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CONFERENCE PROCEEDINGS Malaysia Indonesia International Conference on Economics, Management and
Accounting (MIICEMA) 2016
Hosted by Faculty of Economics and Business, University of Jambi
24 – 25 October 2016
The Strategy For Improving Competitiveness to win
the ASEAN Economic Community (AEC)
Conference Proceedings
Conference ProceedingsMalaysia Indonesia International Conference on Economics, Management and Accounting
(MIICEMA) 2016
The Strategy For Improving Competitiveness to win the ASEANEconomic Community (AEC)
Editors:Dr. Junaidi, SE, M.Si
Prof. Dr. Johannes, SE, MSDr. Syahmardi Yacob, SE, MBADr. Tona Aurora Lubis, SE, MS
Dr. Sri Rahayu, SE, M.Si, Ak, CA
Faculty of Economics and Business, University of Jambi
Conference ProceedingsMalaysia Indonesia International Conference on Economics, Management and Accounting(MIICEMA) 2016
The Strategy For Improving Competitiveness to win the ASEAN Economic Community(AEC)
ISBN: 978-602-98081-4-8
EditorsDr. Junaidi, SE, M.SiProf. Dr. Johannes, SE, MSDr. Syahmardi Yacob, SE, MBADr. Tona Aurora Lubis, SE, MSDr. Sri Rahayu, SE, M.Si, Ak, CA
Cover design and LayoutJunaidi
PublisherFaculty of Economics and Business, University of JambiJalan Raya Jambi-Ma.Bulian KM.15 Kampus Mendalo Darat, Jambi, IndonesiaTelp. 0741-583317
First Published, December 2016
All right reserved. No part of this publication may be reproduced, stored in a retrieval system, ortransmitted in any form or by any means, electronic, mechanical, photocopying, recording orotherwise without the prior permission of the publisher
CONFERENCE COMMITEE
Patron
Prof. Johny Najwan, SH, MH. Ph.D
Drs. Amril, ME
Advisor
Prof. Dr. H. Syamsurijal Tan, SE, MA
Prof. Dr. H. Amri Amir, SE,M.Si
Prof. Dr. Drs. H. Aulia Tasman, M.Sc
Prof. Dr. H.M. Rachmad R, SE, M.Si
Zulkfili, SE,MS
Organising Commitee
Dr. Junaidi, SE, M.Si (Chairperson)
Radja Syarah Patricia, SE, M.Sc (Secretary)
Reka Maiyarni, SE, M.Si. Ak (Secretariat)
Dr. Johannes, SE, M.Si
Drs. H. Edward, MM
Dr. Syahmardi Yacob, SE, MBA
Dr. Shopia Amin, SE, M.Si
Dr. Syahmardi Yacob, SE, MBA
Dr. Tona Aurora Lubis, SE, M.Si
Dr. Sri Rahayu, SE, M.Si, Ak, CA
Dr. Haryadi, SE, MMS
Dr. Ilham Wahyudi, SE, M.Si
Dr. Arman Delis, SE, ME
Dr. Hj. Zulfanetti, SE, M.Si
Dr. Asep Machpuddin, SE, MM
Dr. H. Zamzami, SE, M.Si
Dr. Syaparuddin, SE, M.Si
Dr. Syafri, SE, M.Si
Dr. H. Afrizal, SE, M.Si, Ak.CA
Dr. H. Mukhzarudfa, SE, M.Si
Dr. Syafri, SE, M.Si
Drs. Yulmardi, MS
Mohammad Ichsan, SE, M.Si
Wirmie Eka Putra, SE, M.Si
Etik Umiyati, SE, M.Si
Ade Titi Nifita, SE, MM
Erni Achmad, SE, M.Si
Parmadi, SE, ME
Siti Hodijah, SE, M.Si
Dwi Kurniawan, SE, M.Si
Drs. Jefri Marzal, M.Sc, P.Hd
Dearmi Artis, SE, M.Sc
Drs. H. Mulyadi Raf, MBS
Drs. H. Agus Syarif, MBS
Paulina Lubis, SE, M.EI
Dra. Erida, M.Si
Dra. Sumarni, MM
Drs. H. Purwaka Hari Prihanto, M.Si
Eddy Firza, SE, M.Acc, Ak
Eko Prasetyo, SE, M.Sc. Ak.CA
Kamadie Sumanda Syafis, SE, M.Acc, Ak.CA
Johannes Vyn Amzar, SE, M.Sc
Liona Efrina, SE
Nur Budi Utama, SE, MM
Farida, SE
Ahmed Riza Fahlevi, SH
Singki Oktaviani, SE
Drs. H. Hendri Leonardo
Nurlia Eriska Riyanda Guntari, SP
Azlia Daratulaila Syam, SE
Raden Nazaruddin
Syapriadi
Jatmiko Budi Santoso
Secretariat: Faculty of Economics and Business, University of Jambi, Kampus Mendalo Darat, Jambi, Indonesia
Telp. 0741-583317 e-mail: [email protected]
i
FOREWORD
The Malaysia Indonesia International Conference on Economics, Management and Accounting
(MIICEMA) is an annual international conference that gathers academics and practitioners from
Malaysia, Indonesia and around the World to facilitate the presentation and sharing of research findings
particularly in the areas of economics and management.
Numerous benefits have been achieved from the sharing of knowledge and building of working
relationships through presentations of working papers after the organisation of 16 series of the
conference. The conference has become an important platform for academics to share information
regarding current issues and new economic and business challenges prevalent in both South East Asia and
globally.
As a continuation of the memorandum of understanding between Universiti Kebangsaan Malaysia,
Universitas Syiah Kuala, Institut Pertanian Bogor, Universitas Muhammadiyah Surakarta and Universitas
Bengkulu as the founding institutions of MIICEMA, 2016 is witnessing once again the organising of the
17th MIICEMA. Following the tradition of the long-established friendship, the honour of becoming the
main organiser and host to the 17th MIICEMA has now been transferred to University of Jambi, Jambi
through the Faculty of Economics and Business.
Through the organising of the conference, the research findings that will be presented by
academics in various fields such as economics, management and accounting will surely become guides
and models for other academics in developing the branches of knowledge and for the industry in
managing and strengthening their businesses.
The chosen theme for this year MIICEMA is ” The Strategy For Improving Competitiveness to
win the ASEAN Economic Community (AEC) ″. Global economic climate has been undergoing shocks
that adversely affecting government and business organisations. The economic turmoil has been
considered by few as the worst in the century that prudent and solid business strategies must make
accurate market interpretation of both opportunities and constraints. With this in mind, the 17th
MIICEMA aims to provide a platform for both academicians and practitioners to sit together and
elaborate on these challenges.
The goals and objectives of this international conference are as follows:
to become a platform for academics in the South East Asia to share latest research findings on
economic, management and accounting issues.
to identify emerging economic and business challenges prevalent in South East Asia and around the
world amidst the 2016 economic turmoil.
to gather input on new opportunities in the domain of business within the contexts of South East Asia
and global amidst the 2016 economic turmoil.
to sustain research collaborations that produce high impact outputs.
to elevate the status of MIICEMA member institutions through presentation of internationally-
recognised research results.
Following the phenomenal successes of the previous conferences, MIICEMA will be proudly
brought to you again this October by University of Jambi, Jambi, Indonesia. This year MIICEMA will be
organised in conjunction with the Seminar and Annual Meeting of the Western Division of Economics
Institutions Cooperation. This is an annual event involving 27 state universities and several private
universities that offer Economics programmes in Indonesia. In 2016, the Western Division of Economics
Institutions Cooperation meeting will be hosted by the Faculty of Economics and Business, University of
Jambi, Jambi, which will also serve as the main organizer of MIICEMA 2016.
This year MIICEMA highlights the current issue facing economies in the region thorugh a theme
of ” The Strategy For Improving Competitiveness to win the ASEAN Economic Community (AEC) ″.
