EXPLAINING EXISTING PERFORMANCE OF INDONESIA’S AUDIT BOARD: INFORMAL NETWORKS, CONSTITUTIONAL MAKERS’ DECISION, AND CONSTITUTIONAL REFORM
DOI:
https://doi.org/10.28986/jtaken.v6i1.392Keywords:
Indonesia, state audit board, constitutional maker’s networks, constitutional reformAbstract
This study seeks to explain the process of Audit Board article amendment in the constitutional reform as the source of current BPK’s performance, by answering questions: how much do informal networks influence constitutional maker’s decision and to what extent do the external pressures influence the informal networks on the amendment of Audit Board article? This study used a quantitative method to develop variables of social networks in examining how much informal networks based on ideational informal networks influence constitutional makers’ voting between 1999 and 2001 in six meetings which contained voting out of 39 meetings of the Audit Board article amendment. Illustrating statistically significant results of the influence of ideational informal networks on the constitutional makers’ decisions and the influence of high political effect (president’s preference) and strong party pressure on the ideational informal networks, this study shows that “the progressive liberal bloc” which can enforce constitutional reform – particularly Audit Board article though not full-scale reform – within the “ineffective formal institution” as it happened in transition era, has shown how informality’s outcome is in line with formality’s outcome, so it causes improved performance of Audit Board today. Because the statistical evidence talks to broader topics about the people representative bodies and governance, this study suggests paying more attention to the factors of constitutional makers’ networks, on and off the meetings of constitutional reform.References
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Borgatti, S. P., Mehra, A., Brass, D. J., & Labianca, G. (2009). Network analysis in the social sciences. Science, 323(5916), 892-895. doi: 10.1126/science.1165821
Borocz, J. (2000). Informality rules. East European Politics and Societies, 14(2), 348-380.
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Campbell, J. L. (2004). Ideas, politics, and public policy. Annual Review of Sociology, 28(1), 21-38. doi: 10.1146/annurev.soc.28.110601.141111
Christiansen, T., & Neuhold, C. (2012). International handbook on informal governance. Northampton: Edward Elgar.
Cowton, C. J. (2009). Accounting and the ethics challenge: remembering the professional body. Accounting and Business Research, 39(3), 177-189. doi: 10.1080/00014788.2009.9663359
Downs, A. (1957). An economy theory of democracy. New York: Harper & Row.
Dressel, B. (2011). Strengthening governance through constitutional reform. Philippines: The Governance Brief, Asian Development Bank.
Dressel, B. (2019). The informal dimension of constitutional politics in Asia: insights from the Philippines and Indonesia. in Chen, A. H. Y., & Harding, A., Constitutional courts in Asia: a comparative perspective (pp.60-87). Cambridge: Cambridge University Press.
Dressel, B., & Bunte, M. (2014). Constitutional politics in Southeast Asia: From contestation to constitutionalism?. Contemporary Southeast Asia, 36(1), 1-22. doi: 10.1353/csa.2014.0006
Elster, J. (1993). Constitution-making in Eastern Europe: rebuilding the boat in the open sea. Public Administration: An International Quarterly, 71(2), 169-217. doi: 10.1111/j.1467-9299.1993.tb00972.x
Greenberg, D., Katz, S. N., Oliviero, M. B., & Wheatley, S. C. (1993). Constitutionalism and democracy: Transitions in the contemporary world. Oxford: Oxford University Press.
Hall, P. (1993). Policy paradigms, social learning, and the state: The case of economic policy-making in Britain. Comp. Polit, 25(3), 275-296.
Hall, P., & Taylor, R. C. R., (1996). Political science and the three new institutio-nalism. Political Studies, 39(1), 936-956.
Harun, H., van Peursem, K., & Eggleton, I. (2012). Institutionalization of accrual accounting in the Indonesian public sector. Journal of Accounting and Organizational Change, 8(3), 257-285. doi: 10.1108/18325911211258308.
