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PROPOSING ACCOUNTABILITY INDEX FOR INDONESIA’S LOCAL GOVERNMENT
Last modified: 2017-07-01
Abstract
The purpose of the study is to develop comprehensive accountability index for Indonesia’s local government and give evidence on the relationship between accountability index and corruption. We use data from Ministry of Internal Affairs’ local government performance report from 2011-2014 and identify several measures from the report that match with accountability criteria. Principle Component analysis is used to reduce twelve variables into three major component of accountability which are: Administrative Accountability, Report Timeliness and Financial Accountability. From those three components, we develop accountability index that represent comprehensive measurement of local government accountability. The result of multiple regression test shows that higher accountability index is associated with lower corruption. The important implication of the study is that local government can measure their level of accountability by using score of Local Government Performance Report they submit annually. The central government can encourage local government to increase accountability especially administrative and financial accountability as it is proved can reduce corruption. The accountability index proposed in this study can be one of the best alternatives of measuring accountability instead of using single measure.
Keywords
Accountability; Accountability Index; Corruption; Local Government; Principle Component Analysis
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