This theme is to be supported with few key tracks; Microeconomics, Macroeconomics, Monetary
Economics, Public Economics, Regional and Urban Economics, International Economics, Natural
Resource Economics, Industrial Economics, Labor Economics, Development Studies, Business,
Management and Organization, Marketing, Finance, Human Resources, Financial Accounting,
Managerial and Behavioral Accounting, Auditing, Accounting Information Systems, Public Sector
Accounting, Social and Environmental Accounting, Islamic Economics, and other related areas.
This collection doest not include the totality of the papers presented at the conference, as not all
contributors submitted their written papers for publication.
Dr. Junaidi, SE, M.Si
Conference Chair
ii
WELCOMING SPEECH
DEAN OF THE FACULTY OF ECONOMICS AND BUSINESS
UNIVERSITY OF JAMBI
I would like to welcome all participants to the 17th Malaysia Indonesia International Conference on
Economics, Management and Accounting (MIICEMA) in Jambi, Indonesia. It is truly an honor and a
privilege for Faculty of Economics and Business, University of Jambi to host this International
conference.
I have no doubt in my mind, that this conference will be a worthwhile experience. We have an
opportunity to learn each other from some of the best experts in different decipline. Hence I hope after
the conference finished, we are enriched with a better understanding of contemporary issues in
economics and business in South East Asia. Furhtermore, as the member of MIICEMA, we can enrich
the network for some important aspects such as publication a student exchange.
I would like to express our sincere gratitude and appreciation to many individuals for their invaluable
input to make succes this conference. I would also like to extend a special thank you to our Institutions’
partners for their support to organize this event successfully.
So, I wish you have a pleasant International Conference and enjoy your stay in Jambi.
Drs. H. Amril, ME
Dean of the Faculty of Economics and Business
University of Jambi
iii
WELCOMING SPEECH RECTOR OF UNIVERSITY OF JAMBI
I extend my warm welcome to all of the distinguished speakers and participants of the 17th Malaysia
Indonesia International Conference on Economics, Management and Accounting (MIICEMA) which held
by Faculty of Economics and Business, in October 24-25, 2016.
As a Rector of University of Jambi, I am pleased to witness the 17th MIICEMA, it provides a unique
opportunity for scholars, experts, researchers, to assemble and share ideas on critical issues and trends in
economics and business. Furthermore, I hope this conference could develop the valuable network and
international collaboration amongst universities in Indonesia and Malaysia, as well as to facilitate
publications of research by Indonesia and Malaysia scholars in international journal.
I congratulate the Dean of Economics and Business, the chairman of the conference, all the renowned
speakers and delegates for their participation that makes this conference possible. I welcome you all to
University of Jambi.
As a part of the provincial cultural promotion, we hope you enjoy the entire traditional and unique
cultural atmosphere. I urge you also to enjoy the beautiful of Muaro Jambi temple and Gentala Arsy
Bridge. Muaro Jambi Temple as it has been revealed is the place of Buddhism taught not only for the
ancient of Indonesian but for South Asia Countries.
Last but not least, we thank you to every person both that comes from internal and external organization
who makes this conference conducted. Finally, I hope God bless you all as long as you follow the
conference.
Prof. H. Johni Najwan, SH, MH, Ph.D
Rector of University of Jambi
v
CONTENTS
FOREWORD ................................................................................................................................................ i
WELCOMING SPEECH DEAN OF THE FACULTY OF ECONOMICS AND BUSINESSUNIVERSITY OF JAMBI ........................................................................................................................... ii
WELCOMING SPEECH RECTOR OF UNIVERSITY OF JAMBI ..........................................................iii
CONTENTS ................................................................................................................................................. v
MANAGEMENT
MAPPING A TRUE SUPPLY NETWORK STRUCTURE: AN IMPLICATION TO THEPRACTICE OF SUPPLY CHAIN MANAGEMENT.................................................................................. 3
Lokhman Hakim Osmana; *Azhar Ahmad ......................................................................................... 3
ATTRIBUTION THEORY PERSPECTIVE TO OBSERVE THE IMPACT OF CULTURETOWARD SERVICE FAILURE: IT’S IMPLICATION ON SERVICE INDUSTRY.............................. 21
Lizar Alfansi; Effed Darta Hadi; Ferry Tema Atmaja ...................................................................... 21
THE CHARACTERISTICS OF THE ENTREPRENEUR AND THE DESIRE TO BECOMEENTREPRENEURS AMONG UNDERGRADUATE STUDENTS ......................................................... 29
Ahmad Mardalis; Imron Rosyadi..................................................................................................... 29
THE EFFECT OF BRAND ASSOCIATIONS TOWARD BRAND EQUITY AND BRANDLOYALTY AS INTERVENING VARIABLE OF HONDA MOTORCYCLE IN JAMBI CITY ............ 37
Anaseputri Jamira*, Ade Oktavia**, Junaidi***.............................................................................. 37
EFFECT OF REWARD MANAGEMENT ON JOB SATISFACTION.................................................... 45Azman Ismail1, AnisAnisah Abdullah2, NurIzzaty Mohamad3......................................................... 45
ANTECEDENTS OF TOURIST SATISFACTION AND ITS IMPACT ON LOYALTY TO APARTICULAR DESTINATION ............................................................................................................... 51
Effed Darta Hadi, Fachri Eka Saputra .............................................................................................. 51
MONETARY POLICY AND MACROECONOMIC RESPONSES: SVAR STUDY OFEGYPT ....................................................................................................................................................... 59
Mohamed AseelShokr; Zulkefly Abdul Karim; Mohd. Azlan Shah Zaidi ....................................... 59
THE STRATEGY FOR IMPROVING COMPETITIVENESS TO WIN THE ASEANECONOMIC COMMUNITY (AEC) USING THE ECONOMIC LANDSCAPE (CASE STUDYOF JAMBI PROVINCE)............................................................................................................................ 73
Budi Kurniawan1, Susiawati Kristiarini2........................................................................................... 73
E-RETAILING: CONSUMER MOTIVATION TO SHOP IN INDONESIA AND THAILAND ............ 79Seprianti Eka Putri ............................................................................................................................ 79
STRATEGY MODEL OF OPTIMAZING FOR MINIMARKET RETAIL BUSINESSPERFORMANCE: STUDY IN JAKARTA AND BANDUNG, INDONESIA ......................................... 95
Syahmardi Yacob*, Sucherly**, Diana Sari**, AsepMulyana**..................................................... 95
RURAL INDUSTRIAL MANAGEMENT: THE IMPLEMENTATION OF SIMPLE-BASEDTECHNOLOGY IN SUPPORTING THE ECONOMIC RESILIENCE AS PERCEIVEDBENEFITS ............................................................................................................................................... 101
Slamet Widodo, Effed Darta Hadi, M Abduh, Berto Usman.......................................................... 101
FACTORS INFLUENCING INTERNET USAGE AMONG WOMEN ENTREPRENEURS ............... 113Muhaini I.; Azhar Ahmad .............................................................................................................. 113
THE SHARIA BANKING PERFORMANCE BASED ON ISLAMIC INDICES IN THEASEAN COUNTRIES.............................................................................................................................. 121
Wiyadi1, Sayekti Endah Retno Meilani 2, Rina Trisnawati3, Wahyu Pramesti4 .............................. 121
vi
PERFORMANCE OF ISLAMIC INDICES: RISK ADJUSTED RETURNS OF SHARIACOMPLIANT STOCKS (STUDY ON JAKARTA ISLAMIC INDEX AND DOW JONESISLAMIC TURKEY FOR THE YEARS 2010-2014) ............................................................................. 129
Ade Banani, MMS1 ; Nur Afni Hidayatun2 ................................................................................... 129
HOW SPOUSAL SUPPORT AND WORK-FAMILY BALANCE CAN INFLUENCE TOCAREER SUCCESS? .............................................................................................................................. 141
Shofia Amin.................................................................................................................................... 141
KNOWLEDGE MANAGEMENT, STRATEGIC THINKING AND SUSTAINABLECOMPETITIVE ADVANTAGE IN SMALL ECONOMIC ENTERPRISE BATIK BASUREKINDUSTRY AT BENGKULU CITY ...................................................................................................... 149
