian Institute of Accountants from 2010

until now. He is also a Professor in the Faculty of Economics and

Business (FEB) of Gajah Mada University who actively writes

several books including Taxation (2006), Regional Autonomy Series:

Regional Autonomy and Financial Management (2003), Public

Sector Accounting (2003), and Basic Financial Accounting (2000).

Before becoming Deputy Minister of Finance on October 27, 2014,

he served as Expert Staff to the Minister of Finance in State

Expenditure in 2004-2006, Director General of Fiscal Balance of the

Ministry of Finance (2006-2010), Deputy Chairman of the Draft

Discussion Team for the Draft Law on Supreme Audit Board (2006),

Head of Quality Assurance Team for the National Bureaucratic

Reform (2011-present), Deputy Chair of the Budget Acceleration

Evaluation and Oversight Team (2011-present), and Head of the

Indonesian Financial and Development Supervisory Agency in 2010-

2014. From 1 December 2014 to 6 February 2015, he was entrusted

as the Acting Director General of Tax, Ministry of Finance.

Summary Speech :

The role of Public Sector Accountant in facing global uncertainty.

Technology persistently impacts the way we live our lives.

Gradual technological change will affect people’s means as well as

expectation on the way services are delivered to them by the

Government. In the middle of global uncertainty, still government

xv

cannot neglect its responsibility in providing basic infrastructure with

a quality services, such as education, health care, transportation, and

justice. In addition, in the midst of global uncertainty where countries

around the world are threatened by economic crises and recessions,

it’s increasingly difficult to gain public trust. Serving higher demand

from the society and gaining trust from them are the public sector

challenge in the near future. However, those are confronted with the

urgency to maintain fiscal sustainability. Providing public

infrastructure and improving service delivery are not a low-cost task.

Public sector performance is fundamentally about governments

being able to deliver on their policy commitments for the value of

their citizens. Many governments feel increasing fiscal pressures to

do more with less, as public expenditures continue to grow faster than

revenues due to complex challenges facing the 21st century such as

aging populations, rising healthcare and pension costs, and increasing

security concerns.

In order to answer the pressure from the Indonesian citizens along

with the demographic and connectivity challenges, a proper and

sound policy as well as regulation become prerequisite. To be able to

produce a sound policy and regulation, the government should be

supported by high qualified data and information. One of the

substantial data is Central Government Financial Report or LKPP.

How to aim for comprehensive financial report is the challenge. The

Financial Report should not only to record historical government

transaction and economic event, but also to give a meaning to the

financial data to foresee the future.

The accountant should develop the critical thinking and analytical

thinking. In addition, from the perspective of financial statement user,

Public Sector Accountant should possess the capability to critically

analyse data and information in order to construct meaningful and

valuable information to support decision making.

In order to gain this critical and analytical skills, the accountant

should master these two sets of skills. The first one is the hard skill of

knowledge. It is not only the sector public accounting theory but also

the theoretical and practical understanding of data analytics. The

second one, the Public Sector Accountants, should comprehend the

set of soft skills. They have to be able to do effective communication.

Last but not least, integrity and ethics are the frame that should cover

all the skills. Integrity and ethics will be increasingly important in the

digital age. The Public Sector Accountant should maintain trust and

not manipulate the data, as it is the foundation of the technology and

prerequisite to gain public trust.

xvi

KEYNOTE SPEAKER

Gadaf Rexhepi, PhD is Associate

Professor at South-East European

University, Republic of Macedonia,

where he teaches both undergraduate and

postgraduate courses in the field of

Management. His research interests

include innovation, open innovation,

strategy, family businesses and

sustainability. He authored or co-authored around sixty research

articles in different peer and refereed journals and ten text-books,

among which his later paper on Sustainable Development journal. He

is part of many expert’s team and have been invited by many

organizations as guest lecturer. Dr. Rexhepi also has been engaged as

advisor of the Minister of Economy in Macedonia. He served as a

pro-dean for post-graduate studies 2012-2015 and acting dean in

2018. Recently he has been appointed as consultant for development

of the Rector, of South East European University in North

Macedonia. He serves on the editorial and review boards of several

journals from in the field of entrepreneurship and management among

which “Corporate Social Responsibility & Environmental

Management”, “Sustainability” etc. He received the Award for

Excellence 2016 – Outstanding Paper by Emerald Group Publishing

(Journal of Enterprising Communities: People and Places in the

Global Economy).

Summary Speech :

Open innovation in public: barriers and future perspectives

Open innovation tends to be one of the hottest topic in the field of

innovation which tends to be very much related with new ways of

organisational growth. Recently open innovation concept is used by

many different type of organization in private and public sector with

its primary goal to open their innovation processes in creating new

value for their stakeholders. Public sector innovation process has

started moving from “in-house innovation” out to open innovation

concept. This lecture will be focused on the importance of open

xvii

innovation in public sector and discus some future perspective of

open innovation in public sector. We will discuss why public sector

organizations should use open innovation and what its perspective for

public sector organization are. Open innovation helps public sector

authorities receive new initiatives from two new sources firstly

learning from other organizations in public sector and second by

engaging citizens as their consumers into innovative processes. This

helps public sector to have more personalized and more effective use

of its resources that will affect societal challenges. Open innovation

concept is very much related to the concept that citizens are seen as

consumers by public sector organizations thus it is suggested to

increase the cooperation between citizens and public administration.

In this lecture, we will focus on some positive examples of the use of

open innovation model in public sector in some countries and in some

cities. Further we will focus on topics such are the benefits of public

sector organizations in using OI and why public sector organizations

should move from closed to open innovation model. We will discuss

about open innovation 2.0 concept in Europe and its five key elements

in Open Innovation process as well as the necessity of “citizen

sourcing” or “open functional platforms” to be implemented. We will

focus on barriers to open innovation in EU countries and in general

and we will discuss the future perspectives of Open innovators.

xviii

KEYNOTE SPEAKER

Professor Rahat Munir MComm.,

PhD., FCPA., CA., CMA is Head of the

Department of Accounting and Corporate

Governance and Professor of

Accounting, Macquarie University. His

research expertise includes management

accounting systems, performance

measurement systems, CSR &

sustainability, corporate governance,

management control systems, political

connections, whistleblowing and banking systems. He has published

in leading international journals as well as presented at international

conferences and seminars in many parts of the world. He has worked

in senior academic and industry leadership roles for 25 years, is

actively involved in learning & teaching and research activities. Prior

to entering academia, Professor Munir worked in the banking sector.

With extensive experience in all forms of academic endeavours, he

offers an unbeatable track-record of excellence in curriculum

development, research leadership, change management, building

teams, effective human resource and financial management. He

provide media commentary on business and tertiary education,

employability and skills for life, future of accounting profession,

forensic governance, CSR and performance management practices.

Professor Munir has earned numerous national and international

research and teaching awards, including the 2015 VC’s Citation for

Outstanding Contributions to Student Learning, 2013 VC’s Award

for Programs that Enhance Learning and 2012 Dean’s Teaching

Excellence. His academic contributions have also been recognised at

the national level through awarding 2015 Excellence – Achievement

in Academia by CPA Australia, and 2014 Business/Higher Education

Roundtable Award for Excellence in Accounting Teaching

Collaboration. At the international level his contributions have been

recognised through shortlisting for the Wharton-QS Stars Reimagine

Education Award 2015 at the University of Pennsylvania in the

Nurturing Employability Award category. He has served as

Undergraduate and Postgraduate Program Director at Macquarie

University.

xix

KEYNOTE SPEAKER

Associate Professor Hadrian G.

Djajadikerta is the Associate Dean

Research and Associate Professor in

Strategic Management Accounting in the

School of Business and Law at Edith

Cowan University, Perth, Australia. In

his role, he leads the development and

implementation of research agenda and

strategies, oversees three research centres, and manages research

collaborations and engagements. Hadrian is an experienced and

accomplished educator, researcher, and consultant. He has been a

regular invited keynote speaker for international academic and

professional conferences, forums and seminars. He has over two

decades of research, teaching and leadership in academia, has

published many papers in highly ranked journals, including those that

are ranked A* and Q1, has received a significant number of research

grants, and has successfully supervised numerous doctoral students to

completion. Hadrian has also received many accolades such as,

among others, the Vice-Chancellor's Award for Excellence in

Research Supervision, the Vice-Chancellor's Award for Excellence in

Teaching, Highest-Impact Publication Award, and the Best Paper

Award at the Accounting and Finance Association of Australia and

New Zealand (AFAANZ) Conference.

Hadrian has had a widespread career, previously having held

academic positions at University of New South Wales, Lincoln

University and the University of Technology Sydney. Prior to

academia, he held managerial and consulting positions in both the

private and public sectors. He has also been long active in various

voluntary activities. He is a founding member and the Vice President

of the ASEAN Chamber of Commerce Inc. in Perth, and currently

also serves as the Vice President of Indonesia Institute Inc., a Western

Australian-based NGO, which is active in promoting Indonesia-

Australia relations. Hadrian has a PhD in Strategic Management

Accounting, an MBA, a Master in Industrial Engineering, and a

Bachelor degree in Accounting. He is also a Chartered Accountant

xx

(CA), a Certified Management Accounting (CMA), and a Stanford

Certified Project Manager (SCPM). His current main research areas

include sustainability and sustainability reporting, corporate social

responsibility, corporate governance, strategic alliances, strategic

management accounting, behavioural accounting, blockchain and

artificial intelligence (AI), and business in Asia and Indonesia. His

current projects within the public sector context include areas such as

autonomous vehicles in transport infrastructure planning and policy,

short-term accommodation, and waste management.

Summary Speech:

Disruptive technologies: The changing landscape in the public sector

governance

Disruptive technologies have been shown to significantly

transform society with increasingly rapid paces of change with no

sign of waning. There is no escaping for the traditional governance

patterns and modes of operation to not following the technology-

driven governance and business models. While this shift in

technologies has created new challenges, it also carries a range of

opportunities. Organisations around the world, including public

sector institutions, are faced with the challenge to perform more

effectively and operate more efficiently. Disruptive technologies have

the potential to transform all facets of society and invigorate how

organisations engage with their stakeholders. Delays and slipups in

managing and responding appropriately to this emerging setting will

expose organisations to a high risk of a decline and even obsolescence

in their relevance.

xxi

CONFERENCE PROGRAM Day 01- Tuesday | October 29, 2019 Venue : PKN STAN Campus, J Building

Tangerang Selatan, Indonesia

Time Duration Activities

07.00 – 08.00 60' Welcome Reception and Registration

08.00 – 08.05 5' Welcoming MC

08.05 – 08.10 5' Indonesia National Anthem

08.10 – 08.20 10’

Welcome Remarks


Conference Chair ICOPSA 2019

08.20 – 08.30 10’

Welcome Remarks

Rahmadi Murwanto, Ak., M.Acc., Ph.D.

Director of Politeknik Keuangan Negara STAN

08.30 – 08.45

15’ Global Research Ecosystem Speech

Dr. Hendrati Dwi Mulyaningsih

Founder & Chairman of Research Synergy Foundation, and Co-Conference Chair ICOPSA

08.45 – 08.55 10'

Opening Speech

Rionald Silaban, S.H., LLM.

Kepala Badan Pendidikan dan Pelatihan Keuangan (BPPK) Indonesia

08.55 – 09.10 15' Coffee Break

09.10 – 09.40 30’

Keynote Speech

Sri Mulyani Indrawati, S.E., M.Sc., Ph.D

Indonesia Minister of Finance of the Republic of Indonesia

xxii

09.40 – 10.10 30’

Keynote Speech

Prof. Dr. Mardiasmo, MBA., Akt.

The Deputy Minister of Finance of the Republic of Indonesia

10.10 – 10.30

10.30 – 10.50

10.50 – 11.10

Keynote Speakers (Panel session) Moderator: Nur Arif Nugraha S.ST., MPP

20'

Keynote Speech

Gadaf Rexhepi, Ph.D.