Helmke, G., & Levitsky, S. (2004). Informal institutions and comparative politics: A research agenda. Perspectives on Politics, 2(4), 725-740. doi: 10.1017/S1537592704040472
Herlambang, S., Leitner, H., Tjung, L. J., Sheppard, E., & Anguelov, D. (2019). Jakarta’s great land transformation: Hybrid neoliberalisation and informality. Urban Studies, 56(4). 627-648. doi: 10.1177/0042098018 756556
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Hindmoor, A., & Taylor, B. (2004). Rational choice. New York: Red Globe Press.
Horowitz, D. L. (2013). Constitutional change and democracy in Indonesia. Cambridge: Cambridge University Press.
Indrayana, D. (2005). Indonesian constitutional reform 1999-2002: an evaluation of constitution-making in transition. (Unpublished doctoral dissertation). Faculty of Law, University of Melbourne, Melbourne, Australia.
Indrayana, D. (2007). Amandemen UUD 1945: Antara mitos dan pembongkaran (Amendment of Constitution 1945: between myths and demolition). Bandung, Indonesia: Mizan.
Ingham, M. C. (2012). Crafting courts in new democracies: Ideology and judicial council reforms in Three Mexican States. Comparative Politics, 44(4), 439-458.
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Jorgensen, T. B., & Sorensen, D. L. (2012). Code of good governance: national or global public values?. Public Integrity, 15(1), 71-96.
Katzenstaein, P. J. (1996). Introduction: alternative perspectives on national security in the culture of national security: norms and identity in world politics. New York: Columbia University Press.
King, B. A. (2004). Empowering the presidency: interests and perceptions in Indonesia’s constitutional reforms, 1999-2002. (Unpublished doctoral dissertation). Graduate School of the Ohio State University, Ohio, USA.
Komalasari, N. (2016). Does the rotation of head of audit office across offices impact audit quality? Study case of the Audit Board of Republic of Indonesia. Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, 2(2), 137-150.
Korpi, W. (1985). Developments in the theory of power and exchange. Sociological Theory, 3(2), 31-45.
Lovett, F. (2006). Rational choice theory and explanation. Rationality and Society, 18(2), 237-272. doi: 10.1177/1043463106060155
McFarlane, C. (2012). Rethinking informality: Politics, crisis, and the city. Planning Theory & Practice, 13(1), 89-108. doi: 10.1080/14649357.2012.649951
Nasution, A. (2008). Reforming the state and local government financial management (perbaikan keuangan negara dan daerah). Jakarta: The State Audit Board.
Organisation for Economic Co-operation and Development (OECD). (2016). Supreme audit institutions and good governance: Oversight, insight, and foresight. Paris: OECD Public Governance Reviews.
Poguntke, T., & Webb, P. (2005). The presidentialization of politics in democratic societies: A framework analysis. Oxford: Oxford University Press.
Pramono, A. J. (2016). Analisis faktor-faktor yang mempengaruhi transformasi kapabilitas organisasi dan peran Badan Pemeriksa Keuangan RI. Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, 2(2), 175-193.
Pramono, A. J., & Hendharto, H. (2018). Asumsi kegiatan strategi untuk roadmap transformasi Badan Pemeriksa Keuangan Republik Indonesia. Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, 4(1), 1-22.
Prawitt, D. F., Smith, J. S., & Wood, D. A. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255-1280. doi: 10.2308/accr.2009.84.4.1255
Riker, W. (1962). Theory of political coalitions. New Haven: Yale University Press.
Sekretariat Negara Republik Indonesia (Sesneg) (State Secretary of Republic of Indonesia). (2009). Kumpulan risalah perubahan Undang-Undang Dasar Negara Republik Indonesia tahun 1945 bidang legislatif (The Minutes of the Meetings of Indonesian Drafters 1999-2002). Jakarta: Sekretariat Negara Republik Indonesia.
Skousen, K. F., Glover, S. M., & Prawitt, D. F. (2005). An introduction to corporate governance and the SEC. Australia: Cengage Learning.
