The companies information in the financial statements is used as a reference by investors to assess corporate risk and investment decision making. Investors will demand a high level of cost of debt if the risk is higher.This study aims to investigate the influence of accounting information quality and the characteristics of the board of directors that is viewed through the report of directors in the form of narrative in the annual report of the company. The sample is 106 non-financial companies listed on the Indonesia Stock Exchange from 2014-2015. This research use mixed method in terms of data collection. The quantitative datas from annual report and qualitative datas in the form of company director’s report. The datas analysis is quantitative content analysis. The results of this study show that the quality of accounting information measured by earnings income has a significant negative effect on the cost of debt but if measured by earnings predictability does not affect the cost of debt. In addition, the report of directors in the form of narrative has a significant positive effect on cost of debt. These results indicate that the cost of debt is not only influenced by the figures in the financial statements but also influenced by non-accounting factors are the characteristics of the board of directors reflected in the report of directors in the annual report. Type of Paper: Empirical Keywords: accounting information quality, board narrative disclosure, cost of debt, mixed method
Accrual accounting is being adopted by central government to improve fiscal transparency. However, the symptoms of agency problems are suspected to occur regardless accrual-based IPSAS adoption. This study aims to examine the importance of supreme audit institution role in strengthening the implementation of accrual accounting on fiscal transparency through enforcement and enhancement of audit quality. Using panel data regression and confirmatory factory analysis (CFA) on a sample covering 77 countries and 8-year periods from 2008 to 2015, this study find that supreme audit institution quality strengthens accrual policy on increasing fiscal transparency. Particularly, budgeting information and fiscal risk analysis are critical concern of fiscal transparency agency problem for Supreme Audit Institutions. It recommends that supreme audit may concern and enforce on completeness of accrual information to support central government  fiscal sustainability policies.
The research aims to explain descriptively about how the presentation, disclosure and major amendment change of IAS 41 at plantation agriculture company. This study uses 7 plantation companies listed in Singapore for the year 2014-2015. The results show that companies have presented and disclosed the amendment of IAS 41 in accordance with the contents of the Amendment of IAS 41. All companies are restatementing the 2015 financial statements using the effective IAS 41 Amendment 2016. Keyword: IAS 41 Amendment, biological asset, bearer plant, restatement
This thesis discusses the aggressive tax planning scheme in tax avoidance by a renowned multinational company, Google tax dispute case which is currently a discussion subject in various countries including Indonesia. In view of such phenomenon, this thesis attempts to analyze the appropriate steps to be undertaken  by the Indonesian government to tax Google to obtain optimal state revenue. The analysis is conducted through the approach of Tax Treaty, BEPS Action Plan 1 is the next step in handling the digital economic tax challenges presented based on its development, and the comparison of other countries that have established policies to tax Google. The research method is qualitative with data collection method in the form of literature study and field study by conducting in-depth interviews with a key informant with understanding on the subject matter of this research. Research results indicate that new tax policies are required to overcome tax avoidance conducted by Google that is outside the scope of income tax, such as Diverted Profits Tax (DPT) in the UK and Australia and Equalization Levy in India.
The purpose of this research is to analyze the impact of implementation IFRS 15 “Revenue from Contract with Customer” on the financial statement of Telecommunication Company. The method used in this research is qualitative analysis in the form of literature and case studies in cellular business process of PT XYZ. This research tries to analyze how big the impact of implementation of IFRS 15 on the revenue measurement, recognition, presentation, and disclosure process in the Telecommunication Company and changes required to anticipate the enactment of this standard. The result of this research showing that the implementation of IFRS 15 in PT XYZ will affect not only the revenue recognition and financial reporting preparation process, but will also impact and require changes on the internal control environment, information and technology system, key performance indicator and employee benefit calculation process, and also investor relationship. Implementation of IFRS 15 not only the responsibility of Accounting Group, but its requires good coordination and teamwork between related units in PT XYZ in carrying out the necessary changes.
ABSTRACT The leaders of ASEAN countries and the six partner countries of the ASEAN FTA (Australia, China, India, Japan, Republic of Korea and New Zealand) launched the Regional Comprehensive Economic Partnership (RCEP) negotiations in November 2012 with the aim of reaching a modern, comprehensive, high-quality, beneficial among ASEAN Member States and ASEAN FTA partners. This study aims to analyze the competitiveness and impact prediction of Indonesia’s participation in the RCEP. Using Revealed Comparative Advantage (RCA) analysis, this study focused on analyzing product commodities among RCEP members including Indonesia. The results of this study show that the competitiveness of Indonesian products is still weak compared to most other RCEP member countries. Therefore, the Government of Indonesia should enhance the competitiveness of products in order to compete and take advantage of its participation in the RCEP. Furthermore, impact prediction analysis uses Global Trade Analysis Project (GTAP) application version 9, with 17 countries / regional and 43 products aggregations. The simulation results show that with the enforcement of the RCEP agreement, it is predicted to increase trade performance, GDP and the welfare of most Member States including Indonesia.
This study aims to analyze Corporate Governance practice and design a roadmap implementation of Good Corporate Governance in PT JW. Data used on this study is generate from internal document and interview with Audit Committee, Audit Internal, and General Department. The analysis done by giving the score for corporate governance practice in PT JW with Assessment and Evaluation Indicator/Parameter of Good Corporate Governance for State Owned Enterprise tools and also ASEAN CG Scorecard as a supplementary tools after doing the first stage analysis regarding congruity item with characteristic and some other regulation related Regional Owned Enterprise. The result show that there still many of deficiencies on the Corporate Governance practice in PT JW, therefore the roadmap implementation is required to do the sustainable improvement of Corporate Governance practice. The roadmap implementation separated into 3 dimension of time which short-term, mid-term and long-term to ensure PT JW can make a suistanable improvement on Corporate Governance practice.
The purpose of this study is to obtain empirical evidence about negative relationship between internal funds and external funds. The research method used in this study is multiple linear regression using panel data with population of this study comes from manufacture listed companies in Indonesia Stock Exchange during 2010-2015. The result of this study proves that there is negative relationship between internal funds and external funds on constrained and unconstrained firms. The result of this study is in line with pecking order theory.
The purpose of this study is to analyze whether companies that perform financial derivative transactions have a higher tax avoidance from companies that do not perform financial derivative transactions. This study uses financial report data of non-financial companies listed on the Indonesia Stock Exchange (BEI). The results prove that the user has a higher ETR than non-users, which means it is not proven that companies that conduct financial derivative transactions have higher tax avoidance than companies that do not perform financial derivative transactions. Furthermore, when testing the fair value of financial derivatives using user samples, it is found that the fair value of derivatives has a significant negative effect on CURR-ETR and CASH-ETR except for GAAP-ETR. The results of this study prove that the higher the fair value of financial derivatives reported by the company then the rate of tax avoidance will increase.
The objective of the research is to analyze property, real estate, construction companies, and banks that revalued in 2015 and its impact to the companies. The results show that 20% property, real estate, and building construction companies that revalued majority of companies have decrease in leverage after revaluation and increase debt on revaluation period or thereafter. Then, the results show that 59% banks that revalued majority of companies have in increase Capital Adequacy Ratio (CAR) after revaluation and increase loan distribution on revaluation period or thereafter.
This research is a case study aimed at analyzing the role of internal audit in preventing corruption in public sector. The study was conducted by observing the condition and data analysis. The analysis is done by comparing the efforts made with the occurrences and / or audit findings that occurred. The results show that internal audit has made prevention and detection efforts related to fraud events, but there are weaknesses in internal controls that still have not been able to prevent fraud events. As one of the objectives of supervision from the inspectorate general of the Ministry of Health of the Republic of Indonesia is to improve the effectiveness, internal control and risk management of all execution of functions and duties within the Ministry of Health, therefore it is necessary to design additional controls that strengthen existing controls. A fraud control system is a control developed and designed to prevent, deter and disclose fraud events. The system results from strengthening or deepening of existing governance systems and is influenced by the conditions of each organization.
This study aims to analyze whether existing controls have been able to overcome the threats that arise in the process of paying employes salaries of University A and how the role of each lines of defense in the Three Lines of Defense Model at University A, in applying internal controls based on the COSO Framework. The method in this research is using COSO Framework as a guide in applying internal control and using Three Lines Of Defense Model as reference in analyzing the role of each lines of defense that involved in internal control. Internal control analysis in this study was conducted to analyze weaknesses in each lines of defense and control role over threats in the payment process of employee salaries University A, and to provide suggestions for improving weaknesses in control and defense roles. In this study, the data obtained through direct observation of every unit business that will be examined, examination of the business process flow and documents used and also studies literature. The process of interviewing and questionnaires to the people who responsible for the part of the research such as the Directorate of Finance, SPI and SMR. From the analysis of the control activities on the threats that existed in the salary payment process of University A employees, we find that currently University A already has control over existing threats from each sub process, but it can be concluded that there are some threats that can’t be overcome with the control condition from each sub process. Then, based on the analysis that has been done on the role of each side of the defense in applying the internal control component based on COSO on the payroll process, we can conclude that each line of defense has not done its role optimally.
This research is a case study that aims to analyze and provide suggestions to improve the quality of public expenditure treasurer performance assessment that can be implemented by the Directorate General of Treasury Regional Office of Bangka Belitung Province. The research was done by mix method in the form of interview, literature study, and questionnaire. The analysis is done by qualitative descriptive of the pubic expenditure treasurer performance assessment system. Determination of the Proposed Key Performance Index (KPI) with SMART-C principle with KPI weighting using AHP method. The results showed that the KPI used in the public expenditure treasurer performance assessment not entirely in accordance with the public expenditure treasurer’s  main task. The research also produces more relevant KPI for performance assessment of the public expenditure treasurer. The result of the research is expected to be used as a proposal to improve the quality of performance assessment of the public expenditure treasurer as well as consideration to improve the quality of performance management within the Directorate General of Treasury. Keywords: performance assessment; public expenditure treasurer; key performance index; KPI; BSC; AHP; 360 degree
ABSTRACT Taxpayers use the services of other parties (promoters) who have great knowledge of domestic and international tax laws for arranging tax planning. Tax planning is legal because it does not violate the rules and still within the corridor rules apply. But tax planning activities can be aggressive or called aggressive tax planning if still in the corridor law that apply but have a different purpose with the intention of the law. This activity will gradually erode the basis of a country’s tax revenue. In 2015, countries in the Organization of Economic Co-operation and Development (OECD) and G20 including Indonesia have agreed to implement 15 action plans called the Base Erosion and Profit Shifting (BEPS) Action Plan to address the problem of the tax base erosion and profit shifting. One of the action plans is BEPS Action Plan 12: Mandatory Disclosure Rules to counter aggressive tax planning. BEPS Action Plan 12: Mandatory Disclosure Rules is mandatory reporting for Taxpayers and promoters to disclose tax planning schemes undertaken in order to obtain early information on aggressive tax planning. This study aims to determine the suitable form implementation of BEPS Action Plan 12: Mandatory Disclosure Rules in Indonesia’s domestic tax regulation and the design framework based on seven basic elements of BEPS Action Plan 12: Mandatory Disclosure Rules. The research is conducted with qualitative approach and data collection is conducted through literature review and in depth interview with practitioner, academics and tax authority in Indonesia. The results of this study indicate the suitable form of implementation is Regulation of the Minister of Finance, and the design framework based on seven basic elements of the BEPS Action Plan 12: Mandatory Disclosure Rules is slightly different from the recommendations. Keywords: aggressive tax planning, Base Erosion and Profit Shifting (BEPS), BEPS Action Plan 12, mandatory disclosure rules
Abstract   The purpose of the research is to analyze the effectiveness of the implementation of upstream downstream control system applied to the research unit, to overcome the problems faced by the delay and the low achievement of expenditure realization that has occurred in previous years. The study used qualitative methodologies, using questionnaire survey data on 121 budget managers from the highest managerial level to the operational manager level. Furthermore, by utilizing triangulation technique is done deepening by conducting interviews, secondary document analysis and literature review. Effectiveness analysis of control system is done by referring to Levers of Control theory framework developed by Robert Simon (1995). Associated with the analysis of managerial accounting information quality used characteristic dimensions developed by Chendall & Moris (1986). Obtained evidence that the implementation of “upstream downstream control system” can change the pattern of performance achievement of budget realization in all work units in the research unit. The applied control system is considered to have included four elements of the system from the Levers of Control. In particular the system of diagnostic and interactive controls, assessed able to effectively improve the performance of budget realization. Perceived by budget managers, the information generated by the diagnostic control system, is considered capable of providing quality information that encourages interactive systems to function better. Interaction between elements of this system can further boost the performance improvement of the organization’s performance. This research shows that the implementation of management control system applied to research unit can provide solution to overcome the problem of delay and low achievement of budget realization performance, so it can be used as reference for other government organization in Indonesia in overcoming the same problem. Type of Paper: Case Study Keywords: Management Control System, Budget Realization Performance, Levers of Control
This study discusses interest payments on loan transactions between Company X and its subsidiaries based on transfer pricing rules and Government Regulation No. 94 of 2010. The purpose of this study is to determine the implementation of transfer pricing and to analyze the tax savings on interest payment transactions between Company X and its subsidiaries. This research uses qualitative research approach and data used are data from Company X and subsidiary, interview with related parties, and literature study. The result of the research concludes that interest-free loan transactions between Company X and its subsidiaries are not in accordance with the prevailing transfer pricing regulation in Indonesia and Government Regulation Number 94 Year 2010 and the interest-free loan transaction does not trigger tax savings but make Company X suffer losses by mistake companies in tax planning. Keywords: Transfer Pricing; Interest; Tax; Implementation
This study aims to compare changes in agricultural funding profit between KUR, Ijon, and Salam due to price changes and harvest failure rate at one harvest time by making profit as an element of comparison as well as comparing its application in the field for each type of agricultural funding. This research was condcuted on agricultural society in Lampung Selatan District (a single case study) by analysing agricultural funding pattern (single Unit Analysis) in the form of People’s Business Credit (KUR), Ijon, and Salam (syariah). The result of the study indicates that in the condition of price change, financing method of People’s Business Credit (KUR) becomes the best alternative, while for the condition of harvest failure rate, Salam method becomes the best alternative. In terms of execution, Salam gives more stability to agricultural activity. This study offers an agricultural funding system that can improve farmers’ welfare, provide assurance of selling price, guarantee the availability of agricultural production equipment, and protection of crop failure.