Associate Professor of Business and Management, South East European University, Macedonia

20'

Keynote Speech

Professor Rahat Munir MComm., PhD., FCPA., CA., CMA

Head of Department of Accounting and Corporate Governance, Macquarie University, Australia

20'

Keynote Speech

Assoc. Professor Hadrian G. Djajadikerta

The Associate Dean (Research) in the School of Business and Law, Edith Cowan University, Australia

10.10 – 11.40 30’ Keynote Panel Session for Discussion and Q&A

11.40 – 12.00 20' Award Ceremony & Group Photo

12.00 – 13.00 60' Lunch Break

13.00 – 17.00 240' Parallel Session

17.00 – 17.10 10'

Closing Speech


Conference Chair ICOPSA 2019

17.10 – 17.30 20' Award Ceremony

17.30 – 17.35 5’ Closing MC

xxiii

Day 01 Tuesday, October 29, 2019

Session 1 : 13.00 – 15.00 Session Chair : Prof. Rahat Munir and Akhmad Solikin

Paper ID Author Media Paper Title

OPS19113 Charoline Cheisviyanny Oral Presentation Financial Distress in Public Sector in Indonesia

OPS19116 Farzaneh Jalali Aliabadi Oral Presentation Public Budgetary Roles in Iran: Perceptions and Consequences

OPS19127 Puji Wibowo Oral Presentation Determinants of Financial Statements Quality of Indonesian Line Ministries/Agencies Since Accrual Basis Adoption

OPS19132 Rizki Salsabila Oral Presentation Accountability of Village Fund Management on Fiscal Year 2017 in Sembawa District, Banyuasin Regency

OPS19138 Redisa Cejitiara Wibawa

Oral Presentation Current State of Artificial Intelligence (AI) Customer-focused Uses in Accounting and Financial Services

OPS19139 Bambang Setiono Oral Presentation Public Accountability Under Neo-liberalism Domination: The Case of Kulon Progo District

OPS19126 Raditya Hendra Pratama

Oral Presentation Impact of Village Funds on Asset Improvement Using Sustainable Livelihood Impact Assessment Method: Case Study of Waru Jaya Village

OPS19154 Febrian Oral Presentation XBRL Financial Statement and Corporate Tax Return: A Value-chain

Afternoon Coffee Break : 15 Minutes

Room J.201

Track Government Accounting

xxiv


Session 2 : 15.15 – 17.00 Session Chair : Prof. Rahat Munir and Yuniarto Hadi Wibowo


OPS19165 Mas Udin Oral Presentation Fiscal Risk of Province, Municipal, and District in Indonesia

OPS19148 Eddy Mayor Putra Sitepu

Oral Presentation Nurturing Innovation in Indonesia's Public Sector The Role of Training and Performance-reward Link Mediated By Motivation and Competence

OPS19173 Akhmad Priharjanto Oral Presentation Analysis of The Influence of Local Leaders Characteristic on Local Government Performance in Indonesia

OPS19169 Intan Puspitarini Oral Presentation State Asset Users' Understanding on The Implementation of Accrual-Based Government

OPS19143 Lestari Kurniawati Oral Presentation Exploring The Tax Officers' Acceptance of Geotagging Using the UTAUT Model: Study in Indonesia

OPS19183 Sakti Prabowo Oral Presentation Effectiveness of UKI (Internal Compliance Unit) Monitoring Activities on Preparation of LK-BUN (State General Treasurer) Financial Reports in the Ministry of Finance

OPS19184 Nur Farida Liyana Oral Presentation Dealing with Poverty: Empowering Women to Become A Better Society

OPS19172 Akhmad Priharjanto Oral Presentation Commitment, Mapping, and Innovation as Drivers of Success in Management of Village-Owned Enterprises (BUMDesa) - Case Study at BUMDesa Tirta Mandiri, Ponggok Village, Polanharjo District, Klaten Regency, Central Java Province

OPS19163 Pujian Nauli Oral Presentation Effect of Tax Audit on Compliance of Real Estate Businesses Tax Payers

Room J.201

Track Government Accounting

xxv

Day 01 Tuesday, October 29, 2019 Session 1 : 13.00 – 15.00

Session Chair : Gadaf Rexhepi, PhD and Amrie Firmansyah


OPS19161 Waidatin Nur Azizah Oral Presentation Analysis of The Public Services Agency as An Alternative Form Other Than Village-owned Enterprises

OPS19157 Dyah Purwanti Oral Presentation Analysis of Earnings Response Coefficient (ERC) for Disclosure of Assets and Liabilities for Tax Amnesty: Case Study of Listed Companies In Indonesia

OPS19175 Soffan Marsus Oral Presentation What's Wrong with Performance Based Budgeting Implementation in Indonesia?

OPS19135 Subagio Oral Presentation Indonesia’s Anti-corruption Policy in A Public Finance Security Framework

OPS19160 Dyah Purwanti Oral Presentation Ethics and Tax Evasion: Is It Ethical Not to Pay Taxes in A Corrupt Country?

OPS19171 Gusti Ayu Indah Ratnasari

Oral Presentation Wet Place, Play, and Color: Exploring Metaphors in Explaining Corruption

OPS19122 Resi Ariyasa Qadri Oral Presentation Emancipating Homo Pancasilaus Principles for Resolving Obfuscation of Housing Procurement Policy

OPS19144 Hilda Octavana Siregar Oral Presentation Modeling and Projections of Cash And Investment in The Public Health Service Agency of Kulon Progo Using Arima in 2030


Room J.202

Track Government Accounting, Accountability And Integrity, Public

Sector Accounting

xxvi


Session 2 : 15.15 – 17.00 Session Chair : Gadaf Rexhepi, PhD and Ali Tafriji Biswan


OPS19115 Amardianto Arham Oral Presentation The Implementation of Micro, Small, and Medium Enterprises Accounting in Indonesia

OPS19117 Ridha Mawaddati Oral Presentation Corporate Governance and Earnings Quality of ASEAN Non Financial Industries

OPS19156 Putra Aryotama Oral Presentation The Effect of Business Strategy on Tax Avoidance in Indonesia's Consumer Goods Industry

OPS19120 Wahyudi Oral Presentation The Good Corporate Governance Mechanism and Earnings Management: Evidence From Indonesia and Malaysia Manufacturing Companies

OPS19119 Srianto Srianto Oral Presentation The Effect of Competency and The Implementation of Good Government Governance Principles on Financial Statements Quality (study in Ministry of Marine Affairs and Fisheries Republic of Indonesia)

OPS19118 Johan Sisco Oral Presentation Risk-based Internal Audit, Competence of Government Internal Auditor (APIP), Auditor Independence of Auditors' Capabilities in Detecting Fraud

OPS19176 Asqolani Oral Presentation Changes in Accounting Standards and Its Impact on Financial Statement

OPS19177 Rahayu Kusumawati Oral Presentation Analysis of Financial Ratios for Businesses Owned by State Construction Sectors Registered in Indonesia Stock Exchange Period 2016-2018

Room J.202

Track Financial Accounting

xxvii

Day 01 Tuesday, October 29, 2019 Session 1 : 13.00 – 15.00

Session Chair : Agung Budi Laksono and Maman Suhendra


OPS19142 Azas Mabrur Oral Presentation Core System Functionality Assessment of Integrated Financial Management Information System (IFMIS) in Indonesia as A Tool Of Government Financial Management

OPS19153 Yohanes B Dionisius Oral Presentation Exploring The Importance and Implementation of Cobit Processes in Inspectorate General of Ministry of Finance in Indonesia

OPS19178 Ali Tafriji Biswan Oral Presentation Theory of Constraints: Public Sector Services For Treasury Documents

OPS19150 Erly Suharly Oral Presentation Analysis of Audit Tenure Limitation Policy for Public Accounting Firms in Indonesia

OPS19164 Praptono Djunedi Oral Presentation Fifteen Years Public Service Agency in Indonesia: Developments And Problems

OPS19179 Riya Dwi Handaka Oral Presentation Analysis of the Effect of State Equity Participation and Divestment on Government's Share of Income on Profit of State-Owned Enterprises: Evidence From Indonesia

OPS19134 Sopian Oral Presentation The roles of forensic accountant to assist uncovering corruption case

OPS19102 Heri Sukendar Wong Oral Presentation The Effect of Audit Quality and Self-assessment Corporate Governance Mechanism to Banking Earning Management in Indonesia


Room J.203

Track Accounting Information System, Auditing And Assurance, Corporate Sustainability, Forensic

Accounting, Management Accounting

xxviii


Session 2 : 15.15 – 17.00 Session Chair : I Gede Agus Ariutama and Acwin Hendra Saputra


OPS19104 Agung Dinarjito Oral Presentation The Effect of Central Government Spending on Economic Function to Investment in Indonesia

OPS19108 Akhmad Solikin Oral Presentation The Efficiency of Government Health Spending: The Case of Papua Province Indonesia in 2016

OPS19136 Raynal Yasni Oral Presentation Effect of Government Debt (external Debt Stock, Internal Debt, and Debt Servicing) on Economic Growth (Case of Indonesia Year 2000-2015)

OPS19149 Maman Suhendra Oral Presentation Analysis of Determinants of Success in Land Acquisition for Central Java Power Plant Public-private Partnership Project (2 X 1000 Mw)

OPS19167 Akhmad Solikin Oral Presentation Effect of ICT Adoption on Small and Medium Enterprise Establishments: Evidence From Indonesia's Provincial Data

OPS19168 Agung Dinarjito Oral Presentation The Effect of Central Government Spending on Public Services, Defense, Health, Education, Economic, and Social Protection Function to Economic Growth

OPS19103 Sri Murwani Oral Presentation The Role of Monetary Policy for Supporting Foreign Direct Investment Inflows in Indonesia (Evidence from 2000.1-2019.1)

OPS19109 Indrayansyah Nur Oral Presentation Regional Economic Analysis of Banten Province in 2011 - 2016

Room J.203

Track Public And Corporate Finance

xxix


Session 1 : 13.00 – 15.00 Session Chair : Nur Arif Nugraha and Zef Arifiansyah


OPS19106 Eko Nur Surachman Oral Presentation Government Guarantee Probability of Default for Infrastructure Project in Indonesia: A Monte Carlo Analysis

OPS19105 David Syam Budi Bakroh

Oral Presentation Feasibility of Financing Higher Education in Indonesia

OPS19110 Muhammad Heru Akhmadi

Oral Presentation Analysis of Factors Affecting the Construction Service Procurements Performance in Indonesia

OPS19111 I Gede Agus Ariutama Oral Presentation Financial Issues in Indonesian National Health Insurance Program

OPS19114 Doni Triono Oral Presentation Valuation of Standard Chartered Tower Building in Indonesia (Income Approach)

OPS19174 Akhmad Firdiansyah Oral Presentation Strengthening Coordination Between The Government Agencies to Fight Against Narcotic and Psycothropics In Cross-Border Area

OPS19182 Acwin Hendra Saputra Oral Presentation Improving E-commerce Tax Voluntary Compliance Behavior: An Integrated Behavioral Model Approach

OPS19166 Lukas Abiyoso Oral Presentation Measuring Possibilities of Full Self-Assessment System Implementation in Land and Building Tax: Evidence from Indonesia


Room J.207

Track Public And Corporate Finance, Taxation And Customs

xxx


Session 2 : 15.15 – 17.00 Session Chair : Gusti Ayu Indah Ratnasari and Puji Wibowo


OPS19112 Trisulo Oral Presentation Analysis of Government Office Space Planning on Organizational Productivity (case Study At The Jakarta Pesanggrahan Tax Service Office)

OPS19123 Dian Handayani Oral Presentation Contingent Liabilities From Government Guarantee on SOE's Assignment: Issues and Practice From The Fast Track Program Phase 1

OPS19146 Rahadi Nugroho Oral Presentation Analysis of The Effect of Fiscal Incentive And IFRS Adoption on FDI In Asia's Developing Countries

OPS19147 Joko Sumantri Oral Presentation A Case Study in Indonesia: Appropriate Taxation Policies for Government Public Health Service Agency

OPS19107 David Syam Budi Bakroh

Oral Presentation Learning Impact Measurement by Linking Competency Gap and Performance at Public Sector (Case Study: MoF, Indonesia)

OPS19125 Raditya Hendra Pratama

Oral Presentation Potential of Sharia Finance in Financing Budget Deficit By Adopting Electronic Money Transactions Scheme in Indonesia

OPS19124 Dian Handayani Oral Presentation Conceptual Framework for Blended Financing Scheme: Public-private Partnership and Indonesia Sovereign Sukuk

OPS19186 Nur Arif Nugraha Oral Presentation The Implementation of Single Identity Number to Integrate The Existing Identity Numbers in Indonesia

Room J.207

Track Public And Corporate Governance, Open Innovation In Public

xxxi


Session 1 : 13.00 – 15.00 Session Chair : Prof. Hadrian G. Djajadikerta and Raynal Yasni


OPS19128 Marsanto Adi Nurcahyo Oral Presentation Impact Analysis of Raw Rattan Export Prohibition

OPS19129 Kusmono Oral Presentation Morality in Upholding Tax Law

OPS19130 Kristian Agung Prasetyo

Oral Presentation Benford's Law Users, Beware! An Assessment of The Suitability of Benford's Law in Value-added Tax Fraud Detection in Indonesia

OPS19133 Asqolani Oral Presentation Foreign Subsidiaries in The Consolidated Financial Report: Indonesian Tax Perspective

OPS19141 Marsono Oral Presentation Importance of Clarity Definition of Tax Objects: Case Study of Building Tax Court Decisions on Tax Provisions

OPS19170 A Ragil Kuncoro Oral Presentation A Proposal to Amend ECI Taxation In Indonesia

OPS19151 Agus Bandiyono Oral Presentation Application of Government Regulation Number 23 of 2018 and Compliance of UMKM Taxpayers

OPS19152 Benny Gunawan Ardiansyah

Oral Presentation The efficacy of joining Asia Region Fund Passport :Taxation Challenges for Indonesia


Room J.208

Track Taxation And Customs

xxxii


Session 2 : 15.15 – 17.00 Session Chair : Prof. Hadrian G. Djajadikerta and Vissia Dewi Haptari


OPS19159 Dyah Purwanti Oral Presentation Determinants Aggressiveness of Transfer Pricing: Empirical Study in Foreign Capital Investment Companies in The Chemical And Processing Industry In Indonesia

OPS19155 Agung Darono Oral Presentation Government Financial Data Analytics: an Indonesian Perspective