Soedirgo, J. (2018). Informal networks and religious intolerance: How clientelism incentivizes the discrimination of the Ahmadiyah in Indonesia. Citizenship Studies, 22(2). 191-207. doi: 10.1080/13621025.2018.1445490
Sunstein, C. R. (2001). Designing democracy: What constitutions do. Oxford: Oxford University Press.
Tempo. (2019, August 16). Jokowi apresiasi kinerja BPK, pengamat: tak perlu dipuji (Jokowi appreciates BPK’s performance, observer: no need to be praised). Tempo. Retrieved from https://bisnis.tempo.co/read/ 1236651/jokowi-apresiasi-kinerja-bpk-pengamat-tak-perlu-dipuji/full&view=ok.
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The Jakarta Post. (1999). Election 99. The Jakarta Post. Retrieved from http://www.thejakartapost.com:8890/elec99.htm.
The Lima Declaration. (1997). Declaration of strengthening supreme audit institutions. Lima: International Standards of Supreme Audit Institutions.
Thompson, E. C. (1999). Indonesia in transition: the 1999 presidential elections. Washington DC: The National Bureau of Asian Research. Retrieved from http://profile.nus.edu.sg/fass/socect/Thompson%201999%20NBR%20Briefing.pdf.
Wheeler, J. P. (1961). Salient issues of constitutional revision. New York: National Municipal League.
Winters, J. A. (2013). Oligarchy and democracy in Indonesia. Southeast Asia Program Publications at Cornell University, 1(96), 11-33.
Baidhowah, A. R. (2019). Crafting a Weak State Audit Board? Evidence from Indonesia’s Constitutional Reform (1999-2002). (Unpublished master’s thesis). Policy and Governance Program, Crawford School of Public Policy, Australian National University, Canberra, Australia
Barclays Economic Review. (1998). International economy: Asia, second quarter. Barclays Economic Review.
Berenschot, W., & van Klinken, G. (2018). Informality and citizenship: The everyday state in Indonesia. Citizenship Studies, 22(2), 95-111. doi: 10.1080/13621025.2018.1445494
Blair, A. K. (2004). Empowering the presidency: interests and perceptions in Indonesia’s constitutional reforms, 1999-2002. (Unpublished doctoral dissertation). Graduate School of the Ohio State University, Ohio, USA.
Borgatti, S. P., Mehra, A., Brass, D. J., & Labianca, G. (2009). Network analysis in the social sciences. Science, 323(5916), 892-895. doi: 10.1126/science.1165821
Borocz, J. (2000). Informality rules. East European Politics and Societies, 14(2), 348-380.
BPK RI. (2012). The minutes of the meeting of the Indonesian drafters 1999-2001 for BPK article (Badan Pemeriksa Keuangan dalam proses perubahan Undang-Undang Dasar Negara Republik Indonesia tahun 1945). Jakarta: BPK.
Campbell, J. L. (2004). Ideas, politics, and public policy. Annual Review of Sociology, 28(1), 21-38. doi: 10.1146/annurev.soc.28.110601.141111
Christiansen, T., & Neuhold, C. (2012). International handbook on informal governance. Northampton: Edward Elgar.
Cowton, C. J. (2009). Accounting and the ethics challenge: remembering the professional body. Accounting and Business Research, 39(3), 177-189. doi: 10.1080/00014788.2009.9663359
Downs, A. (1957). An economy theory of democracy. New York: Harper & Row.
Dressel, B. (2011). Strengthening governance through constitutional reform. Philippines: The Governance Brief, Asian Development Bank.
Dressel, B. (2019). The informal dimension of constitutional politics in Asia: insights from the Philippines and Indonesia. in Chen, A. H. Y., & Harding, A., Constitutional courts in Asia: a comparative perspective (pp.60-87). Cambridge: Cambridge University Press.