Praningrum; Muhartini Salim ......................................................................................................... 149
UNDERSTANDING HOW SMEs CREATIVE INDUSTRIES CAN IMPROVE INNOVATIONPERFORMANCE .................................................................................................................................... 157
Fachri Eka Saputra, Sularsih Anggarawati, Ferry Tema Atmaja, ................................................... 157
THE ROLE OF STRATEGIC IMPLEMENTATION OF CORPORATE SOCIALRESPONSBILITY AS SUSTAINABLE DEVELOPTMENT STRATEGIC CONSIDERATIONFOR BASIC SITUATION MANAGEMEN DECISIONS MAKING IN BUSINESSCOMPETITION ASEAN ECONOMIC COMMUNITY (AEC) (A QUALITATIVE STUDYAT PAMOR GANDA CRUMB RUBBER LTD) .................................................................................... 165
Nila Aprila, Fenny Marietza, Riski Rian Nainggolan................................................................... 165
CAN BALANCED SCORECARD BE APPLIED TO ANALYZE THE MISSIONS OF LOCALGOVERNMENT? DOUBLE CASES OF INDONESIAN LOCAL GOVERNMENT MISSIONS ........ 177
Agung Riyardi*; Sri Wahjuni**; Latifah***; Widojono***.......................................................... 177
PERCEPTION ON JUSTICE, TRUST AND TAX COMPLIANCE BEHAVIOUR INMALAYSIA ............................................................................................................................................. 187
Sellywati Mohd Faizal*,Mohd Rizal Palil, Ruhanita Maelah, Rosiati Ramli**............................. 187
STRATEGIES FOR INCREASING THE COMPETITIVENESS OF SMEs IN THEPROVINCE OF YOGYAKARTA SPECIAL REGION ENTERING THE ASEAN ECONOMICCOMMUNITY ......................................................................................................................................... 197
Aftoni Sutanto*, Alia Ariesanti** ..................................................................................................... 197
ASSESSING SERVICE QUALITY LEVEL: A STUDY ON THE LIGHT RAIL TRANSIT(LRT)........................................................................................................................................................ 203
Mhd Suhaimi Ahmad; Mohd Daud Ismail; Nor Farisha Omar....................................................... 203
COMMERCE ETHICS of MUHAMMAD PBUH’ AND UNIVERSAL VALUES IN ERA OFPROPHET HOOD.................................................................................................................................... 213
Suwandi; Muhammad Hakimi Mohd Shafiai ; Wan Nasyrudin Wan Abdullah ............................. 213
CALLING FOR KNOWLEDGE, STRONG INTENTION (NIAT), PRACTICAL WISDOMAND BUSINESS PERFORMANCE: ISLAMIC PERSPECTIVE .......................................................... 227
Nur Adillah Binti Abdul Rahman; Noor Hasni Binti Juhdi (DBA) ................................................ 227
THE EFFECT OF LIQUIDITY, PROFITABILITY AND DIVIDEND POLICY ONFINANCING DECISIONS ON BANKING COMPANIES LISTED IN INDONESIA STOCKEXCHANGE (IDX) WITH CONSIDERATION OF THE COMPANY’S GROWTH ASMODERATING VARIABLE .................................................................................................................. 233
Ahmad Nur Budi Utama ................................................................................................................. 233
THE EFFECT OF OWNERSHIP AND MANAGEMENT STRUCTURE ON FINANCIALPERFORMANCE .................................................................................................................................... 241
Iskandar 1), Tona Aurora Lubis 2) .................................................................................................... 241
REVIEW OF PERSONAL AND INTERPERSONAL MOTIVATIONS ON BEHAVIORALINTENTIONS OF NON-DECEPTIVE CONSUMER: THE ROLE OF M-O-A MODEL ..................... 245
Musnaini 1), Asrini2) ........................................................................................................................ 245
vii
MODEL OF ENERGY CONSUMPTION AND COST EFFICIENCY OF FISHERMAN’SCATCH IN JAMBI PROVINCE ............................................................................................................. 253
Tona Aurora Lubis 1), Muhammad Safri 2), Zulkifli 1)..................................................................... 253
THE INFLUENCE OF SERVICE RECOVERY ON BRAND IMAGE OF PUBLIC SERVICECOMPANY : A LITERATURE REVIEW .............................................................................................. 255
Nasta Trilakshmi............................................................................................................................. 255
EFFECT OF OWNERSHIP STRUCTURE AND MANAGEMENT STRUCTURE OF THEFIRM VALUE.......................................................................................................................................... 263
Zulkifli 1), Tona Aurora Lubis 2) ..................................................................................................... 263
POSITIONING STRATEGY AND ITS RELATIONSHIP WITH FINAL DECISION OFPRIVATE UNIVERSITY IN JAMBI PROVINCE ................................................................................. 267
Indra Budaya................................................................................................................................... 267
THE INFLUENCE OF BRAND PROMINENCE ON CONSUMER ATTITUDE ANDPURCHASE INTENTION OF LUXURY FAKE PRODUCTS .............................................................. 277
Mulyadi Raf*; Musnaini** ............................................................................................................. 277
THE PSYCHOLOGICAL CONTRACT IN IMPROVING ORGANIZATIONAL CITIZENSHIPBEHAVIOR (OCB) AND THE ATTITUDE OF EMPLOYEES AS MEDIATOR VARIABLES(STUDY OF COMPARISON ON STATE-OWNED ENTERPRISES, REGIONAL-OWNEDENTERPRISES AND PRIVATE STATE-OWNED ENTERPRISESIN JAMBI PROVINCE) ............. 283
Sry Rosita........................................................................................................................................ 283
ANALYSIS OF INTELECTUAL CAPITAL, THE VALUE OF THE COMPANY TOFINANCIAL PERFORMANCE OF COMPANY (EMPIRICAL STUDY ONMANUFACTURING COMPANY IN BEI ) ........................................................................................... 291
Iwan Eka Putra................................................................................................................................ 291
STRATEGY OF DIFFERENTIATION COMPETITIVENESS OF ISLAMIC BANGKING: ALITERATURE REVIEW ......................................................................................................................... 299
Anzu Elvira ZaharaTobing ............................................................................................................. 299
THE ANALYSIS OF AGRICULTURAL EXTENSION OFFICERS’ COMPETENCE IN THEPROVINCE OF JAMBI ........................................................................................................................... 305
Edison ............................................................................................................................................. 305
HUMAN RESOURCE DEVELOPMENT OF LECTURER FROM THE WEST AND ISLAMICPERSPECTIVES IN THE EFFORTS TO INCREASE THE COMPETITIVENESS OFISLAMIC HIGHER EDUCATION (PTKI) ............................................................................................. 311
Dicki Hartanto................................................................................................................................. 311
ROLE OF A SOCIAL MARKETING CAMPAIGN ON THE DECISION OF THECOMMUNITY TO PAY ZAKAT THROUGH INSTITUTE OF AMIL ZAKAT. ................................ 319
Sigit Indrawijaya............................................................................................................................. 319
ECONOMICS
OPPORTUNITIES AND CHALLENGES OF TAX AMNESTY (ISLAMIC POLITICALECONOMIC ANALYSIS)....................................................................................................................... 327
Muhammad Sholahuddin ................................................................................................................ 327
ANALYSIS OF RICE CONSUMPTION AND RICE IMPORT IN INDONESIA ................................. 331Nanik Istianingsih, Rd. Ade T. Anjaya .......................................................................................... 331
THE ROLE OF SOCIAL CAPITAL ON THE LEVEL OF HOUSEHOLD EXPENDITURE INJAMBI PROVINCE (STUDY OF URBAN AREAS) ............................................................................. 337
Dadang Hardiwan ........................................................................................................................... 337
MONEY ILLUSION EFFECT REDENOMINATION RUPIAH............................................................ 343Evan Stiawan .................................................................................................................................. 343
viii
DETERMINANTS AND EXPORT COMPETIVENESS OF COFFEE: COMPARISONBETWEEN INDONESIA AND VIET NAM .......................................................................................... 349