This study aims to analyze the participation of listed company in Indoesian Stock Exchange on tax amnesty based on industry classifications in 2016, the presentation of tax amnesty assets and liabilities, and disclosures of tax amnesty assets. Descriptive qualitative research is adopted in this study which use content analysis as analysis method on tax amnesty information financial statement in 2016. The results of the analysis show there are 194 listed companies and 34.7% of 559 listed companies have been participating in tax amnesty in 2016. There are two alternative to present assets and labilities from tax amnesty which are; separately from other assets and liabilities that applied by 25 companies and a part of other assets and liabilities that applied by 169 companies. There are 46 companies take 23.71% that do not disclose net value tax amnesty assets, and there are 131 companies take 72. 29%  that do disclose net values of tax amnesty assets, recorded net value tax amnesty assets as additional paid-in capital.
This paper research about the barriers faced by Moslem fashion industry in Indonesia when performing innovation within the organization. Innovation is inseparable in Moslem fashion industry. As Moslem fashion industry is becoming new trends, Moslem fashion now adapting more contemporary approach in designing apparels rather than the traditional one. To perform innovation is not without barriers in the business. This paper aims to research barriers that hinder Moslem fashion industry to adopt innovation in its organization. This research takes 72 samples from Moslem fashion industry players across big cities in Indonesia. This research applies qualitative approach, mostly using the interviews techniques and inductive approach in analyzing the barriers of innovation. It was found that human resource (lack of skills and shortage of skilled staffs), operational resource (raw materials problem), and imitation from competitors were the most frequent sources of barriers of innovation in Moslem fashion industry. Type of paper: Research Paper Keywords: Innovation; Innovation Barriers; Fashion Industry; Moslem Fashion Industry
This study aims to examine the effect of belief control on the performance of business units or companies with contingent-fit between strategic risk-uncertainty and levers of control (interactive control system, boundary control system, and diagnostic control system) as a moderating variable. The fit model was developed from fitness landscape theory and model used by Jermias and Gani (2005). This research proves that belief control system has a positive effect on the performance of business unit or company. This means that the higher the application of belief control system the better the performance of the company. This finding also found that contingent-fit between strategic risk-uncertainty and combination of levers of controls negatively affects the relationship between belief control system and performance. This indicates that if the business unit or company has alignment between the strategic risk-uncertainty and the levers of control, then the difference of performance will be smaller between the firm with high belief control and the firm with low belief control.
East Nusa Tenggara (NTT) is one of the highlights in Indonesian development programs, as well as other areas in eastern Indonesia. Some indicators show that NTT is lagged one step backward compared to others, whereas it has abundant natural resources. Supported by extensive waters and coastal areas, also strategic geographical conditions, NTT’s marine should be the dominant sector that sustains the economy of NTT. Exploiting these opportunities aligned with the concept of blue economy, which turns the maritime sector into a key economic development basis, in addition to the preservation of nature. Accordingly, the concept of blue economy is very suitable to be developed in NTT. This study analyzed the topic using the combination of qualitative and quantitative method, namely LQ analysis, AHP analysis, literature review, and interview. The results indicate that the concept of blue economy significantly assist the economic development of NTT to create the sustainable economic development. Type of Paper: Case Study Keywords: blue economy; NTT Indonesia; economic development
The purpose of this research is examine whether CEO overconfidence is associated with real earnings management and indirect association with future performance. CEO overconfidence is measured using three measurements to obtain adequate results. Real earnings management to measures with three proxies are sales manipulation, overproduction and cut budget discretionary expenditure (R&D and Selling, General & Administration Expense). Future performance in this study was measured by return on asset and operating cash flow. The sample of this research is manufacturing company listed on Indonesia Stock Exchange on period 2014 until 2016. The results of this study indicate that CEO overconfidence has no association to the real earnings management. The other results of this study also indicate that CEO overconfidence and real earnings management have a negative impact on the operational performance of the company in the future. However, the results of testing in this study indicate that there is no mediation relationship between CEO overconfidence on the operational performance of the company in the future through real earnings management.
There are many studies to explore the relationship between education and fertility. However, most of them focus on education of women or men only. And only a few studies to examined education as a couple perspectives, and it usually happened in developed countries. Yet in Indonesia, as a developing country, not many studies use this approach. This study aims to investigate whether couples’ educational level influenced fertility behavior in Indonesia. Besides that, it is considered to include socioeconomic characteristics of a couple as control variables. Using data from Indonesia Family Life Survey (IFLS), this study investigates married couples in 2014, and uses Hurdle Zero-Truncated Poisson regression model to estimate the predictors. The result shows that in Indonesia couples’ educational level influence their fertility behavior. Regarding inequality on the couples’ joint educational level, the hypergamy tend to be childless.
This study aimed to explore the direct effect of the implementation of corporate social responsibility (CSR) strategy (strategic and non-strategic CSR) on firm performance, and the role of the management control system (MCS) as a moderating variable between CSR strategy and firm performance. The samples in the study are the manufacturing companies listed on the Indonesian Stock Exchange (Bursa Efek Indonesia/BE]) in the period 2013–2015. Secondary data, such as financial statements and annual reports, were used to obtain the research data. This study contributes to the current debates related to CSR strategy and the role of MCS as it develops the measurement model for strategic CSR (five strategic CSR dimensions: centrality, specificity, proactivity, visibility, and voluntarism), non-strategic CSR (ethical and altruistic characteristics) and MCS (four elements of levers of control: belief system, boundary system, diagnostics, interactive control system) by using content analysis in the company’s annual report.  Our findings were that both strategic and non-strategic CSR have a positive significant influence on the company’s financial performance. CSR strategy is one of the mechanisms for the fulfillment of the obligations of the companies to the government and society, not just the embodiment of the moral or ethical obligations of companies to the social environment and society, but it has an impact on the company’s performance. Furthermore, MCS has a role, as moderating variable, in supporting the relationship between the CSR strategy (strategic and non-strategic) and company performance. These findings indicate that the companies have been carrying out a CSR strategy in line with the objectives of each company and it is supported by MCS.
This study investigate the relationship between CSR and required rate of return (cost of capital), both cost of equity and cost of debt. This study use up to 690 observations of listed firms in Indonesia for year 2013-2015 by using multiple regression analysis. CSR disclosure score is measured using percentage of keywords coverage in firm’s annual report with NVivo software. The keywords were adopted from Pencle & Malaescu (2016) adopted from GRI G4, UN Global Compact, ESG, KLD, and IIRC dimensions, also validated by expert (Pencle & Malaescu, 2016). Not only use percentage of keywords coverage, this study also use manually indexing procedure according to GRI G4 list items to check the robustness. This study shows that previous year cost of equity and cost of debt motivate companies to disclose CSR extensively in the current year. After disclosing CSR more extensive, it is not proven that companies get benefit in the form of lower cost of equity and cost of debt in the next year. Investors and creditors did not perceived CSR disclosure as a mean of reducing asymmetric information and information risk. CSR disclosure per se may not perceived as risk reducing activities by investors and creditors so it does not guarantee lower cost of capital. The effect of CSR on cost of capital may be depend on company’s CSR performance. The empirical study regarding the impact of CSR performance can be studied by future researcher. This study provides new insight about cost of equity & cost of debt as determinants of CSR disclosure level, but not as consequences of CSR disclosure. This research is useful for companies in their financial planning. Companies can consider quality of CSR performance -not only CSR disclosure level- as a mean of getting capital (both equity and debt) at a lower cost.Type of Paper: Empirical Keywords: cost of equity; cost of debt; Corporate Social Responsibility (CSR); disclosure
This research aims to examine the influence of CSR towards the tax avoidance practices as well as the moderation role of political connections in companies listed on the Indonesia Stock Exchange in 2014-2016. By using BTD proxy, this research find no evidence with regard to the influence of CSR towards the tax avoidance. However, the political connections variable proved to play a major role as the independent variable, not the moderation variable, such as it affects positively towards the tax avoidance. Different results are found when using the ETR as proxy of the tax avoidance, CSR is proven to have positive effect towards the tax avoidance.. This obvious phenomenon indicates that the level of CSR disclosure committed by companies in Indonesia are deliberately used as a tool of management strategy to reduce the risks of damage to legitimacy and reputation inflicted upon the tax avoidance practices. Nonetheless, the political connections variable is not proven to be influential as neither the dependent variable nor the moderation variable.Â
This study focuses on how to determine secondary plants at smallholdings oil palm plantation at Langkat regency, North Sumatra province of Indonesia. This research is motivated by the fact that there is a change of land use in Langkat, from paddy field to oil palm plantation. The situation has caused job loss in the agriculture sector. In the oil palm plantation, however, there is empty space in the beginning of the planting period due to the nature of oil palm plantation itself. The space can be used for secondary plants (such as horticulture plants), which have competitive prices and high productivities. We use linear programming model to formulate the problem of selecting horticulture plants to cultivate in smallholdings oil palm plantation. The model is solved using MS Excel Solver, and the results show that cayenne pepper (cabai rawit) and long bean (kacang panjang) are selected as the optimum secondary plants to plant. Key words: Cultivation planning, linear programming, land diversification, oil palm plantation
This research aims to propose a design of review program on audit of government’s financial statement conducted by Public Accountant for The Comptroller of Supreme Audit Board. This is a qualitative research with descriptive analysis. We have interviewed the staff and manager of the Comptroller to perceive the existing engagement plan process. We also analyze the data used in the engagement plan process. The result shows that in preparing the engagement plan, The Comptroller has not used a risk-based approach. They have not identified the key risk of the audit process reviewed. Therefore, we propose a risk-based approach in designing the review program. We facilitate to arrange a risk assessment related to the quality assurance of audit process of government’s financial statements conducted by Public Accountant on behalf of Supreme Audit Board. We further determine audit objective, audit scope, audit criteria, and audit procedures based on the risk assessment. This research produce a risk-based review program in the midst of limited resources owned by Supreme Audit Board’s Comptroller.
The purpose of this research is to perform identification process along with analysis of the external environment and internal capabilities of the company and the assessment of the company’s vision and mission in the process of designing balanced scorecard. Balanced scorecard designed to improve the effectiveness of the implementation of corporate strategy. Balanced scorecard served as company’s strategic management system to communicate and oversees the execution of corporate strategy. The cascading and alignment process on balanced scorecard is expected to create and strategy implementation and communication in each business unit. This research expected to be a reference for companies and others about the practice of cascading and alignment strategy by using the concept of balanced scorecard.   Keywords: Balances Scorecard, Cascading, Strategic Alignment, Sistem Manajemen Strategis, KPI
This study purpose is to investigate the determinants of consumer switchover intention with the mediating role of forgiveness. Brand love, agreeableness, and service failure severity are proposed as factors that influencing switchover intention. Brand love context apply theory of planned behavior factors such as attitude, subjective norm, propensity to anthropomorphize, and affordability. Additionally, this study examines the influence of involvement with the brand on the proposed relationship. A survey (N = 265) is used to test the research framework in context ride-hailing service industry with the help of purposive and snowball sample. Confirmatory factor analysis and multi-group analysis in structural equation modeling techniques assessed the proposed model. Results show that the proposed model gives valuable insight to switchover intention, where forgiveness mediates the relationship between brand love, agreeableness, service failure severity and switchover intention. Attitude and propensity to anthropomorphize are the factors that significant influences on brand love. Brand love and service failure severity have significant impacts on forgiveness. On the other hand, brand love, agreeableness, and service failure severity have significant impacts on switchover intention when mediated by forgiveness.
