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Humanities and Social Sciences Letters

June 2020, Volume 8, 2, pp 145-155

Determinants of Transparency in Financial Management on Local Government Websites: Evidence from Indonesia

Nuryani .


Amrie Firmansyah

Nuryani . 1 Amrie Firmansyah 1 ,

  1. Department of Accounting, Polytechnic of State Finance STAN, South Tangerang, Banten, Indonesia. 1

Pages: 145-155

DOI: 10.18488/journal.73.2020.82.145.155

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Article History:

Received: 11 December, 2019
Revised: 31 January, 2020
Accepted: 06 March, 2020
Published: 17 March, 2020


This study aimed to examine the determinants of transparency in financial management on local government websites in Indonesia. The level of transparency was measured at each stage of local government finance: planning, implementation, and reporting and accountability, using internal, local government characteristics, and external, community conditions, factors of influence. The internal factor was represented by local government size, expenditure, and dependence, while community welfare was adopted for the external factor. The study was designed as quantitative research based on a multiple linear regression model. The study sample of 424 observations was selected from the district/city governments in Java that met the criteria of having an official and accessible website, as well as completes financial data from 2013 to 2016. The results suggested that the average level of transparency in financial management on these local government websites over the four-year period was 24.76%. In addition, both the size and expenditure of the selected local governments were positively associated with their transparency levels, while no association was shown with the levels of both dependence and community welfare. The conclusions drawn offer suggestions on how central government can encourage regional financial transparency in their policies and for local governments in increasing their commitment to implementing transparency.
Contribution/ Originality
This study contributes to the current literature on transparency in regional financial management by covering more than one fiscal year—2013 to 2016—and illustrating how local government size and expenditure play a role in increasing the level of transparency.


Financial transparency, Local government size, Local government expenditure, Local government dependency, Community welfare, Local government.



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This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


Both authors contributed equally to the conception and design of the study.

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