Dressel, B., & Bunte, M. (2014). Constitutional politics in Southeast Asia: From contestation to constitutionalism?. Contemporary Southeast Asia, 36(1), 1-22. doi: 10.1353/csa.2014.0006
Elster, J. (1993). Constitution-making in Eastern Europe: rebuilding the boat in the open sea. Public Administration: An International Quarterly, 71(2), 169-217. doi: 10.1111/j.1467-9299.1993.tb00972.x
Greenberg, D., Katz, S. N., Oliviero, M. B., & Wheatley, S. C. (1993). Constitutionalism and democracy: Transitions in the contemporary world. Oxford: Oxford University Press.
Hall, P. (1993). Policy paradigms, social learning, and the state: The case of economic policy-making in Britain. Comp. Polit, 25(3), 275-296.
Hall, P., & Taylor, R. C. R., (1996). Political science and the three new institutio-nalism. Political Studies, 39(1), 936-956.
Harun, H., van Peursem, K., & Eggleton, I. (2012). Institutionalization of accrual accounting in the Indonesian public sector. Journal of Accounting and Organizational Change, 8(3), 257-285. doi: 10.1108/18325911211258308.
Helmke, G., & Levitsky, S. (2004). Informal institutions and comparative politics: A research agenda. Perspectives on Politics, 2(4), 725-740. doi: 10.1017/S1537592704040472
Herlambang, S., Leitner, H., Tjung, L. J., Sheppard, E., & Anguelov, D. (2019). Jakarta’s great land transformation: Hybrid neoliberalisation and informality. Urban Studies, 56(4). 627-648. doi: 10.1177/0042098018 756556
Hermanson, D. R., & Ritterberg, L. E. (2003). Internal audit and organizational governance. Florida: Institute of Internal Auditors Research Foundation.
Hindmoor, A., & Taylor, B. (2004). Rational choice. New York: Red Globe Press.
Horowitz, D. L. (2013). Constitutional change and democracy in Indonesia. Cambridge: Cambridge University Press.
Indrayana, D. (2005). Indonesian constitutional reform 1999-2002: an evaluation of constitution-making in transition. (Unpublished doctoral dissertation). Faculty of Law, University of Melbourne, Melbourne, Australia.
Indrayana, D. (2007). Amandemen UUD 1945: Antara mitos dan pembongkaran (Amendment of Constitution 1945: between myths and demolition). Bandung, Indonesia: Mizan.
Ingham, M. C. (2012). Crafting courts in new democracies: Ideology and judicial council reforms in Three Mexican States. Comparative Politics, 44(4), 439-458.
International Monetary Fund (IMF). (1999). IMF-supported programs in Indonesia, Korea, and Thailand: a preliminary assessment. Washington DC: International Monetary Fund.
International Standards of Supreme Audit Institutions (INTOSAI). (2019). Towards greater independence – a guidance for supreme audit institutions. Vienna: International Standards of Supreme Audit Institutions.
Jorgensen, T. B., & Sorensen, D. L. (2012). Code of good governance: national or global public values?. Public Integrity, 15(1), 71-96.
Katzenstaein, P. J. (1996). Introduction: alternative perspectives on national security in the culture of national security: norms and identity in world politics. New York: Columbia University Press.
King, B. A. (2004). Empowering the presidency: interests and perceptions in Indonesia’s constitutional reforms, 1999-2002. (Unpublished doctoral dissertation). Graduate School of the Ohio State University, Ohio, USA.
Komalasari, N. (2016). Does the rotation of head of audit office across offices impact audit quality? Study case of the Audit Board of Republic of Indonesia. Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, 2(2), 137-150.
Korpi, W. (1985). Developments in the theory of power and exchange. Sociological Theory, 3(2), 31-45.
Lovett, F. (2006). Rational choice theory and explanation. Rationality and Society, 18(2), 237-272. doi: 10.1177/1043463106060155
McFarlane, C. (2012). Rethinking informality: Politics, crisis, and the city. Planning Theory & Practice, 13(1), 89-108. doi: 10.1080/14649357.2012.649951
Nasution, A. (2008). Reforming the state and local government financial management (perbaikan keuangan negara dan daerah). Jakarta: The State Audit Board.