The social health benefits program run by Indonesian government (BPJS) has been implemented nation-wide. Even the national and provincial budget on health has been raised to ensure the health coverage across nation. Still, data shows that not all people has already registered to be the beneficiary of any health insurance, whether it’s the BPJS or any kind of public or private health benefit. This study examines the determinants associated with health insurance ownership among people, and further, among the informal workers only, since most formal workers usually been given health benefit. Data came from the fifth wave of Indonesian Life Family Survey of 2014, a nationally representative survey. Descriptive statistics and bivariable logistics regression were used to identify the determinants of health insurance ownership. We found that only income is significant in determining the ownership among informal sectors, while chronic condition, smoking behavior, risk preference, and education are only significant in the general sample.
Purpose- The study aims to construct a model of indebtedness using behavioral and demographic factors. Design/methodology/approach- Exploratory method is used through Partial Least Square (SmartPLS) technique from 320 respondents in Kuala Lumpur, Malaysia. A self-administered questionnaires are addressed by demographic and behavioral factors. Findings- Results reveal that four of the six hypotheses are confirmed. Among them, risk perception has a highly significant relationship with materialism and emotion, while, indebtedness attributed to emotion and materialism. The findings also indicate that there are significant differences for indebtedness and behavioral factors as a function of gender, marital status, age, income, and dependent on credit card and loan. Originality/value- The results may be useful in assisting the various economic players to design better models for credit offerings and addressing the credit problem in the long run.
This paper aims to examine the determinants of Islamic Social Reporting (ISR) disclosure level and examine whether legal origin affects ISR disclosure level.  This study examines samples of Islamic banks in Indonesia and Malaysia during 2013-2015 using regression analysis. The result shows that bank’s size and bank’s age positively affect ISR disclosure level. Profitability negatively affects ISR disclosure level while the number of Sharia Supervisory Board (SSB) did not affect ISR disclosure level. Legal origin affects ISR disclosure. Banks in common law country have higher disclosure level than banks in civil law country. Keyword: Islamic social reporting, disclosure, determinants, legal origin, common law, civil law
This paper examines the determinants of Islamic Social Responsibility (ISR) disclosure in Islamic Bank. Using a comprehensive ISR index based on AAOIFI, comprising 72 item disclosure, we content-analyse the annual report of 52 Islamic banks from 13 countries spanning 2014-2016. OLS Regression analysis was used to test the impact of three main aspect which is Internationality, Islamic Corporate Governance, and Socio-Political context as a driver of ISR disclosure. The paper find that the level of ISR disclosure across the country varies significantly. However, ISR disclosure by Islamic Bank is still very low (44%). From the internationality aspect, we found that the proportion of foreign ownership and the status of the multinational Islamic banks influenced the level of ISR disclosure, but we did not find that the CEO’s overseas experience affected the level of disclosure. Overall, we find that the aspect of Islamic Corporate Governance and Socio-Political context are the main determinant of ISR disclosure by Islamic Bank
Purpose – The purpose of this paper is to apply the Individual Development Plan (IDP) that had been created by the earlier researcher in the same company (Isra Presisi Indonesia), and to conduct a training plan for the employees based on the IDP result. Design/methodology/approach – Business coaching methods, through structured interviews, observation, and the IDP application, was conducted in Isra in Cikarang, to help solve the company’s gap in the employee development processes. The results from the structured interviews were analyzed to know the gap between the ideal and real condition of the company. The results were also used to improve the IDP form to suit the company better. Findings – The findings show that the application of IDP in Isra is effective to help the company to develop the Production Department employees’ competency and performance in the field through training. Through the IDP results, the company can plan a better training that is suitable for the employees’ competencies needs. Research limitations/implications – The limitation of this paper is that the IDP was only applied for Isra’s Production Department employees only. This is due to the fact that majority of the employees in the company (more than 50%) are working in that particular department. Originality/value – The paper adds to the literature of employee development process in Small-Medium Enterprises (SMEs) in Indonesia by directly using and applying the concept of IDP in the company. Keywords Individual Development Plan (IDP), employee development, competency, performance Paper type Research paper
This research aimed to develop the framework of fraud risk control policy, particularly in public sector organizations. This research used qualitative method to analyze primary data obtained from interviews and secondary data obtained from literature study. In doing so, this research combines three fraud risk control policy concepts: fraud risk management by KPMG; fraud risk control plan by BPKP; and Global Ethics & Integrity Benchmark. Fraud risk control policy, currently used by the Ministry of Finance of the Republic of Indonesia, is also analyzed. The result of this research is a comprehensive concept of Fraud Risk Control Policy that is expected to become a reference for public sector organizations for creating a more comprehensive fraud control policy, especially on fraud prevention, detection and response policies.
This study examines the opportunistic behavior of the Head of Local Government (LG) on the discretionary fund budget ahead of the 2017 Regional Election. The total sample of 106 LG years (53 regencies/municipalities during 2015-2016) was selected to be tested. By using the statistical analysis technique of two paired sample t-test and two independent sample t-test, the result shows that discretionary fund budget proportion increase at the near of 2017 Regional Election. However, there is no difference of discretionary fund budget proportion between incumbent and non-incumbent region. By examining Pooled Least Square (PLS) model, the result also shows that re-election only have positive significant effect on proportion grant expenditure budget. This means that the proportion of grant expenditures will be even greater when the incumbent wants to run again in the 2017 Election. From the logistic regression test it is found that only grant budget proportionhas a positive effect on the discovery of audit findings related to the discretionary fund. That is, the likelihood of audit findings related to grant and social assistance expenditures will be greater as the proportion of grant expenditures increases. The implications of this research are: (1) strengthen KPK’s assumption that there is a shift in the trend of using social assistance to grant fund (2) the regulation related to grant expenditure and social assistance has not been effective enough to minimize misuse of these funds.
Many factors are related to fertility intention, such as personality psychologists and social demography. This research examined to explore the effect of personality traits on fertility intention in Indonesia. In this study, fertility intention is defined as the intention to add another child or not by ever-married women aged 15-49 years old in 2014. This study used Indonesian Family Life Survey 2014. Using logistic binary regression to estimated the model, the results showed that personality traits had a significant effect on fertility intention. Extraversion and conscientiousness were associated with lower odds of intending to add children. While agreeableness and openness were associated with higher odds of intending to add children.
This paper aims to analyse the impact of married couples’ educational attainments on the working hour’s allocation among themselves in the household. This study contributes to the literature on women’s participation in employment, especially among married women, to see whether the traditional norms about gender roles in marriage still continue to shape the employment participation among married women in Indonesia despite of increasing women’s human capital through education. This study utilizes the Indonesian National Socioeconomic Survey (SUSENAS) 2016 and estimates the results using the multinomial logistic model. Our results show an evidence that, compared to low-educated couples, couples with more educated wives have a higher probability of having the wife works longer than the husband. However, this result is not as significant as the probability of the wife works longer hours than the husband when both husband and wife are highly educated and when the wife is less educated than the husband. Thus, it seems that it is not the education level of the wife per se that affects her probability to work longer, but it is the education level of her husband that may play a bigger role. Moreover, the traditional norms of a family notion also seems to still play a significant role in married women’s employment, particularly in regard to the number of children under-five and living in the rural area.
This study aims to analyze family role (ownership and management) in using organizational slack resources in corporate social responsibility disclosure. This study uses GRI G4 Guidelines to measure corporate social responsibility disclosure. This study uses panel regression random effect model in STATA 14. By stressing on manufacturing companies listed in Indonesian Stock Exchange from 2014-2016, this study finds that in family directed companies, family owner uses unabsorbed slack resources to make its corporate social responsibility disclosure lower than others and in nonfamily directed companies, family owner uses unabsorbed slack resources to make corporate social responsibility disclosure higher than others. This study shows that family director’s attitude towards social responsibility directs family owner to use unabsorbed slack resources on corporate social responsibility disclosure.
This research is aimed to serve as an exploratory research on the impact of IPO on corporate governance practices. Drawn from a content analysis using the ASEAN Corporate Governance Scorecard of an Indonesia Islamic Bank as a case study, the findings show significant changes in the governance score of the bank. The changes mainly come from the aspect of the responsibilities of the board and disclosure and transparency. The increasing voluntary disclosure can be explained by the agency theory that the bank is now facing higher agency problem after going public, thus more information is disclosed to reduce the information asymmetry. Even though generalizability is not the main objective of this study, the findings can provide evidence on how a company responds to a greater pressure from stakeholders, especially the shareholders and investors, after an IPO decision. Keywords: IPO, corporate governance, disclosure, Islamic bank
This paper will  analyze the determinant of financial crisis, which involve the exchange rate, banking and debt crisis, in 6 ASIAN countries, using Fixed Effect Panel Logit Model. The results show that export growth, foreign exchange reserves and the ratio of M2 to foreign reserves have the significant impact toward exchange rates crisis.    Export growth has a negative impact on crisis, where the decline in exports will reduce foreign exchange reserves,  so resulting in increased exchange rate pressure. Indonesia suffered the most severe crisis was followed by Thailand and Korea.  While in the banking crisis, loans, money market rate, and riel interest rates have a positive relationship with the banking crisis, and Thailand performing the deepest. Three factors affecting the debt crisis are the debt rescheduling that indicates the financial fragility of a country to meet their debt obligations,  the growth of GDP per capita, and the growth of private savings. The contribution of this paper is to identifying what variables from the external sector, financial sector and the real sector affecting  exchange rate crisis, banking and debt crisis, so the information can be used as an early warning system  of the financial crisis.
The purpose of this study is to investigate the determinants of earnings quality for banks in Egypt over the period 2007-2013. Multiple regression analysis is used to test the relationship between the earnings quality as a dependent variable and certain independent variables. Results indicate that the variables intellectual capital performance; accounting conservatism; barriers to entry; bank size and bank age each have a significant impact on earnings quality for banks in Egypt. The study might help the banking and accounting Regulators in addressing the factors affecting earnings quality to take actions towards this issue. This study adds to the literature on the determinants of earnings quality in banks. In particular, it provides evidence that intellectual capital performance and accounting conservatism influence earnings quality in the Egyptian banking industry.
ABSTRACT This research is designed for helping e-commerce company for making decision related their mid-term planning for new product expansion either related with existing watch product or other products that might easily distributed by packed well and sends by expedition company. This research helps company’s decision making process by running a cost and benefit analysis for electronic products under two conditions, either selling electronic product by using company current existing e-commerce system which connected with their previous watch product or selling electronic product by using company brand new e-commerce system which completely separated from their previous watch product. This research use an holding company and their e-commerce website named as its sample and the method use in this research is cost and benefit analysis such as present value method, net cost benefit ratio, and return on investment. From this research, the company might make a better decision which one either selling electronic product by using company current existing e-commerce system which connected with their previous watch product or selling electronic product by using company brand new e-commerce system which completely separated from their previous watch product that is more profitable. From this research the company also might make a better decision about how they should expanse their other new product for facing business challenges in the global economy and disruptive innovation phenomena. Type of Paper: Case Study Keywords: cost and benefit analysis, e-commerce system, electronic products, disruptive innovation, business challenges, global economy.