OPS19158 Dyah Purwanti Oral Presentation Corporate Earnings Management Post-implementation of Thin Capitalization Rule in Indonesia

OPS19188 Arif Nugrahanto Oral Presentation Tax Audit and Compliance of Indonesian Individual Taxpayers

OPS19181 Riya Dwi Handaka Oral Presentation Analysis of The Influence of Cash Liquidity Towards Corporate Taxes Avoidance (empirical Study on Non-financial and Non-insurance Companies Listed In Indonesia Stock Exchange)

OPS19180 Riya Dwi Handaka Oral Presentation Analysis of The Effect of Tax Aggressiveness on The Structure of Company Debt Maturity: Evidence From Indonesia

OPS19187 Arif nugrahanto Oral Presentation The Effect of Audit Rate on Taxpayers Compliance in Indonesia

OPS19162 Suparna Wijaya Oral Presentation Analysis of Value Added Tax to Sell Merchandise in Political Activity (case Study Society Of Friends ABC

Room J.208

Track Taxation And Customs

xxxiii

List of Conference Attendees

ID Attendee Field of Study Affiliation

OPS19131 Rosmanita Marince Evelin Government Accounting PT Bank Negara Indonesia (Persero) Tbk

OPS19189 Aji Muhammad Elvin Nor Financial Accounting Polytechnic Of State Finance STAN

OPS19190 Amrie Firmansyah Financial Accounting Polytechnic Of State Finance STAN

OPS19191 Erna Setiany Financial Accounting Universitas Mercu Buana

OPS19192 Agus Sriyanto Public And Corporate Finance Polytechnic Of State Finance STAN

Track: Government Accounting

2

Financial Distress in Public Sector in Indonesia

Charoline Cheisviyanny1, Fefri Indra Arza2

1,2Universitas Negeri Padang

Abstract This research aims to identify characteristics of regional governments which

tend to experience financial distress. The population was all municipalities and

cities in Indonesia. The sample was selected by using Slovin's formula, cluster

sampling, and simple random sampling. We got 149 cities as samples which

consist of 111 cities with financial distress and 38 cities with non financial

distress in a three-year period (2015-2017). Data was analyzed by using

independent sample t-test. The results show that cities which tend to experience

financial distress are cities with high financial independence, high level of

decentralization, large number of citizens, longer age, and small area.

Keywords: financial distress, financial independence, level of decentralization, number

of citizens, age

3

Public Budgetary Roles in Iran: Perceptions and

Consequences

Farzaneh Jalali Aliabadi1

1La Trobe University

Abstract This research examines the public budgeting process and budgetary roles in

the higher education and research sectors in Iran. This examination focuses

on the actors' point of view to determine the deficits within the budgeting

process that have led to a delay in its transition to a performance-based system.

Keywords: Public Budgeting, Public Universities and Research Institutes, Wildavsky Budgetary Roles, Reality Construction in Budgeting, Grounded Theory

4

Determinants of Financial Statements Quality of

Indonesian Line Ministries/Agencies since Accrual Basis

Adoption

Fachmi Fachriyandana1, Puji Wibowo2

1,2Polytechnic of State Finance STAN, Indonesia

Abstract Audit opinion for government reporting is an interesting issue to discuss in the

last decade. This study aims to evaluate the impact of audit findings and level

of disclosure on audit opinion by Supreme Auditor (BPK). Research

observation is a number of line minis-tries/agencies which have audit opinion

improvement since 2015 until 2017. By using purposive sampling method we

obtain 84 observations for our study. This research adopts ordinal logistic

regression because audit opinion as dependent variable is an ordinal data. Our

estimation suggest that finding is negatively associated with audit opinion

while level of disclosure is favorable for audit opinion achievement by line

ministries/agencies (K/L)

Keywords: audit opinion, line ministries, accrual

5

Accountability of Village Fund Management on Fiscal

Year 2017 in Sembawa District, Banyuasin Regency

Rizki Salsabila1, Burhanuddin2, Umi Kalsum3

1,2,3Sriwijaya University

Abstract This research aims to assess accountability in managing village funds in

Sembawa district, Banyuasin regency. This research can be categorized as

qualitative descriptive study with primary and secondary data. This research

used interview and documentation as data collection technique and analyzed

by using Miles and Huberman models. The result of this research indicate that

the management of village funds in Sembawa district, Banyuasin regency has

been accountable. This condition is also supported by management of village

fund, which start from planning stage until accountability stage, has been

accountable and applies the principles of participation and transparency.

However, the submission of this accountability report is still delivered with

oral media on year end of village's meeting.

Keywords: Accountability and Village Fund Management

6

Current State of Artificial Intelligence (AI) Customer-

Focused Uses in Accounting and Financial Services

Redisa Cejitiara Wibawa1, Basuki Wibawa2

1University of Aberdeen,2Universitas Negeri Jakarta

Abstract The current focus of data processing has been through the revolutionary

technology of Artificial Intelligence (AI). AI has become a great solution in

producing accuracy and accountability to understand better the complexity of

many problems in financial services. With the advancements of AI usage to

adapt effectively with changing control environment and customer

requirements, this paper attempts to evaluate the current state of AI

implementations through the lens of the big accounting firms. The case studies

from big-four accounting firms such as PwC, EY, KPMG, and Deloitte will be

discussed comparatively based on the concluded literature review of customer-

focused AI applications classified in Financial Stability Board report (2017)

and Kaya (2019) study's, which are, credit scoring, insurance policies and

financial planning scope, client Chatbots, and KYC. It is concluded that

implementing a comprehend AI system has a significant influence in building

positive accounting and financial services touch-points throughout the

customer experience. Ongoing advanced AI implementations with the

sustainable balance between artificial and human intelligence will expand the

positive direction of accounting and financial industry growth.

Keywords: Accounting, Artificial Intelligence, Customer, Financial Services

7

Public Accountability under Neo-Liberalism

Domination: The Case of Kulon Progo District

Bambang Setiono1, Ari Barkah Djamil2

1,2Sampoerna University

Abstract Public accountability offers promise to public that elected public officers will

be accountable to their election promises. Elected public officers will lead

public institution so that collective actions took by the institution will benefit

all members of the institution. However, it has been documented well in the

accounting literature that new public management (NPM) initiative introduced

by governments introducing among others commercial accounting and

performance to the public sector do benefit only the capitalists and the national

government interests. This case study show how Kulon Progo district in

Yogyakarta Indonesia introduced a moral-based institution called

andquot;Bela Beli Kulon Progroandquot; to mitigate limitation of traditional

NPM and accounting reform in the public sector for delivering public

accountability promises. By creating this institution, Kulon Progo District

limits the influence and domination of neoliberalism and capitalism in public

sector accountability.

Keywords: Public accountability, new public management initiative, Bela Beli Kulon

Progo, Neoliberalism, commercial accounting

8

Impact of Village Funds on Asset Improvement Using

Sustainable Livelihood Impact Assessment Method:

Case Study of Waru Jaya Village

Raditya Hendra Pratama1, Muhamad Ilham Syahroni2, Ilham

Maulana3, Fatimah Azzahra4

1Polytechnic Of State Finance STAN,2,3,4Islamic Economic High School SEBI

Abstract After the village fund program runs, it is necessary to review the impact of the

Village Fund's performance to determine the achievement of the program with

parameters for changes to assets/capital using the SLIA (Sustainable

Livelihood Impact Assessment) method, to measure changes in village assets

before and after the program. Data on chang-es in village assets is important

to set further policy on the program.

Keywords: fund, sustainable, village

9

XBRL Financial Statement and Corporate Tax Return:

A Value-Chain

Febrian1, Supriyadi2

1,2Polytechnic of State Finance STAN, Banten

Abstract At the end of the financial year, listed companies will make at least two types

of financial re-ports reported to the government, namely to the Indonesia Stock

Exchange (IDX) and Direc-torate General of Taxes (DGT). The financial

reports reported to IDX uses the XBRL format while the DGT uses a special

Attachment format on the corporate tax return. The contents of the two reports

should be the same. But in reality, the form and contents of the report have

differences that can affect if the DGT will analyze by comparing it with XBRL

format reports. This study will discuss the XBRL report with a value-chain

analysis approach with the aim that it can be utilized by the tax authority by

comparing it with financial reports on the corporate tax return.

Keywords: XBRL, Value Chain, Corporate Tax Return

10

Fiscal Risk of Province, Municipal, and District in

Indonesia

Mas Udin1, Hari Sugiyanto2

1,2Politechnic of State Finance STAN

Abstract This study investigates whether differences in local government units between

the prov-inces, municipals, and districts affect fiscal risk. This study uses

financial data of all local governments in Indonesia, which consists of 34

provinces, 93 municipals, and 415 dis-tricts. The method for analyzing data

uses the Kruskal Wallis test. The study demonstrates that among the local

government units in Indonesia, there is no difference in the fiscal risk of local

government revenue and local government financing. However, for the fiscal

risk of local government spending, there are differences between local

governments in Indone-sia. The average ranking of fiscal risk of local

government spending from lowest to high-est is the district, municipal, and

province.

Keywords: Fiscal Risk; Government Revenue; Government Spending; Government

Financing

11

Nurturing Innovation in Indonesia's Public Sector The

Role of Training and Performance-Reward Link

Mediated by Motivation and Competence

Eddy Mayor Putra Sitepu1, Sophia Su2, Ranjith Appuhami3

1,2,3Macquarie University

Abstract The aim of the study is to empirically examine “the antecedents of innovation

at the individual level” in public sector organisations in an Indonesian context.

Previous studies (e.g. Arundel et al., 2015; Bloch and Bugge, 2013) argue that

much innovation currently take place in public sector. However, research on

innovation is mainly focused on private sector; public sector context is mostly

overlooked (Demircioglu and Audretsch, 2017). Therefore, the aim of this

study is to examine the contributing factors of individual innovation in public

sector organisations. Specifically, this research examines the significance of

human resources management (HRM) practices at the individual level in

developing innovation. Further, this study also examine how competence and

motivation as the individual level learning stocks mediate such relationships

(Bontis et al., 2002) in “the association between HRM practices and

innovation”. This study will have significant implications for professionals and

practitioners in promoting innovation in public sector organisation by utilising

HRM practices at the individual level in order to further enhance the

organisation’s performance.

Keywords: innovation, public sector, Indonesia, organisational learning

12

Analysis of The Influence of Local Leaders

Characteristic on Local Government Performance in

Indonesia

Akhmad Priharjanto1, Fitri Irka Wahyu Niansyah2, Yuniarto Hadi

Wibowo3, Nina Andriana4

1,2,3,4Polytechnic of State Finance STAN

Abstract As the center of the government, the local leaders are believed to have an

important role in the achievement of local government performance. This study

aims to prove that the local leaders' characteristics such as age, tenure,

educational level, educational background, bureaucracy, and

entrepreneurship experience have a positive effect on the local government

performance in all districts/cities in Indonesia for 2014-2016 using Fixed

Effect Model (FEM) regression. The test results show that local leaders with

older age, a higher level of education and bureaucratic experience proved to

be able to make a positive contribution to the achievement of the local

government performance. While the results for tenure, accounting/ economics/

business educational background and entrepreneurship experience show

different results than previously hypothesized.

Keywords: Leader Characteristic, Government Performance, Local Government,

Government Size, Government Wealth, Government Type

13

State Asset Users' Understanding on The

Implementation of Accrual-Based Government

Accounting on State Assets: Central Government of

Indonesia Current Position

Intan Puspitarini1, Dian Handayani2

1,2Polytechnic of State Finance STAN

Abstract This research aims to identify State Asset Users' understanding of the

implementation of ac-crual-based government accounting on Indonesia's State

Assets. Government Regulation No. 71 of 2010 on Government Accounting

Standards provides that accrual-based government ac-counting should be fully

implemented at the latest by the year 2015. The value of State Assets - known

as Barang Milik Negara or BMN - provides a very significant proportion in

Central Government Financial Statement, that accrual basis applies to the

BMN had an impact on the reliability of the Financial Statement. This is a

descriptive quantitative research study. The da-ta was collected through a

survey using questionnaire forms and distributed to State Asset Us-ers. Results

show that in general, State Assets Users have comprehended adequate

knowledge of accrual-based government accounting principles for BMN.

However, the understanding of the State Asset Users in some principles of

accrual-based government accounting standards is still needed to be elevated.

Keywords: Barang Milik Negara, Accrual-Based Government Accounting, Public

Assets

14

Exploring The Tax Officers' Acceptance of Geotagging

Using the UTAUT Model: Study In Indonesia

Lestari Kurniawati1, Andhika Fahmi Rusthadi2

1Polytechnic of State Finance STAN,2Directorate General of Tax

Abstract This study aimed to analyze the tax officers' acceptance of Geotagging. This

research uses the UTAUT model with statistical test Structural Equation

Modeling. The results showed that performance expectancy, effort expectancy,

and social influence did not influence behavior intention. On the other hand,

behavior intention has a significant influence on user behavior. However,

facilitating conditions do not have a significant effect on user behavior. The

results of this study are in line with the results of Marchewka and Kostiwa

(2007). In this study, the UTAUT model is not able to explain the behavior of

the tax officers on Geotagging acceptance.