Zulkarnain Ishak ............................................................................................................................. 349
THE INFLUENCE OF ECONOMIC GROWTH AND ORIGINAL REGIONAL INCOME ININDONESIA DURING THE PERIOD 2007 - 2014................................................................................ 357
Deny Eko Purwanto; Pahrul Rozi ................................................................................................... 357
THE STATE OF LOCAL GOVERNMENT EFFICIENCY IN SUMATRA, INDONESIA................... 365Roosemarina A. Rambe .................................................................................................................. 365
MODEL FOR THE DEVELOPMENT OF PLANTATION-BASED GROWTH POLESVILLAGE................................................................................................................................................. 377
Junaidi; Amri Amir; Hardiani ......................................................................................................... 377
ESTIMATION AND ASSESSMENT OF LAND AND BUILDING TAX BASE OF RURALURBAN SECTOR (PBB P2) AS A LOCAL TAX IN THE DISTRICT MUARO JAMBI..................... 385
Halimah; Zamzami......................................................................................................................... 385
STUDY OF FACTORS AFFECTING DEMAND FOR CREDIT AGRICULTURAL SECTORAND CONTRIBUTION AGRICULTURAL SECTOR TO ECONOMY PROVINCE OFJAMBI ...................................................................................................................................................... 395
Saidin Nainggolan........................................................................................................................... 395
THE EFFECT OF ECONOMIC GROWTH AND THE LEVEL OF WAGES OF IN-MIGRATION JAMBI CITY .................................................................................................................... 401
Yulmardi ......................................................................................................................................... 401
IMPACT ANALYSIS TITLED HUMAN DEVELOPMENT INDEX (HDI) ON POVERTYAND ECONOMIC GROWTH IN THE DISTRICT/ TOWN OF JAMBI PROVINCE ......................... 407
Ardi Afrizal..................................................................................................................................... 407
EFFECT GDP, INTERST RATE, INFLATION TO FDI ASEAN (5) .................................................... 415Handri ............................................................................................................................................. 415
CONTRIBUTION OF FARM NON FOOD CROPS SUB SECTOR ON JAMBI PROVINCEECONOMY.............................................................................................................................................. 423
Yanuar Fitri..................................................................................................................................... 423
THE EFFET OF FINANCIAL INCLUSION ON BANK EFFICIENCY IN A DUAL-BANKING SYSTEM ............................................................................................................................... 429
Juzaili Juhari; Mariani Abdul-Majid............................................................................................. 429
ANALYSIS OF MICRO, SMALL AND MEDIUM CREDITS AND ITS INFLUENCE ON ANEMPLOYMENT IN MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN THEPROVINCE OF JAMBI ........................................................................................................................... 441
Etik Umiyati.................................................................................................................................... 441
ANALYSIS OF INDUSTRIALIZATION AND ECONOMIC GROWTH IN JAMBIPROVINCE .............................................................................................................................................. 449
Erni Achmad ................................................................................................................................... 449
MODEL ANALYSIS FOR ANNUAL CROP PRODUCTION EFFICIENCY ....................................... 457Kuswanto ........................................................................................................................................ 457
ECONOMIC GROWTH, POVERTY, INCOME INEQUALITY AND UNEMPLOYMENT (STUDY IN ALL PROVINCES IN INDONESIA)................................................................................... 465
Zulgani 1; Syaparuddin 2 ................................................................................................................. 465
FOREIGN DIRECT INVESTMENT IN INDONESIA AND ITS ROLE TO ECONOMICGROWTH (Vector Auto Regression Model Approach) ......................................................................... 471
Siti Hodijah..................................................................................................................................... 471
ANALYSIS OF REGIONAL ECONOMIC GROWTH IN KERINCISEBLAT NATIONALPARK (CASE STUDY KERINCI DISTRICT IN JAMBI) ..................................................................... 479
Adi Putra ......................................................................................................................................... 479
ix
PREVALENCE FERTILITY WHICH CAUSED THE ECONOMIC AND SOCIALCONDITIONS (SPATIAL ANALYSIS BY GEOGRAPHIC WEIGHTED LOGISTICSREGRESSION) ........................................................................................................................................ 489
Fauzi Darwas .................................................................................................................................. 489
THE INFLUENCE OF CREDIT BANKING, INVESMENT, EXPORT AND GOVERNMENTSPENDING ON ECONOMICS GROWTH IN INDONESIA ................................................................. 497
Hasminidiarty.................................................................................................................................. 497
CONTRIBUTION OF AGRICULTURE SECTOR TOWARD GDP AND ELASTICITY OFLABOR ABSORPTION IN EAST TANJUNG JABUNG ...................................................................... 507
Indria Mayesti ................................................................................................................................. 507
DETERMINANT OF ECONOMIC GROWTH IN JAMBI (DEMAND APPROACH) ......................... 513Irmanelly......................................................................................................................................... 513
EFFECTIVE EMPOWERMENT OF PEASANT FOOD. ....................................................................... 517Navarin Karim ................................................................................................................................ 517
DEVELOPMENT MODEL FOR MARITIME TOURISM POTENSIL RELATED WITH THEPEOPLE COASTAL ECONOMY IN GORONTALO PROVINCE ....................................................... 521
Irawati Abdul; Irina Popoi; Zainudin Antuli.................................................................................. 521
MAIZE PROCESSING PRODUCTION DEVELOPMENT AS THE ECONOMIC DRIVEN OFPEOPLE IN GORONTALO PROVINCE................................................................................................ 531
Amir Halid; Mohammad Ikbal Bahuwa; Zainudin Antuli; Irawati Abdul. .................................... 531
BUDGET DEFICIT AND POLICY ANALYSIS IN THE PROVINCE OF JAMBI .............................. 545Junaidi............................................................................................................................................. 545
FISCAL DECENTRALIZATION AND TRADE BETWEEN PROVINCES IN SUMATRA: ANAPPROACH GRAVITY MODEL........................................................................................................... 555
Khabri ............................................................................................................................................. 555
PERCEIVED SOCIO-ECONOMIC IMPACTS OF COAL FUELLED STEAM POWERPLANT PROPOSED TO ESTABLISH IN PULAU BAAI, BENGKULU, INDONESIA...................... 565
Muhamad Abduh; Benardin............................................................................................................ 565
THE EFFECT OF LOCAL FINANCIAL PERFORMANCE ON CAPITAL EXPENDITURE INTHE JAMBI PROVINCE GOVERNMENT................................................................................... 565
Yolanda; Zulfanetti
INDONESIA'S EXPORT-IMPORT ANALYSIS: GRANGER CAUSALITY APPROACH...................566Syaparuddin
ACCOUNTING
IMPLEMENTATION OF PARTICIPATORY BUDGETING, TRANSPARANCY,ACCOUNTABILITY AND PERFORMANCE-BASED BUDGETING TO THEPERFORMANCE OF LOCAL GOVERNMENT UNIT ......................................................................... 569
Baihaqi, Dri Asmawanti S .............................................................................................................. 569