This research aims to estimate the extent of the effect of exemption and/or restitution of import duty, Value Added Taxes (PPN) and Sales Tax on Luxury Goods (PPnBM) through the Ease on Import for Export Destination (KITE) policy on export value of KITE facility recipients in Indonesia. Furthermore, the research analyses the influence of the Real Effective Exchange Rate (REER), the world’s real GDP and the crisis of 2008-2009 to the export value of the company receiving KITE facilities. This study uses quarterly data from 2007 to 2nd quarter of 2017 conducted on two hundred and fourty eight KITE facility receivers throughout Indonesia.There was a change of KITE policy during the period of the research, so that the evaluation of KITE policy which encouraged export increase was also conducted. Besides, it also investigates how the effect of KITE facility to export value from the top ten export commodities with KITE facility in Indonesia. The result shows that KITE facility has significant effect on export value with elasticity of 0.48. This means that the increased provision of KITE facilities will encourage the productivity of the company because it can suppress the price of production to increase the competitiveness of domestic products in the international market or in other words can increase the value of exports.Keywords:KITE facility, import of raw material, export
AbstractWorking capital management and financial aspects are important in increasing value of a firm. By adjusting the leverage level, profitability/asset utilization, and growth of the company will effect the value of a firm. The study was conducted on 167 non-financial companies listed in Indonesia Stock Exchange in the period 2007 to 2016 using panel data and analyzed using linear model regression adding firm size as control. The results show working capital represented by net trade cycle have significant negative relationship to firm value. Meanwhile the financial aspects shows a significant positive relationship of leverage, and profitability to firm value, meanwhile sales growth doesn’t have significant effect to firm value.Keywords Working Capital, Financial Aspects, Firm Value
This study aims to examine the efficiency performance of Indonesian private health insurance due to the application of BPJS regulation in 2014. This study compares the level of efficiency using Data Envelopment Analysis (DEA) output oriented. This study uses financial statements from 18 private insurance firms in 2009 to 2016.Result of this study show that there is no significant different of firms’ efficiency before and after the application of BPJS regulation. In addition, we find that the efficiency of the joint venture health insurance companies decreased, while local health insurance efficiency increased during the observation periods. This is due to a significant decline in investment returns of the joint venture health insurance companies in 2015. The results of this study are in accordance with the results of Cummins et al. (2016), where the efficiency improvements only occur in small companies.Keywords : DEA, Efficiency, Universal Insurance, Comparative analysis. Â
The purpose of the study is to analyze the effect of e-government implementation on corruption perception level in Asia Pacific developing countries. The presence of e-government, as a path for increased transparency in good public governance, is expected to reduce corruption in Asia Pacific developing countries. E-government in this study is measured by E-Government Development Index (EGDI) composed by United Nations. The sample consists of 23 countries with 109 observations, covering the period from year 2010-2015. The result reveals that e-government has negative effect on corruption when e-government implementation level is high. Using three sub-components of EGDI, it found that the telecommunication infrastructure index has negative effect on corruption. The result is clearly important to bring awareness to developing countries in Asia Pacific region to move forward their e-government’s implementation and telecommunication infrastructure to the next level as one of the effective anti-corruption strategies.
The purpose of this study is to address the problem arising in PT X, a cleaning service company, that the target profit set at 30% of sales cannot be achieved until third quarter of 2017 and inaccurate allocation of product costs. The analysis shows that, target profit cannot be achieved due to incapability of the company and different goals between management and marketing division. To improve budegting accuracy, it is recommended that the company could apply Activity Based Budgeting (ABB) by applying Time Drive Driven Activity Based Costing. Through this method, it was found out that it reflects the accurate costing incurred in  the company.
The real situation of construction company PT XYZ based on the internal audit report shows that there are some unusual transactions related to cash disbursement cycle. This indicates that the company needs an adequate Internal Control System to provide assurance in cash disbursement transactions so that reports on cash disbursements can be fairly presented. Furthermore, if internal control is properly designed and implemented, it can prevent and detect fraud which may harm the company. This research aims to evaluate and propose improvement of internal control system over the cash disbursement cycle of PT XYZ by using the principles of COSO framework 2013. This research is a case study research using descriptive qualitative approach by observing the object of research and interviewing to the senior personnel of PT XYZ. The results show that there are still some weaknesses in the internal control system over cash disbursement cycle of the company. In addition, this research also conducts self control assessment and fraud analysis to determine the appropriate and effective internal control in the cash disbursement cycle. Keywords: Fraud; Internal control system; cash disbursementÂ
In 2015, Indonesia began to implementing XBRL for the financial reporting format. Based on Technology Organization Environment (TOE) model and signalling theory, this study examines the factors that determine early adopters in the early phase (2015 and 2016) of XBRL in Indonesia. Furthermore, this study examines the benefits of applying XBRL to the value relevance of earnings. The sample of this study is 360 firms listed on the Indonesia Stock Exchange. We find that in the early phase there were 298 firms using XBRL from the total sample and by 2016 it had decreased to 133 firms. By using logistic regression we find that firms size and profitability are firms financial characteristics that the determines of XBRL early adopters. Then, the composition of financial reporting expert is the board team factor of caharacteristics that the determines of XBRL early adopters. We also find that there is no effect of XBRL adoption in value relevance of earnings. Type of Paper: Empirical Research Keywords: XBRL adoption; determinants; value relevance; firm characteristics; board characteristics
This research aims to investigate the effect of external tournament incentives on firm performance. This study uses 195 observations from state owned enterprises in Indonesia for the period between 2012 to 2016. This study uses Generalized Least Square method. This study finds that external tournament incentives effects significantly to firm performance.
ABSTRACT Preparation and utilization of financial statements that are part of the financial aspects that can help small medium enterprise (SMEs) in developing the business. Accounting information contained in the financial statements can be used for management decision making, reducing agency costs and as information for creditors (Allee and Yohn 2009; Cassar 2009). In May 2009 the Financial Accounting Standards Board has issued the Financial Accounting Standards of Entities without Public Accountability (SAK ETAP), effective on January 1, 2011. Narsa et al (2012) states that several obstacles in the application of SAK ETAP are that SMEs do not have a good and orderly transaction record and do not understand the form of financial transaction records most SMEs also lack understanding of SAK ETAP this is due to the lack of socialization and information they obtain (Rudiantoro and Siregar, 2012). This study aims to determine the relationship between the quality of financial statements and sak etap on the amount of credit received by SMEs. This research is a quantitative research, using primary data, collecting data using questionnaires distributed to 100 respondents online and offline located in Jakarta, West Java and Bali, analyzed data using multiple linear regression. The results of this study show that the quality of financial statements affect the amount of credit obtained by SMEs which means that the more qualified financial statements the amount of credit that can be obtained greater than the companies that do not have the financial statements that are less qualified. This study proves that the quality of SME financial statements to be considered external parties in making decisions, as evidenced by the influence of the quality of financial statements on the amount of credit received by SMEs. Information or socialization, educational background has a positive and significant influence on the entrepreneur’s understanding of SAK ETAP. Type of Paper: Empirical Keywords: Financial Reporting Quality, SAK ETAP, SMEs
This study examines the effect of firm maturity to corporate social responsibility (CSR), using slack resources and gender composition as the moderating variables. Based on the stakeholder theory and legitimacy theory, this study develops hypotheses. Using 53 Indonesian firms, this study finds that firm maturity has a positive and significant association to CSR disclosure, while slack resources and gender composition has not moderate the positive effect of firm maturity on CSR disclosure. Type of Paper: Empirical Study Keywords: Corporate Social Responsibility, Firm Maturity, Slack Resources, Gender Composition
Democracy in the context of regional autonomy which is expected to happen, precisely placing the oligarchy of power in the realm of local politics. Regional autonomy not just make span of government control closer to society, but also make corruption decentralized. This research tries to find out how the corruption influence economic growth in Indonesia. Using the fixed effect panel data for 492 districts/cities in Indonesia (2009-2015), this study proves that corruption in Indonesia includes grease the wheels hypothesis with a positive and significant impact on economic growth.   Keywords: Corruption, Economic Growth, Grease the Wheels Hypothesis, Panel Data, Indonesia.
Brand has a role to help consumer in developing their self-identity (Escalas and Bettman, 2003) so the consumer selects particular brand far beyond its functional benefit (McDonald and Wilson, 2011). Schau and Gilly (2003) found that social networks allow consumer to show their “ideal self”. This study aims to analysis the effect of self-expressive brands on Facebook towards brand love, brand advocacy word of mouth, and brand advocacy acceptance. Samples in this study are Facebook user who had already given their like, comment and share for a particular brand within six months. The data was processed by using Structural Equation Modeling (SEM). The result of this study found that both self-expressive brands (inner self) and self-expressive brands (social self) have positive effect to brand love. Brand love has positive effect to brand advocacy word of mouth and brand advocacy acceptance. This study also found that self-expressive brands (inner self) has positive effect to brand advocacy acceptance, but it doesn’t have effect to brand advocacy word of mouth. On the other hand, self-expressive brands (social self) has positive effect to brand advocacy word of mouth, nevertheless it doesn’t have effect to brand advocacy acceptance.
PT. Jabodetabek Commuter Line continuous to push passengers of Jabodetabek train (KRL passengers) who still use Tiket Harian Berjaminan (THB) to switch to Multitrip Card (KMT) which is more practical and efficient. However, in 2016, there are still 42% of KRL passengers who use THB. It is hypothezied that to obtain KMT, passengers must purchase it at a relatively expensive price, which is IDR 50.000 (KMT price is IDR 20.000, and the balance of the card is IDR 30.000). In addition, the provision of settling minimum balance in the KMT of IDR 13.000, isalsoconsider as another factor that make passengers seem to be reluctant to use KMT. This study aims to analyze the policies that can encourage KRL passengers using THB to switch toKMT. Two policies (i.e giving KMT for free and discounting KMT price by 50%) have been conducted using experimental economics study of 100 KRL passengers at Bogor Station. The empirical results show that the policy of discounting KMT prices by 50% and giving the KMT card for free will encourage the KRL passengers to use KMT effectively. However, giving KMT card for free will make passengers disrespect the KMT.
This research aims to investigate the impact of International Financial Reporting Standards (IFRS) adoption and corporate governance mechanisms on investment efficiency. Further, this research also aims to investigate the impact of the interaction between IFRS adoption and corporate governance mechanisms on investment efficiency. This study uses a sample of 1,588 firm-years of data for manufacturing companies listed in the Association of South East Asian Nation (ASEAN) countries (Indonesia, Malaysia, Singapore, Thailand and Philippines) during the period of 2010 to 2012. The implementation of international accounting standards in the ASEAN region has developed among ASEAN countries in recent years. This study considers mechanisms of corporate governance at both firm and country level. IFRS adoption is measured using IFRS adoption scoring for each of the countries sampled. The empirical findings show that investment efficiency has been directly influenced by IFRS adoption level and mechanisms of corporate governance. However, the moderating role of IFRS adoption on the level of correlation between mechanisms of corporate governance and investment efficiency has not been proven in this study.   Â
This study aims to analyze the impact of changes in Statement of Financial Accounting Standards Indonesia (PSAK) 24 Employee Benefits (Revised 2013) to equity, other comprehensive income (OCI), and stock returns. This research uses companies listed on Indonesia Stock Exchange (IDX) 2013 – 2016 as samples. Means comparison is used to test whether there is a significant difference of changes in equity before and after the implementation of the standard. The results show the changes in equity  after the application of PSAK 24 Employee Benefits (Revised 2013) is higher than before.  Using data panel regression, this study finds that OCI component from actuarial gains (losses) significantly affects stock return either when it is tested individually or together with other OCI components.
The purpose of this study was to conduct an analysis of risk maturity level increase on risk based internal audit planning in SKK Migas.This research is a qualitative research.The result of the research concludes that in 2014 to 2017 period the risk maturity level in SKK Migas was increased which can be seen on the establishment of risk management policy in 2015 as well as its implementation. On the other hand, the increase of risk maturity level was not followed by audit planning that aligned with fully implementation of risk based internal audit rule, this was because of management focus to improve good corporate governance. Hence, in the future the audit planning has to be implemented by following risk based internal audit.   Keywords: risk management, risk maturity level, audit planning, risk based internal audit.
Purpose of the study is to assess the impact of AIS on the users’ tasks efficiency. The task efficiency is an important construct to measure a system effectiveness. Because an effective system would support users in performing their tasks. The study was conducted using a set of questionnaire distributed to the users of AIS in Badan Keuangan Daerah Pemerintah Kota Depok. The findings led to the conclusion that the current AIS used has significant impact on their tasks efficiency on the typical processes related to budgeting, financial reporting, auditing and financial controlling in the agencies. Keywords: Accounting Information System, Budgeting, Accounting, Reporting, Audit, Controlling.
This study examines the effect of government ownership to firm valuation during global financial crisis. By comparing the impact for firm with government ownership dan non-government ownership. We use Tobin’s Q as the proxy of firm value. Components that can affect firm value are market-to-book ratio, leverage, dan assets. This study finds that government ownership has positive impact after global  financial crisis. While other variable such as industry dummy, market-to-book ratio, debt to equity, total assets dan return assets have different impacts on each period.