Keywords: Geotagging, Tax, UTAUT

15

Effectiveness of UKI (Internal Compliance Unit)

Monitoring Activities on Preparation of LK-BUN (State

General Treasurer) Financial Reports in the Ministry of

Finance

Sakti Prabowo1

1Politeknik Keuangan Negara STAN

Abstract To implement targets for maturity performance indicators (maturity) in

accordance with the 2015 - 2019 RPJMN, the Ministry of Finance has assessed

the Internal control system (SPI) maturity of the Ministry of Finance in 2016.

Results obtained in 2016, the value of the Ministry of Finance's SPI is 4,274.

However, not all of the echelon I units in the Ministry of Finance achieve target

performance effectively. There are two ineffective IKUs related with the BPK

opinion index on LKPP and the BPK opinion index on LK BUN. The

preparation of the two reports should be the priority for improvement of the

Ministry of Finance. Using a qualitative method, we interview some employees

in UKI and LK-BUN in the Ministry of Finance that can give related

information. Result of this research found that monitoring of all types of

reports should be the top priority of improvement.

Keywords: Internal Control, Compliance Unit, Internal Audit, Financial report, monitoring

16

Dealing with Poverty: Empowering Women to Become A

Better Society

Nur Farida Liyana1

1Polytechnic of State Finance STAN

Abstract Poverty has become a nightmare for every single human being. The Indonesian

govern-ment, however, has a deal with this gender inequality among

Indonesian citizen. Many programs had been built to support women

emancipation. Women participation in educa-tion, employment and also

politics become better year by year. We used the World Bank Data Set from

1990 to 2010. We did a regression analysis between poverty and three in-

dependent variables: Labor force, Education, and Health/Survival. The

regression analysis proved that the empowerment among women which

detected by increasing education and employment can reduce poverty. The

result of the mortality rate that is unexpected due to the availability of the data

should be fixed in a future study.

Keywords: poverty, women, empowerment, education, employment

17

Commitment, Mapping, and Innovation as Drivers of

Success in Management of Village-Owned Enterprises

(BUMDesa) - Case Study at BUMDesa Tirta Mandiri,

Ponggok Village, Polanharjo District, Klaten Regency,

Central Java Province

Akhmad Priharjanto1, Andy Prasetyawan Hamzah2, Fadlil Usman3,

Nina Andriana4


Abstract Currently there are many Village-Owned Enterprises (BUMDesa), but very

few of BUMDesa are successful in their management. This study describes the

driving force behind the management of BUMDesa Tirta Mandiri, Ponggok.

This research is a qualitative case study. Data collected through interviews,

processing data using Miles and Huberman models. The success of managing

BUMDesa ponggok is very much influenced by the leadership's high

commitment, village mapping to recognize the village's potential, and

continuous innovation.

Keywords: Village-Owned Enterprises, Commitment, Mapping, Innovation, Village

Potential

18

Effect of Tax Audit on Compliance of Real Estate

Businesses Tax Payers

Pujian Nauli1, Kodirin2

1DJP,2Politechnic of State Finance STAN

Abstract One of the strategies of Directorate General of Tax (DJP) to improve tax

payers' compli-ance is to carry out tax audits. This research was conducted to

determine the differences in compliance between audited tax payers of real

estate businesses and the unexamined ones. The population of the study are the

real estate businesses tax payers registered in the 2011-2015 and examined in

2013. This study uses difference indifference approach. The results showed

that tax audits had a significant negative effect on compliance.

Keywords: tax audit, audit effect, tax payers' compliance.

19

Analysis of The Public Services Agency as An

Alternative Form Other Than Village-owned

Enterprises

Suparna Wijaya1, Edwin Yonas Patria Adi2, Waidatin Nur Azizah3

1,2,3Polytechnic of State Finance STAN

Abstract The purpose of this study is to provide alternative forms of the body as funds

for the utilization of funds for the utilization of funds for the villages, other than

Village-Owned Enterprises (BUMDes), in the form of Public Service Agency

(BLU). The research method used is descrip-tive qualitative. The results of this

study that in general the advantages of the Public Service Agency, which is not

a tax subject, so do not have a tax obligation in addition to deduction and / or

collection of BLU operational activities. In its management system BLU is a

tool from the government to achieve its goals, but the pattern of BLU

management is flexible like a private business entity in general. The community

also responded well to the presence of BLU com-pared to BUMDes.

Keywords: Village Funds, Tax Subjects, BLU, BUMDes

20

Analysis of Earnings Response Coefficient (ERC) For

Disclosure of Assets and Liabilities for Tax Amnesty:

Case Study of Listed Companies in Indonesia

Dyah Purwanti1, Iin Indrawati2, Nuzul Iswanti3

1,2,3PKN STAN

Abstract This study examines investors' reactions to changes in the application of

accounting standards due to the disclosure of tax amnesty's assets and

liabilities. To accomplish this objective, we observe all listed companies, in

The Indonesia Stock Exchange, that participated in the tax amnesty program

and disclosed the program's participation in their financial statements. The

observation period was conducted during the period of 2015-2017. The result

is that Indonesian Financial Accounting Standards (IFAS) 25 presenting

information on the impact of tax amnesty as error correction is more credible

than that of IFAS 70 presenting assets and liabilities for tax amnesty as

additional paid-in capital. This is documented by the Earnings Response

Coefficient (ERC) of IFAS 25 stronger than that of the ERC of IFAS 70.

Keywords: earnings response coefficients, tax amnesty, psak 70

21

What's Wrong with Performance Based Budgeting

Implementation in Indonesia?

Soffan Marsus1

1State Finance Polytechnic STAN (PKN STAN)

Abstract Attention to the effectiveness of the government's budget or public spending is

now quite prominen in various parts of the world. In Indonesia, the same

phenomenon also occurs both in current and previous government. One of the

efforts to improve the government budget mechanism was carried out through

the implementation of performance-based budgeting (PBB). However, after

more than a decade of running PBB, it still did not produce a satisfactory

results. This study analyze several atrribute of PBB implementation success

factors as experts, OECD and World Bank thought. By using interview method

to 13 budget practicians, this study reveals that unsatisfactory results of PBB

implementation can be traced to the unfulfilled elements and imperfect model

that PBB implemented in Indonesia. Therefore to improve PBB implementation

impact we must try to improve each PBB's elements and model implementation.

Keywords: Public Expenditure Management, Performance Information

Track: Financial Accounting

23

The Implementation of Micro, Small, and Medium

Enterprises Accounting in Indonesia

Amrie Firmansyah1, Amardianto Arham2, Aji Muhammad Elvin

Nor3

1,2Polytechnic of State Finance STAN,3Polytechnic of State Finance STAN

Abstract This study aims to review the implementation of the preparation of financial

statements at MSMEs in Indonesia. Financial Accounting Standards for Micro,

Small and Medium Enterprises (SAK EMKM) in Indonesia established by the

Indonesian Institute of Accountants which took effect from January 1, 2018.

This research methodology employs a qualitative approach by conducting

interviews. The object used in this study is UMKM XYZ, which has business

operations in the field of interior design. The informants used in this study are

the owners of MSMEs that run the entity's business. This study concludes that

the preparation of financial statements conducted by UMKM XYZ is still

simple, which is only related to recording revenues and expenditures on a cash

basis. Therefore, other financial statements information such as the statement

of financial position and statement of cash flow are not available. Also, UMKM

XYZ still does not recognize SAK EMKM in their accounting transactions. The

entity is constrained by payment of salaries when using employees who have

an accounting background considering the sales turnover, which is still

relatively small.

Keywords: Financial Reporting, Financial Accounting Standards, SMEs

24

Corporate Governance and Earnings Quality of ASEAN

Non Financial Industries

Ridha Mawaddati1, Zainal Arifin2, Erna Setiany3, Wiwik Utami4

1Universitas Mercu Buana,2,3,4Universitas Mercu Buana

Abstract This study aims to examine the mechanism of good corporate governance on

earnings quality. The mechanism of good corporate governance is measured

by the proportion of independent commissioners, the proportion of audit

committees, the proportion of the board of directors, and audit quality.

Discretionary Accruals (DACC) as a proxy for earnings quality. The

population of this study is TOP 50 and TOP 30 in period 2015 Non Financial

Sector ASEAN Scorecard Assessment and reports in full and published during

2014-2017. Sampling using a purposive sampling method and obtained sample

data a number of 32 companies. Methods of analysis using multiple linear

regression. Based on the results show that the proportion of the audit

committee and the proportion of the board of directors influence the quality of

earnings, while the proportion of independent commissioners and audit quality

does not affect the quality of earnings.

Keywords: Corporate governance, governance mechanism, earnings quality.

25

The Effect of Business Strategy on Tax Avoidance in

Indonesia's Consumer Goods Industry

Amrie Firmansyah1, Putra Aryotama2


Abstract This study aims to examine the relationship between business strategy and

corporate tax avoidance in Indonesia's consumer goods industry. Business

strategy is the strategy undertaken by a company to gain a competitive

advantage in a market or industry it exists in or that it chooses to enter.

Meanwhile, corporate tax avoidance is a legal reduction in corporate tax

liability. This study employs a quantitative method using linear regression

analysis and uses panel data of companies listed under the Indonesia

Consumer Goods Industry sector on IDX from 2012 to 2017. The result of this

study suggests that companies that employ prospector or defender business

strategy is positively related to tax avoidance, and that employ both business

strategies engage in more tax avoidance activities than companies that employ

analyzer business strategy.

Keywords: Business Strategy, Prospector, Defender, Analyzer, Corporate Tax Avoidance.

26

Changes in Accounting Standards and Its Impact on

Financial Statement

Asqolani1

1PKN Stan

Abstract Perusahaan Perseroan (Persero) PT. Perusahaan Listrik Negara (the

company) changed its accounting policy prospectively for the annual period

beginning on January 2016. This re-search examines and explores the effect

of such a change in accounting policy based on financial ratio and

performance. The qualitative method is implemented to understand the effect

of closely analyzing financial reporting. This study gave evidence that the

compa-ny's financial statement is to improve significantly. The effect of the

report can be used to reduce the subsidized budget and to support the

acceleration program to provide electricity in Indonesia.

Keywords: Perusahaan Listrik Negara, Accounting Policy, Financial Ratio.

27

Analysis of Financial Ratios for Businesses Owned By

State Construction Sectors Registered in Indonesia

Stock Exchange Period 2016-2018

Faisal Reza Mahendra1, Rahayu Kusumawati2

1,2State Polytechnic of Finance

Abstract As a member of G-20 countries, Indonesia is ranked 71 of 140 countries from

World Economic Forum report in 2018 for the infrastructure quality index.

For the last 4-5 years, infrastructure is the most optimized sector that urgently

built by the government. As the needs of budget for building the infrastructure,

the government asks all parties to take part, especially from State-Owned

Enterprise (SOE). Because the SOEs in infrastructure sector are the major

players, they will be spotlighted by the shareholders for their performance.

This study aims to analyze the financial performance by using commonly used

financial ratio such as liquidity ratios, capital structure ratios, assets

management efficiency ratios, profitability ratios, market value ratios. The

results of the research indicate that in 2016-2018, based on the ratios above,

the liquidity ratios indicates that all the SEOs have fluc-tuating result in

general, the capital structure ratio shows that all SEOs has get worse ratio for

every year, the efficiency assets management ratios shows that all SEOs have

stable result, the profitability ratio shows that all SEOs have better ratio, and

for the market value ratio all the SEOs have an anomaly because when EPS is

higher, the market value is lower.

Keywords: liquidity, capital structure, assets efficiency management, profitability, market value

28

The Good Corporate Governance Mechanism and

Earnings Management: Evidence from Indonesia and

Malaysia Manufacturing Companies

Wahyudi1, Erna Setiany2, Wiwik Utami3

1,2,3Universitas Mercu Buana

Abstract This study aims to provide empirical and comparative evidence on the effect of

the mechanism of good corporate governance on earnings management of both

Indonesia and Malaysia manufacturing companies. This research is a

quantitative study, with sample of listed manufacturing companies in Indonesia

and Malaysia during the period 2015 - 2017. The sampling method is

purposive sampling with 125 Indonesian firms, and 107 Malaysian firms.

Multiple linear regression is used as tools to perform data analysis. The results

of this study show that the board of commissioners' composition has a negative

effect on earnings management. While, other corporate governance

mechanisms such as, institutional ownership, managerial ownership and audit

committees shows no influence on earnings management.

Keywords: earning management, good corporate governance, institutional ownership,

managerial ownership, board of commissioners, audit commitee

29

The Effect of Competency and the Implementation of

Good Government Governance Principles on Financial

Statements Quality (Study in Ministry of Marine Affairs

and Fisheries Republic of Indonesia)

Srianto Srianto1, Erna Setiany2, Hari Setiyawati3


Abstract This study aims to analyze the influence of competency of management

accountants and the implementation of good government governance

principles to financial statements quality in Ministry of Marine Affairs and

Fisheries Republic of Indonesia. This research is a quantitative study with

primary data obtained from 92 respondents from Ministry of Marine Affairs

and Fisheries Republic of Indonesia accountant. Partial Least Square was

used as an analytical tool in this study. The results show that competency of

management accountants and the implementation of good government

governance principles significantly influence the quality of financial

statements. Therefore, improvement in competency of management

accountants is necessary to be able to contribute optimally in improving

financial statements quality by providing training and fostering an

understanding of accounting and financial statements. Thus, consistent

implementation of the principles of good government governance and

compliance to government accounting standards is an obligatory.