THE INFLUENCE OF THE QUALITY OF HUMAN RESOURCES AND THEIMPLEMENTATION OF THE REGIONAL FINANCIAL ACCOUNTING ON THEQUALITY OF FINANCIAL REPORTS OF REGIONAL TASKFORCE WITH A SYSTEM OFINTERNAL CONTROL THE GOVERNMENT AS VARIABLE INTERVENING.............................. 579
Shylvia Andriani1), Sri Rahayu2), Iskandar Sam2) ........................................................................... 579
INTELLECTUAL CAPITAL, FIRM VALUE AND FINANCIAL PERFORMANCE .......................... 589Aida Irsyahma; Nikmah.................................................................................................................. 589
PERFORMANCE-BASED BUDGET, CLARITY OF OBJECTIVES, BUDGET REPORTINGSYSTEM, OBSERVANCE OF LAWS AND REGULATIONS, AND PERFORMANCEACCOUNTABILITY OF GOVERNMENT AGENCIES ....................................................................... 599
Dri Asmawanti S, Baihaqi, Irawan Sahadi...................................................................................... 599
x
THE EFFECT OF GOOD CORPORATE GOVERNANCE (GCG) ON FINANCIALPERFORMANCE AND THE IMPLICATIONS ON FIRM VALUE ..................................................... 609
Khairiyani1), Sri Rahayu2) ............................................................................................................... 609
ANALYSIS IMPLEMENTATION OF GOVERNMENT ACCOUNTING STANDARS BASEDOF ACCRUAL IN OFFICE OF ASSETS MANAGEMENT AND REGIONAL FINANCIAL............. 619
Khairul Pahmi, Sri Rahayu, Misni Erwati ...................................................................................... 619
THE ANALYSIS OF TURNOVER INTENTION FACTORS AGAINST ACCOUNTANTS(EMPIRICAL STUDY ON FINANCING COMPANY IN BENGKULU CITY) ................................... 627
Nurjoni Amiruddin, Madani Hatta, Zahrah Indah Ferina ............................................................... 627
THE MODERATING ROLE OF FIRM SPECIFIC FACTORS ON THE INFLUENCE OFENTERPRISE AND CREDIT RISK MANAGEMENT ON FIRM PERFORMANCE OFINDONESIAN BANKING COMPANIES .............................................................................................. 635
Saiful, Mentari Arizka .................................................................................................................... 635
THE POLICY FOR SUSTAINABILITY REPORTING OF INDONESIA’S HIGHEREDUCATIONAL INSTITUTIONS ......................................................................................................... 647
Alia Ariesanti .................................................................................................................................. 647
THE EFFECT OF ACCOUNTABILITY AND TRANSPARENCY OF THE LOCALGOVERNMENT FINANCIAL STATEMENTS QUALITY (LKPD) AND THEIMPLICATIONS OF FINANCIAL PERFORMANCE BENGKULU PROVINCIALGOVERNMENT ...................................................................................................................................... 653
Nurna Aziza, Effed Darta Hadi, Hendri Marulitua Hutapea*, Andi Agus**.................................. 653
SYNERGIZING MANACIKA IN THE STRATEGIC MANAGEMENT ACCOUNTING:SOLUTION FOR THE STIGMA OF COOPERATION? ....................................................................... 665
Made Susilawati1*, Unti Ludigdo2, Gugus Irianto3, Zaki Baridwan4 .............................................. 665
THE EFFECTS OF OWNERSHIP STRUCTURE AND FIRM CHARACTERISTICS TOPERFORMANCE AND RISK: THE ROLE OF THE QUALITY OF CORPORATEGOVERNANCE VARIABLE ................................................................................................................. 673
Triyono; Fatchan Achyani .............................................................................................................. 673
EFFECT OF INCENTIVE EXECUTIVE, CORPORATE RISK AND CORPORATEGOVERNANCE ON TAX AVOIDANCE .............................................................................................. 683
Pratana P. Midiastuty, Eddy Suranta, Rama Pramudya Kusuma.................................................... 683
MAPPING THE REGULATIONS AND POLICY ON THE IMPLEMENTATION OFACCRUAL ACCOUNTING IN INDONESIA AND JAMBI MUNICIPALITY..................................... 693
Yudi1)* Made Sudarma2) Ali Djamhuri2) Zaki Baridwan2) ......................................................... 693
THE INFLUENCE OF GOVERNMENT AUDITOR’S KNOWLEDGE, ABILITY, AND SKILLTOWARDS THE EFFECTIVENESS OF AUDIT INVESTIGATION PROCESS ON FRAUDDETECTION IN INDONESIA................................................................................................................ 703
Fitri Habiba Mahmuda*; Fachruzzaman**..................................................................................... 703
RELATIONSHIP BETWEEN THE ACHIEVEMENT OF ECONOMIC GROWTH WITHDIFFERENT QUALITY OF FINANCIAL STATEMENTS AND DISTRICT/CITY INSOUTHERN SUMATRA (SUMBAGSEL)............................................................................................. 713
Intan Purnama Sari; Fachruzzaman ................................................................................................ 713
ANTECEDENTS OF ENTERPRISE RISK MANAGEMENT (ERM) IMPLEMENTATIONAND ITS CONSEQUENCE TO INDONESIAN BANKS’ CREDIT RISK ........................................... 721
Husaini*; Saiful** ......................................................................................................................... 721
THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY, CORPORATEGOVERNANCE, AUDIT QUALITY, AND LEVERAGE ON INCOME SMOOTHING(EMPIRICAL STUDY ON MINING COMPANIES LISTED IN INDONESIAN STOCKEXCHANGE)........................................................................................................................................... 731
Rini Indriani; Nur’aini .................................................................................................................... 731
xi
INDIVIDUAL CAPACITY AND USE OF ACCOUNTING INFORMATION IN MAKINGFINANCIAL STATEMENTS IN SMALL BUSINESS IN BENGKULU .............................................. 741
Isma Coryanata ............................................................................................................................... 741
ROLE OF THE INTERNAL AUDITOR GOVERNMENT TO REALIZE THE LOCALGOVERNMENT NET ............................................................................................................................. 761
Rahayu; Sri Rahayu ........................................................................................................................ 761
THE PERCEPTION OF NEW ACCOUNTANTS ABOUT SUSTAINABILITY REPORTING(Study at University of Bengkulu)............................................................................................................ 769
Fenny Marietza; Nila Aprila; Nidya Lestari.................................................................................... 769
THE EFFECT OF SHAREHOLDING, PROFITABILITY, LEVERAGE, FIRM SIZE ANDINDEPENDENT COMMISSIONER ON TAX AVOIDANCE: TESTING IN GROUP ANDNON GROUP FIRM ................................................................................................................................ 777
Eddy Suranta; Pratana Puspa Midiastuty; Afrizal Saputra.............................................................. 777
EFFECT VOLATILITY OF COMPREHENSIVE INCOME AND FAIR VALUEAPPLICATIONS TO RETURN AND VOLATILITY OF SHARE PRICE (STUDIES IN THEBANKING COMPANY LISTED ON THE INDONESIAN STOCK EXCHANGE) ............................. 777
Madani Hatta; Naeyza Islamey Ningrum....................................................................................... 777
599
PERFORMANCE-BASED BUDGET, CLARITY OF OBJECTIVES, BUDGET
REPORTING SYSTEM, OBSERVANCE OF LAWS AND REGULATIONS, AND
PERFORMANCE ACCOUNTABILITY OF GOVERNMENT AGENCIES
Dri Asmawanti S, Baihaqi, Irawan Sahadi
Accounting Department- Economics and business Faculty, University of Bengkulu
e-mail: [email protected]
Abstract. The aim of this study is to empirically prove the influence of performance-based budgeting, the
clarity of the budget target, reporting systems, and adherence to the laws and regulations against the
performance accountability of government agencies. This study was conducted in the Ministry of law and
Human Rights (human rights) of Bengkulu province. The respondents of the research was the leader in
the organization which is under the Ministry of Justice and human rights, by providing questionnaires.
The data used in this study was the primary data of 56 respondents. The tool data analysis applied Smart
PLS version 2.0 M3. The results showed that outher model testing is good for convergent validity,
discriminant validity, and then reliability testing, all showed that the condition of gauges and the existing
data was good. Inner model Testing also showed that its structural equation model was fit. Hypothesis
testing produced that Clarity of budget targets, reporting systems, and adherence to the laws and
regulations have a positive influence against the performance accountability of government agencies.
Performance-based budgets, thus has no effect on the performance accountability of government
agencies.