The vulnerability of the service industry to fraud incidence, ineffectiveness of internal controls and the occurrence of some cases of fraud to the company, is a major factor that encourages researchers to conduct fraud risk assessment, especially in procurement business processes and service execution. The purpose of this research is to identify potential fraud risks, recommend control of these risks and suggest appropriate anti-fraud strategies for the company, both preventive and detective strategies. The type of research used in this research is qualitative by using case study approach. While the methodology used is single case with single unit analysis. The results of this study conclude that from the total of 23 identified fraud scenarios (17 scenarios from business process procurement and 6 scenarios from service), there are 5 scenarios with the highest residual fraud risk and 3 scenarios at medium level. Based on the results of this assessment, the Researcher provides relevant control recommendations to mitigate such risks. In addition, researchers also recommend a relevant antifraud strategy that can be applied to mitigate the company fraud incident. The recommended preventive strategy is the implementation of fraud risk awareness, code of conduct, tone of the top, implementation of background check, establishing good internal controls and making antifraud procedures. While the recommended detective strategy is the application of whistle blowing system, application of fraud risk indicator and mystery shopping.
This study aims to conduct the fraud risk assessment on the goods purchasing cycle at PT X as one of the strategies to anticipate fraud that threatens the company’s sustainability. Through the Fraud Risk Assessment, management can set priority controls and appropriate prevention strategy for each fraud scheme based on the level of risk. The Fraud Risk Assessment in this study was conducted in accordance with the guidelines in COSO Fraud Risk Management Guide (2017). This study used a qualitative approach with field study data collection techniques. Based on the results of the assessment on the goods purchasing cycle at PT X, the Mark-up Billing Scheme, Kickback Scheme, and Theft of Inventory and Equipment scheme has the highest risk level so that the attention and effort in anticipating those risk must be prioritized by the management. The recommended anti-fraud strategy, which is designed based on the application of two pillars of fraud prevention and detection, can be used by management to minimize the possibility of fraud risk, minimize potential loss, and secure the company’s assets from fraud. Type of Paper: Case Study Keywords: Fraud Risk Assessment; Fraud; Purchasing; SME; Internal Control.
Financial information has weakness that is bias to be as reference of decision making by investor. Non-financial is needed for supporting financial information so that can show company as overall. The study aim for analyzing level of nonfinancial information disclosure and influence of strategy, industry, age, share owned by public to level of nonfinancial information disclosure with control variable size of company. The research also examines whether level of nonfinancial information disclosure have influence against abnormal return with control variable ROE and PBV. The research is quantitative and sample number is 819 company annual reports from period 2014 to 2015 listed on Indonesia Stock Exchange. The research explains that strategy, industry, age, share owned by public, and size of company have influence against level of non-financial information disclosure. The research also find out that level of nonfinancial information disclosure has significantly positive influence against abnormal return. While ROE has insignificantly positive influence against abnormal return. PBV has significantly negative influence against abnormal return.
Health is an important  part of human capital investment. One of the greatest factor on someone’s health is educational attainment. Individuals with longer years of schooling tend to have better adult health  and theoretically, an individual’s health not only affect by their own behavior but also the environment where they lived particularly their marriage partner. Therefore, this study aim to find out is there any association between wife’s education on her partner’s health status and the mechanism behind it. Using data from Indonesia Social and Economic Survey (SUSENAS) 2016, there were 172.939 household meeting with the criteria of this study. To answer the research question, multinomial logistic regression were applied for analysis. The author’s found that in Indonesia, wife’s education significantly associated with partner’s health status, even after controlling with partner’s own education and other variables. The result also show that husband will be more healthy when wife’s more educated.
Information Technology at ABC Company has an important role to support the operational functions of all its subsidiaries. Therefore, information technology needs to be well managed to achieve company goals. In this research, IT governance capability at ABC Company is evaluated by COBIT 5 framework focusing on the pain points encountered at ABC Company. Evaluation result shows that the IT governance capability process at ABC Company has achieved level 2 (managed), indicates that the IT Governance processes have been large to fully perform and managed but most of the process has not yet been established. Recommendation for process improvement focuses on achieving the short and long-term targets based on COBIT 5 activities best practices.
Knowledge-based industries based their business processes on intellectual capital. This study examines the influence of intellectual capital on financial performance and market performance of the company in knowledge-based industry.. The study was conducted in Southeast Asian countries. Intellectual capital is measured using Modified Value Added Intellectual Coefficient (MVAIC). This study used a one-year time lag for MVAIC measurements and performance. Samples were 242 companies. The tests were performed using multiple regression, tested MVAIC and MVAIC component consisting of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE) and Capital Employed Efficiency (CEE). The result of research is intellectual capital (MVAIC) have positive effect to financial performance and market performance. While the components of MVAIC, have different effects, such as HCE have a positive effect on financial performance and market performance. This proves that human capital plays an important role in the company in knowledge based industry. SCE has no effect on financial performance and market performance. RCE has no effect on financial performance and market performance. CEE has a positive effect on financial performance and has no effect on market performance.
The objective of this research is to show how interaction quality between audit committee and internal auditor can influence the internal audit function effectiveness. The interaction between audit committee and internal auditor can be in the form of meetings between audit committee and internal auditor, involvement of audit committee in appointing and dismissing the chief of internal audit unit, and the involvement of audit committee in internal audit program and process development. The quality of this interaction should increase if at least the meetings are more frequent and the involvement of The audit committee to the aforementioned activities are more intense. This research is conducted by interviewing The audit committee members and the chief of internal audit unit in Bank XYZ.  We confirm the result by distributing questionnaires to The audit committee members and internal audit function staff. The findings of this study is that the frequency of meetings between audit committee and internal auditor, audit committee involvement in appointing and dismissing the chief of internal audit unit, and audit committee involvement in internal audit program and process development have some influence on the internal audit function effectiveness.
This study aims to explain the mechanism of procurement of goods / services and identify the weakness of internal control in the procurement of goods / services at XYZ University. This study is limited to control activities on the procurement of goods / services through providers due to time and data constraints, without reducing the meaning and essence of research that has been done. The method used in this research is case study approach on 1 (one) unit of analysis with descriptive analysis through structured interview to 4 respondents who have capability to give information of procurement mechanism of goods / services at XYZ University and then evaluate internal control applied based on result interview with the rules and regulations that apply. The result of the research shows that the General Plan of Procurement (RUP) which has been established by the Rector is still not a foundation in the implementation of the procurement so that it implies that the plan and realization can not be monitored because the realization is not based on the RUP and also result in the high number of direct procurement packages as much as 75% procurement package. Broadly speaking, the mechanism of procurement of goods / services has been running in accordance with the provisions but there are still some weaknesses of internal control, namely: 1) Actual procurement budget is not based on the RUP; 2) direct procurement method still not in accordance with procedure; 3) RUP public information transparency and direct appointment results have not yet been executed.
Sales are a major source of corporate earnings. It becomes an important goal for the company’s operational processes. As one of sale strategies, sales on credit become an option to increase demand for goods to sell. However, it has negative impact on the company’s business if it is not properly managed. This study aims to analyze the sales business process and internal control system embedded on the sales cycle of PT XYZ. The main business activity of company is selling newspaper. The company has the largest assets on the receivables amounted to 50% of the company’s total assets as of 31 December 2016. The company has low rate of collectible receivable with long outstanding receivable for more than 10 years. Other problems faced by the company is operating loss and high sales return. This research is conducted by using qualitative approach and descriptive analysis by analyzing the sales and components of internal control. Data is collected by interviewing the key personnel, doing observation and performing walkthrough documents. The result of this research is the recommendation actions for the improvement of internal control on sales cycle and provide a risk analysis design using risk calculations. This research is expected to enable the firm to take decisive action for the significant risks.   Keyword: Sales, Receivables, Internal Control, Risk
The practice of disclosing both financial and non financial information through company’s website is simply known as Internet Financial Reporting. In 2015, Financial Service Authority (OJK) enacted new rule that mandated every listed companies in Indonesia Stock Exchange to have website and disclose financial information in their website. However, the IFR practice in Indonesia is still inconclusive since it was not customized under a certain standard yet, creating information asymmetry. This study was conducted to provide an empirical evidence of the effects of Internet Financial Reporting (IFR) on information asymmetry in Indonesia. The specific ownership structure in Indonesian companies, shown by the domination of family ownership raise an interesting question whether the family ownership might influence the IFR disclosure level. This study investigates whether internet financial reporting may reduce the information asymmetry and whether family ownership might moderates the negative relations between IFR and information asymmetry. Total of 91 manufacturing companies listed in Indonesia Capital Market in year 2016 were selected as samples. Data was collected from annual report, and Datastream and Eikon database. The results shows internet financial reporting has negative significant effect on information asymmetry. However, the family ownership was not proofed able to moderate the negative relation between IFR and information asymmetry.
The purpose of this study is to analyze the implementation of the anti-fraud strategy and to find out the level of fraud awareness of the employees in PT XYZ, one of the self-regulatory organization in Indonesia. The focus of this study is the implementation of fraud prevention, detection, and response in the company, and analyzing employees’ perceptions on the motivating factors of fraud and implementation of anti-fraud strategy in PT XYZ as part of fraud awareness topic. Findings show that PT XYZ has been implementing the anti-fraud strategy effectively due to the implementation of organizational value and culture in every aspect, as well as the implementation of internal control and good corporate governance practices. Besides that, the implementation of anti-fraud strategy in PT XYZ is executed as an effort to implement good corporate governance. These findings suggested that the company has been operating as predicted by the stewardship theory for the aspect of fraud awareness. However, the method of fraud training in PT XYZ is more focused on the implementation of good corporate governance instead of on explicitly delivering the definition of fraud and ways to control it. Besides that, a method of socialization of organizational value, code of conduct, corporate governance, and regulations have been shifted from conventional socialization method to digital access through Human Capital Information System by the employees themselves.   Keywords: fraud, prevention, detection, response, fraud awareness
Abstract The purpose of this paper is to analysis the gap between current and future production process of new product in PT.DKM and to identify the competency and skills that is needed with purpose to train and develop employees capability in processing new product in PT.DKM. And also to provide understanding to the owner of SMEs about job description and job requirement Business coaching, through structured interviews and analysis, was conducted in PT. DKM to help solve the employee’s gap skill problem/deficiency in the processes of generate new product. The findings show that with the job description and job requirement, will prepare employees in the field of production for new products through trainings and effective to help develop the employees’ competency and performance in the field. The limitation of this paper is that the training was only applied for PT. DKM’s employees in production section only. The paper adds to the literature of job analysis and employee development process in Small-Medium Enterprises (SMEs) in Indonesia by directly using and applying the concept of training in the company. Keyword for this paper are job analysis, job requirement, employee training, competency, performance.
The purpose of this study is to examine the correlation between the local government characteristics and audit opinion of local government financial statement in year 2015. Year 2015 is the first year of accrual basis implementation for all government institutions in Indonesia. This study use local governments with increase in opinion since implementation of accrual basis. The characteristics tested are the size, the level of dependence, type, administrative age, population and support of local government leaders. The test is done quantitatively by using mean difference test and correlation test. Based on the results of the mean difference test, it is found that local government with bigger size, less dependent, longer age, cities type and higher population have obtain better audit opinion. The result of correlation tests is similar which are type; age and the population of local government have positive relationship with audit opinion; while the level of dependence and the background of local government leaders have negative relationship with audit opinion. Interestingly, the size of local government proved to have no relationship with audit opinion.
This study addressed an important issue about infant mortality in Indonesia. This paper aimed to investigate the impact of maternal smoking on infant mortality in Indonesia that was controlled by other maternal factors and socioeconomic variables. Using survival analysis, the results showed that maternal smoking significantly affects infant mortality (p < 0.05). Including control variables, the infant who exposed to maternal smoking has increased the risk of infant mortality by 62,8 percent higher (Hazard Ratio = 1,628) than the infant who unexposed. This study supports health policy initiatives to reduce the number of the smoking person and regulate other policies that related to tobacco.
The existence of small-medium enterprises (SMEs) in Indonesia growing rapidly and reaching up to 57 million SMEs and registered by the government. Those number could be increased due to the availability of micro-financial access for those SMEs. Understanding the behavior of the borrowers would be needed in Indonesia to understanding the risk of default caused by the borrowers. The methods that used for this research was doing some field experimental tests among delinquent and non-delinquent borrowers with a total of 80 number of observations. In the experiment, participants are going to be tested to measure the risk preference, trust preference, and time preference levels. The Study reveals that both risk, trust, and time preference positively affects individual characteristic towards loan repayment behavior to make an individual to be a non-delinquent person.
Many factors allegedly affect government’s financial voluntary disclosure. Some of them are system endorsement and press existence. The objective of this study is to investige the effect of internal control system quality on disclosure in local goverment’s financial report and the moderation effect of press highlight on the relationship between internal control system quality and disclosure. This study also analyses the effect diferences of some local characterictics on such relationship. Using 1,310 firm-year samples of local government in Indonesia during the period 2010–2013, this study applied two step moderated regression analysis method. The empirical findings show that in different size of local government, internal control system quality affects financial disclosure in different direction. However, overall, no evidence that internal control system quality affects financial disclosure. This study’s findings also show that press highlights negatively moderates the relationship between internal control system quality and financial disclosure. Prior studies investigate direct effect of press on disclosure, so this study contributes to the existing literature by providing empirical evidence of moderation effect of press highlight.