Keywords: Competency of Management Accountants, the Principles of Good

Government Governance and Financial Statements Quality

30

Risk-Based Internal Audit, Competence of Government

Internal Auditor (APIP), Auditor Independence of

Auditors' Capabilities in Detecting Fraud

Johan Sisco1, Erna Setiany2, Hari Setiyawati3


Abstract This study aims to examine the effect of the application of risk based internal

audit, APIP competence, auditor independence, and the auditor's ability to

detect fraud. This study uses the application of risk-based internal audit, APIP

competence, and auditor independence, because risk-based external audit is a

new approach that is trying to be applied while competency and independence

are the minimum attitudes of institutions and auditors that must be held in

carrying out their duties. Use a questionnaire to collect data for auditors

working at the National Population and Family Planning Agency (BKKBN),

Jakarta. This study uses a saturated sample as the selection of target

respondents. Namely all structural officials and auditors both domiciled at the

central or provincial representative offices, amounting to 52 people. In this

study, researchers used SPSS software applications to help process data. The

author draws the initial hypothesis that the application of risk based internal

audit, APIP competence, auditor independence, significantly and positively

influences the auditor's ability to detect fraud. This result is expected to be able

to show that agency policies related to the application of risk based internal

audit, increased auditor competence, and the independence of APIP in

carrying out the audit program succeeded in increasing the auditor's ability to

detect fraud. Future studies are expected to broaden the scope of the survey

area, and research object variables.

Keywords: Implementation of Risk-Based Internal Audit, Competence of Government Internal Oversight Apparatus, APIP, and Fraud Detection Ability.

Track: Accountability and Integrity

32

Indonesia's Anti-Corruption Policy in A Public Finance

Security Framework

Subagio1, Akhmad Solikin2

1,2PKN STAN

Abstract Corruption in Indonesia has become widespread. Since the Corruption

Eradication Commission of the Republic of Indonesia was formed and began

to be empowered in 2004 until now, the amount of corruption has not

diminished, but it has instead increased. The widespread of corruption will

hamper development and cause public financial losses. Based on Law Number

31/1999, criminal acts of corruption can be grouped into 7 (seven) types. One

of the seven types of corruption is related to public financial losses. This paper

will illustrate how anti-corruption policies can save the country's financial

losses. This anti-corruption policy consists of law enforcement and prevention

of corruption. The law enforcement policy is carried out by law enforcement

agencies so that public financial losses are returned through law enforcement

processes and trials in corruption criminal courts. In contrast, corruption

prevention policies are carried out through system improvement, frauds

control plan, the implementation of good governance, and the inculcation of

anti-corruption values for government officials and state administrators.

Keywords: anti-corruption, public finance, law enforcement, prevention

33

Wet Place, Play, and Color: Exploring Metaphors in

Explaining Corruption

Gusti Ayu Indah Ratnasari1


Abstract Due to its ability to spread, corruption is often portrayed as a virus. However,

the literature suggests that this commonly used metaphor could blind us from

understanding other corruption features. This paper fills the gap by exploring

a wider range of metaphors that are used in explaining corruption features.

This objective is achieved by conducting a case study on a tax administration

reform. In addition to semi-structured interviews and focus groups, visual

methods, which involved drawings, are used in gathering the data. The use of

images has provided an alternative way to study corruption, which has hitherto

been dominated by quantitative methods. The findings suggest different

corruption metaphors to describe: (1) the space for corruption, (2) the corrupt

act, (3) the actors, and (4) the link between the reform and corruption. Through

the metaphors, this paper confirms the hierarchy of corruption in an

organization and the enjoyment attribute of corrupt acts. It is found that the

metaphors describe not only the individual behavior but also attitude towards

corruption. Additionally, the metaphors are used to show that the reform has

reduced employees' engagement in corruption. However, considering its

characteristics (as described through the metaphors and images), corruption

may still become a threat.

Keywords: corruption, qualitative, tax reform, visual method,

34

Ethics and Tax Evasion: Is It Ethical not to Pay Taxes in

a Corrupt Country?

Dyah Purwanti1, Nurhidayati2

1,2PKN STAN

Abstract Indonesia is a country with increasing levels of corruption and perpetrators of

the cases extending to local officials. This condition has been going on for the

past two decades. In addition, tax compliance in the same time frame is also

low. Therefore, it is very urgent to investigate how perceptions of avoiding

taxes in a corrupt environment continue to increase. To achieve this goal, we

used a questionnaire instrument distributed to respondents. To synthesize the

questionnaire, we applied principal component analysis. The results indicate

that respondents' perceptions of tax avoidance are grouped into 3 consisting

of first, the perception that tax avoidance is ethical when the tax system is

unfair and the government behaves unfairly. Second, tax avoidance is ethical

when taxpayers do not get definitive benefits from tax payments. Third,

generally everyone tends to avoid taxes because the respondent considers

avoiding taxes to be ethical even though tax rates are low. To sum up, our

respondents agreed that tax evasion was ethical.

Keywords: Tax ethics, tax evasion, corruption

35

Track: Accounting Information System

36

Core System Functionality Assessment of Integrated

Financial Management Information System (IFMIS) in

Indonesia as a Tool of Government Financial

Management

Iskandar1, Azas Mabrur2


Abstract This paper aimed to assess the Core System Functionality of the Integrated

Financial Management Information Systems (IFMIS) in Indonesia (called

Sistem Perbendaharaan dan Anggaran Negara/SPAN) as a tool of

public/government financial management. The method used adopted the

Diagnostic Framework developed by (Hashim andamp; Piatti, 2016) on the

Core Functionality feature. This included issues relating to budget

management, commitment management, payment management, and related

control, payroll payments, debt service payments, and fiscal transfers or

subsidies. The maximum score in this category is 40, consisting of 16 questions

that can be categorized into 6 aspects of assessment. Assessment results, the

capacity of SPAN's core functionality as a government financial management

tool scores 39 from a total score of 40. This score is 4 points higher than the

results of the core functionality assessment conducted by Hashim andamp;

Piatti (2016)

Keywords: IFMIS, SPAN, PFM

37

Exploring the importance and implementation of

COBIT Processes in Inspectorate General of Ministry of

Finance in Indonesia

Almatius Setya Marsudi1, Yohanes Beato Dionisius2

1Atma Jaya Catholic University, 2Inspectorate General of Ministry of Finance

Abstract This research intends to understand IT governance process at the Inspectorate

General of Ministry of Finance based on existing COBIT framework at the

moment and to understand maturity level based on COBIT framework. This

research is expected to provide benefit particularly to the Inspectorate General

of Ministry of Finance as a consideration in evaluating IT governance as part

of good governance implementation. This research is qualitative in nature by

using interview, observation, and documentation methods to assess processes

of 4 domains of COBIT 4.1-based Maturity Level standards. Overall the IT

Governance in the Inspectorate General of Ministry of Finance receives the

level of 2.23 in which 34 IT processes are considered in the organizational

units

Keywords: IT governance, COBIT 4.1, Maturity level, Inspectorate General of Ministry

of Finance.

38

Theory of Constraints: Public Sector Services for

Treasury Documents

Rani Gutomo1, Ali Tafriji Biswan2

1Directorate General of Treasury,2PKN STAN

Abstract It is important for every organization to know the obstacles being faced.

Sufficient understanding of the constraints that limit performance will make it

easier for organizations to develop improvement strategies. This research was

conducted in order to explain the phenomenon of queue buildup in the SPM

reception service at KPPN Curup. The results of this study show that based on

Theory of Constraint, KPPN Curup need to add the number of staff to handle

treasury document services. KPPN Curup can also try other alternatives by

appointing andquot;additionalandquot; Conversion FO Officers who are

tasked with opening additional counters and receiving PM from Satker on busy

dates, and dividing the SPM delivery time in accordance with the Satker code

group (odd-even).

Keywords: constraints, Theory of Constraint, SPM

Track: Auditing and Assurance

40

Analysis of Audit Tenure Limitation Policy for Public

Accounting Firms in Indonesia

Erly Suharly1, Agung Nugroho2

1Ministry of Finance,2STAN State Finance Polytechnic, Ministry Of Finance

Abstract The policy of limiting audit tenure for Public Accounting Firms which then

creates audit rotation obligations aimed at improving audit independence and

quality. The main objective of this research is to make contribution to the

regulators in Indonesia whether to abolish the audit tenure restriction policy

or to re-implement it. Qualitative studies are employed to gather perceptions

of parties related to policies, as well as to collect data on the practice of audit

rotation and audit tenure that occurred in Indonesia between 2009 and 2017

fiscal year. As a result, the adoption of the audit tenure restriction policy has

several impacts such as the practice of pseudo rotation and creating more

expensive audit costs when a rotation occurs. Considering the impacts, as well

as the comparison of policy practices when they were implemented and when

they have now been abolished, the abolition of the audit tenure restriction

policy for public accounting firms that has been imposed by the regulator is

now a better choice.

Keywords: audit quality, audit tenure, regulator policy, audit rotation

41

Track: Corporate Sustainability

42

Fifteen Years Public Service Agency in Indonesia:

Developments and Problems

Praptono Djunedi1, Joko Sumantri2

1Fiscal Policy Agency,2Polytechnic of State Finance STAN

Abstract The problem of developing BLU sequentially, the biggest starts from the

elements of BLU financial management, BLU governance, and the quality of

human resources. A number of regulations that have been issued by the

government are acknowledged to help optimize BLU revenues, however, the

government is expected to be more detailed and better regulate a number of

regulations on BLU

Keywords: Public Service Agency, developments, problems

43

Analysis of the Effect of State Equity Participation and

Divestment on Government's Share of Income on Profit

of State-Owned Enterprises: Evidence from Indonesia

Riya Dwi Handaka1, Ilham Akbar2

1Polytechnic of State Finance STAN,2Directorate General of Treasury

Abstract At the end of 2016, the Indonesian government improved regulations regarding

the administration of State Capital in State-Owned Enterprises (SOEs) to

strengthen institutions and work mechanisms. This study discusses the change

in state capital through the State Equity Participation (PMN) and Divestment

on its impact on contributions in the form of government revenue from SOEs'

future profits. This quantitative research was conducted using the panel data

regression method, with SOEs receiving PMN and divestment as research

objects. The results showed that the simultaneous addition of capital through

PMNs and divestment had a significant effect on the government's share of

income on SOEs' profits. However, only partially the divestment had a

significant positive effect on the government's share of income on SOE's

profits.

Keywords: SOEs, State Equity Participation, Divestment, Dividend.

44

Track: Public and Corporate Finance

45

The Effect of Central Government Spending on

Economic Function to Investment in Indonesia

Danan Peri Sandria1, Agung Dinarjito2


Abstract The Indonesian government has carried out various policies in order to

increase investment in Indonesia. One of the policies carried out by the

government is by spending on sectors that can attract investor interest. This

study aims to determine the effect given by the spending of Ministries/Agencies

on economic function in the transportation sector; agriculture, forestry,

fisheries and marine sector; and the watering sector towards investment in

Indonesia for the period 2005 to 2017. The analytical method used is

regression analysis with a cointegrated Au-toregressive Distributed Lag

approach. In the long term, partially, Ministries/Agencies spend-ing in the

transportation sector has a positive effect on Foreign Direct Investment and

Domes-tic Investment, while Ministries/Agencies spending in the agriculture,

forestry, fisheries, and marine sectors, partially, has a positive effect only on

Foreign Direct Investment. The results showed that Ministries/Agencies

spending in the three sectors, simultaneously, had a positive effect on Foreign

Direct Investment and Domestic Investment. So, the policy implication that can

be implemented is to increase Ministries/Agencies spending allocations in the

three sec-tors in order to increase investment both Foreign Direct Investment

and Domestic Investment in Indonesia.

Keywords: Government Spending, Foreign Direct Investment, Domestic Investment

46

Feasibility of Financing Higher Education in Indonesia

David Syam Budi Bakroh1, Budi Mulyana2

1,2PKN STAN, MoF Indonesia

Abstract It is common abroad that bringing commercial bank to finance higher

education is an alternative for the Government when they have limited fiscal

space. On April 2018, The President of Indonesia encouraged banking sectors

to be involved and provided student loan. This conceptual paper, explores

Indonesia experience and lesson learned from other countries of how they set

policy on student loan either under ML or ICL scheme. Also, it provides a

foundation for subsequent empirical research to evaluate what scheme is best

for Indonesia. In addition, repayment burden as the consequence of loan

repayment could disrupt consumptions smoothing in the future. In worst case,

the disposable income could below the poverty line. Despite of decreasing

trend on government contribution, student loan could be a way out so that the

Government may provide an access for inclusive student participation

especially on tertiary education.