Keywords: performance-based Budgets, clarity of Objectives, Budget reporting system, observance of
laws and regulations, performance accountability of government agencies
INTRODUCTION
The embodiment of good governance in Government demands the increasing of accountability, by
applying the good norms of in running government wheel such as the application of the system of
accountability for the proper, clear, measurable and legitimate, so that the accomplishment of government
and the development can be directly helpful, effective, clean and responsible, as well as free from
corruption, collusion and nepotism. In a more specific reference, the decision of the head of LAN Number
239/IX/6/8/2003 on guidelines for the preparation of Reporting performance accountability of
government agencies, is explaining that the performance accountability of government agencies is the
embodiment of an obligation of government agencies to be responsible the success and failure of the
implementation of the Organization's mission in achieving the goals and objectives that have been
established through periodic accountability system. To support the enhancement of the accountability, the
Government issued Regulations covering Government Regulation (PP) No. 8 in 2006 about financial
reporting Guidelines and the performance of government agencies, the regulation of the Minister of State
for Administrative Reform State number PER/09/URM.PAN/05/2007 General guidelines about the
determination of the Main performance indicators in an environment of government agencies, and
presidential instruction number 7 in 1999 about the accountability of the performance of government
agencies. One of its realization is by making accountability and evaluation reports contained in the report
of the performance accountability of government agencies (LAKIP). The Government as the provider of
the public funds in order to meet performance accountability may notice a few things like budget,
reporting systems and observance of laws and regulations.
The purpose of this study is to examine the influence of the application of performance-based
budgeting, the clarity of the budget target, reporting systems, and adherence to the laws and regulations
against the performance accountability of government agencies. The budget became a very relevant and
important governmental surroundings because of its impact on government accountability, with respect to
the function of the Government in providing services to the community. Act No. 33 of 2004 and No. 17
of 2004 about the finances of the State has established the use of a performance-based budget approach is
an approach in the preparation of the budgets that are based on the performance to be achieved. The
application of performance-based budgeting is a form of budget reforms in improving the budgeting
process is accountable. Performance-based budget (performance based budgeting) is output-oriented
budgeting and relates very closely to the vision, mission and strategic plan of the Organization (Bastian,
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2006). Budget performance approach emphasized on the concept of value for money and oversight of
performance output (Mardiasmo, 2002).
The link target of the budget with the clarity of the performance accountability and its effects on
performance accountability was ever delivered by Indudewi (2009) and Anjarwati (2012) who said that
the clarity of the budget goal influences on performance accountability of government agencies. A clear
budget targets will make it easier to account for the success or failure of the implementation of the tasks
of the Organization in order to achieve the goals that have been set previously. The higher the degree of
clarity of the objectives of the budget, it will be increasingly high levels of performance accountability of
government agencies.
Reporting system has related to the accountability of the performance of government agencies.
This has been proved by Anjarwati (2012) and Indudewi (2009) stating that the reporting system has an
effect on performance accountability of government agencies. Regional financial management systems
that include reporting systems will create a transparent financial management and accountability. This
suggests that the higher the level of the reporting system, it will have an effect on increasing
accountability for the performance of government agencies.
Observance of laws and regulations is also an important factor that directly relates to the
accountability of the performance of the Government, as stated in The President of the Republic of
Indonesia number 7 in 1999 about the performance accountability of government agencies. The existence
of this accountability report generated expected would be appropriate and fit within the framework of the
fulfilment of duties to the Central Government and public information needs. Therefore, to realize the
performance accountability of government agencies required obedience over regulatory legislation
(Riantiarno & Azlina, 2011). This is supported by research conducted Sumiati (2012) that proved that
observance of laws and regulations have a positive affect toward the performance accountability of
Government.
The phenomena above indicates that how important performance accountability as accountability
of public institutions that use public funds in an economical, effective, and efficient without any
dissipation of funds and corruption. The results of the evaluation of the performance accountability of
government agencies by 2015 conducted by the Ministry for administrative reform of the State apparatus
and Bureaucracy (PANRB) against 77 ministries/agencies that routinely done every year, the Ministry of
Justice and the human right gain value of B or better with the score 65-75 range. Based on the assessment
and the various pefomena in the top of the link budget, reporting systems and laws and regulations, then
the researchers want to prove in a comprehensive manner the implementation of performance-based
budgeting relation, the clarity of the budget target, reporting systems, and adherence to the regulations
with the performance accountability of government agencies.
THE CONCEPT OF THEORY, THE PREVIOUS STUDY AND FORMULATION OF
HYPOTHESIS
Performance Accountability Of Government Agencies
The increasing demands of society towards the Organization of a good and clean government has
encouraged the development and implementation of a system of accountability that is clear, precise,
organised and effective Accountability Reports, known as government agencies (LAKIP). The goal of
LAKIP is to make the holding of governance and development can take place useful, effective,
responsible and free from the practice of collusion, corruption and nepotism. The Government then issued
a Presidential Instruction of the Republic of Indonesia number 7 in 1999 about the accountability of the
performance of government agencies. In the presidential instruction, there are several definitions of
performance accountability that is the embodiment of the obligations of government agencies accountable
for the success or failure of the Mission of the Organization in achieving the goals and targets that have
been established through the periodic accountability tool. At first the accountability is often associated
with finance, but now performance has been a major concern despite financial (BPKP, 2007; Mardiasmo,
2002). The decision of the head of the LAN Number 239/IX/6/8/2003 on guidelines for the preparation of
performance accountability of government agencies, explaining that the performance accountability of
government agencies is the embodiment of an obligation of government agencies accountable for success
and failure of the implementation of the Organization's mission in achieving the goals and objectives that
have been established through the periodic accountability system.
Performance-based budgeting and performance accountability of government agencies
Performance-based budgeting is budgeting system oriented organization output (output
measurement) as an indicator of performance and closely related to the vision, mission and strategic plan
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of the organization (Bastian, 2006). Performance-based budgeting is budgeting method is done with
attention to the linkages between the output and the expected results of the activities and programs
including efficiency in the achievement of outputs (Kurniawan, 2009). Halim (2007) says performance-
based budget is a method of budgeting that associates each poured in funding activities with the expected
results and outputs including efficiency in the achievement of results. Characteristics of the performance-
based budget in the framework of the application of performance-based budget includes; based on the
inputs, outputs and outcomes to be achieved, the relationship between the input with the output to be
achieved, the performance targets (Asmoko, 2006).
Program on performance-based budget is defined as an instrument of policy that contains one or
more activities that will be implemented by government agencies. The process of drafting the budget first,
and accommodate the needs of the community selection will be filled within a certain period.
Performance-based budgeting requires the creation of new programs and activities and strategies to get
around the limitation of resources. Nina (2009) in her research showed that the implementation of
performance-based budget positive effect on performance of managerial work units of the device area.
Kurniawan (2009) found in his research that the performance-based budgeting a positive effect against
the performance accountability of government agencies.
H1 : Performance-based budgeting a positive effect against Performance Accountability Of
Government Agencies
The clarity of the budget Targets and performance accountability of government agencies
The government budget is one way the implementation of management accounting that is
becoming an essential tool in conducting resource allocation in the Government. Budget is a process
which is implemented by public sector organizations to allocate resources to bear on the needs of the
infinite (the process of allocating resources to unlimited demands) reveal the role of strategic budgeting in
the wealth of a political organization (Deddi, 2008). Kenis (1979) in Robbyta (2013) and Suhartono and
Solichin (2006) says the clarity of the budget target is the extent to which the objectives of the budget
clearly defined and specific purposes so that the budget can be understood by the person responsible for
the achievement. Locke and Lathan (1984) in Samuel (2008) States that the setting of specific goals will
be more productive than not setting specific goals. The budget targets of deliberate clarity to govern the
behavior of employees.
The budget should be able to become a benchmark achievement of performance accountability
expected, so that budget planning should be able to describe clearly the performance target. Therefore the
budget targets should be expressed in clear, specific and understandable by those responsible for
implementing it. The existence of the measurement of the success rate of an organization in the form of
the evaluation mechanism, then it can be known for the performance of an organization (Herawaty, 2011;
Abdullah, 2005). When the target clarity budget stated clearly then the performance accountability of
government agencies has increased. This will encourage employees to do their best for the attainment of
the desired goal, so it could have implications for increased performance. Anjarwati (2012) concluded
that the clarity of the budget target of a positive effect against the performance accountability of
government agencies. Kusumaningrum (2011) show that the positive effect of the budget goal clarity
against the performance accountability.
