Accounting standards for semi-autonomous agencies: Experiences and lessons from Indonesia (original) (raw)

The adoption of accrual accounting in government agencies has been so widespread. Following the global trend, the Indonesian administration has implemented governmental accounting standards for its agencies. This study aims to explain accounting standards in the context of agencification, i.e., the use of semiautonomous agencies to deliver public services. The paper explores the formulation and implementation of accounting standards by investigating cases from semi-autonomous agencies in Indonesia. The data were collected through semi-structured interviews with agency officials, policymakers, standards-setters, and experts. The results were analyzed through an inductive-deductive approach. The study shows that while accrual accounting has stimulated fundamental change in agencies' financial reporting, dual accounting standards are considered unnecessary by agency managers, policymakers, and standard-setters. The research also reveals constraints in developing accounting systems in the agencies.