Keywords: student loan, ML, ICL, financing, education

47

The Efficiency of Government Health Spending: The

Case of Papua Province Indonesia In 2016

Fatimatus Firda Qomarayanti1, Akhmad Solikin2

1Fiscal Policy Agency, Ministry of Finance,2Poliytechnic of State Finance STAN

Abstract Indonesia aspires to achieve sustainable development goals including health-

related goals. The strategy includes mandated that a minimum of 5 percent of

the national budget and 10 percent of provincial/local budget should be

allocated for health expenditure. However, health performances for several

provincial/local governments are disappointing probably due to inefficiency in

its use. This research measures the budget efficiency of each district/city in the

Province of Papua, Indonesia, by using the Data Envelopment Analysis (DEA)

for the 2016 budget data. The input variable is health expenditure per

district/city; the intermediate output variables are the number of health staff,

health centers, and maternal and child centers per 100,000 people; and the

outcome variables are life expectancy, percentage of stunting, and percentage

of undernutrition. The results show that inefficiencies are observed in Papua

Province especially in translating budget expenditure to intermediate outputs

rather than from provisioning intermediate outputs to achieve health

outcomes. However, negative returns to scales indicate that the government

should also consider other issues such as topographic and safety to improve

the efficiency of health expenditures.

Keywords: Budget efficiency, Data envelopment analysis, Health expenditure, Health coutcome

48

Analysis of Factors Affecting the Construction Service

Procurements Performance in Indonesia

Muhammad Heru Akhmadi1, Rodhie Febrian2

1Polytechnic of State Finance STAN,2Ministry Of Finance

Abstract The delay in procurements of government goods and services is one of the

problems in completing infrastructure development in Indonesia. This study

aims to determine factors and indicators affecting government construction

service procurements performance by using factor analysis techniques. This

study uses quantitative methods with the data de-rived from 112 respondents

from executive position of the technical procurement of goods and services in

the Ministry of Finance. The results indicate that there are three main factors

determining the procurements performance of government construction ser-

vice such as procurement planning, complexity of procurement system, and

organizational support. Statistical results show that electronic procurement is

not a significant variable to influence procurement performance so that it is

embedded with other variables.

Keywords: procurement performance, government finance, construction services

49

Financial Issues in Indonesian National Health

Insurance Program

Dinil Asyrofi1, I Gede Agus Ariutama2

1Directorate General of Budget,2Polytechnic of State Finance STAN

Abstract The Healthcare Social Security Agency (BPJS Kesehatan) was established to

implement national health insurance (JKN). As mandated by PP No. 87/2013,

BPJS Kesehatan manages two types of assets carried out separately, namely

BPJS Kesehatan Assets and Health Social Security Fund (DJSK) Assets with

the latest posed a more problematic financial issues, specifically financial

deficit. Thus, the research focuses on the deficit occurred in the DJSK. This

study employs qualitative case study by interviewing several parties related

with the funding of JKN program. The results indicated that the factors causing

the deficit include inappropriate structure of contribution-benefit scheme,

adverse selection, and insurance effect. The contribution of this study is the

deepening of the factors causing DJSK deficit so that the government can

anticipate their effects on state budget which will truthfully reduce central

government fiscal burden.

Keywords: BPJS Kesehatan, Universal Health Coverage, Fiscal burden, DJSK deficit

50

Valuation of Standard Chartered Tower Building in

Indonesia (Income Approach)

Doni Triono1

1PKN STAN

Abstract Valuation is a systematic process carried out to provide a value opinion on an

asset or property. The systematic process is built on the theory and standards

to produce an opinion of value that can be trusted. The systematic process

also regulates the procedures for carrying out the valuation in detail. This

valuation is carried out using the income approach. The income approach was

chosen because the property being valued is a property that generates income.

The method used is the Discounted Cash Flow (DCF) method. The DCF

concept is to assess the full potential of future property net income. The biggest

challenge in the DCF method is to make projections of future revenues and

costs, determine the amount of the discount rate, and determine the

capitalization rate. The purpose of this valuation is to determine the market

value for buying and selling. Data on revenues and costs are obtained from the

financial statements of the building management company, RDTX Group (PT

Chitatex Peni). The valuation date is set on May 24, 2019. Based on the

valuation results, the market value of the Standard Chartered Tower Building

is obtained at IDR 1,126,970,000,000.00 (one trillion one hundred twenty-six

billion nine hundred seventy million rupiahs).

Keywords: Valuation, Income Approach, Discounted Cash Flow, Real-Estate

51

Effect of Government Debt (External Debt Stock,

Internal Debt, and Debt Servicing) on Economic Growth

(Case of Indonesia Year 2000-2015)

Raynal Yasni1, Irfan Mufti2


Abstract The purpose of this paper is to investigate the impact of government debt on

economic growth in Indonesia by assessing individual effects caused by

domestic debt, foreign debt, and principal and interest expenditure, on

economic growth proxied through Gross Do-mestic Product (GDP). This

research is expected to contribute as a supporting tool for the government in

debt management in order to create positive leverage for economic growth and

as a support for further research on the effect of debt on future economic

growth.

Keywords: External Debt Stock, Internal Debt Stock, Debt Servicing, Economic Growth

52

Analysis of Determinants of Success in Land Acquisition

for Central Java Power Plant Public-Private Partnership

Project (2 x 1000 MW)

Maman Suhendra1, Oktaviana Safitri2

1,2State Finance Polytechnic STAN

Abstract One of the biggest challenges in infrastructure project development in

Indonesia is the problem of land acquisition. Constrained land acquisition can

result in delays in development and acquisition of project funding. This study

aims to identify the critical success factors of land acquisition of an

infrastructure project from the perspective of the PJPK, Business Entity, and

other stakeholders with a case study on the construction of the Central Java

Power Plant (2x1000 MW). The study used qualitative research methods

through semi-structured interviews and triangulation. There are 5 (five) main

factors for land acquisition success, namely, Coordination and Commitment,

The existence of the Land Law, Intensive Communication, Special Work Team

Existence, and Improving Regulations and Relevant Policies.

Keywords: Land acquisition, power plant, determinants

53

Effect of ICT Adoption on Small and Medium

Enterprise Establishments: Evidence from Indonesia's

Provincial Data

Akhmad Solikin1, Subagio2


Abstract This article aims at investigating the role of information and communication

technology on promoting small and medium enterprise establishments. Micro,

small and medium enterprises are important for providing jobs in Indonesia,

especially in the time when formal sector economy decreases their

recruitments. This study uses panel data regression, covering period of 2010-

2015 of provincial data in Indonesia. By using provincial data, this study

focuses on external factors pertinent to small and micro enterprises

development rather than personal and intra-firms characteristics. The results

show that information and communication technology, measured by

percentage of population with cellular phone, owning computer, and access to

the internet is significant predictor for small and medium enterprise

establishments. In addition, gross domestic regional product per capita is also

a significant predictor for small and medium enterprise establishments. Based

on the results, recommendations for government are then outlined.

Keywords: Economic growth, Entrepreneurship, Information and communication

technology, Small and medium enterprises

54

The Effect of Central Government Spending on Public

Services, Defense, Health, Education, Economic, and

Social Protection Function to Economic Growth

Agung Dinarjito1, Andita Wulandari Kusumaningtyas2


Abstract One of the goals of the state budget is to encourage economic growth to

improve people's welfare. To facilitate the achievement of these objectives,

state expenditure is grouped according to the spending function. This study

aims to determine whether spending on public services, defense, health,

education, economic, and social protection functions influence economic

growth. This study is a quantitative study that was analyzed using the Vector

Error Correction Model (VECM). The results of the study show that in the long

run, except spending on economic functions influences economic growth.

whereas in the short term, aside from social spending and public services, it

affects economic growth.

Keywords: Government spending; economic growth

55

The Role of Monetary Policy for Supporting Foreign

Direct Investment Inflows in Indonesia (Evidence from

2000.1-2019.1)

Sri Murwani1, Agus Sriyanto2, Nur Indah Lestari3

1,2,3Politeknik Keuangan Negara STAN

Abstract The background of this research was the condition of foreign direct investment

in Indonesia. The contribution is still relatively low to the growth rate of

Indonesian economic. With the Taylor Rule model, the analysis of monetary

policy was done to decide the choice of policy which one was the right one

relating to increasing the role of foreign investment. Based on impulse

response and variance decomposition analysis, we found that the fluctuation

of interest rate was the most influence on the foreign investment beside

inflation rate, exchange rate, and FDI itself. So that the interest rule which

decides to the targeted interest rate as the final target policy is the most

favorable policy that supports the role of Foreign Direct Investment in

Indonesia.

Keywords: Foreign Direct Investment, Monetary Policy, Interest Rate Targeting

56

REGIONAL ECONOMIC ANALYSIS OF BANTEN

PROVINCE IN 2011 - 2016

Indrayansyah Nur1, Budi Susilo2, Muhadi Prabowo3

1Politechnic of Finance State STAN,2,3Polytechnic of State Finance STAN

Abstract ABSTRACT: The regional economy requires a different approach from the

national eco-nomic approach. Where the characteristics of the area become

an important thing in the analysis. The development of the regional economy

has become an interesting study after the enactment of the Regional Autonomy

Law, one of which is the division of regions. Banten, as a new province, is very

interesting to study. Related to which sector is the lead-ing sector, which is

needed as a policy priority direction in development in Banten prov-ince. This

study uses the sectoral analysis approach Klassen Typology which is used to

answer which sectors are superior by photographing advanced sectors and

then comparing with national regions. The results showed that the leading

sector was the water supply sec-tor, the wholesale trade sector, the financial

services sector and the real estate sector. These sectors are the priority and

are expected to spur other sectors. The construction sec-tor and education

services need to be pushed into a developed sector. Also, it is necessary to

analyze regional growth using the Location Quotient (LQ) analysis which is

also a re-gional growth analysis tool.

Keywords: regional economy,Klassen Typology, Location Quotient (LQ)

57

Government Guarantee Probability of Default for

Infrastructure Project in Indonesia: A Monte Carlo

Analysis

Eko Nur Surachman1, Rizal Mahendra2

1Polytechnic of State Finance STAN,2Directorate of State Finance Risk Management

Abstract The study aims to measure the probability of default of the government

guarantee for infra-structure project from the State Owned Enterprise

Assignment scheme. This study uses the Trans Sumatera Toll Road-Palembang

Indralaya Section as a study case. Methodology used in this research is

quantitative approach with financial model simulation using Monte Carlo

analysis. The results are, the probability of default are extremely high in the

medium and high risk profile, namely 84% and 99% respectively. While in the

low risk profile, the fig-ure is relatively small namely 38%, hence it is

considerable to be managed.

Keywords: road infrastructure, government guarantee, probability of default, risk

management

Track: Forensic Accounting

59

The Roles of Forensic Accountant to Assist Uncovering

Corruption Case

Sopian1

1PKN STAN

Abstract Forensic Accountants have two significant roles in their involvement to assist

uncovering corruption cases. The first is as an expert witness and second one

is as an audit investigator. The forensic accountant will be required to issue

an opinion regarding a particular corruption case for which he or she is not

involved in the process of investigation. The opinion given must be based on

sufficient, relevant and competent evidences. The forensic accountants who

assigned as an investigator will search, find and collect facts that were

obtained during the investigation audit process. During the investigation

process, forensic accountants are prohibited from issuing opinions. Forensic

accountants who issue opinions during the investigation process will disrupt

their objectivity and affect the results or conclusions of the investigation.

Keywords: expert witness, investigation, corruption

60

Track: Management Accounting

61

The Effect of Audit Quality and Self-Assessment

Corporate Governance Mechanism to Banking Earning

Management in Indonesia

Heri Sukendar Wong1

1Binus University, Jakarta, Indonesia

Abstract The purpose of this study is to examine the effect of audit quality and self-

assessment of corporate governance mechanism on banking earnings

management.The audit quality is proxied by the Public Accounting Firm size

(Big four and non-big four) while corporate governance is proxied by the

corporate governance index reported by the bank. This study used secondary

data from the financial statement of listed bank companies in Indonesia Stock

Exchange in 2013-2015 and resulted in 34 firm observations. The technique

for examining the hypothesis is multiple regression analysis using Eview 7.0

program. The result showed that all independent variables simultaneously

affect earning management and can explain the dependent variables of 6.15%

and the rest explained by other variables outside the model. The result

indicates that big four auditor and self assessment corporate governance

mechanism does not significantly influence the banking earnings management.

Keywords: Audit Quality; earnings management, corporate governance; banking; self-assessment.

62

Track: Public and Corporate Governance

63

Learning Impact Measurement by Linking Competency

Gap and Performance at Public Sector (Case Study:

MoF, Indonesia)

David Syam Budi Bakroh1, Kusmono2

1,2PKN STAN, MoF

Abstract This paper aims to provide a preliminary finding on evidence-based policy

evaluation. The evaluation will use some applied micro econometric tools to

measure the impact of Corporate University and Knowledge Management

initiatives made by MoF in 2017. The findings provide an insight of how a

golden standard of impact evaluation can be done. We found that training has

a positive and significant impact to individual performance, and individual

performance also has positive and significant impact to organizational

performance. Both of these impacts' predictions seem to be overestimate for

survey data with Likert scale. It means, the subsequent research better to

eliminate the subjective and selection bias, also collect as much as eligible

respondent. The 4 th level of Kirkpatrick impact evaluation could be measured

with RCT, or any causality methods. We hope this research could give a second

opinion to Minister of Finance about the continuity of Corporate University

strategy before it scaling up to other line ministries.