This study aims to investigate the effect of local government spending on the performance of local governments. In addition, this study also examines the moderating role of political dynasties and reelection on the relationship between local government spending and performance. By conducting multiple regression with fixed effect approach on 2774 observation during 2010-2015, it is found that local government expenditure has a positive effect on local government performance. In addition, political dynasties and reelection has no moderating effects, but only direct effects on local government performance. In dynastic local governments, the average performance is lower than the non-dynastic local governments. Furthermore, it is found that reelection motive has a positive effect on the local government performance. For the central government, the findings may be used as the input that the phenomenon of political dynasty are extremely harmful to the quality of organization of local government, thus it is necessary to have mechanism to restrict the practice of political dynasty.
This research aims to determine the suitability of IPPF Standard 2400 implementation regarding Communicating Results in Bank X with professional practices in international standards of internal audit. This research used a qualitative method with descriptive design. The results of this research concluded that the implementation of IPPF 2400 was still partially conform and the quality of internal audit assignment related to internal audit report was not performing optimally according to IIA standard. The implementation of the IPPF 2400 still has gaps, especially in the guidelines implemented, QA review process, and the understanding of the applicability of the guidelines to the audit team. This condition causes the quality of internal audit in Bank X did not perform optimally and dd not meet the overall audit standard. Keyword: Quality Review on Internal Audit Report, Quality Assurance and Improvement Progam, IPPF 2400.
This research aimed to know the impact of leadership responsibilites for quality within the firm with other elements of ISQC 1 and give recommendations to improve compliance of quality control standard of Public Accounting Firm X (PAF X) to ISQC 1. Research method used in this research is mixed method through survey and case study. Result of survey was analyzed using SEM to test relationship among elements of ISQC 1. For case study, current quality control standards of PAF X were compared to ISQC 1 for gap analysis. Result of survey imply that leadership responsibilities for quality within firm has positive relationship with compliance to relevant ethical requirements. Compliance to relevant ethical requirements has positive relationship to other elements of ISQC 1 except for human resources. Result of case study approach are recommendations to PAF X to modify quality control’s policies and procedures by adding policies, procedures and attachments for elements of PAF X quality control standard. Modified quality control standards of PAF X should be communicated to every personnel at PAF X. Policies and procedures regarding human resources must be emphasized since compliance with relevant ehical requirements does not encourage compliance to human resources policies and procedures.   Keywords : policies; procedure; control; quality; standard
The current corporate reporting expects to effectively convey companies’ information to the stakeholders regarding value creation for short, medium, and long term. This study aims to investigate the effect of implementation of Integrated Reporting Approach on value relevance of accounting information by observing the relative and incremental value relevance along the periods. The empirical study was conducted using unbalanced pannel data to enhance wide-range of sample. The regression analysis was performed on 3.138 observations from 338 companies which are listed on Johannesburg Stock Exchange (JSE) between 12 periode (6 pre-periods and 6 Post-periods). The financial data was collected from Datastreams Thomson-Reuters. The result of regression shows that accounting informations have value relevance supporting that Integrated Reporting approach has significantly affected on value relevance of accounting information in South African Companies as well. This findings could be a consideration regarding the implementation of IR in many countries either developed or developing countries to adhere with the advanced corporate reporting model to support the sustainability by implementing integrated thinkin and action. Keywords: Integrated Reporting, Value Relevance, Corporate Reporting
This study explore the extent to which System Application and Product (SAP) implementation can satisfy the user in completing their work in term of user perceptions. And the extent to which Theory of Planned Behaviour (TPB) moderates the user satisfactions positive influence on SAP utilization continuously.  The data source of this study were obtained from the survey by distributing questionnaires to SAP users and conducted an interviews of several people who were directly involved either in doing implementation or using SAP. Previous studies of accounting information system related to ERP are still limited to the use of certain types, so the results of study can not be used to distinguish the quality of accounting information systems. However, this study examine ERP with a certain type of product, that is SAP. By doing so, this study is able to investigate the successfulness of implementation SAP. Based on a survey of 67 respondent, result support that the two dimensions of Information System (IS) success, system quality and perceived usefulness have significant effect to user satisfactions. The high quality of SAP will further enhance the user satisfactions of SAP itself and when SAP has benefits for users it will further increase their satisfaction. However, the evidence does not seem to suggest that information quality has an effect to user satisfactions. This may be evidence that SAP release information in the form of financial statements and need to be processed again so that users are less satisfied. TPB explain that the effect of user satisfactions increase the intention to use the system continuously. This study find significant user satisfactions to theirs utilization with and without TPB moderating. Type of Paper: Empirical Keywords: SAP implementation; user satisfactionss; user perceptions; SAP utilization.
The measurement of shareholder value creation has not been accurately and consistently explained. Several studies have been conducted to measure shareholder value creation, both accounting-based and economic-based. However, the results obtained from these studies are confusing and do not have the same results universally. This research is designed by grouping the companies according to the industry. The results of the study show that the appropriate measure in the healthcare industry represented by accounting measurements, meanwhile in the material and real estate industry is represented by economy measurement. In the health industry, the trigger factor is Cash Flow from Operating Activity, but in material and real estate industry the trigger factor is Economic Value Added. In the healthcare industry, management can optimize the company’s operational scheduling and maximize the use of facilities in hospitals and minimize errors caused by healing and patient care activities. In the material industry, management must focus on product quality, corporate profitability and capital management. In the housing industry, management must evaluate projects, manage an effective supply chain system and focus on real estate development planning, sales strategies and an attractive credit strategy.
Purpose – The purpose of this paper is helping PT. Isra Presisi Indonesia devised some strategies to enter new markets – non-automotive markets – through competitor analysis. Design/methodology/approach – Business coaching, gathering competitors’ information through internet and conducting a series of semi-structured interview with the competitors and their customers to know competitors’ strengths and weaknesses. The results from the interviews were analyzed using qualitative descriptive method. Findings – The findings shows that PT. Isra Presisi Indonesia can enter more than one non-automotive market but they have to implement all the strategies that was devised in this paper because the competitors is already too established. Hence, it is going to be a major threat for PT. Isra Presisi Indonesia if the company cannot be in par when entering the new markets. Research limitations/implications – The limitation of this paper is that it can only be used by a B2B company similar to PT. Isra Presisi Indonesia and by no means the objects are the complete list of the competitors. Originality/value – The paper adds to the literature of competitor analysis in Small-Medium Enterprises (SMEs)’s business-to-business in Indonesia. Keywords – Competitor analysis, Small-Medium Enterprises (SME), B2B, non-automotive market, strategies development. Paper Type – Research paper
This research talk about KSO XYZ problems related to the low level of residence sales which cause declining performance of KSO XYZ, in relation to the problems, the purpose of this research is analyzing which business strategy suitable for KSO XYZ to increase their performance. Then, this research analyzes feasibility of business strategy implementation to identify whether in financial scope the project is feasible or not to be executed. This research implement PESTEL theory to analyze external factor which influence business strategy, Five Porter’s Forces theory to identify competition faced by KSO XYZ, Five Generic Competitive Strategies option to identify which strategy suitable for KSO XYZ, and IRR and NPV theory to identify feasibility of the business in financial segment. From the analysis, suitable strategy to be implemented by KSO XYZ is low-cost strategy with IRR 17,9% and NPV Rp12.769 million with 3 years project execution and IRR 16,4% and NPV Rp16.184 million with 5 years project execution. IRR for project in 5 years is lower than project in 3 years because KSO XYZ receives cash flow in a longer time, however NPV is higher because it is affected by the increase of property price. Therefore, this research conclude that the project is feasible to be executed with several advice, which will support an increase of sales, such as change of site plan for home store, change of design for the large type of house, and also restructuring of competent human resource.
This thesis analyzes the influence of Leadership according to Malcolm Baldrige from senior leader in Branch Office can give impact to internal control so it will create healthy bank operation. This research use a quantitative research approach with descriptive design in a form of case study. This research conclude that in internal control component can be explained by culture assessment index of 2,4% while the rest of 97,6% is explained by other variables. For the audit rating component can be explained by the culture assessment index of 1,6% while the rest of 98,4% explained by other variables. Leadership has a positive relationship with audit rating, it means that the better leadership obtained the better audit rating but the relationship between these two variable are not significant. In addition, Leadership has a negative relationship with internal control, where the better leadership it makes internal control decrease. The relationship of these two variables is not significant too. By creating a good risk profile, the Branch Office will establish a good internal control system so that the bank wide risk profile becomes optimal and healthy.
The purpose of this research is to find out the practice of tax avoidance using hybrid mismatch arrangement schemes that is generally used in Indonesia. This research is conducted with qualitative approach, with data collection through library and field research. Field research conducted through in-depth interview with some key informants that represent practitioners, academics, and tax authorities in Indonesia. The results of this research shows that the practice of tax avoidance using hybrid mismatch arrangements in Indonesia generally used debt/equity hybrid (financial instrument) by involving Indonesian corporations as payer. Moreover, hybrid transfer and imported mismatch schemes are also used in Indonesia. Although substitute payment and payment made to a reverse hybrid schemes have not been found, nonetheless these schemes are likely to be used in Indonesia under current regulations and taxation system. Overall the practice of tax avoidance using hybrid mismatch arrangement schemes in Indonesia is still limited.
The interrelationships between children and women employment participation meet their ambiguity in numerous studies, depending on when and where. In the last 20 years, Indonesia women’s employment participation trend line steady increases meanwhile fertility trend likely to remain stagnant. Using the data of 1996, 2006 and 2016 from the National Socio-Economic Survey (Susenas), these changing impacts are observed in working-age women, trying to answer the popular notion that women are increasingly moving out of employment when they have children. Binomial logistic regression was used to measure a child penalty in selected years. This research aims to capture whether there has been any change of phenomenon in the last 20 years on Indonesia women decision to work, especially in relation to parity of child. The result shows that children significantly influence women’s employment decisions in each selected years. Surprisingly, as of 2016 the child penalty was twice more likely (not less) to be working than its original level on 1996 in difference direction.
The conception of sea-highway or tol-laut has received a profound attention from the government as reflected in the National Medium Term Development Plan (RPJMN) 2015-2019. In addition to 25 strategic ports all over the country, five hub ports are being determined: Belawan, Tanjung Priok, Tanjung Perak, Makasar and Bitung, navigated regularly by large freight vessels, from the west to the east and vice versa. Unloaded cargo at the hub ports are then delivered to feeder ports that spread throughout the country. Container throughput is heavily concentrated in the ports of Java such as Tanjung Priok of Jakarta and Tanjung Perak of Surabaya. Although the implementation of sea-highway has not yet been implemented effectively, the changes in the concentration of port throughput   needs to be observed whether there have been a dynamic change in the role the ports. Using Gini Index, the objective of this paper is to explore the changes in the concentration of domestic loading and unloading of cargo in strategic ports over the country, 2005-2015, and the application of spatial Gini model to analyze the concentration of container throughput in the hub ports.
This research aims to investigate the influence of family ownership upon the relationship between aggressive financial and tax reporting. Using cross-country data of public companies listed on the stock exchanges of 10 countries in Asia, this study finds that aggressive financial reporting is associated positively with aggressive tax reporting and is reciprocal in nature, indicating that managers may no longer face a trade off between the two. It is evident that managers have conducted aggressive financial and tax reporting simultaneously for the same reporting period. This aggressive reporting tendency is influenced by the characteristics of the company. Companies controlled by families tend to conduct less simultaneous aggressive financial and tax reporting for the same reporting period than others. These findings prove that the existence of family control in public companies does not encourage managers to conduct simultaneous aggressive financial and tax reporting in the same reporting period.
Studies about divorce have been thoroughly discussed, especially about the impact or the cause of the action. The common studies about the impact of divorce are uniform, while studies about the determinant of divorce are likely to have differences between countries, especially in Indonesia. Altough there are many studies about determinant of divorce, only a few economic studies exist.  We examine the cause of divorce, focusing in the impact of risk aversion and decision whether to divorce or stay married. To implement the model empirically, we use data for married men and women from Indonesian Family Life Survey 2007 and 2014. The risk aversion is elicited from hypothetical gambling questions from Indonesian Family Life Survey 4 from 2007. Maximum Likelihood Estimation is used to estimate the logit model. This study explains several factors that cause divorce in Indonesia, especially the impact of risk aversion on decicion of divorce.  The result is the more risk averse explains the decision to stay married, especially for men.