H2: The clarity of the budget target of a positive effect against Performance Accountability of
Government Agencies
The system of reporting and performance accountability of government agencies
There are three goals of the Government's financial reporting such as managerial accountability,
and transparency. Accountability is defined as the attempt to account for resource management and
implement policies which is entrusted to the organizational units of the Government in the framework of
the achievement of the goals that have been set. Managerial means providing financial information that is
useful for planning and managing the Government's finances as well as facilitating an effective control
over all the assets, debt and equity funds Kusumaningrum (2012). BPKP (2000) stated that a good report
is a quality that should be prepared honestly, objectively and transparently, by using the principle of
liability, exclusions, comparison, accountability, and benefits. Anthony, et al (2005) reveals the
characteristics of a good reporting system is a report detailing the actual achievements of variants based
on factors the causes of organizational units, the annual forecasts are concerned, include a description of
the preparation of systematic, cause variant, and evaluation or action taken to correct a variant which is
not profitable.
Reports can be compiled properly, if the accounting system used is good too, so that the required
reporting systems. Mardiasmo (2002) reveals, the local government as the provider of public funds should
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be able to provide the necessary financial information accurately, timely and trustworthy. Therefore, local
governments are required to have a reliable accounting accounting systems. Anjarwati (2012) concluded
that the reporting system a positive effect against the performance accountability of government agencies.
Indudewi (2009) discovering the existence of regional financial management systems that include a
reporting system, will create a transparent financial management and accountability.
H3: Reporting system a positive effect against Performance Accountability Of Government Agencies
Adherence to regulations and Performance Accountability Of Government Agencies
Accounting and the relation to this law has been expressed by Soleman (2007) in his view about
accounting and its surroundings, there are 8 elements in the environment affecting the accounting system
of accounting, taxation, funding sources, the political and economic relations, inflation, the level of
economic development, levels of education, and culture, then coupled with the influence of legal and
accounting developments. Robbyta (2013) says the legal system in force in one country depends on the
system that adhered to whether the concerned country adopt the Civil Law or Common Law. The legal
system is rooted in the public sector in accounting is a system of civil law, where any rules associated
with the public sector accounting that are loaded in the form of regulatory legislation. In Indonesia has
many laws and Government regulations published to achieve good governance. Accountability cannot be
effective in the absence of transparency and the rule of law that is clear, so that the development of
accountability required a mechanism and a clear regulation. This indicates that adherence to the
regulations of the legislation will affect the performance accountability of government agencies. Hara
(2010) found that adherence to legal regulations a positive effect on the performance of government
agencies. This is in line with the research Soleman (2007) and Robbyta (2013) are proving the existence
of the positive influence of obedience regulations against the performance accountability of government
agencies.
H4 : Influential positive observance legislation against Performance Accountability Of Government
Agencies
RESEARCH METHODS
This research is quantitative research with testing causality variables independent of the dependent
variable. The variables tested are (the dependent) performance accountability, and performance-based
budgets, clarity of objectives, budget reporting system and obedience regulations (independent).
Accountability is measured by indicators of accountability and honesty of law, accountability processes,
accountability program, and accountability policies, with 12 grains statement. Budget-based performance
measured by the indicators of the budget based on the inputs, outputs and outcomes, the relationship
between the input to the output, the preparation of performance targets, with 5 round statement
(Kurniawan, 2009). The clarity of the budget objectives measured by indicators of budget objectives clear
and specific, understandable, transparent and accountable, as well as relevant, with item 8 statement
(Robbyta, 2013; Yusmaneli, 2008). The reporting system is measured using the preparation of systematic,
causes the occurrence of irregularities, evaluation or actions taken, with the 7 item Declaration (Robbyta,
2013); Yusmaneli, 2008). Obedience regulations legislation measured with 5 round statement (Robbyta,
2013).
The respondents in this study were officials at agency regional office environments on the vertical
of the Ministry of Justice and human rights Work in the Unit as well as Bengkulu in scope which is the
city of Bengkulu. Respondents who participate are officials of the Echelon III, IV, and V consisting of a
head, head of section, head of the subfields and head subsections at regional offices of the Ministry of
Justice and Human Rights Unit and Work Surroundings of Bengkulu local offices. The data was analyzed
using Partial Least Square approach (PLS) (Abdillah, 2015; Ghozali, 2014). First the outer model testing
was done to know the validity and reliability of data. Further inner or structural models was tested to look
at the relationship between invalid constructs. Hypothesis testing is done by the process of
bootstrapping/resampling bootstrapping. Testing the hypothesis put forward can be seen from the
magnitude value of the t-statistic.
THE RESULTS OF THE RESEARCH AND THE DISCUSSION
The number of samples (respondents) in this research was as many as 56 people, consisting of
Local office of Ministry of justice and human rights (23), Bengkulu Lapas Class II A Bengkulu (10),
Rutan class II B Bengkulu (4), class II Bapas Bengkulu (4), Rupbasan class I Bengkulu (3), and the
Immigration Office class I Bengkulu (12). Viewed from gender, 45 men and 11 women. The age of
603
respondents was average from 41 to 50 years. Their education was majority of Undergraduate, Graduate
and Diploma. The working time is generally in the range of 21 - 30 years.
The overview of the variable research (performance-based budgets, clarity of objectives, budget
reporting system, observance of regulations and performance accountability of government agencies), all
of them showed greater than average from theoretical. This means that the application of performance-
based budgeting had been applied, was good on the existing reporting system, the budget target planned
has been clear, has the presence of adherence to laws and regulations, and the performance accountability
has gone well. Regional Office of the Ministry of Justice and human rights of Bengkulu has implemented
with either all indicators that are used as measuring variables descriptive statistically based on the data of
the respondents.
Table 1 Descriptive Statistics Of The Variables Research Before Preliminary Swimsuit Segment
Variable
N
Estimated Actual Estimated
Min
Maks
Mean
Min
Maks
Mean
Std.
Deviasi
Performance Based
Budgeting 56 5 25 15 15 25 20,59 2,21
The clarity of the budget target 56 8 40 24 19 40 31,30 5,78
The system of reporting 56 7 35 21 22 35 30,02 3,12
Adherence to regulations 56 5 25 15 14 25 22,13 2,63
Performance Accountability Of
Government Agencies
56 12 60 36 34 58 45,77 4,98
This research used a structural equation model which was analyzed by using the program
SmartPLS 2.0 M3. Outer/measurement model (model of measurement) was applied to know the validity
and reliability of the indicators which connects with the laten variable. The following image shows the
display results of PLS Algorithm after an indicator having a loading of less than 0.70 eliminated.
There are two methods used to assess the validity of the discriminant. The first method is
comparing correlation indicator an invalid construct with the indicator of correlation with another invalid
constructs by looking at the value of the cross between the loading indicator with its construction. The
result showed that there was good discriminant validity, because the correlation value indicators against
the construction of the correlation value is higher than the indicators with another invalid constructs. The
second method is by looking at the value of the AVE (Average Variance Extracted) and the value of the
root of the AVE for any invalid constructs with the correlation between invalid constructs with other
invalid constructs in the model. A good model is required if the value for invalid constructs individualized
AVE roots is greater than the value of the correlation between invalid constructs with other invalid
constructs must be greater than 0.5. The results showed the value of the AVE (Average Variance
Extracred) invalid constructs for performance-based budgets, clarity of objectives, budget reporting
system, observance of regulations and performance accountability of government agencies have a value
greater than 0.5.
In addition to testing the validity of constructs, the reliability of constructs test was done as
measured by composite reliability and reinforced with a Cronbach alpha of indicators that measure
invalid constructs. The test results of composite reliability and cronbach alpha value have composite
reliability > 0.70 and alpha cronbachs > 0.60.
Table 2 Composite Reliability dan Cronbachs Alpha
Variabel Composite Reliability Cronbachs Alpha
Performance Based Budgeting 0,8652 0,7707
The clarity of the budget target 0,9739 0,9687
The system of reporting 0,8836 0,8051
Adherence to regulations 0,8387 0,7181
Performance Accountability Of Government
Agencies 0,8356 0,7041
604
The structural model was evaluated by using the R-square for the dependent invalid constructs
(endogenous) and t-test as well as the significance of the structural parameters of line coefficients.