Keywords: corporate university, impact evaluation

64

Analysis of Government Office Space Planning on

Organizational Productivity (Case Study at the Jakarta

Pesanggrahan Tax Service Office)

Faiza Husna Fajriyani1, Trisulo2

1,2STAN State Financial Polytechnic, Jakarta

Abstract The effectiveness and efficiency of workspace is a consideration for

government and private work units with adequate management positively

correlated to employee productivity. During planning, the Need for State

Property (BMN) is not separated from the implementation of Strategic Asset

Management. Therefore, BMN management is expected to be integrated with

the duties and functions of Ministries/Institutions. Government agencies use

APBN/APBD funding sources to determine their minimum limits for

workspace. Furthermore, BMN integrated with the budgeting system is

expected to increase the effectiveness, efficiency, and optimization of the state

budget. However, no correlation was obtained from office space planning

based on the existing regulations on organizational productivity.

Keywords: Efficient, Effective, Standard Requirements for BMN

65

Contingent Liabilities from Government Guarantee on

SOE's Assignment: Issues and Practice from the Fast

Track Program Phase 1

Dian Handayani1, Anisa Ayufitria Damayanti2


Abstract The purpose of this study is to identify and assess issues in government

guarantee from special assignment to SOE in order to accelerate

infrastructure development. Such assign-ment will elicit potential fiscal risk

and contingent liability in State finance. The FTP I case study is selected since

it reflects where the GoI starts to shift the implicit guarantee of SOE to explicit

guarantee. The findings show that the guarantee program on FTP I was lack

of broad government guarantee and risk management framework as well as

thorough analysis and check-and-balance mechanism to examine fiscal

implications of contingent debts. Co-ordination within line ministries is

necessary with the emphasis of MoF multiple roles in keeping fiscal

sustainability.

Keywords: government guarantee, contingent liabilities, fiscal risk

66

Conceptual Framework for Blended Financing Scheme:

Public-Private Partnership and Indonesia Sovereign

Sukuk

Dian Handayani1, Eko Nur Surachman2


Abstract To exert every resource in order to achieve inclusive growth and leave no one

behind is the world agenda and shared goals under Sustainable Development

Goals. Blended finance scheme is becoming a vital instrument, and the

Government of Indonesia has every re-serve to play a more significant role in

the scheme by combining PPP for provision of infrastructure asset and public

services, then applying Sovereign Project-based Sukuk for Viability Gap Fund

or Availability Payment mechanism as productive government spending. The

proposed scheme is expected to improve the quality of project financing

through the issuance of Sovereign Sukuk as government expenditure in the

context of providing support for PPP projects. Hence, as a conceptual

framework, several factors need to be considered, including the appropriate

Sukuk Islamic structure, the pricing, and the sustainability of Sukuk issuance.

To the best of authors' knowledge, all of the factors are already in place.

Keywords: blended financing, PPP, sovereign Sukuk

Analysis of The Effect of Fiscal Incentive and IFRS

Adoption on FDI in Asia's Developing Countries

Rahadi Nugroho1, Eka Yuda Riyanto2

1PKN STAN,2DG Taxes MOF

Abstract This study aim to investigate the effect of fiscal incentive and IFRS adoption

on FDI in developing countries in Asia. Using panel data from 2006-2016, the

result shows that tax incentive has significant effect on FDI. On the other hand,

IFRS adoption has not significant impact on FDI.

Keywords: fiscal, incentive, IFRS, FDI, tax

68

A Case study in Indonesia: Appropriate Taxation

Policies for Government Public Health Service Agency

Joko Sumantri1, Budi Mulyana2


Abstract Using descriptive qualitative research methods with interpretative legal

paradigm analysis methods on taxation of PNBP (Non-Tax State Revenue)

Hospital Services at the Government BLU (Public Service Agency) in the

research results as follows: 1) there are differences in meaning between the

State Treasury Accounts and BLU accounts in relation to exemptions as tax

subjects, 2) taxation of PNBP Government Hospitals obscures the meaning of

BLU exemptions as tax subjects, and 3) the practice of withholding Article 21

Income Tax for doctors who practice in clinics/hospitals causes excess tax

deductions.

Keywords: State Treasury Accounts, BLU Accounts, Hospital PNBP, Tax Subject

Exemptions

69

Track: Public Sector Accounting

70

Emancipating Homo Pancasilaus Principles for

Resolving Obfuscation of Housing Procurement Policy

Resi Ariyasa Qadri1, Edy Gunawan2, Achmad Zikrulah3

1Polytechnic of State Finance STAN,2,3Ministry of Finance

Abstract An interesting notice from the local Ministry of Finance unit in Mamuju, West

Sulawesi had invoked me to pay more attention to the notice. It said that the

local unit requested a consent to apply the buy-directly-from-developer method

for official house procurement. There is an idiom in the world of Indonesia

public housing: buy thou house, continue thy dream, thou hast only thyself to

blame. The paper proposes a way to ravel the conundrum by liberating the

principle of Pancasila to design procurement policy in public housing.

Keywords: House Procurement, Pancasila, Storytelling Method, Dialogic Approach

71

Modeling and Projections of Cash and Investment in

The Public Health Service Agency of Kulon Progo Using

Arima in 2030

Hilda Octavana Siregar1, Faridiah Aghadiati Fajri2

1,2Gadjah Mada University

Abstract Cash and investment are two factors that can increase the financial

independence of Public Health Service Agencies. This study aims to create a

cash and investment model in 2030 in the Public Health Service Agencies in

Kulon Progo. Financial independence in health institutions is measured by the

cost recovery rate. This research is applied research to implement the Public

Health Service Agencies Act. The data used in this study were the financial

statements of all Public Health Service Agencies in Kulon Progo. The method

used in this research was quantitative with the Auto-Regressive Integrated

Moving Average (ARIMA) method in determining the model and projection of

cash, investment and cost recovery rates; and descriptive regression statistical

methods to determine the relationship between cash and investment with

financial independence. The results of this study indicate that the average cash

was Rp 170,439,100, investment was Rp92,313,897,00 and financial

independence ratio was 196% in 2030 and there was a positive correlation

between cash and investment with a cost recovery rate. The results of this study

can contribute to the Public Health Service Agencies in particular and Kulon

Progo Regency in general.

Keywords: Public Health Service Agencies, cash projection, investment projection, cost recovery rate, ARIMA

72

Track: Taxation And Customs

73

Impact Analysis of Raw Rattan Export Prohibition

Marsanto Adi Nurcahyo1


Abstract This study aims to analyze the impact of the rules on the prohibition of raw

rattan exports. Since January 1, 2012, according to Minister of Trade

Regulation 35/2011, raw rattan and semi-finished are prohibited for export.

This research was conducted in Central and South Kalimantan to assess the

impact experienced by rattan farmers. The study used a qualitative method

with interviews conducted during the period from February to July 2019. The

results showed that there were negative impacts experienced by rattan farmers

as a result of the prohibition on the export of raw and semi-finished rattan. The

impact is in the form of a decrease in the enthusiasm of farmers because the

price of raw rattan is not proportional to the costs incurred. The implication

of this research is to be a driving force for the Government to take concrete

and strategic steps by issuing regulations that can increase the price and

demand for rattan and be able to benefit all parties in the rattan industry.

Keywords: rattan, exports, Kalimantan, Indonesia

74

Morality in Upholding Tax Law

Kusmono1, Susi Zulvina2


Abstract Morality is an agreed basic norm, believed to be true as a guideline for

peaceful community life in a certain time and region, as well as the existence

of sanctions for violators in the form of social sanctions. Legal

subjects/business entities that put integrity and professionalism as corporate

values, their reputation will crumple in the community if they violate morality

in their way of business. Morality is made as a basic norm of foothold or the

highest (Grund Norm) by written legal norms that are tiered below. Legal

norms of a lower level must not conflict with higher-level legal norms

Keywords: morality, tax, law

75

Benford's Law Users, Beware! An Assessment of The

Suitability of Benford's Law in Value-Added Tax Fraud

Detection in Indonesia

Kristian Agung Prasetyo1


Abstract One of the widely used tool in forensic accounting is Benford's law. This law

states that the probability of number 1 appearing as the first digit of a naturally

occurring number is 30%, ra-ther than 11% as commonly believed. Although

Benford's law has found applications in vari-ous fields, in the case of Value

Added Tax (VAT) in Indonesia, the literature is relatively si-lent. This paper is

aimed at filling this gap. For this purpose, 655 records containing both

fraudulent and otherwise transactions reported in VAT returns. This paper

shows that Ben-ford's analysis is inaccurate to detect frauds. Thus, the use of

this tool to assess the accuracy of tax invoices for VAT purposes should be

viewed with caution.

Keywords: tax, compliance, evasion, VAT, Benford's Law

76

Foreign Subsidiaries in The Consolidated Financial

Report: Indonesian Tax Perspective

Asqolani1

1STAN

Abstract There have been significant developments in consolidation concepts and their

financial reporting requirement. The requirement to present consolidated

financial statements should be done by multinational companies that have

control other entities. A study of subsidiaries of multinational companies in

low tax countries concluded that their profit rate reached almost twice of their

global group indicated that Base Erosion Profit Shifting (BEPS) can cause

economic distortions. This research examines consolidated financial re-

porting that has foreign subsidiaries for tax purposes. The qualitative method

is imple-mented to understand phenomenon of BEPS by closely analyzing

financial reporting. This study gave evidence supporting the view that

consolidated financial reporting can be used to (i) identify the level of control,

(ii) identify transfer pricing and BEPS risk assessments using Country by

Country Reporting, and (iii) enact Controlled Foreign Company (CFC) Rule

to increase tax revenue and to prevent inappropriate shifting income.

Keywords: Consolidated financial statement, Base Erosion Profit Shifting (BEPS),

Country by Country Reporting, Controlled Foreign Company (CFC)

77

Importance of Clarity Definition of Tax Objects: Case

Study of Building Tax Court Decisions on Tax

Provisions

Marsono1, Hanik Susilawati Muamarah2

1,2Polytechnic State of Finance STAN

Abstract In taxation, defining a tax object is a crucial thing. The tax object will

determine the type of tax and tax rate. The definition of a tax object must be

regulated in the tax provisions. This study uses a case study method for the

decision of the tax court in seeing the importance of one definition of a tax

object, in this case, the building. The difference in the interpretation of the

definition of building causes taxpayers to take a definition that has smaller tax

consequences

Keywords: Tax objects definition, case study, tax court decisions

78

Application of Government Regulation Number 23 of

2018 and Compliance of UMKM Taxpayers

Agus Bandiyono1, Muhammad Ariq Khosyi2

1,2Politeknik Keuangan Negara STAN

Abstract The current regulations governing MSME taxation are Government

Regulation No. 23 of 2018 as a reformer of the previous policy. Because of

these changes, there have been several policy changes in the implementation

of UMKM tax activities such as the tariff policy from 1% to 0.5%, the time

policy in the utilization of the 0.5% tariff, and other policies. This research

wants to see whether the new regulation is intended by the government as a

method to increase MSME taxpayers' interest in carrying out their taxation

activities better? The results of this study reveal that taxpayers who use the

final PPh rate of 0.5% continue to get supervision from the relevant KPP to

avoid tax evasion, especially for taxpayers whose turnover has exceeded Rp.

4.8 billion or that taxpayers can no longer be categorized according to PP 23

/ 2018.

Keywords: Income tax, UMKM, Taxpayer Compliance, Taxation

79

A Proposal to Amend ECI Taxation in Indonesia

A Ragil Kuncoro1, Novie Shitta Devie2


Abstract One tool to reduce profit shifting is to apply taxation on effectively connected

income (Kelley, et al. 2016). Simply put, tax objects that meet the criteria of

the effectively con-nected rule will be treated as effectively connected income

(ECI) and taxed. Indonesia has ECI taxation rules contained in Article 5

paragraph (1) letter c of the Income Tax Act. Us-ing a qualitative approach,

We conducted a literature review to discuss the ECI taxation rules in

Indonesia. This research shows that tax regulations in Indonesia do not

provide clear criteria for effectively connected income. Therefore, as a

suggestion, the Indonesian tax authority should improve the ECI taxation

provisions.

Keywords: ECI, effectively connected rule, effectively connected income, profit shifting,

taxation

The efficacy of joining Asia Region Fund Passport:

Taxation Challenges for Indonesia

Benny Gunawan Ardiansyah1, Vita Apriliasari2

1,2PKN STAN, Ministry of Finance

Abstract Indonesia's financial markets was still shallow and badly needed the financial

deepening. This is the one of the problem for Indonesian economic even though

the size of economics is very attractive to the global financial markets. Joining

the multilateral regional cooperation, for example Asia Region Fund Passport,

is not so easy. Specially, the tax settlements among countries considering the

tax sovereignity. This paper try to elaborate the tax treatment between the

AFRP participants, regarding the international taxation issues related to

cross-border mutual fund trade. The study will scrutinize the mutual-fund

market and the tax treatment of mutual-fund in Indonesia. Then, we complete

it with the comparation to those of the current AFRP participants. The

differences in tax treatment among those countries could be hard to settle the

agreement. Some countries had adjusted the tax regulation. Most of that

country still retained the existing tax regulation, including Indonesia. With the

existing tax treatment, Indonesia could have big problem if utilizing the option

to join the ARFP. Indonesia's tax regulation create uneven level of playing

field with the competitors, both for investor domestic and particularly,

domestic mutual-fund industry.