According to PSAK No. 7 which refers to as the Statement of Financial Accounting Standard in Indonesian context, related party is defined as persons or entities who have some important associations with the reporting entities, hence, could have significant influences accordingly. One of such influences is on the transparency level, such as sugested by previoues studies (El-Diftar, 2016; Belev, 2003; Chakroun and Matoussi, 2012; Nekhili, et al., 2012). This study aimes to investigate whether institutional ownership has effect on transparency level in terms of disclosures of related party transcation. This study introduces two types of related parties which have not been addressed by previous studies, namely: active and passive related party. Generally, transparency regarding related party disclosure is hypothesized to be associated with institutional ownership. Using listed Indonesian companies for the period of 2012 to 2015, this study test the hypothesis usinglinear regression model. The empirical test result shows that institutional ownership has positive associations with disclosures of related party transaction. However, when the aggregate ownership was divided into two categories, the results are different: (i) passive institutional ownership shows no influence on disclosure of related party transaction; while (ii) active institutional ownership shows positive influence on disclosure of related party transaction.
The research aims to analyze the impact of cross border acquisition on post-acquisition performance of the acquirer’s and whether the impact is different when target firm has high level of investor protection or high level of IFRS adoption compared to target firm acquisition with low level of investor protection or low level of IFRS adoption. This study uses 510 companies listed in Asia region that performs acquisition in 2012-2013 as a sample. This study uses several measurement of performance which is return on asset, earnings per share growth, and revenue per share growth. These results indicate that cross border acquisition has a positive impact on post-acquisition performance of the acquirer’s except for return on asset that measures efficiency of asset utilization. Investor protection and IFRS adoption level weakens the impact of cross border acquisition on post-acquisition performance of the acquirer’s. These results indicate that high level of investor protection in target firm require acquirer to comply with strict regulation and lower flexibility to implement their business strategy. While the weaken effect of IFRS adoption on the impact of cross border acquisition on post-acquisition performance implies that acquirer needs time and a high cost to adopt IFRS.
This study aims to examines the effect of lower Effective Tax Rate (ETR) on firm risk. This study also tests whether family firm can reduce the positive effect of lower ETR on firm risk. The sample in this study is 85 firms that listed in Indonesia Stock Exchange 2011-2015. Total observation is 425 firms exclude financial sector, mining and construction firms. The result of this study shows that lower ETR (GAAP ETR and Cash ETR) affects on firm risk measured by stock return volatility. The result is different from study of Guenther et al (2017) who conducted in America with dispersed ownership. Meanwhile, the family firms, those are the majority of firms in Indonesia, has no effect on relation between lower ETR and firm risk.
The purpose of this study is to examine the effect of a modified audit opinion on the debt contract (interest spread, loan size, covenant, collateral, and loan maturity). Samples of this study are credit facilities obtained by listed firms in 2013-2016 with total observations of 660. Results of this study show that in general there is limited effect of modified audit opinion on debt contract. We only find evidence that material uncertainties type of modified audit opinion causes higher interest rates. Modified audit opinion has significant effect on reducing the number of financial covenants in case of inadequacy type opinion only. We do not find any significant effect of modified audit opinion on the number of general covenants. We also only find evidence of the effect of modified audit opinion on loan maturity for going concern opinion type. Modified audit opinion does not affect the possibility of the need collateral in the debt contract. The insignificant results of modified audit opinion on debt contracts maybe due to lenders in Indonesia still use soft information (relationship lending) rather than hard information in the form of audit report.
This study aims to provide empirical evidence about the effect of ownership structure on the tendency of firms in conducting tunneling practices. Tunneling is a form of misappropriation related party transactions that harm minority shareholders. The samples employed are companies listed on the Indonesia Stock Exchange in 2013 to 2015, and disclose related party transactions related to assets and liabilities. This study argues that concentrated family ownership and concentrated government ownership have a positive effect on firm tunneling practices, while concentrated institutional ownership and dispersed ownership has a negative effect. The results find that concentrated family ownership has a significant positive effect on firms’ tunneling practices. Meanwhile, concentrated government ownership, concentrated institutional ownership, and dispersed ownership have negative effect on the firms’ tunneling practices.
This research examines how political connections and agency costs affects investment efficiency. This research also examines how agency costs moderates the relationship between political connections and investment efficiency. Political connections is being measured on the boards (commissioners & directors) level. Agency costs is calculated by using expense ratio which refers to selling, general, and administrative (SGA) expense scaled by total sales. Based on sample from the firms listed on Indonesia Stock Exchange (IDX) during 2014 – 2015, this study uses 542 observations. The results suggest that political connections has negative impact on investment efficiency. In other words, investment efficiency for politically connected firms is lower than non-politically connected firms. This study also finds that agency costs can significantly moderates the impact of political connections to investment efficiency. The existence of agency costs in politically connected firms can strengthen the negative impacts of political connections to investment efficiency.
The study aims to examine the effect of tax rate change on the relationship between aggressive financial reporting and tax aggressiveness. This research using the comprehensive measure of tax aggressiveness which combining Book-Tax Difference (BTD), Abnormal Permanent Difference, Abnormal Book-Tax Difference (BTD), and Composite Measure of Tax Avoidance (CMTA). The data was regressed by Stata using Unbalanced Panel data from all Indonesian Companies except Mining, Construction, Real Estate, Transportation and Financial Companies between year 2008 and 2010. The result showed a positive relationship between tax aggressiveness and aggressive financial reporting. This study can only prove in part the effect of changes in tax rates on the relationship between aggressive financial reporting and tax aggressiveness.
This study aims to examine the effect of managerial ability and environment uncertainty  on tax avoidance. The sample in this study is 89 firms that listed in Indonesia Stock Exchange 2011-2015. The sample are selected using purposive random sampling method. Total Firm-year observations in this study is 445 companies. By using OLS regression, we find that managerial ability has negative and significant relationship between tax avoidance and managerial ability. Our results also show that environment uncertainty is positively related to tax avoidance.
This Paper Aims to Evaluate the tuition fee embedded to the major and cost incurred per student in the major using Activity Based Costing. There are two commons mistake that occur in Student Unit Cost in this Unit of analysis, they are (1) use Student as the Cost object (2) use traditional costing. Those two mistakes result from an inaccurate tuition fee to the student, whether undergraduate, master degree, and doctoral degree, in a University of the unit of analysis. therefore, this study explores the consumption of the resource by one student in each level of education and each major and compare it with current tuition fee. This research use case study as the research approach, mix method as the research method, interview, focus group discussion, archival record, documentation, and observation as research instruments. The mixed method in this research follows concurrent transformative strategy by embedding qualitative and quantitative data. Unit of analysis in this research is multiple embedded units, which compromise of one faculty, three department, and thirteen programs of studies (major). The findings of this study are some major are suffering a condition where cost incurred greater than tuition fee. The other result is based on FTE, this study suggests the minimum number of student per class to achieve a break-even point. The limitation of this study excludes the activity in university level and the unit of analysis do not have any experimental and laboratory activity.
ABSTRACT This study examines the determinants of migration to West Sumatera Province. Employing a modified gravity model and using data from Statistics Indonesia (Gross Regional Domestic Product/GDP, Employment, Human Development Index, the Indonesia Censuses of 2010, and the Intercensal Survey of 2015), this study explores the extent to which macroeconomic variables (GDP per capita, unemployment rate, education attainment) affect migration flows to West Sumatera. The results of this study found that GDP at origin are significant drivers of migration flows, while unemployment rate in West Sumatera are pull factors of migration flows. Not in line with previous studies which found that migration flows was mainly directed toward more developed regions, evidence of the impact of GDP on West Sumatera and the unemployment rate in the area of origin is weak. This has shown that the economic attractiveness of the province of West Sumatera is not a major determinant of the flow of migration. Another factors that influce the flow of migration to West Sumatera are the positive effect of the level of education both in the origin and destination the size of population at origin and destination, and the negative effect of distance. Type of Paper: Case Study Keywords: migration; gravity model; per capita GDP; unemployment rate; West Sumatera
This research investigates the impact of audit firm and audit partner tenure (length of auditor engagement with their client), rotation, specialization, continuing professional education (CPE), and workloads auditor to audit quality with audit committee as a moderating variable. The sample data are the public listed companies in Indonesia from before the rotation regulation period (1999-2001) to after the rotation regulation period (2004-2008). This research shows that there is a quadratic relationship between the audit tenure and the audit quality. Before regulation period, the relationship between the audit partner and the audit quality is concave (going up until 3 years and then going down) but in the post regulation, the relation is convex (going down in the first 2 years and then going up). The audit firm tenure impact is negative at before regulation, but after regulation is convex (going down for 10 years and then going up). After regulation, audit partner rotation improves the audit quality, however audit firms rotation does not affect the audit quality. This research found that specialization positively related to the audit quality, workload and CPE negatively related to the audit quality. This research also examines the audit committee as a moderating variable in the quadratic model but does not find the significant relations except for workload.
This research attempts to find out the impact of corporate social responsibility (CSR) and the board of commissioners as a moderator of aggressive tax avoidance. The research hypothesized that the disclosure of CSR, board of commissioners and commissioners as moderators has a positive effect on aggressive tax avoidance practices. The research uses data from a sample of 417 companies listed on the Indonesia Stock Exchange from 2014-2016. The results reveal that CSR disclosure negatively affect aggressive tax avoidance practices as measured by Current ETR and GAAP ETR. The commissioner variable has a positive impact on aggressive tax avoidance practices, measured by Current ETR and GAAP ETR. The commissioner’s variable as a moderator proved to weaken the negative impact of CSR disclosure.   Keywords: Aggressive tax avoidance, Corporate Social Responsibility, board of commissioner, Current ETR, GAAP ETR
Abstract As a consequence of the Global Value Chains (GVC), exchange rate and its volatility becomes more important in influencing the output of a country. An interesting question that then surfaced was regarding the paradox of exchange rates that arose in the GVC trend. This study tries to fill the research gap from previous studies, which as far as concerned there is no research directly examined the impact of participation of GVC on output in country level and also quite rare to explore the scope of areas that have certain similarities. This study aims to investigate how the relationship of exchange rate and its volatility on output, and also explores the impact of GVC participation on output. We employed panel data which covers five countries in Asia, including Indonesia, Thailand, Japan, South Korea, and Malaysia, with annual data series through 1990-2015. The analytical method used in this study is the econometric approach with System Generalized Method of Moment (SYS-GMM). The result reveals that, first, the exchange rate volatility has a negative relationship to output. Second, the appreciation of exchange rate is found to increase output significantly. Third, the increase of GVC participation is significantly lead to increase output. Therefore, the impact of exchange rate on output depends very much on the GVC pattern as expected.   Type of Paper: Empirical Keywords: Exchange rate; exchange rate volatility; global value chains; output; system generalized method moment
External financing is an activity that needs to be considered by company in order to expand its operation. Previous research shows that debt financing and equity financing, in the form of public ownership, affect companies’ financial reporting quality. The objective of this study is to investigate whether external financing affects companies’ financial reporting quality. Moreover, this study also wants to investigate whether related party transaction affects the relationship between external financing and financial reporting quality. This research employed a panel data with Indonesian non-financial listed companies within the year 2013-2015 as the population. This research employed data from 176 non-financial companies with total observation of 528. This research found a non-significant relationship between debt financing and earnings quality. Meanwhile, equity financing has negative effect on companies’ financial reporting quality. This study found that related party transactions has no significant effect on the relationship between debt financing and financial reporting quality. Related party transactions also has no significant effect on the relationship between equity financing and financial reporting quality.