Organisation for Economic Co-operation and Development (OECD). (2016). Supreme audit institutions and good governance: Oversight, insight, and foresight. Paris: OECD Public Governance Reviews.
Poguntke, T., & Webb, P. (2005). The presidentialization of politics in democratic societies: A framework analysis. Oxford: Oxford University Press.
Pramono, A. J. (2016). Analisis faktor-faktor yang mempengaruhi transformasi kapabilitas organisasi dan peran Badan Pemeriksa Keuangan RI. Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, 2(2), 175-193.
Pramono, A. J., & Hendharto, H. (2018). Asumsi kegiatan strategi untuk roadmap transformasi Badan Pemeriksa Keuangan Republik Indonesia. Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, 4(1), 1-22.
Prawitt, D. F., Smith, J. S., & Wood, D. A. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255-1280. doi: 10.2308/accr.2009.84.4.1255
Riker, W. (1962). Theory of political coalitions. New Haven: Yale University Press.
Sekretariat Negara Republik Indonesia (Sesneg) (State Secretary of Republic of Indonesia). (2009). Kumpulan risalah perubahan Undang-Undang Dasar Negara Republik Indonesia tahun 1945 bidang legislatif (The Minutes of the Meetings of Indonesian Drafters 1999-2002). Jakarta: Sekretariat Negara Republik Indonesia.
Skousen, K. F., Glover, S. M., & Prawitt, D. F. (2005). An introduction to corporate governance and the SEC. Australia: Cengage Learning.
Soedirgo, J. (2018). Informal networks and religious intolerance: How clientelism incentivizes the discrimination of the Ahmadiyah in Indonesia. Citizenship Studies, 22(2). 191-207. doi: 10.1080/13621025.2018.1445490
Sunstein, C. R. (2001). Designing democracy: What constitutions do. Oxford: Oxford University Press.
Tempo. (2019, August 16). Jokowi apresiasi kinerja BPK, pengamat: tak perlu dipuji (Jokowi appreciates BPK’s performance, observer: no need to be praised). Tempo. Retrieved from https://bisnis.tempo.co/read/ 1236651/jokowi-apresiasi-kinerja-bpk-pengamat-tak-perlu-dipuji/full&view=ok.
The Indonesian Constitution. (1945). Retrieved from United Nations Educational, Scientific, and Cultural Organisation http://www.unesco.org/education/edurights/media/docs/b1ba8608010ce0c48966911957392ea8cda405d8.pdf.
The Jakarta Post. (1999). Election 99. The Jakarta Post. Retrieved from http://www.thejakartapost.com:8890/elec99.htm.
The Lima Declaration. (1997). Declaration of strengthening supreme audit institutions. Lima: International Standards of Supreme Audit Institutions.
Thompson, E. C. (1999). Indonesia in transition: the 1999 presidential elections. Washington DC: The National Bureau of Asian Research. Retrieved from http://profile.nus.edu.sg/fass/socect/Thompson%201999%20NBR%20Briefing.pdf.
Wheeler, J. P. (1961). Salient issues of constitutional revision. New York: National Municipal League.
Winters, J. A. (2013). Oligarchy and democracy in Indonesia. Southeast Asia Program Publications at Cornell University, 1(96), 11-33.
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Submitted
2019-11-27
Accepted
2020-05-12
Published
2020-06-28
How to Cite
Baidhowah, A. R. (2020). EXPLAINING EXISTING PERFORMANCE OF INDONESIA’S AUDIT BOARD: INFORMAL NETWORKS, CONSTITUTIONAL MAKERS’ DECISION, AND CONSTITUTIONAL REFORM. Jurnal Tata Kelola Dan Akuntabilitas Keuangan Negara, 6(1), 1–18. https://doi.org/10.28986/jtaken.v6i1.392
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