Keywords: financial deepening, ARFP, tax treatment, mutual fund

81

Measuring Possibilities of Full Self-Assessment System

Implementation in Land and Building Tax: Evidence

from Indonesia

Lukas Abiyoso1, Hanik Susilawati Muamarah2


Abstract Indonesia's plan to implement a self-assessment that gives taxpayers the

authority to calculate land and building tax in the forestry, plantation, mining

and other sectors themselves is a big change after more than 30 years

Indonesia uses a semi self-assessment system or better known as

andquot;official assessmentandquot;. When viewed from its application, there

are pros and cons to the implementation of self-assessment in various countries

and only a few countries apply full self-assessment. Therefore this study aims

to compare the current system with the full self-assessment system that will be

applied and identify problems that might arise in Indonesia using qualitative

methods. The focus of research is in the Regional Tax Office of East Java III.

From the research conducted, the semi self-assessment system is considered as

a system that has a fairly high certainty, has a lower compliance cost and has

a higher tax collection fees. The full self-assessment system is considered to

have lower collection fees, more transparency but has high compliance costs.

In the full self-assessment system, there are three main problems identified,

that is low compliance rates, high compliance costs and high potential

disputes.

Keywords: Self-assessment, Land and Building Tax, compliance cost, dispute

82

Strengthening Coordination Between The Government

Agencies to Fight Against Narcotic and Psycothropics In

Cross-Border Area

Akhmad Firdiansyah1, Joko Sumantri2

1,2PKN STAN

Abstract Monitoring of the entry of narcotic and psychotropics through cross border

areas needs to be done after the Directorate General of Customs and Excise

(DGCE) catches drugs trafficker through crossing-border area in Tembilahan

while never case drugs smuggling detected before. The problem in the cross-

border area in Indonesia is a vast area of supervision and limited

infrastructure, budgets, the existence of sectoral egos among government

agency and unclear rules and authority at cross-border areas can reduce the

implementation of drug eradication through smuggling at cross-border area.

Coordination and cooperation between government agencies in the cross-

border area can be more effective to eliminate illicit drug traffickers. The

action plan program for straightening coordination among government

agencies through the cross-border area are joint operations, harmonization of

required documentation, recognizing mutual control, and maintenance of

shared infrastructure. With good coordination, it will be troublesome for drug

traffickers to trick the government agencies to fight against narcotics and

psychotropics in the cross-border area.

Keywords: Coordination, Government Agencies, Cross-border area

83

Improving E-commerce Tax Voluntary Compliance

Behavior: An Integrated Behavioral Model Approach

Acwin Hendra Saputra1


Abstract This study mapped the behavior patterns of e-commerce sector business actors

in carrying out tax obligations. The voluntary compliance of business actors

in the e-commerce sector is assessed using the Integrated Behavior Model

approach to examine whether voluntary compliance can be realized in the self-

assessment tax collection system or is more influenced by the possibility of tax

audits. The voluntary compliance of business actors in the e-commerce sector

is very important in encouraging efforts to increase tax revenue because now

the e-commerce business has begun to become one of the business schemes

that dominate the market. But the magnitude of the development of the e-

commerce business has not been followed by the development of tax

compliance in this sector. This condition is certainly alarming and implies the

government's low ability to collect taxes as measured by the tax ratio so that

the solution offered is to use a socio-cultural approach with an integrated

behavioral model approach, this theory is the development of a planned

behavior theory.

Keywords: e-commerce tax, tax voluntary compliance, integrated behavioral model

84

Determinants Aggressiveness of Transfer Pricing:

Empirical Study in Foreign Capital Investment

Companies in The Chemical and Processing Industry in

Indonesia

Dyah Purwanti1, Anis Anjala Widyanti2

1,2PKN STAN

Abstract This research investigates the determinant of transfer pricing aggressiveness

in Indonesia. Foreign capital companies are indicated to carry out aggressive

transfer pricing practices. To achieve research objectives, we observe the

foreign companies in the chemical and processing industries. Using multiple

regression, we find that the existence of transactions with companies in tax-

haven countries and the existence of intangible asset transactions is a positive

determinant of aggressive transfer pricing. Meanwhile, multi-nationality does

not significantly influence the aggressiveness of transfer pricing. The

implication of this study is that regulation of transaction disclosure with

related parties and intangible asset transactions is further strengthened, to

help uncover the potential for aggressive transfer pricing transactions.

Keywords: transfer pricing aggressiveness, foreign companies, tax-haven country

Government financial data analytics: an Indonesian

perspective

Febrian1, Agung Darono2

1,2Polytechnic of State Finance STAN, Banten

Abstract Government financial data analytics, in a broad sense, includes all data

analytics activities related to the functions of government financial

management. Based on available data, the researcher concludes that from

several existing functions of state financial management, there are functions

that have earlier taken the initiative to implement data analytics. In fact, to

some degree, the initiative has also become an operational activity, although

it is still at the descriptive analytics stage. This paper proposes two policy

recommendations related to the implementation of government financial data

analytics in the Ministry of Finance as the country's financial authority in

Indonesia: (1) a comprehensive assessment of the need for data analytics

implementation in all functions; (2) DGT as an institution that first implements

analytics data in its business processes is a benchmark for other state financial

management functions.

Keywords: analytics, ministry of finance, financial, implementation

Corporate Earnings Management Post-Implementation

of Thin Capitalization Rule in Indonesia

Dyah Purwanti1, Akbar Saputra2

1PKN STAN,2

Abstract The study investigates the effectiveness of the thin capitalization rule recently

enacted in Indonesia, effective per 2016, by measuring the correlation between

earnings management activity and corporate tax avoidance. To prove it, we

analyze financial reports of the selected public companies that are indicated

to underpay their taxes, from 2014 until 2017, by using Tax Underpayment

Assessment Letter (Surat Ketetapan Pajak Kurang Bayar) as indicators. The

result shows that while the implementation of the Decree is positively and

significantly correlated to corporate tax avoidance. The use of discretionary

expenses in earnings management activity is positively and significantly

correlated to corporate tax avoidance in both the years before and after the

implementation of the Decree. Based on these findings, we concluded that the

decree has not been effective yet to reduce corporate tax avoidance.

Keywords: Thin capitalization Rule, Tax avoidance, earnings management

Tax Audit and Compliance of Indonesian Individual

Taxpayers

Arif Nugrahanto1, Dwi Ardika Cahyono2


Abstract This research is conducted to answer the question whether the audit increases

the tax compliance or not. The results shows that there is an increase in the

amount of gross income reported by the taxpayer after audit although the result

is weak. This study adopt the research of Norman Gemmell and Marissa Ratto

(2012) by using difference-in-difference to determine the effect of changes in

taxpayer compliance after audit. The population of the research is individual

taxpayers who are registered at the high-wealth individual tax office in

Indonesia who submit their tax return in the period 2008 to. 2012. From the

regression results, I obtain an interaction coefficient of 0.035 although only

significance at alpha = 0.15. It shows that there is a difference in the growth

of gross income reporting from taxpayers who are audited after compared to

the growth in gross income reporting from taxpayers who do not undergo

audit. With a coefficient of 0.035 it can be interpreted that the gross income

reporting of the audited Taxpayer is 3.56 percentage points higher than those

who has not been audited.

Keywords: tax audit; compliance; different in different; individual taxpayers

Analysis of the Influence of Cash Liquidity Towards

Corporate Taxes Avoidance (Empirical Study on Non-

Financial and Non-Insurance Companies Listed in

Indonesia Stock Exchange)

Riya Dwi Handaka1, Yandri Medriansyah2

1Polytechnic of State Finance STAN,2Directorate General Of Taxes

Abstract One of the principles of tax collection is convenient. That is, collecting taxes

must be at the time when the Taxpayer feels comfortable paying it. In the case

of income tax, the right time is when the income is earned. By considering the

tax in the company's cash outflow, it arises an idea that what if the company's

cash condition becomes a motive for taxpayers in their decision to avoid taxes.

This study aims to prove whether the condition of the company's cash condition

is a taxpayer's motive in tax avoidance behavior. By research to the non-

financial and non-insurance companies listed on the Indonesia Stock Exchange

during 2012 2017, and followed Stanfield's model, the results of this study

found no evidence of the relationship between the company's cash conditions,

for the three proxies, and the behavior of taxpayers in avoiding tax payments.

Keywords: Tax avoidance, cash condition, cash liquidity

Analysis of the Effect of Tax Aggressiveness on the

Structure of Company Debt Maturity: Evidence from

Indonesia

Riya Dwi Handaka1, Fandy Abdi Darma2

1Polytechnic of State Finance STAN,2Directorate General Of Taxes

Abstract Funding and Tax are two matters related to each financial statement. This

study aims to determine whether the company's debt structure is influenced by

the aggressive actions taken by the company. This happens because the tax

aggressiveness action has the risk of uncertainty in the future. The object of

this study are all companies listed on the Indonesia Stock Exchange that were

selected by purposive sampling technique. This research is a quantitative

model that used panel data regression. Where the debt maturity structure is

proxied by the proportion of short-term debt from financial institutions while

tax aggressiveness is proxied at the effective tax rate. The results of this study

indicate that there is no relationship between tax aggressiveness with the

structure of corporate debt maturity on the object of research in Indonesia.

Keywords: tax aggressiveness, tax rate, debt maturity, short-term debt.

The Effect of Audit Rate on Taxpayers Compliance in

Indonesia

Serly Puspita Sari1, Arif Nugrahanto2


Abstract One of the main problems of not achieving the tax revenue target is that the

existing tax policies have not been able to encourage compliance. One of the

strategy done by tax authority to minimize the non-compliant taxpayers is

conducting an audit. How much the impact of tax audit on the compliance is

the main issue of this study. Using the OLS to estimate the impact of audit rate

on tax compliance, the study adopted Birskyte (2013). The dependent variable

is corporate taxpayer compliance and the independent variable is the audit

rate. Findings of this study is that the audit rate has a significant effect on

compliance, especially for corporate tax-payers. This study also suggests that

an increase of 1 percentage point in the audit rate will increase in form of

addition of income tax 1,37 percentage points, reported by the Corporate

Taxpayer in Indonesia.

Keywords: audit rate, compliance, taxpayer, income tax, indonesia

Analysis of Value Added Tax to Sell Merchandise in

Political Activity (Case Study Society of Friends ABC)

Suparna Wijaya1, A. Ozilia Batari Deceng2, Anik Suardani3, Anni

Khoiriyah Sinaga4


Abstract In running Political activities, political parties and support groups will

compete to introduce their best cadres to the public. The introduction of

political cadres can be done in various ways that are creative, effective and

require a lot of money. One way that can be done to obtain funds that will be

used to finance political activities is to sell various kinds of merchandise to the

public, the results of which will be used to finance the political figures they are

carrying. This paper aims to analyze the imposition of Value Added Tax (VAT)

on the sale of merchan-dise in political activities. Merchandise used is very

diverse, ranging from t-shirts depicting po-litical cadres, bags, flash drives,

glasses, hats, umbrellas, and others. The method used in this research is

descriptive qualitative. The results showed that merchandise sold in political

activi-ties included in taxable goods. And for the surrender, VAT is payable

which will be collected if the seller is a Taxable Entrepreneur.

Keywords: taxable goods, negative list, objective tax, taxable entrepreneurs

Track: Open Innovation in Public Sector

93

Potential of Sharia Finance in Financing Budget Deficit

by Adopting Electronic Money Transactions Scheme in

Indonesia

Raditya Hendra Pratama1, Hamidah Nur Azizah2, Nabillah Fauziah

Kuswendah3, Oschadiva Edisha Putri4

1Polytechnic of State Finance STAN,2,3,4Islamic Economic High School SEBI

Abstract In deficit financing, the Government of Indonesia can utilize the potential of

Islamic fi-nance more optimally. After the issuance of sukuk as one of the

deficit financing instru-ments, there are not many breakthroughs made. With

the increasing transaction schemes with electronic money, it is necessary to

look at how sharia reviews on these transactions can be used by the

government to be used as deficit financing by taking into account the suitability

of government spending with maqashid sharia. By seeing that in the history of

Islamic society there are many stories that prove evidence of community

involvement in development, the government needs to open the widest possible

door to the use of sharia money transaction schemes to collect part of the

development funds

Keywords: public, finance, sharia

94

The Implementation of Single Identity Number to

Integrate The Existing Identity Numbers in Indonesia

Nur Arif Nugraha1


Abstract There are many identity cards issued by many institutions in Indonesia, which

most of the fields have the same data such as name, address, and birth date.

The ranging forms of identities owned by citizens imply the minimum

citizenship data integrity, and there is also no identity guarantee validation. It

resulted in some problems on inconsistencies and un-synchronized data among

those identity cards. The policy is the implementation of a single identity

number to integrate the existing identity numbers in Indonesia. This paper

suggests the use of a single number as a primary key to open other identities

such as a driver's li-cense and family card. The method is to create the main

server as a data storage and to ob-serve some key data to link all collected

data. In the end, the single identity number can be used to all purposes both

for the country and the citizen.

Keywords: implementation, policy, single identity number, data, integrity

95

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