This study is to examine the impact of supervision on corruption in procurement activities of local governments in Indonesia. Procurement in this study is classified into 2 activities based on the source of expenditure. The procurement using (1) capital expenditure and (2) goods and services expenditure. Thus, this study will also identify which sources of expenditure are affecting corruption. This study also examines the moderation effect of government oversight on the relationship between procurement on corruption. Using panel data analysis for all provinces in Indonesia from 2010 to 2013, we find that Capital Expenditure has a positive impact on corruption case meanwhile Goods and Service Expenditures have an impact on state financial loss. But, this study doesn’t find the impact of government oversight on the relation between procurement and corruption. Keywords: Procurement, expenditure, government oversight, corruption
The informal sector is a employment sector often associated with low levels of income that caused inadequate households meet decent needs and also impact on vulnerability of poverty incidents. In Indonesia, research on the effect of employment sector dynamics associated with changing household poverty status is rare, because research on dynamics requires longitudinal data to see dynamics in employment sector as well as poverty dynamics. Therefore, this study aims to determine how the dynamics of employment sector to household poverty dynamics in Indonesia by using longitudinal data National Socioeconomic Survey data (Susenas) balanced panel in 2011, 2012 and 2011. The result shows that there are about 4.78 percent of the population in Indonesia experiencing chronic poverty (always poor) and 17.88 percent of the population in Indonesia experienced temporary (transient) poverty in that period. This study used panel logit regression model to know the effect of the employment sector especially informal sector on poverty and then proceed with an ordered logit regression model analysis to see the impact of changing in employment sector on poverty dynamics. We found that the employment sector of household head has a statistically significant effect on household poverty status, and then also confirmed by ordered logit regression model that households head who always work in the informal sector have a greater chance of experiencing poverty incidents. So for next stage of the poverty alleviation program currently being undertaken by the government, then the government should also be more focused on informal sector in Indonesia, where around 71 percent of poor household heads work in informal sector through creation of decent employment and business sustainable (decent job creation and sustainable enterprises)
The focus of this study analyzes the impact of pension risk on cost of debt and cost of equity in companies with pension plan assets based on three measurements: value of pension liabilities, the difference between value of pension assets and value of pension liabilities, and the difference between risk of pension assets and risk of pension liabilities. This study uses samples of non financial companies that had been listed in Bursa Efek Indonesia from 2012 until 2014. The result of this study shows that there is no significant impact of pension risk on cost of debt and cost of equity based on all three measurements. It shows that investors and creditors in Indonesian capital maket have not absorbed well any information related to pension risk, so they do not count on such risk in making investment decisions.
This research aims to assess the impact of real earnings management to bond yield spread and also the impact of institutional owners as a moderating variable. This research uses corporate bonds that was issued between 2011 up to 2015. The regression method used is GLS. Real earnings management is measured through Roychowdhurry’s (2006) proxy. Real earnings management doesn’t impact bond yield spreads. However, majority component of real earnings management impact bond yield spread. The components of real earnings management are sales manipulation, overproduction, and discretionary expense cutting. Discretionary expense cutting positively impact bond yield spreads. On the other hand, overproduction negatively impact bond yield spreads. Sales manipulation doesn’t impact earnings management. Institutional ownership is found to moderate the impact of real earnings management to bond yield spreads. An increase in institutional ownership will reduce the impact of real earnings management to bond yield spreads.   Keywords: Real Earnings Management, Bond yield spreads, Institutional Ownership
Since mid-2003, the subsidized electricity tariff enjoyed by households with an installed capacity of 450 VA and 900 VA has not changed. This condition causes the burden of subsidies in the state budget increasingly heavy. This study examines the impact of subsidized electricity tariff increase on subsidized household welfare and redistribution of subsidy allocation. As a case study, this research use Indonesia-National Socio-Economic Survey to estimate household electricity demand for different household groups (i.e., low, middle, and high expenditure). The analysis divided into two stages: first estimating household electricity demand for each household group when prices are fixed; the second measure changes in welfare, inefficiency, and redistribution of subsidy allocations. The empirical studies show that the increase in tariffs causes the welfare of subsidized households to decline. The study also showed inefficiency in the allocation of subsidies to the top 20% group with an installed capacity of 450 VA. In addition, subsidized households in the lowest 40% group which initially only enjoyed 26.26% increased to 34.16% after the tariff increase. On the other hand, the top 20% group, which initially enjoyed the electricity subsidy allocation of 28.74%, decreased to 20.40% after the tariff increase
This study aims to examine the impact of university learning experience and internship learning experience on the internship learning outcomes based on International Education Standard (IES) 3. The university learning experience in this study is reflected in the last GPA score and the experience of participating in the student competition, while the internship learning experience is reflected in the type of work gained during the internship and the level of students’ understanding of the task. Internship learning outcomes in this research is divided into four areas of competence, namely: intellectual, interpersonal and communication, personal, and organizational. There are 127 final students of the Accounting in the Faculty of Economics and Business, Universitas Indonesia participating in this survey. This research uses Structural Equation Modeling method with Partial Least Square (PLS) with the software called SmartPLS 2.0.   The results of this study indicate that the internship program conducted in Accounting students gives the greatest contribution to the ability to work together and work in teams, also commitment to continue learning, but less able to give contribution or benefit to people management and leadership management to change others and work accordingly. In addition, university learning experience has a significant positive influence on interpersonal and communication competence, as well as personal competence, whereas internship learning experience has a significant positive influence on interpersonal and communication competence, as well as organizational competence.
ABSTRACT This study aims to analyze the influence of mother’s working status and other factors on exclusive breastfeeding in Jabodetabek region (District of DKI Jakarta, Bogor, Depok, Bekasi, Tangerang, South Tangerang and Bekasi), due to the low coverage of exclusive breastfeeding in the region. The data used in this study are sourced from Susenas Kor Main Household Notes, Susenas Module Consumption/Food, and Non-Food Expenditure, and Household Income/Receipts March 2016 for Jabodetabek area, using logistic regression. The results of this study indicate that education, working status, and parity (number of children) significantly influence mother’s tendency to exclusively breastfeed, while age, IMD, income, and region/living area have no significant effect on exclusive breastfeeding in the Jabodetabek region.   Type of Paper: Case Study Keywords: Exclusive Breastfeeding, Working status, Age, Education, Parity, IMD, Income, Region of Living.
This study analyzes the management of village funds sourced from APBN (State Budget of Indonesia). The purpose of this study is to analyze the management of Village Funds starting from planning, implementation, administration, reporting and accountability of Village Funds which are then compared with the prevailing regulations in Indonesia. This study uses qualitative research type with case study method. Data were collected using interviews and in-depth analysis of documents. The study analyzes the management of the Village Fund for two budget periods, that is 2015 and 2016. The objects in this study are Candirejo Village, Nganjuk Regency, East Java Province Indonesia which is classified as a developing village. The result of this study is that the management of Village Fund in Candirejo Village still has inconsistency with the prevailing regulations. The planning and budgeting stages of RKPDes (Vilage Government Planning) and APBDes (Village Budget) are carried out far from the deadline in regulation. For the implementation stage, the time and percentage of the Village Fund’s revenue in Candirejo Village is still not in accordance with the prevailing regulations. In the administrative phase, the monthly accountability report is not reported to the Village Head. While at the stage of reporting and accountability there is a discrepancy between the realization of revenue with revenue budget. Semester report differences with accountability reports, makes report information unreliable.
The objective of this study is to analyze the impact of changing in Indonesian Accounting Standards 46 (PSAK 46): Income Tax (Revised 2013) on final tax presentation in financial statements. This study used a construction and real estate companies which listed on the Indonesian Stock Exchange for book period 2014-2016 as the sample. The result shows that there are six classifications of final tax presentation in the company, also the result of average testing of financial ratios consisting of effective tax rate, cash ETR and operating profit margin indicates that the variety of final tax presentations have a significant impact on those three ratios. The implications arising from the diversity of final tax presentations are financial statement is uncomparable.
E-government has been proved to play an important role in improving government services quality by promoting efficiency and effectiveness in service delivery as well as increasing transparency and accountability in public administration which further may contribute to the eradication of corruption in many countries in the world.  This study aims to figure out the potential role of e-government implementation in reducing the corruption level in Southeast Asia (ASEAN) countries using perceived level of Corruption Perception Index, e-government development index, and e-participation index. Empirical findings show that e-government has the potential to eradicate corruption within public service in ASEAN countries, whereas e-participation has positive relation with CPI, yet insignificant. This paper recommends developing countries in Southeast Asia to implement and develop e-government as anti-corruption tool to mitigate corruption which would potentially be benefited in increasing economic growth and reaching better development.
Budget is important tool for evaluating manager’s performance. Unfortunately, it is succeptible for budget slack. For that, managers will provides pessimistic and conservative estimation for income and expenses. This study aims to investigate the effect of pay scheme and ethics level on budget slack creation. Hypotheses were tested using experiment with 2×2 factorial design. Participant of this study is students who have completed managerial accounting course. The main and interaction effects were analysis using General Linear Model Univariate. The results show that pay scheme play a significant role in decreasing budget slack. Participants who scored high on DIT instrument more likely to create budget slack than participant whose low score DIT. This findings also shows that impact of interaction between payment scheme and ethics level on budget slack is significant.
Little has been known about stress experienced by commuter workers in Indonesia, especially in urban city Jakarta and its neighborhood sub-urban areas such as Bogor, Depok, Tangerang, Bekasi (Jabodetabek). On that count, this paper attempts to assess commuter workers risk of being stress related to time to travel across those administrative boundaries. Data from Jabodetabek Commuter Survey 2014 by Indonesia Central Bureau Statistics (BPS) will be analyzed using logistic regression to estimate probability of being stress caused by time needed to get to workplace. Finding shows that an increasing commuting duration influences risk of stress experienced among commuter workers. Tolerance threshold of time commuting on stress also shows different pattern of commuting duration influence commuter workers risk of stress. Understanding this issue will be beneficial to take into account psychological and long term health impact of stress as a cost of commuting while calculating its benefit to maximize individual output.   Keywords: commuter, worker, stress, time, duration, ticking, Jabodetabek, IndonesiaÂ
This study aims to analyze the phenomenon that occurs in PKN STAN on the readiness of PKN STAN in implementing KKNI, SN-DIKTI, and IES 4, the motivation to adopt the learning of professional values, ethics and attitudes, the suitability of its implementation with KKNI, SN-DIKTI, and IES 4 as well as the role of actors in the organization of the learning design process of professional values, ethics and attitudes. PKN STAN is one of the official Universities that organizes accounting education programs and graduates mostly work in government. This research uses case study qualitative approaches and the use of institutional theory in addressing the research problems. This study indicates that PKN STAN’s learning program on professional values, ethics, and attitudes has been in accordance with KKNI and SN-DIKTI, but has not implemented IES 4. In response to convergence of IES 4, PKN STAN  shows normative isomorphism condition and is considered ready to apply standard with the current education system.
On July 2019, Indonesian Government issued Law No. 11 years 2016 about Tax Amnesty. Under this regulation, all taxpayer both individual and corporate has an opportunity to disclose assets and liability that unreported in previous tax periods by paying redemption money. Subsequently, Indonesian Board of Accounting Standard issued Pernyataan Standar Akuntansi Keuangan (PSAK) 70 to set the accounting treatement of tax amnesty asset and liabily. This study aims to examining the value relevance of tax amnesty as an accounting information. We use empirical method with 142 sample of company whose participate on tax amnesty program. We find that tax amnesty information on financial statement has no significant correlation with cummulative abnormal earnings, however tax amnesty information indirectly has negative significant on unexpected earnings. The findings confirm that tax amnesty information has a negative signal to market.
The purpose of this study was to determine the effect of child marriage on subjective wellbeing. Subjective well being in this case includes domestic violence. The study use descriptive analysis and inferential analysis with binary logistic regression analysis. Woman who has 20-24 years old used as independent variable and behavior of domestic violence as dependent variable. The result of this study is that the child marriage has a significant effect on the domestic violence behavior. The government are expected give more attention to delay marriage program for reduce the prevalence of child marriage.
Board of commissioners in the two-tier system board of Indonesian companies has an important oversight role on behalf on the shareholders. The objective of this study is to examine whether the board effectiveness strengthen the positive association between voluntary disclosure and true firm performance. True firm performance is the amount of firm profitability after taking out the discretionary accruals. Hypothesis testing is carried out using fixed effect data panel regression analysis with 312 firm-year observations in manufacturing industry.  The sample is taken from the Indonesian Stock Exchange listed companies within the period of 2012-2014. The result of this study shows that voluntary disclosure has a nonlinear significant effect on true firm performance. This relationship is strengthened for firms with effective board of commisioners.
The increase of zakat receipt by zakat organization in Indonesia in recent years is still very low compared to the potential of zakat receipt nationally. There are various factors that can affect the low absorption of zakat by zakat organization, one of them is the trust of zakat payers to pay zakat through zakat organization. Badan Amil Zakat Nasional (BAZNAS) is one of the zakat organization in Indonesia that has the same problem. To increase public trust to zakat organization, one way that can be pursued is increasing zakat organization accountability through disclosure of information related to the fulfillment of their responsibilities. One easy way in disclosing information is through websites. The research design of this study is a case study. Mixed method is used in this research. This study provides assessment of web-based accountability practice in BAZNAS and suggestions for its improvement. BAZNAS web-based accountability assessment method is done by content analysis of information within BAZNAS website and then score it based on web-based accountability indices of non-profit organization based on previous studies and PSAK 109 for its accounting issues. There is still some information that need to be disclosed in the BAZNAS website to improve its accountability. By increasing the disclosure of necessary information, it is expected that the level of public trust can be improved so that they can change their zakat payment behavior through zakat organization especially BAZNAS.