Exploring Government Internet Financial Reporting in Indonesia

Government financial reporting as public accountability and transparency is important. Previous research show that almost all local government in Indonesia have their official website, which is active use as presenting news, local potentials, and local government services. Unfortunately, there are still limited local governments which are disclose their financial information as well as budgeting reports and financial statements on their websites. This research aims to explore whether political competition, local asset, local dependency, population density, and information openness award have influenced IFR practice in government in Indonesia. We investigate financial report and budget report as of internet financial reporting (IFR) data of 32 provincial government websites. Indonesia consists of 34 provinces, which are 32 provincial websites consistently accessible and use as sample in this research. The empirical results show that local dependency toward central government and Information Openness Award positively significant influence IFR practices in provincial level in Indonesia. There is no significant influenced of political competition, local asset and population density to IFR in Indonesia Provinces website. Our research contribution is to extend previous research by concerning Information Openness Award as independent variable which influenced to IFR practice in local government. Keywords: internet financial reporting, political competition, local asset, local dependency, population density, information opennes