Testing against the structural model is done by looking at the value of R-square which is a test for
goodness-fit model. The R-square value of 0.2822, which means that invalid constructs variability of
performance accountability of government agencies can be explained by the variability of performance-
based budget invalid constructs, the clarity of the budget target, reporting systems and observance of
legislation of 28.22% whereas 71.78% explained by variables other than the ones examined.
The second test is to see its significance by looking at the values of the parameters and values for
the coefficients of the significance of the t-statistic. To assess the significance of the model prediction of
the structural model in testing, can be seen from the value of the t-statistic between independent variables
to the dependent variable. From the table below shows that the results of the t-statistic calculation of
performance-based budgets (ABK) have no effect against the performance accountability of government
agencies (AKIP) (0.7688) t-table < (1.96). The clarity of the budget target (KSA) has a positive effect
against the performance accountability of government agencies (AKIP). Reporting system (SP) has a
positive effect against the performance accountability of government agencies (AKIP). Obedience
regulations (CHOCOLATE) has a positive effect against the performance accountability of government
agencies (AKIP).
Table 3 Path Coefficient (Mean, STDEV, t-Values)
Original
Sample
(O)
Sample
Mean
(M)
Standard
Deviation
(STDEV)
Standard
Error
(STERR)
t-statistics
(|O/STERR)
t-tabel
ABK >AKIP -0,0707 -0,0881 0,0920 0,0920 0,7688 1,96
KSA > AKIP 0,2250 0,2173 0,0674 0,0674 3,3395 1,96
SP > AKIP 0,3115 0,3173 0,0672 0,0672 4,6382 1,96
KPPU > AKIP 0,3554 0,3663 0,0902 0,0902 3,9416 1,96
The results of the study proved that performance-based budget has no effect against the
performance accountability of government agencies. Implementation of performance-based budget for
this in the Local Office of the Ministry of Justice and Human Rights Unit Works as well as in Bengkulu
have not been able to improve the accountability of the performance of government agencies. The results
605
of this study do not support Kurniawan’s study results (2009) which found that performance-based budget
influence on performance accountability of government agencies. Likewise, Kurniawan (2009) said that
the existence of a relationship between a performance-based budget with managerial performance Unit
Working Device area. Nina (2009) that performance-based budgeting is budgeting method which is done
with attention to the linkages between the output and the expected results of the activities and programs
including efficiency in the achievement of those results. Bastian (2006), argued that the budget is
essentially a performance based budgeting system output-oriented organizations and closely related to the
vision, mission and strategic plan of the organization. Performance-based budgeting is drafting a budget
based on performance planning, which consists of the programs and activities that will be implemented
and performance indicators to be achieved by an entity budgets. The Government at the Regional Office
of the Ministry of Justice and human rights should continue to improve the application of performance-
based budget so that it is able to improve organizational performance (accountability kinerjan government
agencies)
The results of the study proved that the clarity of the budget goal influenced on performance
accountability of government agencies. This means that the more obvious budgetary goal setting made in
the budget of the Regional Office of the Ministry of Justice and human rights Work Units as well as in
Bengkulu, it will also better accountability of its Government agencies ' performance. This study supports
the results of research conducted by Kusumaningrum (2011), Anjarwati (2012) who found that the clarity
of the budget target of a positive effect against the performance accountability of government agencies.
Robbyta (2013) stated that the clarity of the budget target is the extent to which the objectives of the
budget clearly defined and specific so that the budget can be understood by the man responsible for his
accomplishments. The budget should be able to become a benchmark achievement of performance
accountability expected, so that budget planning should be able to describe a clear performance targets.
Therefore the budget targets should be expressed in clear, specific and understandable by those
responsible for implementing it
The research results proved the reporting system have an effect on performance accountability of
government agencies proven empirically supported. Based on the results, this study showed that the better
accountability reporting systems at the Regional Office of the Ministry of Justice and human rights as
well as the working Unit in Bengkulu will be getting better performance accountability agencies his
Government. The results of this study are consistent with research conducted by Indudewi (2009),
Anjarwati (2012) who managed to prove the existence of the influence of the system of reporting against
performance accountability. A good reporting system according to Anthony et al., (1989) in Robbyta
(2013), is a system that specifies the actual achievements of variants, including the annual forecast, the
causes of Variant (deviation) action taken to correct a Variant that is not profitable, and the time required
in order for the actions of the corrections/improvements can be effective. Performance reporting is a
reflection of the duty to represent and to report the performance of all activities and resources that need to
be accounted for. The existence of a good reporting system should make it easier to account for the
success or failure of the implementation of the tasks of the Organization in order to achieve the goals that
have been set.
Observance of laws and regulations have influenced the performance accountability of government
agencies. The results of this research showed that the better adherence to laws-invitation in making
budget and reporting at the Regional Office of the Ministry of Justice and human rights as well as the
working Unit in Bengkulu will be getting better performance accountability of government agencies. The
results of this study support the research of Soleman (2007) and Robbyta (2013), Sumiati (2012) who
found that the observance of laws and regulations influence on performance accountability of government
agencies. The obedience of the laws and regulations referred to in the preparation of the financial
statements, the Government must satisfy the minimum requirements specified in the Government's
accounting standards. Government accounting standards as guidelines are a staple in composing and
presenting financial accountability reports should be aligned with the Government's budgetary system.
Therefore, the classification of the budget in the Government's accounting standards must be the same as
the classification system of budgeting. Public authorities are obliged to obey the rules of the applicable
legislation. Obedience regulations will encourage fluency program so that the achievement of business
606
goals or desired goal that will realize the performance accountability. The existence of the adherence to
the regulations will make it easier to account for the success or failure of the implementation of the tasks
of the Organization in order to achieve the objectives that have been set previously.
CONCLUSIONS, IMPLICATIONS, LIMITATIONS AND RECOMMENDATIONS
The results of this study concluded that performance-based budget has no effect against the
performance accountability of government agencies at the Regional Office of the Ministry of Justice and
Human Rights Unit Works as well as in Bengkulu. The clarity of the budget target, reporting systems, and
adherence to the laws and regulations influence the performance accountability of government agencies at
the Regional Office of the Ministry of Justice and Human Rights Unit Works as well as in Bengkulu. This
means that the more clear goal setting the budget, the better the existing reporting systems, and the better
implementation of the legislation, it will be getting a nice performance accountability of government
agencies at the Regional Office of the Ministry of Justice and human rights Work Units as well as in
Bengkulu.
From the results above, this study will hopefully become input for the Regional Office of the
Ministry of Justice and human rights as well as the Unit Works in Bengkulu in assessing the influence of
the clarity of the budget target, reporting systems and observance of legislation against the performance
accountability at the Regional Office of the Ministry of Justice and human rights of Bengkulu. For
officials such as heads of agencies, heads of Sections/fields and Head Subsections/Subfields in carrying
out the functions, duties and responsibilities in improving the accountability of its performance that will
continue to improve and to build competencies in organization by continuing to increase the
accountability of the performance with improving the process of preparation of the budget, reporting
systems and the application of the legislation.
This research process has some limitations that require improvement and development in the next
research which covers only done limited the scope of the Regional Office of the Ministry of Justice and
human rights institutions does not use vertical Bengkulu. This research could be made only by means of
disseminating a questionnaire and does not do interviews with respondents so that the information
obtained was very limited. By the time the researchers doing the distribution, the questionnaire,
questionnaire returns time in constrained because it is not exactly an election time, researchers submit the
questionnaire due to the flurry of each agency. Researchers cannot prove the influence of performance-
based budgets against the performance accountability of government agencies. For next study, it is better
to not only research in the Regional Office of the Ministry of Justice and human rights of Bengkulu, but
also involves the entire vertical agencies that exist in Bengkulu province. Using both interview and
questionnaire method, the data information was obtained better, honest and insightful as well as the
selection of the correct time in distributing the questionnaire.
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